VANCOUVER, Jan. 27, 2012 /CNW/ - Canadian International Minerals Inc. (the "Company") is pleased to announce that it has entered into an option agreement to earn 100% of 57 claims consisting of 657 units (10,640 hectares) in northwestern Ontario. These claims, collectively known as the Lizar property (the "Property") and readily accessed by logging roads from provincial highway 637, lie approximately 110 kilometers northeast of Hemlo and cover the Kabinakagami greenstone belt, which has been subjected to minimal exploration. Greenstones in Ontario are host to some of the world's largest precious and base metal mines.
The Property has been primarily targeted for Hemlo or Bousquet-style gold mineralization, but appears to have significant Volcanogenic Massive Sulphide base metal potential as well as indications of nickel, and platinum group metals. No work has been done by previous operators for granite hosted disseminated gold on the Lizar property, although several granite or granodiorite stocks intrude the mafic volcanics covering much of the property. Several intrusive related gold deposit have recently been developed in Ontario including Canadian Malartic, 9.17 million ounces (Belzile, E.,Gignac, L.P. 2010), Hammond Reef, 6.86 million ounces (Cukor, D. 2011) and Cote Lake, 4.22 million ounces (Roscoe, W. Cook, R. 2001).
Surface gold mineralization is widespread on the Lizar property, with individual assays up to 41.6 g/t Au (MacTavish, A.D. 2002). The former producing Hiawatha gold mine, currently owned by Trelawney Mining and Exploration Inc. adjoins the Property to the northeast. The Hiawatha Mine was known for erratic high grade gold with samples up to 383 g/t gold hosted in quartz veins in shear zones within granodiorite bodies (Giblin, P.E. 1969). Previous exploration focused on the quartz veins but did not follow up a sample taken over 1.2 meters which assayed 2.33 g/t gold on an adjoining porphyry (Holbrooke, G.L. 1937). A granite intrusive approximately 1400 by 1600 meters is centered in the Lizar property.
"Results of outcrop sampling indicate a strong cluster of anomalous gold values (with a scattering of elevated As, Ag, Pb, Cu, Zn, Mo, or Bi) in the central part of the property, Proximal to a large granite/granodiorite intrusion, in particular its northern contact" (Teck, Paakki J. 2003). An orientation MMI survey conducted by Teck returned anomalous gold as well as elevated As, Ag, Pb, Cu, Zn, Mo, Bi values in the vicinity of this large granite/granodiorite intrusive (MacDonald, D., 2008).
The Company has acquired a comprehensive data base from previous operators, which includes a property wide airborne geophysical survey and geological mapping (Teck Corp. 2002), as well as most geological reports. This provides significant enhancement to CIN`s interpretation of Lizar as an intrusive related gold deposit with substantial savings in time and money by incorporating the high quality data from the work of previous operators (Teck, Freewest, Noront et al). The company is reviewing a variety of exploration techniques for the most cost effective means to validate its new approach. These will include mapping, soil geochemistry, with possible MMI survey, followed by trenching and drilling.
The company is pleased to have met with Chief Johanna Desmoulin of the Pic Morbert First Nation, whose traditional territory encompasses the Lizar property. The company looks forward to working with the Pic Morbert in a meaningful and respectful way to the benefit of both parties.
To earn a 100% interest in the Property, the Company must pay a total of $460,000 and issue 8,500,000 shares to the vendors of the Property over a period of three years, with $60,000 being paid and 2,500,000 shares being issued in the first year. Also, the Company must incur $2,100,000 in exploration expenditures on the Property over a four year period. The Property is subject to a 3% NSR royalty in favour of the optionors, 1% of which can be purchased by the Company for $1,000,000 leaving the optionors with a 2% NSR royalty.
The technical data in this news release has been reviewed by Thomas Hasek, P. Eng. a Qualified Person under the terms of N.I. 43-101. The transaction is subject to the acceptance of the TSX Venture Exchange.
On behalf of the Board of Directors,
"Michael E. Schuss"
Michael E. Schuss
President and Chief Executive Officer
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.
CAUTION CONCERNING FORWARD-LOOKING STATEMENTS: Some of the statements contained herein may be forward-looking statements which involve known and unknown risks and uncertainties. Without limitation, statements regarding potential mineralization and resources, exploration results, and future plans and objectives of the Company are forward looking statements that involve various risks. The following are important factors that could cause the Company's actual results to differ materially from those expressed or implied by such forward looking statements: changes in the world wide price of mineral commodities, general market conditions, risks inherent in mineral exploration, risks associated with development, construction and mining operations, the uncertainty of future profitability and the uncertainty of access to additional capital. There can be no assurance that forward-looking statements will prove to be accurate as actual results and future events may differ materially from those anticipated in such statements. Canadian International Minerals undertakes no obligation to update such forward-looking statements if circumstances or management's estimates or opinions should change. The reader is cautioned not to place undue reliance on such forward-looking statements.
For further information:
on Canadian International Minerals Inc. please visit the company website at http://www.cdnintlminerals.com or contact Michael E, Schuss at 604-241-2254.