VANCOUVER, March 13, 2012 /CNW/ - Network Exploration Ltd. (the "Company") (TSX.V: NET) is pleased to announce that in connection with the recently completed Induced Polarization ("IP") and ground magnetic survey at the Company's Picha Copper-Silver Project located Moquegua Region of Southern Peru, the Company has received its final interpretation report from E. Trent Pezzot, P.Geo. of GeoSci Data Analysis Ltd. Mr. Pezzot used advanced inversion techniques to analyze the data. His report reveals three distinct, near-surface chargeability anomalies in the northeast portion of the surveyed area that could reflect porphyry-style occurrences. The potential for locating sulphide mineralization in these three areas is further enhanced by the presence of spatially co-incident and related resistivity and magnetic zones.
Based on Pezzot's interpretations and recommendations, the Company has incorporated these anomalies into its upcoming diamond drill program that already includes a number of geochemical and geological targets. Drilling is expected to commence immediately after the submitted permit applications have been approved.
Geophysical Survey Highlights
Target 1 (Report Zone C1): This target is the largest of the porphyry related anomalies (500m x 300m). It is centered near line 18800N at station 10100E, and forms an east-west elongated body along the eastern ridge of the north-trending Rio San Antonio Valley in the northeastern quadrant of the survey area. It forms a horizontal layer extending from the surface to approximately 140 metres in depth and is located immediately south of a small, circular magnetic plug which extends upwards as an apophysis from a larger magnetic body at depth. Pezzot notes that this type of zoned response is a common porphyry signature.
Target 2 (Report Zone C2): This target is a smaller anomaly on the western ridge of the Rio San Antonio Valley, centered around 18400N at station 9100E. In this area, a coincident chargeability and resistivity high is located at the top of a circular, pipe-like magnetic body. This signature is interpreted as reflecting the root of a porphyry system where sulphide mineralization and/or silicification accumulate in a stockwork feeder system.
Target 3 (Report Zone C3): This target is located approximately 1 km north of Target 2 with the same relative position along the ridge line. It is centered on line 19400N at station 8900E. Pezzot suggests that together, Targets 2 and 3 may be near surface extensions of a large chargeable mass at depth.
Target 4 (Report Zone C4): This is a lower priority target located below the Rio San Antonio Valley bottom, midway between C1 and C2. Pezzot interprets this target to likely be an extension of the northerly trending stratigraphy in this area.
Survey and Interpretation Details
The geophysical program was initiated by the Company's partner, Lara Exploration Ltd., in 2011 to target disseminated and semi-massive copper sulphide mineralization down to a maximum depth of approximately 300m.
The geophysical survey consisted of a total of 158 line kilometers of magnetic survey (gathered across 37 lines spaced at 100 to 200m intervals) and 65.5 line kilometers of Induced Polarization (gathered across 16 lines spaced at 200 to 400m intervals). The survey was conducted by Val d'Or Geophysics during July and August, 2011, under contract to the then owner, Lara Exploration Ltd. Instrument dump files from these surveys were provided by Network Exploration Ltd. to GeoSci Data Analysis Ltd. for interpretation, after completion of their property option agreement with Lara. 2D inversions of the chargeability and resistivity data were completed by the contractor Val d'Or Geophysics. 3D magnetic inversions were completed by Geosci Data Analysis Ltd. The results from these inversions were combined to produce 3D voxel models which are used to determine correlations, structures, and trends in data. Specific coincident and anomalous chargeability, resistivity, and magnetic signatures may indicate the presence of porphyry or other disseminated sulphide systems at depths and make excellent drill targets.
Discussion of Survey and Results (Note: Pezzot's report, with maps is available on the Company's website)
Four discrete, near surface, chargeability anomalies were identified and assessed by these methods, three of which could be reflecting porphyry style targets. All are located in the northeast portion of the Picha property and follow the east and west ridge lines forming the northerly trending portion of the Rio San Antonio valley.
Chargeability results from the IP survey are used primarily to map the distribution of disseminated sulphides. Generally, the higher amplitude chargeability responses comes from pyrite mineralization, whereas lower amplitude results reflect chalcopyrite and/or other copper mineralization. The dominant chargeability result in the survey area is a broad (800m wide), northerly trending high that enters the grid from the south near station 9500E and extends northward for over three kilometres to Line 18200N. It is offset 700m east at a point near 17200N where the ENE trending Rio San Antonio Valley makes an abrupt turn to the north. This is a deep structure and likely reflects a geological unit (Target 4). Other, more interesting chargeability responses that could be indicative of porphyry style targets are located in the northeastern portion of the survey area in proximity to the Valley (Targets 1-3). These are important anomalies and worthy drill targets, and have been discussed in more detail in the highlights section above.
