Darwin Resources Provides Exploration Update
VANCOUVER, Aug. 20, 2012 /CNW/ - Darwin Resources Corp ("Darwin" or "The Company") (TSXV:DAR) (OTCPK:DARWF): Dr. Graham Carman, President & CEO, is pleased to provide an update of the Company's exploration activities in Peru including results of recent work at its new Suriloma gold-silver property located in the La Libertad Department of northern Peru.
Suriloma Gold-Silver Property
Following successful field programs, the Suriloma property, consisting of 1,300 hectares, has rapidly become one of the Company's highest priority exploration areas. Darwin is targeting a large oxide gold - silver deposit at the property, for which initial surface geochemical results are very encouraging. Suriloma has never been drilled, nor systematically sampled to any significant extent, despite being located only 35km from Barrick's Lagunas Norte gold mine (9 Moz gold), and 50km from Rio Alto's La Arena gold mine (4 Moz gold).
Darwin acquired an option on a mineral claim at Suriloma in June 2012, one month after the company listed on TSXV. The Company has an option to earn 100% by making staged cash payments over 3 years for a total US$300,000. A 2% NSR royalty can be acquired for US$500,000. Two adjacent smaller claims are 100% owned by Darwin.
The key mineralized epithermal structure on the Suriloma property, the La Puerta structure, is an oxidised stockwork-breccia zone that is at least 50 metres wide at the La Bosque area, and has now been traced over an east-west strike length of about 2km. Sixty three (63) channel samples along the central 1km-long section of the structure average 1.8 grams per tonne (g/t) gold and 10 g/t silver, with individual samples grading from 0.01 to 11 g/t gold and 0.05 to 165 g/t silver, associated with outcropping quartz stockwork veins and hydrothermal breccia. Mineralization is exposed discontinuously over 200 metres of vertical relief between 3450 to 3650 metres above sea level. Soil cover obscures much of the structure, so the variations in width and continuity of grade will only be ascertained by trenching and drilling. Surface exposures of the stockwork zone are oxidised, with the original sulphide textures now leached out. Channel samples were typically sampled over 1 to 2 metre lengths as continuous samples perpendicular to the dominant E-W vein direction using a hammer and chisel, and are considered representative of the in-situ mineralization sampled and widths quoted approximate true width. Sampling so far has been restricted to surface exposures where there is little or no soil cover. In many cases cut channels are interrupted by deeper weathered zones that have not yet been sampled.
Within the wider La Puerta stockwork-breccia structure, a northwest-trending quartz vein is exposed over 600 metres of strike, marked by numerous shallow adits along its length, where high-grade silver was exploited by artisanal miners. This quartz vein varies in width from 0.5 to 3.0 metres near surface. Channel and dump samples collected by Darwin from this vein (19 in total) average 2.9 g/t gold (range of 0.4 to 8.6g/t Au in individual samples), 115 g/t silver (range of 5 to 871g/t Ag), and 1.8% antimony (range of 0.05 to 12% Sb). Of note, two mine dump samples that contain abundant course-grained stibnite, the principal ore mineral of antimony, returned 6% and 12% antimony respectively. The European Commission has identified antimony as one of 14 critical raw materials for industry, whilst the British Geological Survey recently ranked antimony as one of the most at risk metals for supply, due to the essential role it plays in expanding technologies and as a fire retardant, and the intense consolidation of supply from China. Antimony is a strategic and valuable minor metal, so could offer additional upside apart from the gold and silver potential.
Drill permitting: Obtaining drill permits is the next key step in progressing the exploration program at the Suriloma property. Drill permits in Peru require land access agreements to be signed with the landholders. Negotiations to enable drill rig access have begun with the nearby community and are proceeding well. Darwin believes developing strong community relationships is a priority, and is working with the local people to ensure a win-win for both parties. The Company has recently contracted the services of a community relations consultant to assist.
An initial drill program of 2,000m is planned to test the top 150m of the La Puerta structure, in approximately 10 diamond drill holes. The aim is for drill permitting to be achieved during Q4 2012, subject to obtaining the relevant community approvals.
