Latin American Minerals Inc. ("LAT")(TSX VENTURE: LAT) is pleased to announce that it has entered into option agreements to acquire a 70% interest in a gold project in the Paso Yobai gold district in the Oriental Region of Eastern Paraguay. The Paso Yobai Project covers approximately 27,300 ha and consists of two contiguous mining concessions, one owned by Minera Guaira covering 6,700 ha, and the other owned by Minas Paraguay covering 500 ha, plus three (3) exploration concessions owned by Minas Paraguay covering 20,100 ha. There is currently no defined resource on the project.
Mr. Wahl, CEO, noted that "The Paso Yobai Project represents an exciting opportunity in a country that is just starting to open up its mining industry. Currently, the mining concessions that we have optioned are the only two mining concessions in Paraguay. I have met with the Vice Minister of Mines and Energy who advised that the new mining act as currently proposed will eliminate all royalties on mining and provide significant tax incentives to stimulate mining investment in Paraguay."
Minera Guaira: LAT has the exclusive option to acquire a 70% interest in Minera Guaira's mining concession by making annual escalating cash payment totaling US$2.1 million over 3 years (plus issuing 100,000 LAT common shares) and by expending US$500,000 on exploration during the first year. On vesting of the 70% interest a Joint Venture will be formed with LAT as the operator. If any party's JV interest decreases to 15% or less it will automatically convert to a 1% NSR. Currently, the government royalty on the mining concession consists of a 5% NSR. Should the proposed mining law be passed and the government royalty eliminated, Minera Guaira's 1% NSR will automatically increase to a 3% NSR.
Minera Guaira advised that it is currently in small scale production. It extracts soil from a small open pit on the concession and delivers it to a small plant which can process 40 tpd. Minera Guaira reports monthly production ranges of 500g to 2,000g, indicating that the average grade of the soil is in the range of 0.4 to 1.6gpt Au. These figures have not been verified by LAT.
Minas Paraguay: LAT also has the exclusive option to acquire a 70% interest in Minas Paraguay's mining concession and three exploration concessions by making annual escalating cash payments totally US$2.05 million over 3 years (plus issuing LAT common shares with a value of US$50,000) and by making exploration expenditures totaling US$750,000 over 2 years. On vesting of the 70% interest a Joint Venture will be formed with LAT as the operator. If any party's JV interest decreases to 5% or less it will automatically convert to a 5% NPI. Currently, the government royalty on the mining concession consists of a 2.5% NSR. Should the proposed mining law be passed and the government royalty eliminated, Minas Paraguay's 5% NPI will automatically increase to a 10% NPI.
Minas Paraguay advised that it has temporarily suspended production as its plant cannot process hard rock. Minas Paraguay reported production ranges of 2,000g to 3,000g per ton for a period of 18 months of production, indicating that the average grade of the soil is in the range of 0.5 to 1.0 gpt Au. These figures have not been verified by LAT.
Both agreements are subject to a 60 day due diligence period and the approval of the Government of Paraguay, TSX Venture Exchange and Board of Directors of LAT.
The Paso Yobai Gold Project is located in an emerging gold camp approximately 150 km east of Asuncion, the capital of Paraguay. It was discovered in 1996 by a treasure hunter and actively mined only in the last 3 years by crushing, milling and concentrating free gold in the soils and saprolites. There are no geology maps of the region, which is heavily forested. The sub-tropical weather generated 10m to 25m saprolite weathering profile. Regional geology consists of Jurasic sandstones intruded by mafic dykes related to a suite of Cretaceous mafic alkaline rocks that is located 50 km east of the Paso Yobai that was drilled in the 90's by Yamana Resources. The dykes of the alkaline complex extend for several hundred kilometers and vary from a few meters width to tens of meters in width. The extensive nature of the dykes is related to rifts that cut the continent during the initial stages of the opening of the Atlantic Ocean.
