VANCOUVER, Oct. 15 /CNW Telbec/ - Bolero Resources Corp. (the "Company"
or "Bolero"), (TSX-V: BRU) is pleased to announce that it has entered into a
Letter Agreement (the "Rico Letter Agreement") with Rico Renaissance LLC, Rico
Land and Cattle Company, Rico High Altitude Investments LLC, Rico Properties
LLC and Rico Mountain Life LLC to acquire certain private surface and mineral
rights (including patented claims) that host the Silver Creek molybdenum
project and other copper-gold occurrences located in the Pioneer Mining
District, Dolores County, Colorado approximately 20 miles southwest of
Telluride and just east of Rico.
The Silver Creek molybdenum project was explored by The Anaconda Company
("Anaconda"), from surface and underground during the period 1979 through 1983
with 63,000 feet of drilling completed. In May of 1984, Anaconda reported a
historic inferred resource based on four drill holes of 44 million short tons
(39.9 million tonnes) at a molybdenum ("Mo") grade of 0.31% Mo, or
0.527% MoS2, within a 0.20% molybdenum cut-off, containing 273 million pounds
All resource estimates quoted herein are based on data and reports
obtained and prepared by previous operators. This historic resource
estimate is considered to be relevant, and is believed to be reliable
based on the amount and quality of historic work completed. The Company
has not completed the work necessary to independently verify the
classification of the mineral resource estimates. The Company is not
treating the mineral resource estimates as National Instrument 43-101
defined resources verified by a qualified person. The historical
estimates should not be relied upon. The properties will require
considerable further evaluation which the Company's management and
consultants intend to carry out in due course.
Anaconda estimated the potential of the mineral deposit to be up to
198 million tons (179.6 million tonnes) @ greater than 0.30% Mo (greater than
0.51% MoS2) at a cut-off of 0.20% Mo. This could represent up to 1.2 billion
pounds of contained molybdenum. This estimate of target potential was based on
the inferred mineralization halo greater than 0.20% Mo, structural controls
projected from surface and observed in core, fluorine/tungsten geochemical
signatures and an isopach of Mo mineralization compared with typical Climax
style deposits in Colorado. Anaconda geologists were of the opinion that less
than 20% of the potential Silver Creek resource has been drilled.
The potential quantity and grade is conceptual in nature and there has
been insufficient exploration to define a mineral resource and it is
uncertain if further exploration will result in the target being
delineated as a mineral resource.
Historic drill holes with significant intersections of greater than or
equal to 0.20% Mo cut-off include:
SC-81-1 245 ft @ 0.242% Mo or 0.411% MoS2
SC-81-5 635 ft @ 0.334% Mo or 0.568% MoS2(1,2)
SC-81-6 191 ft @ 0.231% Mo or 0.393% MoS2
SC-82-7A 285 ft @ 0.286% Mo or 0.486% MoS2
1. Includes 130 ft @ 0.505% Mo or 0.859% MoS2
2. At a greater than or equal to 0.30% cut off comprises of
378 ft @ 0.415% Mo or 0.706% MoS2
In terms of the Rico Letter Agreement, Bolero has paid a non-refundable
cash deposit of US$100,000. A further non-refundable cash payment of
US$500,000 as a down payment on the total purchase price of US$10,000,000 will
be due when Bolero is satisfied that it can receive free and clear title at
Closing. A final payment of the balance US$9,400,000 is due on the Closing
Date expected to be on or about November 16th, 2007.
In addition, the Company is pleased to announce the appointment of
Dr. Roger C. Steininger in the capacity of Project Geologist for the Rico
Project. Dr. Steininger spent 15 years with the Climax Molybdenum Co. in
exploration, development and mine geology at their operations in Colorado and
Western Canada. Since leaving Climax, Dr. Steininger was Exploration Manager
for Amselco Minerals and for the last 20 years has maintained a consulting
practice. During the time since leaving Climax, Dr. Steininger has been
involved in several molybdenum projects in western North America.
"We are extremely excited about the potential of this project", said
Bolero's President and CEO R. Bruce Duncan. "We believe that it may represent
a significant molybdenum project in Colorado, and while it is early days for
Bolero, we have been able to recover much of the historic exploration data
which confirms the exploration model used by Anaconda. Moreover, we are also
excited about the potential of the district; consequently, we have been
actively staking the region."
The Company has retained Associated Geosciences Ltd. (AGL) of Calgary to
assist with the due diligence process and to prepare a technical report on the
property compliant with National Instrument 43-101 of the Canadian Securities
Administrators. Mr. McCandlish, Vice President & General Manager of AGL, has
worked on many polymetallic porphyry deposits, worldwide, with experience with
both block caving and sub-level caving in copper porphyries.
Background on Pioneer Mining District:
The district is a historic producer of silver, lead zinc, copper gold and
pyrite (during 1879 to 1971) from veins and carbonate replacement deposits. In
1936, control of the Pioneer Mining District was consolidated under the Rico
Argentine Mining Company (RAMCO). Production continued through 1970 and RAMCO
was acquired by the Crystal Oil Company in 1974. In 1977, the site was visited
by Jim Garmoe, Chief Geologist of The Anaconda Company. Anaconda concluded a
lease/purchase option in June of 1978 with the intention of expanding the
resource base of the copper replacement deposit discovered by RAMCO on NB
Hill. Anaconda also believed that a deeply buried undiscovered porphyry was
the source of the copper mineralization.
The 1979 exploration program conducted by Anaconda was not successful in
delineating additional base metal replacement deposits, but drill hole C-25
intersected quartz veins containing molybdenite and tungsten and fluorine
geochemical gradients suggesting proximity to a molybdenum bearing porphyry
stock. The property then was explored by Anaconda from surface and underground
via the Blaine Tunnel from 1979 through 1983 with 63,000 feet of drilling
completed. A total of 26 exploration holes were drilled as part of the
While the known mineralization is deep it appears that grades are above
average for a Climax-type deposit and that a reasonable geological
interpretation indicates the size could be on a par with other known deposits
of this type in Colorado. While it is premature to discuss mineability of such
a deposit the potential grade and tonnage suggest that several mining options
could be available. Exploration of the property was terminated in February
1983 with the collapse of molybdenum prices.
A secondary molybdenum target is north of Silver Creek at CHC Hill.
Quartz-eye porphyry dikes and anomalous fluorine, tungsten, and molybdenum
indicate that buried molybdenum bearing porphyry stock may exist beneath
CHC Hill. Only limited shallow drilling exists at CHC Hill, none which tested
the molybdenum target.
Both Keith McCandlish, P.Geol. (Alberta) and P.Geo. (BC), Vice President
& General Manager of AGL as an independent "qualified person" (as such term is
defined by NI 43-101) and Dr. Roger C. Steininger, Certified Professional
Geologist (AIPG) as the Company's "qualified person" have reviewed, and are
responsible for, the preparation of the technical information in this release.
Bolero Resources Corp. is a well funded exploration and development
Company which holds 100% interests in 2 significant molybdenum properties
located in Montana, USA. The Company is listed on the TSX-Venture Exchange
under the symbol BRU, as well as the Frankfurt Exchange under U7N. For more
information, please visit www.unitedbolero.com or call toll-free 888-945-4770.
On behalf of the Board of Directors
"R. Bruce Duncan"
President & CEO
The TSX Venture Exchange does not accept responsibility for the adequacy
or accuracy of this release.
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