VICTORIA,
The
A combination of low gold prices, a substantial debt load, and multiple underperforming projects, resulted in the orderly shutdown of the
At shutdown, Greenstone calculated the remaining resource in place at
The main terms of the agreement are as follows: 1. Erin in conjunction with Pageland Minerals Ltd agree to collectively purchase 100% of the assets of the Santa Rosa Mine, including the land title, mineral rights, buildings, equipment and historic exploration and production data from Canazas Mining Company, a Panamanian Corporation comprised of former workers at the Santa Rosa Mine, for a total of US$1,550,000. 2. Erin will retain an undivided 75% interest and Pageland will retain an undivided 25% interest in the Santa Rosa Mine, with each partner responsible for their prorata share of the purchase price and the payments and expenditures going forward. 3. Erin shall act as operator of the mine. 4. A US$75,000 down payment was made to Canazas at the time of signing of the agreement. 5. A second payment of $75,000 is due upon the completion of transfer of land title at Santa Rosa. 6. US$500,000 becomes due and payable when the mineral rights and mining permits associated with the Santa Rosa Mine have been reestablished by the Panamanian government and granted exclusively to Canazas. 7. A second payment of US$500,000 is payable 90 days after the first payment of $500,000. 8. A final payment of US $400,000 is payable 180 days after the first payment of $500,000. 9. Canazas will receive the 10% of the net profits of the operations of Santa Rosa Mine. Net profits are defined as gross revenues less direct and indirect operating, recovery, mining and smelting costs, general and administrative expenses, interest, taxes and royalties and all other expenses relating to operating of Santa Rosa Mine. 10. Erin agrees to transfer title to the land back to Canazas when mining operations are complete.
Erin intends to use a due diligence period to advance the project to a NI-43-101 compliant resource, and to develop plans to bring the project back into production, building on Greenstone's historic production.
Erin intends to pay a finder fee in connection with this transaction of 1,000,000 shares, subject to TSX approval.
The following are excerpts from Greenstone Resources Form 20F, filed with the US Securities and Exchange Commission and SEDAR on
Description of Property -
The
Santa Rosa Mine Resources as of December 31, 1998 ------------------------------------------------------------------------- Tonnes Grade Contained (000s) (gm/tonne) gold ounces (000s) ------------------------------------------------------------------------- Measured and Indicated Resources ------------------------------------------------------------------------- Santa Rosa 9,038 1.30 378 ------------------------------------------------------------------------- Alta de la Mina 3,690 1.98 236 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Inferred Resources ------------------------------------------------------------------------- Santa Rosa 5,819 1.25 234 ------------------------------------------------------------------------- Alta de la Mina 1,166 1.53 57 ------------------------------------------------------------------------- Total Resources 19,713 905 -------------------------------------------------------------------------
(Due to closure of
The mine's site elevation varies from 175 metres to 300 metres above sea level, and the topography is composed of rolling hills. The climate is tropical with almost 70% of the annual 2,800 millimetres of rainfall occurring between September and November. The
Gold mineralization at the
At the
The upper and lower ore bodies were once discrete but contiguous and have been subsequently offset by multiple northwest trending strike-slip structures into the present configuration of deposits."
On behalf of the Board of Directors, Blake Fallis, General Manager * NOTE: All historic information contained in this release is extracted and compiled from Form 20Fs, Annual Reports, Audited Financial Statements, news releases, and other filings made by Greenstone Resources Ltd., and filed with Canadian and US securities regulators from 1996 to 2000. Additional information on Greenstone Resources Ltd and the Santa Rosa Mine is available on SEDAR.
The technical information in this release was prepared and approved by Dennis J. LaPoint, Registered Geologist in the State of North Carolina, a director of the Corporation, who is a Qualified Person under National Instrument 43-101.
Cautionary Note: A qualified person has not done sufficient work to classify the historical estimate as current mineral resources. As a result, Erin is not treating the historical estimate as current mineral resources and the historical estimate should not be relied upon. Erin is treating the historical reserves as historical resources and any economic information disclosed is considered outdated and not meant to imply any current economic viability.
Erin's Public Quotations: ------------------------- Canada TSX Venture: EV USA SEC 12G3-2(B) No. 82-4432 OTCBB: ERVFF Europe Berlin Stock Exchange: EKV Neither the 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 ------------------------------------------------------------------------- Forward Looking Statements
This release contains forward looking statements. The words "believe,"
"expect," "feel," "plan," "anticipate," "project," "could," "should" and
other similar expressions generally identify forward-looking statements.
Readers are cautioned not to place undue reliance on these forward-
looking statements. These forward-looking statements are subject to a
number of risks and uncertainties including, without limitation,
variations in estimated costs, the failure to discover or recover
economic grades of minerals, and the inability to raise the funds
necessary, changes in external market factors including commodity prices,
and other risks and uncertainties. Actual results could differ materially
from the results referred to in the forward-looking statements.
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For further information: Erin Ventures Inc., Blake Fallis, General Manager, Phone: (250) 384-1999 or 1-888-289-3746, www.erinventures.com
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