The resistivity data maps show the same northerly trending structure defined in the chargeability data, however the data provides more definition along the edges of the trend. At the southern edge of the survey, the chargeability band coincides with a steep, easterly dipping conductive layer. This layer appears to extend from the ground surface and define the eastern edge of the chargeable body. This response is likely reflecting a northerly trending fault zone. The resistivity and chargeability responses along this trend may be reflecting an alteration zone around this structure. This conductive signature is mapped in the southern portion of the survey grid only (lines 15400N to 16200N). A similar anomaly is noted on line 17400N coincident with the interpreted NNE striking fault that displaces the northerly striking trends.
There are three anomalously high resistivity zones mapped across the grid.
R-1): This resistivity zone forms a northerly trending surface layer, located along the SE edge of the grid.
R-2): This resistivity zone follows the western ridge along the northerly striking portion of the Rio San Antonio valley. It forms a linear feature that connects the C-2 and C-3 chargeability anomalies.
R-3): This large resistivity anomaly is located in the extreme NE corner of the survey grid and coincides with a topographic high. Unlike the other resistivity anomalies, this feature appears to extend to depth. It lies along the northern edge of the strong chargeability anomaly C-1 (Target 1).
The magnetic results indicate the presence of magnetic rocks at shallow depths. The strongest responses generally correspond to volcanic and intrusive rocks and help define structural and geological boundaries, which in this area of the Picha property generally strike northeast. The strongest magnetic high coincides with the Rio San Antonio Valley. Breaks in the northeast trends may indicate faults. There is a pronounced difference in the magnetic character between the noisy northwest and quiet southeast section of the survey area, which is reflective of the change from dominantly volcanic Tacaza Group to dominantly sedimentary Maure Group rocks respectively. In general, magnetic inversion results indicate that higher magnetic susceptibilities coincide with topographic highs and the majority of the magnetic bodies appear to form northeast elongated structures that dip steeply to the northwest.
Merging of the magnetic and IP inversion models has produced clearer porphyry signatures which, according to Pezzot, correspond most favourably with Targets 1 and 2.
Network Exploration President Alexander Helmel commented: "The inclusion of these important geophysical anomalies adds significantly to our overall understanding of the exploration potential of the Picha property. We look forward to including them as priority targets to our planned upcoming diamond drill program which is currently in the permitting stage."
Cautionary Statement and Qualified Person
These geophysical targets warrant further investigation by drilling. However, while the IP data provides evidence of a porphyry system in these areas, the precise location and geometrical shapes of the source bodies suggested by the 2D inversions are not reliable.
The 2D inversion process assumes the source bodies are located directly below the survey lines while in fact, the anomalous responses could easily be generated from off-line sources.
This press release has been read and approved by Bob Friesen, P. Geo, a director of the Company and the Company's Qualified Person.
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.
ON BEHALF OF THE COMPANY
Chief Executive Officer
Forward-Looking Statements: This news release contains forward-looking statements regarding the future success of the business of the Company that is subject to risk and uncertainties. Examples of such forward-looking statements include, but are not limited to, statements concerning the Company's acquisition of the interest in the Picha Project and exploration activities on the Picha project and generally, government regulation of exploration and mining operations, indications and benefits of exploration, permitting, drilling test work and engineering assessments, environmental risks, title disputes or claims, and the Company's intention to raise additional capital and financing. These forward-looking statements involve known and unknown risk and uncertainties that may cause the Company's actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied in these forward-looking statements. These risks include risks related to the closing of the transaction, key personnel, competition, risks related to newly acquired businesses, uncertainty and dilution as a result of additional financing and the ability of the Company to service its current debt obligations, as well as the risk factors described in the Company's Management Discussion and Analysis filed on SEDAR at www.sedar.com and the risks described in any Management Information Circular of the Company. The forward-looking statements contained herein are made as of the date of this news release and are expressly qualified in their entirety by this cautionary statement. Except as required by law, the Company undertakes no obligation to publicly update or revise any such forward-looking statements to reflect any change in its expectations or in events, conditions or circumstances on which any such forward-looking statements may be based, or that may affect the likelihood that actual results will differ from those set forth in the forward-looking statements.
For further information:
please contact Moises Uribe, CFO at 604-638-7363, or visit the Company's website at www.networkexploration.com