Symbol: CA TSX-V
VANCOUVER, April 12 /CNW/ - Caerus Resource Corporation (TSX-V: CA) ("The Company") is pleased to announce it has executed a Letter of Intent with Empressa Minera El Pino for the 100% acquisition of the El Pino Gold Mine, located in Maceo Municipio, within the Department of Antioqia, Colombia. The Letter of Intent allows the Company, for a non-refundable payment to Empressa Minera El Pino of $ U.S. 10,000, a 90 day due diligence period. The Company intends to complete legal due diligence and technical due diligence on the project prior to entering into a formal, Option to Purchase Agreement. The formal Option to Purchase Agreement will contain an acquisition structure consisting of a payment of $ U.S. 50,000 and 250,000 common shares to Empressa Minera El Pino at signing, and further payments of $ U.S. 200,000 at the end of the first year, $ U.S. 300,000 at the end of the second year, and $ U.S. 400,000 at the end of the third year for a total purchase price of $ U.S. 960,000 and 250,000 common shares. All terms are subject to the approval of the TSX Venture Exchange.
The El Pino Gold Mine is a producing mine. Impressa Minera El Pino has reported to the Company that it is currently producing gold from an adit on the property. The property package consists of 1,975 hectares which comprise a mining permit under Colombian mining law. The project is located 4 kilometers from the town of Maceo, which is situated on the main highway from Medellin to Bucaramanga. Access to the project area is excellent.
Gold is being produced by the exploitation of high grade fault breccias accessed by a tunnel on the property. Impressa Minera El Pino has reported to the Company that they are producing approximately 2 ounces of gold per day from approximately 2.5 tonnes per day of processed ore. Potential ore is visually identified, then removed for crushing and gravity separation. The fault breccias trend north and have been mapped to be 3 to 20 meters thick in this area, and have also been identified along a strike of approximately 3,000 meters. Three breccias are known to outcrop within the project area, and only one has been evaluated to date. (Caution: The production data, is presented herein merely as items of historical interest and should not be construed as being representative of future production or that mineral resources are present on the El Pino. The Company is not aware of any mineral resources or Mineral Reserves, as defined by C.I.M. or other organizations, that have been defined at El Pino. The issuer has not done the work necessary to verify the production data and the issuer is not treating them as NI 43-101 defined and verified by a qualified person, and the historical estimate should not be relied upon.)
Prior to the current Letter of Intent between the owners and the Company, the project was under the control of AngloGold Ashanti via their subsidiary, Sociedad Kedahda S.A. ("Kedahda" ). A first pass exploration program was completed and is detailed in a report prepared in February of 2007 (Determinacion Preliminar de un Potencial Geologico Minero Para Pequena Mineria"). The exploration activity included 232 samples and 1655 meters of drilling. Kedahda reported intersecting the El Pino Breccia in two holes during their 2007 exploration program. Hole DDH 02 was reported to have intersected 3.83 meters of 0.967 grams per tonne gold from 34 to 38 meters, 0.8 grams per tonne gold from 46 to 60 meters, and 0.685 grams per tonne gold from 60 to 72 meters. Hole DDH 01 is reported to have intersected 1.5 meters of 6.3 grams per tonne gold from 24.5 to 26 meters. Channel sampling listed in the report averaged 8.1 grams per tonne gold and included results of up to 43.5 grams per tonne over a 50 centimeter width. (Caution: Certain exploration results, as referred to above, are items of historical interest. Caerus Resource has not done the work necessary to verify the results and is not treating them as NI 43-101 defined and verified by a qualified person, and the results should not be relied upon. Caerus believes these historical results provide an indication of the potential of the property and are relevant to future exploration.)
Management consider the El Pino Gold Mine offers the opportunity to discover further disseminated "gold" mineralization on the property. New areas of exposed breccia have been identified by the property owners. Caerus will have its technical staff conduct a sampling program to determine the further gold mineral potential of the El Pino Gold Mine prior to executing a formal Option to Purchase Agreement.
The contents of this Press Release have been reviewed by Allen Ambrose, a Qualified Person as defined in NI 43-101, and a director of the Company.
On Behalf of the Board of Directors of Caerus Resource Corporation,
Adrian F.C. Hobkirk,
President and Chief Executive Officer
The TSX Venture Exchange has not reviewed and therefore does not accept responsibility for the adequacy or accuracy of the contents of this press release. This news release contains certain "forward-looking statements" within the meaning of Section 21E of the United States Securities and Exchange Act of 1934, as amended. Except for statements of historical fact relating to the Company, certain information contained herein constitutes forward-looking statements. Forward-looking statements are based upon opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors which could cause actual results to differ materially from those projected in the forward-looking statements. The reader is cautioned not to place undue reliance on forward-looking statements. We seek safe harbour.
SOURCE CAERUS RESOURCE CORPORATION
For further information: For further information: Allan Feldman at AJF Consultants Ltd., at (604) 948-9663 or email: AJFConsultants@aol.com