Exploration Update on Karmin's Aripuanã Project in Brazil

 

/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/

TORONTO, Sept. 13, 2012 /CNW/ - Karmin Exploration Inc. ("Karmin") (TSXV and the Lima Stock Exchange: KAR) is pleased to announce an update on the 2012 exploration program at its 30% owned Aripuanã Zinc Project ("Aripuanã") in Mato Grosso, Brazil.

Votorantim Metais ("Votorantim"), 70% owner and operator of Aripuanã, commenced the US$5.0 million 2012 drilling program on February 18, 2012 as reported in Karmin's press release dated August 14, 2012. The current drilling program was initiated by Votorantim with the primary objective of upgrading the majority of the indicated and inferred mineral resources at Aripuanã to the measured and indicated mineral resource categories in order to facilitate a revised mineral resource estimate for the project, which is anticipated in early 2013.

Karmin has a 30% carried interest in Aripuanã and is not required to contribute to the project costs until the completion of a bankable feasibility study.

Aripuanã's Resources

The technical report "Aripuanã Property NI 43-101 Technical Report" dated effective September 30, 2007 and completed by AMEC International (Chile) S.A. in accordance with National Instrument 43-101-Standards of Disclosure for Mineral Projects in 2007 (the "Technical Report" available on SEDAR, www.sedar.com) estimates that the Arex and Ambrex deposits have indicated and inferred resources as outlined in Tables 1 and 2 (using a cut-off of 1.8% ZnEq).

Table 1; Arex's Resources

Mineral Resource
Category
Tonnes
(millions)
Zinc
%
Lead
%
Copper
%
Gold
g/t
Silver
g/t
Indicated 9.4 2.5 1.0 0.6 0.45 34.7
Inferred 2.2 2.5 1.0 0.5 0.60 20.4

Table 2; Ambrex's Resources

Mineral Resource
Category
Tonnes
(millions)
Zinc
%
Lead
%
Copper
%
Gold
g/t
Silver
g/t
Indicated 18.3 4.0 1.5 0.1 0.18 35.6
Inferred 3.5 4.3 1.5 0.1 0.25 41.9

The metal content of the estimated mineral resources of Arex and Ambrex is outlined in Table 3.

Table 3; Metal Content of Aripuanã's (Arex and Ambrex) Resources 1

Mineral Resource
Category
Zinc
pounds
Lead
pounds
Copper
pounds
Gold
ounces
Silver
ounces
Indicated 2.2 billion 820 million 156 million 240,000 31 million
Inferred 459 million 168 million 31 million 72,000 6 million

1) metal content has been rounded

Arex Deposit

Although the average zinc grade in the Arex deposit is estimated at 2.5% there is considerable variation in the zinc grade throughout the deposit as is illustrated in Figure 1.  Figure 1 indicates that zinc content varies from greater than 10.8% to less than 1.9% and the current drill program is designed to define the various zones in enough detail as to allow the re-estimation of the mineral resource.  An important objective of the current drill program is to define higher grade zones.

Figure 1; Arex Zinc Grades

Ambrex Deep Potential

In total, over 80,000 metres of diamond drilling has been completed at Aripuanã and in late 2007 the deepest hole on the property, FPAR 159 (co-ordinates with datum SAD69 are 8887383.96N, 227007.1E drilled at an azimuth of 212.15 degrees at a dip of -62.45 degrees ), was drilled into the deepest zones of the Ambrex Deposit (see Figure 2). This hole intersected deep mineralization from 635.4 metres to 646.7 metres grading 36.5% Zn, 13.5% Pb, 0.1% Cu, 1.1 g/t Au and 242.7 g/t Ag.  The deepest intersection from 814.1 metres to 821.6 metres graded 8.8% Zn, 1.8% Pb, nil Cu, 0.3 g/t Au and 85.1 g/t Ag.  The true width of these intersections is unknown.

These are the deepest intersections at Aripuanã and are not included in the estimate of mineral resources. The Technical Report contains the details regarding exploration and data verification procedures in respect of Aripuanã.

Figure 2; Ambrex Deep Drill Results

Qualified Person

A.E. Olson, FAusIMM, a Qualified Person as defined under Canadian National Instrument 43-101 Standards of Disclosure for Mineral Projects, and a consultant to Karmin, has reviewed and approved the technical content of this news release in the form and context in which it appears.

About Karmin

The common shares of Karmin are listed on the TSX Venture Exchange and the Lima Stock Exchange and trade in both markets under the symbol "KAR". The principal business of Karmin is to acquire, explore and develop resource properties.