Rurimarac Gold Property
The Rurimarac property consisting of 2,000 hectares (100% owned by Darwin) is located 30km south of Barrick's Pierina gold mine in the Department of Ancash, northern Peru. Gold mineralization at Rurimarac is exposed along a breccia structure almost 1km long, lying near the contact between Mesozoic sedimentary basement rocks and an overlying diorite intrusive. A past explorer completed a program of trenching and 1-metre deep pit sampling along the trend of the outcropping breccia. The 65 samples averaged 5.1 g/t Au, ranging from 0.1 g/t to 39 g/t Au. Only one hole was drilled into the principal breccia target zone. Drillhole LDD5 intersected 6 metres @ 3.0 g/t Au in oxidised breccia from 60 metres depth. Core recoveries were poor (50%), and no follow-up drilling was carried out.
Darwin believes that the gold-bearing breccia at Rurimarac could be more extensive than previously thought, and that further drilling is warranted. The Company's geological model for the Rurimarac gold system is shown on a recent presentation at www.darwinresources.com.
Drill permitting: Darwin is planning an initial diamond drill program of approximately 1,000m to follow up on the results from LDD5. An information workshop was recently held with the local community to explain the drilling plans and environmental measures going forward. Darwin has begun the formal process of negotiating terms for an access agreement, and is planning to have drill permits in place during Q4 2012, subject to obtaining the relevant community access approvals.
Alto Quemado Copper-Gold Property
The Alto Quemado project (consisting of 7 concessions for 3,800 hectares) was transferred to Darwin pursuant to the spin-out of the Peruvian exploration assets of Mawson Resources Ltd (Mawson) in April 2012. Darwin has an option to acquire 100% of the Alto Quemado project. To earn 100% of the properties, an exercise payment of €5.1 million and US$0.9 million is required by 16 July 2014. Furthermore, the Company is required to pay US$550,000 to the preceding optionor when it receives a drill permit. Mawson and Darwin have been seeking land access approvals for about 2.5 years, a process that at times has been frustratingly slow.
Alto Quemado contains a porphyry copper target, the Santa Maria prospect. Past work highlighted a coincident surface copper anomaly with an IP chargeability anomaly over approximately 1,000 metres by 500 metres, open along strike. However, recent technical work carried out on the property has led us to the interpretation that Alto Quemado may not offer the large-scale porphyry potential the company once believed.
Hydrothermal alteration in the base of the drainages at Santa Maria is dominated by low-temperature assemblages including sericite, quartz, and chlorite. High-temperature mineral phases, such as those normally associated with productive porphyry copper systems (e.g. biotite) have not been observed to date. Recent temperature data obtained from veinlets within the alteration system has confirmed lower than optimal temperature conditions existed during emplacement of the veins. A productive porphyry copper system may be present, but is not clearly exposed, and to test the hypothesis of a deep copper porphyry system will require costly drilling.
Given this possible downgrade in the potential of the property, and the high holding costs, a review of the ongoing merits of property is now taking place. The review is expected to be completed before the end of September.
The Darwin team is continuing to review new opportunities for high-quality early stage gold and gold-copper properties in Peru and elsewhere in South America. Darwin is fortunate to have an experienced and successful team of geoscientists largely based in Peru, that have the ability to assess and acquire new properties quickly.
Samples were transported by Darwin personnel from the field to Certimin laboratories in Lima, Peru. Samples were prepared and assayed for gold and silver using fire assay with an atomic absorption finish by Certimin (Method AuG0108). The QA/QC program of Darwin consists of the systematic insertion of certified standards of known gold content, with at least 1 blank per batch.
The qualified person, Dr Graham Carman, Darwin's President and CEO, and a Fellow of the Australasian Institute of Mining and Metallurgy, has reviewed and verified the contents of this release.
About Darwin Resources Corp (TSXV:DAR) (OTCPK:DARWF):
Darwin Resources Corp is a resource acquisition and development company. The Company has a portfolio of gold and copper projects in Peru.
On behalf of the Board,
Dr Graham Carman, President & CEO
Forward Looking Statements This Company News Release contains certain "forward-looking" statements and information relating to the Company that are based on the beliefs of the Company's management as well as assumptions made by and information currently available to the Company's management. Such statements reflect the current risks, uncertainties and assumptions related to certain factors including, without limitations, competitive factors, general economic conditions, customer relations, relationships with vendors and strategic partners, the interest rate environment, governmental regulation and supervision, seasonality, technological change, changes in industry practices, and one-time events. Should any one or more of these risks or uncertainties materialize, or should any underlying assumptions prove incorrect, actual results may vary materially from those described herein.
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