VANCOUVER, Aug. 4 /CNW/ - Mawson Resources Limited ("Mawson") TSX - MAW; Frankfurt - MRY. Mr Michael Hudson, President & CEO, announces the Company has completed an agreement to purchase 93% of a company which holds the option to acquire 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 terms of the final agreement allow Mawson to acquire 93% of the stock of the optionor, Altynor Peru SAC ("Altynor"). Altynor holds an option to purchase 100% of the Alto Quemado gold-copper project from Alto Quemado Mining Company SAC ("AQMC"). The acquisition from arms length parties is based on making staged payments of US$46,500 on signing, US$511,500 on receipt of permits to drill and US$900,000 should the option with AQMC be triggered. The Company is currently working to finalize an agreement on similar terms with the shareholder holding the balance of 7% of Alytnor. If an agreement is not completed this shareholder will contribute his share of program costs or be diluted.
Alto Quemado is a significant new discovery in Peru. 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 and documented by Altynor's geologists. 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, geochemically
anomalous copper and molybdenum 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 high-grade structural gold and porphyry copper discovery in Peru with both short term and large scale potential. Mawson has deployed an exploration team to site for the next 4 months to map and sample the project with the aim to identify the highest priority drill targets. Despite being subject to small scale mining for 6 years the project has only been tested by a small amount of modern exploration and never a drill hole. Once we have finalized our agreements with AQMC, we look forward to advancing environmental permitting to enable the project to be drill tested in 2011." said Mr Hudson.
The underlying agreement between Altynor and AQMC requires Altynor to make a payment of EUR2.56M in 20 months from receipt of drill permits to acquire 100% of the mining rights from AQMC. The owners of AQMC retain a 3% net smelter return which Altynor may purchase. If production is not achieved within 4 years another payment of EUR2.56M is due. Mawson remains in discussion with the owners of AQMC to modify specific terms of the agreement.
About Mawson Resources Ltd (TSX:MAW, FRANKFURT:MRY, PINKSHEETS:MWSNF)
Mawson Resources Ltd is a resource acquisition and development company with METAL and ENERGY interests.
Mawson has distinguished itself as the leading Scandinavian uranium exploration company, with advanced projects in Sweden and Finland. As the European Union moves to reduce its reliance on carbon-based energy sources and continues to debate energy security, Mawson is well positioned to provide Europe with the option to fuel its future. Areva NC holds 11% of the Company and provides Mawson with an active technical partner.
In addition, the Company is exploring for gold and copper in the highly prospective Cordillera of Peru, with a focus on a new high grade gold discovery at Alto Quemado.
With a strong cash position and a multi-jurisdiction European and South American portfolio, Mawson is ideally positioned to enhance its status as a leader in the uranium and gold industries.
Shares Outstanding: 42,697,253. Cash: approximately C$9.0 million.
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, +1 (604) 685 9316, Investor Relation Consultants - Mining Interactive, Nick Nicolaas, +1 (604) 657 4058, Email: email@example.com