(Historical 72.6 Million Tonne Resource at La Verde)
VANCOUVER, Jan. 28 /CNW/ - Svit Gold Corp. ("Svit") is pleased to announce the filing on Sedar of a NI 43-101 technical report for the La Verde porphyry copper project located in Michoacan State in west-central Mexico. Micon International Ltd. ("Micon") was retained to prepare a NI 43-101 Property of Merit report in support of the recently signed option agreement with Teck Resources Limited's Mexican subsidiary Minera Torre de Oro, S.A. de C.V. ("Teck") whereby Svit's Mexican subsidiary Minera Hill 29, S.A. de C.V. ("Svit") can acquire a majority interest in La Verde. (See Svit press release December 8, 2009).
Svit can earn a 60% indirect interest in La Verde by advancing to Teck US$6 million and incurring aggregate exploration expenditures of US$10 million on or before December 31, 2012. Upon completion of Svit earning its 60% interest, Teck has the option to increase its interest to 60% by incurring aggregate expenditures within three years equal to two times the amount spent by Svit. Should Teck fail to exercise its option to earn a 60% interest, Svit can acquire a 100% indirect interest in La Verde by paying to Teck US$20 million. The property is subject to an underlying 0.5% NSR to the original claim holder.
In the NI 43-101 technical report, Micon states it is of the opinion the La Verde property is a Property of Merit and recommends a success contingent phased exploration program. The Phase One program includes a deep level IP survey, 5,000 metres of confirmation drilling, block model creation, mineral resource estimation, and the generation of a technical report. Phase Two would involve both drill definition of the known zones and step-out drilling to test numerous geophysical and geochemical anomalies immediately adjacent to the La Verde zones. Phase Two includes 25,000 metres of drilling that would culminate in a second mineral resource estimate and technical report.
The La Verde property is located in west central Mexico, approximately 320 kilometres west of Mexico City and hosts a porphyry copper deposit. The property consists of 2 concessions totalling approximately 16,900 ha. Within the concessions mineralization is hosted within a mid-Tertiary granodiorite/quartz monzonite intrusive complex roughly 5.5 kilometres long, 1 kilometre wide and up to 750 metres above mean sea level (msl) known as the Sierra del Marqués. Since the 1960's several medium to large scale mining companies have completed several millions of dollars worth of exploration work on the property. Historic exploration work included geological, geochemical and geophysical surveys as well as 80,000 metres of drilling.
This exploration work identified two large mineralized zones known as the East Hill and West Hill deposits. The East Hill deposit is a combination of 4 mineralized intrusive phases that conform to a typical copper porphyry deposit. The West Hill deposit is a series of east-west striking chalcopyrite-rich veins that are focused within an elliptical-shaped body in plan and may represent the surface expression of a typical porphyry system. Although the La Verde property has been explored aggressively over many years, there are several geochemical and geophysical anomalies that have not been adequately tested. These anomalies, plus geological features such as an abundance of mineralized intrusive breccias, alteration styles and sulphide mineral assemblages, suggest that the Sierra del Marques intrusive complex may represent the upper portion of a much larger porphyry system.
Several historic mineral resource estimates have been generated but are not compliant with current CIMM and NI 43-101 guidelines. However, these estimates have demonstrated the potential for possible economic mineralization and have led, in each case, to the advancement of the property. The last publically released historic mineral resource of 72.6 million tonnes at an average grade of 0.7% copper was included in the 1972 feasibility study completed on behalf of Lytton Minerals Ltd. and was calculated prior to the enactment of NI 43-101. Micon considers the historical estimates at La Verde to be relevant today, as defined in NI 43-101, Item 2.4.
Micon believes that it is reasonable for Svit to rely on these historic mineral resources and the potential to discover more mineralization as justification for its proposed acquisition and exploration program of the La Verde property.
David Makepeace, M.Eng., P.Eng. is a senior geologist at Micon. He is the author of the NI 43-101 Technical Report titled "Technical Report on the La Verde Property, Michoacan, Mexico, Property of Merit", dated January 19, 2010, and as a Qualified Person, has reviewed the technical material in this news release.
The transactions described above are subject to the approval of the TSX Venture Exchange.
ON BEHALF OF SVIT GOLD CORP.
Gordon Keep - Director
Certain information set forth in this news release may contain forward-looking statements that involve substantial known and unknown risks and uncertainties. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond the control of the Company, including, but not limited to, risks associated with mineral exploration and mining activities, the impact of general economic conditions, industry conditions, dependence upon regulatory approvals, and the uncertainty of obtaining additional financing. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE SVIT GOLD CORP.
For further information: For further information: Denby Greenslade, Corporate Secretary, at (604) 803-8439