Montan Mining to acquire Greater Las Huaquillas project
MONTAN MINING Corp. has agreed to acquire a 44.5per-cent-to-100-per-cent interest in a portfolio of mineral concessions that collectively constitute the Greater Las Huaquillas (GLH) project — a highly prospective precious metal and base metal project in northern Peru. The concessions are located to the immediate south of the border with Ecuador, where recent exploration success and corporate activity in the Ecuadorean mining sector, highlights the increasing interest in this historically underexplored region. The GLH project is interpreted by Montan Mining to be located within a key north-south-trending mineralized belt that extends through southern Ecuador into northern Peru.
Based on historical exploration, five mineralized zones, consisting of four mineralization types, including epithermal and porphyry-style mineralization types have been identified at the GLH project. The most advanced of these mineralized zones, the Los Socavones zone, was partially appraised by a previous operator (Sulliden; 1996 to1999).
In 1998, Sulliden (Gariepy and Vachon; 1999) estimated that a 500-metre section of the 2,200-metre-long Los Socavones zone hosts a geological resource of 6.57 million tonnes grading 2.12 grams per tonne gold and 25.2 grams per tonne silver; equivalent to 446,000 ounces of gold and 5.3 million ounces of silver at a one-gram-per-tonne-gold cut-off. The resource was reported to remain open at depth and along strike. This historical resource, based on 10 drill holes and 20 mineralized intercepts, was estimated by Sulliden to a depth of 200 metres and is reported as a historical resource estimate in a National Instrument 43-101 technical report prepared for an unrelated party in 2011. Montan Mining has not conducted any work to establish the relevance and reliability of the historical estimate.
• At completion, Montan Mining will acquire Minera LBJ from Lida.
• Consideration for Montan Mining’s purchase of Minera LBJ SAC will be the issue of 25 million Montan Mining shares and 12.5 million warrants (eight cents; five-year term) to shareholders of Lida.
• The transaction is subject to customary conditions that are typical of transactions of this nature, including Montan Mining shareholder and TSX Venture Exchange approval.
•Upon completion, president and chief executive officer of Lida, Leonard de Melt, an experienced mining executive with extensive South American mining experience, will be invited to join the board of Montan Mining.
Ian Graham, a director and the chief executive officer of Montan Mining, commented: “We are pleased to announce our first material acquisition since the restructure of the company was initiated earlier this year. The Greater Las Huaquillas project provides Montan Mining with the opportunity to systematically appraise a substantial historical resource in northern Peru. We are confident that the historical resource appraisal studies were performed by Sulliden to a very high standard and are optimistic, with further appraisal, we will be able to grow the historical resource base and bring this in line with the standards required to be able to declare a NI 43-101-compliant resource.”
We seek Safe Harbor.
Mike Caswell condensed this news release ([email protected]watch.com).
Anthony B Balic, Ian Graham, Douglas Gregory Hall, Bahay Ozcakmak, Luis F Zapata
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