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DISSEMINATION IN THE UNITED STATES/
TORONTO, Feb. 16, 2012 /CNW/ - Karmin Exploration Inc. ("Karmin") (TSXV: KAR) is pleased to announce that Kallpa Securities SAB ("Kallpa") has been retained to sponsor the listing of Karmin's shares on the
Lima Stock Exchange (the "BVL"). Kallpa is a Peruvian investment company specializing in equity
sales, research and corporate finance, and is the sponsor for 9 of the
15 junior mining companies listed on the Venture Exchange of the BVL.
Kallpa commenced operations in 2008 and now ranks 8th by volume traded
among 25 Peruvian brokers with a 3% market share in the Peruvian
As Karmin's sponsor, Kallpa will support the marketing process of
Karmin's common shares in Peru, Chile and Colombia while providing all
services required by the BVL and any other local regulatory
authorities. Kallpa will also prepare research reports and marketing
documents for Karmin as well as organize meetings with the principal
institutional and retail participants in the Peruvian, Chilean and
Colombian capital markets.
Cushuro Gold Project
Karmin has acquired 100% of the right, title and beneficial interest
held by Alberto Aurelio Arias Dávila, a well-known Peruvian mining
entrepreneur, in the Cushuro Gold Project located in the world-class
Alto Chicama gold-mining district in northern Peru.
Exploration work has commenced on the Cushuro Gold Project, where the
initial focus is detailed geologic mapping and sampling in the vicinity
of former small-scale (informal) gold-mining operations at Zona
Cushuro. Additionally, GEADES Consulting S.A.C. has been engaged to
complete the environmental impact declaration that is required before
drilling can commence.
During the first half of 2012 Karmin plans to complete an exploration
program at Zona Cushuro designed to identify an economically viable
gold-silver deposit at a total cost of approximately $730,000.
A technical report (the "Cushuro 43-101 Report") in respect of the Cushuro Gold Project, entitled "Summary Report on
the Cushuro Gold-Silver Project, Northwest Peru," has been prepared by
John A. Brophy, P.Geo, in accordance with National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101") and is available on SEDAR at www.sedar.com. The Cushuro 43-101 Report describes Zona Cushuro as a
gold-mineralized zone that is similar to other operating gold mines in
the district, including Lagunas Norte, La Virgen, La Arena, El Toro and
Santa Rosa, which are all located within a distance of 8 to 30 km of
the Cushuro Gold Project. The concessions cover a 25 square-kilometre
area, span an elevation range of 3,900 to 4,200 meters ("m"), are
crossed by a power transmission line and can be reached in four to five
hours via well-maintained roads from the coastal city of Trujillo.
The Cushuro 43-101 Report further states that although there are other
zones of mineralization on the Cushuro Gold Project, including
meter-wide veins yielding multi-ounce silver assays (Zona Escalerillas)
in the southern part of the property, the main target is Zona Cushuro
in the northeast sector of the property, where anomalous gold is
associated with highly fractured and/or brecciated quartzite. Goethite
and hematite typically infill steeply dipping fractures and form the
matrix of breccias. Silicification occurs as matrix inundations and as
discrete quartz veinlets. Bedding strikes are north-northeasterly,
parallel to the trend of the zone, and dips are 30° to 35° east.
Regionally, bedding strikes are north-northwesterly, which suggests
that the anomalous strike direction of the Cushuro beds is related to
The Cushuro 43-101 Report estimates that Zona Cushuro is about 560m
long, 150m wide, and spans a vertical interval of about 60m. The zone
covers approximately 10 hectares and is open to the south (where
gold-in-sediment anomalies suggest an extension) and west. During 2004
to 2006, an exploration company (Minera IRL) took 621 rock samples from
Zona Cushuro. Most of these were 6m-long channel samples. These rocks
returned an average grade of 0.75 parts per million ("ppm") or 0.75
grams per tonne ("g/t") gold, with top-decile grades ranging from 1.0
to 87.0 ppm (g/t) gold. The Zona Cushuro gold-in-rock geochemical
anomaly can be described as a zone of geochemically anomalous gold
assays (several tens to several hundreds of parts per billion gold)
punctuated by randomly distributed multi-gram assays.
The Cushuro 43-101 Report highlights that although the rock geochemistry
shows that there are at least two trends of mineralization: (i) a
strong one that trends north-northeasterly parallel to bedding and the
long axis of Zona Cushuro, and a weaker one that is north-northwesterly
trending and at a right angle to the first; and (ii) it does not look
as though the higher-grade values are confined to one, or two, or even
several continuous and distinct structures. Rather, it seems that there
is a random nugget effect controlling the distribution of multi-gram
gold assays. This interpretation is supported by the irregular
distribution of cyanidation pools, which are constructed by the few
"informal miners" who have been working at Zona Cushuro for several
years. The "informal miners" need a grade of at least 5.0 ppm (g/t)
gold in order to realize a profit, and the cyanidation pools
consequently have to be near the source of the ore-grade material in
order to reduce transportation-related costs.
John A. Brophy P.Geo. is an Independent Qualified Person for purposes of
NI 43-101 and has reviewed and approved the technical information
relating to the Cushuro Gold Project contained in this release, in the
form and context in which it appears.
The common shares of Karmin are listed on the TSX Venture Exchange and
trade under the symbol "KAR". The principal business of Karmin is to
acquire, explore and develop resource properties.
Karmin owns 100% of the 25-square-kilometre Cushuro Gold Project located
in the world-class Alto Chicama gold-mining district of northern Peru.
Karmin owns 100% of the Aripuanã Gold-Silver 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 30% of the Aripuanã Zinc Project, one of the largest
undeveloped zinc projects in Brazil. The Aripuanã Zinc Project covers a
mineralized massive-sulphide district that includes five areas of
mineralization (Ambrex, Arex, Babacu, Massaranduba and Mocoto) over a
25-kilometre strike length. A technical report completed by AMEC
International (Chile) S.A. in accordance with National Instrument
43-101-Standards of Disclosure for Mineral Projects in 2007 (available on SEDAR, www.sedar.com) states that the Ambrex deposit has indicated resources of 18.3
million tonnes grading 4.0% zinc, 1.5% lead, 0.18 g/t gold and 35.6 g/t
silver. The Arex deposit has indicated resources of 9.4 million tonnes
grading 2.5% zinc, 1.0% lead, 0.45 g/t gold and 34.7 g/t silver.
Votorantim owns 70% of the Aripuanã zinc project, but assumes 100% of
the project costs until the completion of a bankable feasibility study
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 "plans," "expects," "is expected,"
"scheduled," "estimates," "forecasts," "projects," "intends,"
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," "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 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
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
The Cushuro Gold Project and the land they relate to are exploration
properties 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 Cushuro Gold Project include,
among others, the timing and content of work programs, results of the
development of mineral properties, including the Cushuro Gold Project,
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 Peru,
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.
Karmin cautions that the foregoing list of material factors is not
exhaustive. When relying on Karmin's forward-looking statements and
information to make decisions, investors and others should carefully
consider the foregoing factors and other uncertainties and potential
events. Karmin has assumed a certain progression of events which may
not be realized. It has also assumed that the material factors referred
to in the previous paragraph will not cause such forward-looking
statements and information to differ materially from actual results or
events. However, the list of these factors is not exhaustive and is
subject to change and there can be no assurance that such assumptions
will reflect the actual outcome of such items or factors.
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.
SOURCE Karmin Exploration Inc.
For further information:
Chief Executive Officer
Tel: (416) 367-0369
Chief Financial Officer
Tel: (519) 337-5302