Karmin owns 30% of the Aripuanã Zinc Project, one of the ten largest undeveloped zinc projects in the world. The Aripuanã Zinc Project covers an 820 square kilometre mineralized massive-sulphide district that includes five areas of mineralization (Ambrex, Arex, Babacu, Massaranduba and Mocoto) over a 25-kilometre strike length. Votorantim owns 70% of the Aripuanã zinc project, but is responsible for 100% of the project costs until the completion of a bankable feasibility study.

Karmin owns 100% of the Aripuanã Gold Project, which encompasses the gold and silver mineralization associated with near-surface oxidized portions of numerous massive-sulphide deposits in the 820-square-kilometre Aripuanã Zinc Project in north western Brazil.

Karmin owns 100% of the 25-square-kilometre Cushuro Gold Project located in the world-class Alto Chicama gold-mining district of northern Peru.


Disclaimer Relating to Forward-Looking Information

This news release contains forward-looking statements that are based on the belief of management and reflect Karmin's current expectations. Forward-looking statements include, but are not limited to, possible events and statements. The words "potential," "possible," "expects," "plans," "scheduled," "estimates," "anticipates" or "believes," or variations of such words and phrases or statements that certain actions, events or results "may," "could," "would," "might," or "will" be taken or occur, and similar expressions identify forward-looking statements. The forward-looking statements and information in this press release include, but are not limited to, information relating to the completion and results of the current drilling program and to business plans of Karmin. Such statements and information reflect the current view of Karmin with respect to risks and uncertainties that may cause actual results to differ materially from those contemplated in those forward-looking statements and information.

Such statements are not historical facts. Readers are cautioned not to place undue reliance on forward-looking statements, as there can be no assurance that the plans, intentions or expectations upon which they are based will occur. By their nature, forward-looking statements involve numerous assumptions, known and unknown risks and uncertainties, both general and specific, that contribute to the possibility that the predictions, forecasts, projections in the forward-looking statements will not occur, and that actual performance and results in future periods may differ materially from any estimates or projections of future performance or results expressed or implied by such forward-looking statements.

The Aripuanã Zinc Project and the land it relates to is an exploration property only. Accordingly, there are a number of important factors that could cause Karmin's actual results to differ materially from those indicated or implied by forward-looking statements and information. Such factors relating to the Aripuanã Zinc Project include, among others, the timing and content of work programs, results of the development of mineral properties, the interpretation of drilling results and other geological data, the uncertainties of resource and reserve estimates, receipt and security of mineral property titles, receipt of licenses to conduct mining activities, project cost overruns or unanticipated costs and expenses, fluctuations in metal prices and general market and industry conditions, changes in national and local government legislation, taxation, controls, policies and regulations, the security of personnel and assets, and political or economic developments in Canada and Brazil, operating or technical difficulties in connection with mining or development activities, employee relations, the speculative nature of mineral exploration and development and the risks and hazards associated with the business of mineral exploration, development and mining, including environmental hazards, industrial accidents, unusual or unexpected formations, pressures, cave-ins and flooding.

The forward-looking statements contained in this news release are made as of the date of this news release. Readers should not place undue importance on forward-looking information and should not rely upon this information as of any other date. Except as required by law, Karmin disclaims any intention and assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Additionally, Karmin undertakes no obligation to comment on the expectations of, or statements made by, third parties in respect of the matters discussed above.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.

 

 

 

Image with caption: "Figure 1; Arex Zinc Grades (CNW Group/Karmin Exploration Inc.)". Image available at: http://photos.newswire.ca/images/download/20120913_C6200_PHOTO_EN_17805.jpg

Image with caption: "Figure 2; Ambrex Deep Drill Results (CNW Group/Karmin Exploration Inc.)". Image available at: http://photos.newswire.ca/images/download/20120913_C6200_PHOTO_EN_17806.jpg

PDF available at: http://stream1.newswire.ca/media/2012/09/13/20120913_C6200_DOC_EN_17807.pdf

PDF available at: http://stream1.newswire.ca/media/2012/09/13/20120913_C6200_DOC_EN_17808.pdf

SOURCE: Karmin Exploration Inc.

For further information:

David Brace
Chief Executive Officer
Email: davidbrace@karmin.com
Tel: (416) 367-0369

or

John Iannozzi
Chief Financial Officer
Email: johni@karmin.com
Tel: (519) 337-5302

Profil de l'entreprise

Karmin Exploration Inc.

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