VANCOUVER, May 28, 2012 /CNW/ - Cliffmont Resources Ltd. (TSX-V - CMO) ("Cliffmont" or the "Company") is pleased to announce the Company has signed an Option Agreement whereby Cliffmont may acquire a 100% interest in the San Jorge gold property located in the Department of Huila, Colombia. San Jorge is a past producing gold property located within the Company's (2,623 ha) flagship San Luis project.
San Jorge has been one of the most significant areas of past producing small scale gold mining within the San Luis district. The historical results from the San Jorge property indicate significant untested potential and represent an immediate priority for drilling. The Company's drill program, which is due to commence before the end of May, will focus on several of these past producing mines.
Jeff Tindale, President and CEO states, "We are very pleased to be able to consolidate this key area within our property. The historical gold values at San Jorge are amongst some of the highest property wide. The San Jorge property consists of two exploitation titles, which give the company the flexibility for the potential of near-term small scale production."
About San Jorge
The San Jorge property (78 Ha) is located on the south-west portion of the Company's San Luis Project in Huila, Colombia. The project area has power, water and road access. Mining on the main structure at San Jorge was stopped in late 2011, after over twenty years of exploitation, due to a recent series of slides which have collapsed tunnel access to most of the underground workings. This mining took place between 1,872 metres and 1,925 metres. It is significant to note, at the San Luis project, mineralization occurs between 1,400 metres and 2,100 metres, indicating a strong potential for additional mineralization at San Jorge.
The old underground workings at San Jorge extend over a distance of approximately 350 metres along the Chiquila Fault and the mineralization on surface extends approximately three kilometres. In 1997, TVX Mineria Ltda. sampled two drifts. The principal workings are located in the south drift where 59 samples were collected over a distance of 71.72 metres. The weighted averages for both sampling programs were:
- Vein: 71.72 metres samples averaged 324.16 g/t gold and 85.0 g/t silver over a 0.17 metre width; and
- Vein and wallrock combined: 71.72 metres samples averaged 39.09 g/t gold and 11.66 g/t silver over a width of 1.52 metres.
In the north drift, 28 samples were collected over a distance of 45.04 metres.
- Vein: 45.04 metres samples averaged 7.91 g/t gold and 1.97 g/t silver over a 0.38 metre width; and
- Vein and wallrock combined: 45.04 metres samples averaged 1.66 g/t gold and 0.56 g/t silver over a width of 1.66 metres.
Cliffmont has not verified the accuracy of data from historical exploration work. However, the work carried out by previous operators TVX Minera Ltda. appears to have been completed following the best practices at the time.
The Company plans to drill test the depth extent of the gold mineralization in the north and south drifts commencing later this month. The Company has secured the key surface land rights for the access to the San Jorge property including the past producing mine areas.
Ongoing mapping, sampling and geophysics continue at San Luis project in preparation for the upcoming drill program.
"Cliffmont has completed due diligence on many Colombian mining properties over the past several years and management's conclusions are that moving forward with more advanced exploration on multiple past producing mines at the San Luis property represents a significant opportunity for our shareholders," stated Jeff Tindale, President and CEO.
Cliffmont will pay $800,000 in staged payments, together with 1.5 million Cliffmont shares and a 1.5% NSR to acquire an option to purchase the property, to an arm's length party which previously acquired the option. In order to exercise the option, Cliffmont must pay $200,000 to the title holder. The agreement remains subject to the approval of the TSX Venture Exchange.
Dr. Alfredo Parra, a qualified person as defined by National Instrument 43-101, has reviewed and verified the technical information provided in this release. Dr. Parra is a consultant to the company and is a Member of the Mining and Metallurgical Society of America with special expertise in Mining.
ON BEHALF OF THE BOARD
Jeff Tindale, President and CEO
Forward Looking Statements. This Company news release contains certain "forward-looking" statements and information relating to the Company that are based on the beliefs of the Company's management as well as assumptions made by and information currently available to the Company's management. Such statements reflect the current risks, uncertainties and assumptions related to certain factors including, without limitations, competitive factors, general economic conditions, customer relations, relationships with vendors and strategic partners, the interest rate environment, governmental regulation and supervision, seasonality, technological change, changes in industry practices, and one-time events. Should any one or more of these risks or uncertainties materialize, or should any underlying assumptions prove incorrect, actual results may vary materially from those described herein.
"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."
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