VANCOUVER, March 8 /CNW/ - Mawson Resources Limited ("Mawson") TSX - MAW; Frankfurt - MRY. Mr Michael Hudson, President & CEO, announces the Company has signed a Letter of Understanding which entitles it to acquire up to 100% of the Alto Quemado gold-copper project in the mineral-rich Southern Peru Mineral Belt. The Property is located in the Province of Caylloma, Department of Arequipa, 56km north of the Panamerican Highway from the town of Pedregal and 98km northwest of Arequipa. The licence area comprises of 3,800 ha with elevations between 2,900-3,300m.
The project lies in the Western Cordillera of southern Peru which comprises segments of Proterozoic and Paleozoic basement rocks, Cretaceous and Tertiary volcanic and sedimentary rocks. This prospectivity of the belt is highlighted by the presence of significant scale deposits and mines including: Cuajone (1.2Bt at 0.64% Cu), Cerro Verde (1Bt at 0.51% Cu), Toquepala (770Mt at 0.74% Cu), and Quellaveco (761Mt at 0.57% Cu, 0.23% Mo and 2.32g/t Ag).
Alto Quemado is a significant new discovery in Peru. Mineralization can be characterized as gold-copper low-sulphidation to transitional porphyry style. It was not until informal miners from 2001-2007 exposed a network of high-grade gold structures beneath a gold-depleted weathered veneer that the true potential of the area was recognized. Potential for two styles of mineralization have been identified at the Property:
- High-grade near-term production gold target. Low sulphidation gold-
copper mineralization present as multiple high grade (25g/t Au in
oxide and +40g/t Au in sulphide) mineralized structures, typically
0.5m to 1.5m wide (locally up to 15m), and traceable for greater than
3km. Structures may contain significant copper.
- Large tonnage copper-gold porphyry target. The high-grade gold
structures are hosted within an extensive argillic alteration system
and lie adjacent to a leached porphyry exposed in outcrop that
displays a strong IP response over 1.8km by 500m (remains open).
Based on the IP signature, porphyry textures at surface and proximity
to large porphyry copper mines, potential for the discovery of an
underlying porphyry at the project is strong.
"Alto Quemado is an exciting new gold and copper discovery in Peru with both short term and large scale potential. Recent small scale mining has exposed a network of high-grade gold structures beneath a weathered and depleted surface zone. The tenor of the mineralized structures that extend over 3km is demonstrated by Mawson's 15 check samples averaging 60g/t Au with grades ranging from 0.06g/t to to 709g/t Au from underground workings. The scale of a strong IP chargeability anomaly beneath the leached porphyry and extending away under the high grade mineralized structures over 1.8km by 0.5km forms an impressive target. The Project has not been methodically explored by modern techniques and never drill tested. We plan an aggressive exploration program to test both targets styles" said Mr Hudson. "Mawson continues to review global multi-commodity exploration opportunities and now has a twofold strategy to explore this new gold discovery with significant potential while in parallel pursuing its European uranium strategy."
Small scale mining took place for 6 years at Alto Quemado during 2001 to 2007. The average mining depth was 30 to 40m, except for one section of which went to 80m depth. The Company has been advised that monthly production from small scale mining was 100t-150t of oxide ore with an average grade between 30g/t-40g/t Au. The project has only been tested by a small amount of modern exploration and never a drill hole. Work has included an IP survey in 1997 which defined a strong chargeability/low resistivity target over an area of 1.8km by 500m which remains open.
The known strike of the high grade structural system is over 3km with a vertical extent over 200m, giving further confidence to the third dimension continuity of mineralization. The thickness of the structures ranges from 0.5m up to 2.5m and show a pinch-and-swell type behavior with thicknesses up to 16m at La Union where the structures anastomose. Mineralization at Alto Quemado is comprised of pyrite, chalcopyrite, chalcocite, bornite, covellite, malachite, azurite, gold and with accessory gangue minerals which include quartz, sericite, chlorite, epidote, K-feldspar, micas, kaoline, carbonate, barite, hematite and limonite.
More than 10 mineralized structures have been mapped at the property, however reconnaissance sampling by the underlying optionor, Altynor Peru SAC or "Altynor" (117 samples) and Mawson (21 samples) has focused to date on 3 main high grade mineralized structures (Ximena, Fiorella and La Banda) and one linear stockwork zone (Lomada) which have been exposed by previous artisanal mining activities. Sampling also has taken place over leached outcropping porphyry (Santa Maria) that extends over an area of approximately 850m by 400m. The gold bearing structures lie within a large argillic alteration system, fault bound to north and south and estimated to be at least 4km long and 1.3km wide which remains open along strike to the east and west. As outcrop of mineralized structures is poor Mawson believes good opportunities exist to make further discoveries. Ninety-five rockchip samples taken across the 3 high grade veins structures from both the Altynor and Mawson sampling programs averaged 19.9g/t Au and 2.0% Cu and ranged from 0.01-709g/t Au and 0.0-32.5% Cu.
Mawson has signed a Letter of Understanding with arms length parties to acquire a 100% of the stock of Altynor by making payments of US$50,000, $550,000 and $900,000 over 40 months. Both parties will work towards signing a final agreement according to the terms defined in the LOU. These payments are triggered by the registration of certain agreements and the gaining of permits to drill the property. Altynor holds an option to purchase 100% of the Alto Quemado gold-copper project from Alto Quemado Mining Company SAC ("AQ"). Altynor must make a payment of (euro)2.56M in 20 months to acquire 100% of the mining rights from AQ. The owners of AQ retain a 3% net smelter return which Altynor may purchase. If production is not achieved within 4 years another payment of (euro)2.56M is due. Mawson is in discussion with the owners of AQ to modify some specific terms of the agreement.
On behalf of the Board,
Michael Hudson, President & CEO
Forward Looking Statement. The statements herein that are not historical facts are forward-looking statements. These statements address future events and conditions and so involve inherent risks and uncertainties, as disclosed under the heading "Risk Factors" in the company's periodic filings with Canadian securities regulators. Actual results could differ from those currently projected. The Company does not assume the obligation to update any forward-looking statement. The TSX Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
Altynor samples were analyzed by SGC laboratories in Lima, Peru with gold analysed by technique Au-FAA515 and over range determined by Au-FAG505, copper and silver were assayed by Ag-AA12CP and Cu-AA12CP techniques. Mawson samples were analyzed by ALS CHEMEX laboratories in Lima, Peru with techniques ME-ICP61a, Au-SCR24. The qualified person for the Alto Quemado project, Michael Hudson, director and President & CEO for Mawson, and a Fellow of the Australasian Institute of Mining and Metallurgy, has reviewed and verified the contents of this release.
SOURCE Mawson Resources Ltd.
For further information: For further information: Investor Information, www.mawsonresources.com, 1305 - 1090 West Georgia St., Vancouver, BC, V6E 3V7, Company Contact: Mariana Bermudez, (604) 685-9316, Investor Relation Consultants - Mining Interactive, Nick Nicolaas, (604) 657-4058, Email: email@example.com