In the area of the Project the dykes show intense kaolin-illite-smectite alteration and the wall rock is weakly silicified. Mineralization is found in the contact of the mafic dykes with the sandstones and consists of very fine quartz and minor calcite veins (hair like) intensively oxidized with free gold, marcasite and relict pyrite. Open spacing in the veinlets clearly indicates very high level system. The width of the vein zone varies from 1 m to over 20 m and the strike is 3.7 km in a continuous fashion. Visible gold along the mineralized zone is strikingly common and we encourage the reader to visit our website to see pictures of some interesting gold samples. The gold is present as free gold with low silver content, suggesting supergene enrichment in the saprolite.
Representative grab sampling done by the company has returned up to 10 gpt Au although sampling may not be representative in the presence of coarse visible gold. Other geochemical indicators in the project include high As, P, Ba, Cu and Mn.
It is difficult to establish an analog during this early stage of this emerging gold camp but the close relationship with mafic alkalic rocks, the fluorite and calcite as gangue minerals and the illite-smectite-chalcedony alteration suggests that this is an alkalic-low sulfidation system where the most known deposit is Cripple Creek, CO (6 M Oz).
The proposed exploration program is to consist of a detailed airborne magnetometer and electromagnetic survey carried out over the entire project area, soil geochemical survey and extensive diamond drilling and sampling. The objective of this comprehensive program is to outline a mineral resource within 2 years.
"While the company has sufficient funds to initiate the program it is planning to raise additional funds in the near term to carry out this aggressive exploration program as well as work on our Tendal VMS zinc-silver project in La Rioja, Argentina, and to expand our exploration programs at our La Carolina gold project in San Luis, Argentina, and our Cerro Amarillo gold/copper project in Mendoza, Argentina" reports Mr. Wahl, CEO (P.Eng., P.Geo.).
Dr. Waldo Perez, P.Geo. and Sr. Vice-President of LAT, is the designated Qualified Person for the Project and is responsible for the contents of this news release.
Latin American Minerals Inc. is a mineral exploration company focused on the acquisition and development of exploration opportunities in South America.
This news release contains forward-looking statements, which can be identified by the use of statements that include words such as "could", "potential", "believe", "expect", "anticipate", "intend", "plan", "likely", "will" or other similar words or phrases. These forward-looking statements, including statements regarding the Corporation's beliefs in potential mineralization, are based on current expectations, assumptions and projections about future events and entail various risks and uncertainties that are beyond the Corporation's ability to control or predict. Actual results may materially differ from expectations as more information regarding a property is gathered or if the Corporation's estimates or assumptions prove inaccurate. Factors that may materially affect actual results include, but are not limited to, political, business and economic conditions in Argentina and in jurisdictions where the Corporation conducts business, and risks associated with mineral exploration and production. The Corporation does not intend, and does not assume any obligations, to update forward-looking statements, whether as a result of new information, future events or otherwise. Readers should not place undue reliance on forward-looking statements.
Historic estimates contained herein do not meet the definition of Mineral Resources as contained in National Instrument 43-101 of the Canadian Securities Administrators. Furthermore, neither the Corporation nor the Qualified Person have reviewed any of the reports or exploration results underlying such estimates and accordingly, such estimates (and any assumptions underlying such estimates) have not been independently verified. As a result, there can be no assurance that such historic estimates are reliable, or that such estimates are indicative of any mineralization which would meet the criteria of Mineral Resources as defined in accordance with National Instrument 43-101. Consequently, no reliance should be placed upon these historical estimates. However, the Corporation believes that these historical estimates may be indicative of the potential for mineralization on these properties.
The TSXV has not reviewed and does not accept responsibility for the adequacy or the accuracy of this release.
Contacts: Latin American Minerals Inc. David Wahl (416) 593-9356 Website: www.latinamericanminerals.com
SOURCE: Latin American Minerals Inc.
http://www.latinamericanminerals.com