VANCOUVER, Feb. 28, 2013 /CNW/ - Gitennes Exploration Inc. ("Gitennes or the Company", GIT-TSXV) has been advised by AndeanGold Ltd. of the results from a surface channel sampling programme completed over the Candual, La Mariscala East, and La Mariscala South Veins on the Company's Urumalqui Silver-Gold Project in Peru. These veins are located south of the Urumalqui Vein, the principal vein on the Project, which was the focus of AndeanGold's 2010 - 2012 exploration activities. AndeanGold is exploring Urumalqui under the terms of two agreements.
The results are for recently released channel samples collected at 25 metre-spaced intervals. The samples were taken utilizing a portable rock saw. These structures had not been previously sampled in detail.
Assay results highlights include:
| Candual West
| Candual East
| La Mariscala East
| La Mariscala South
Silver Equivalent: Equivalent grams or ounces of silver based on gold to silver ratio of 50:1, assuming 100% recoveries.
oz/t: Ounces per metric tonne.
- The Candual Vein is a 1,000 metre-long zone of quartz veining, brecciation and silicification. The West and East segments are separated by a ravine. The trench assay results have highlighted an area of interest covering an approximate 550 metre length comprising of the eastern 375 metre-long end Candual West outcrop and the continuing western 175 metres end of the Candual East outcrop.
- The La Mariscala East Vein also exhibits quartz veining, brecciation and silicified wall rock and has been trenched over a length of 225 metres. This is a second target of strong interest. The vein appears to extend a further 400 metres to the west, and AndeanGold is attempting to negotiate access to this area with the surface owners. Additional trenching, channel and outcrop sampling is reportedly underway at the eastern end of the vein and on newly exposed veins and breccia zones between the La Mariscala East and Candual East Veins.
- The overall gold and silver assay values of the trenches from the La Mariscala South Vein outcrop (approximately 450 metres in length) were relatively low, except for the results noted.
- Gitennes had previously completed very limited, wide-spaced drilling on these veins, including the La Mariscala West Vein (approximately 500 metres in length) which AndeanGold has not trenched and sampled in detail. The La Mariscala West Vein runs sub-parallel to the Urumalqui Vein and is located approximately 800 metres to the south.
All of the trench rock samples were submitted to the ALS Minerals Laboratory in Callao, Lima, Peru for analysis by Inductively Coupled Plasma (ICP) - Atomic Emission Spectroscopy, fire assay and gravimetric techniques. AndeanGold has a QA/QC programme in place that includes placing blanks, standard reference materials and field duplicate inserted into the sample shipments.
The information in this release is based upon that supplied by AndeanGold Ltd. with additional information available on its website (www.andeangoldltd.com). The technical information in this release has been reviewed by J. Blackwell (P.Geo.), a Qualified Person as defined by National Instrument 43-101.
Urumalqui is an advanced silver-gold project located approximately 70 kilometres by road east of the port city of Trujillo, Perú. Gitennes acquired Urumalqui in 2002-2003 in joint venture with Meridian Gold Inc. In June 2005 the companies terminated the agreement and Gitennes assumed 100% control of the project. Exploration activities between 2003 and 2008 included three core drilling campaigns totalling 47 holes. In 2010 the project was optioned to AndeanGold Ltd whom undertook a fourth diamond drilling campaign (31 holes totalling 5,071 metres). In November 2011 an Initial Resources Estimate for the Urumalqui Vein (the principal focus of drilling up to that date) was prepared by Mine and Quarry Engineering Services, Inc. The technical report supporting the estimate is available under both AndeanGold and Gitennes' company profiles at www.sedar.com.
Gitennes has two agreements with AndeanGold that allows AndeanGold to own 100% of Urumalqui, providing AndeanGold honours the terms of both agreements:
#1) Option to acquire a 60% interest, AndeanGold must complete
|a)||$3,000,000 of qualifying expenditures on the project over a four (4) year term commencing July 8, 2010 and ending July 7, 2014,|
|b)||3,000 metres of drilling by July 7, 2012 (completed) and 7,000 metres of cumulative drilling by July 7, 2013, and|
|c)||AndeanGold issuing Gitennes a total of 80,000 shares in four tranches, with the remaining 20,000 shares due by July 7, 2013.|
#2) Share Sale and Mining Agreement to acquire remaining 40% interest, AndeanGold must exercise and meet the terms of the 60% option and make the following payments to Gitennes:
|Cash Payments||Share Payments|
|On Signing Memorandum of Understanding (received)||$ 125,000||none|
|On Signing Agreement (received)||125,000||200,000|
|By November 17, 2012 (received)||250,000||200,000|
|By May 17, 2013||350,000||250,000|
|By November 17, 2013||400,000||250,000|
|By May 17, 2014||500,000||500,000|
|By November 17, 2014||1,000,000||600,000|
On AndeanGold fulfilling the terms of both agreements Gitennes shall be entitled to a 1% Net Smelter Returns royalty on the Project with total payments limited to a maximum pay-out of $1,250,000.
Ken Booth, President
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.
DISCLAIMER: This news release includes certain statements, other than historical information, that may be deemed "forward-looking statements". All statements in this release, other than statements of historical facts, including, without limitation, statements regarding future plans and objectives of the companies are forward-looking statements that involve various risks and uncertainties. Although Gitennes believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Forward-looking statements are based on a number of material factors and assumptions. Factors that could cause actual results to differ materially from those in forward-looking statements include general economic, market or business conditions, and other risks detailed herein and from time to time in the filings made by the companies with securities regulators. Mineral exploration and development of mines is an inherently risky business. Accordingly the actual events may differ materially from those projected in the forward-looking statements. Historical information necessarily is not current and is provided for your reference only. No warranty whatsoever is made that any of the historical information is accurate, precise, or up-to-date. For more information on Gitennes and the risks and challenges of their businesses, investors should review their annual filings that are available at www.sedar.com.
This press release does not constitute an offer to sell or a solicitation to buy any of the securities of Gitennes in the United States.
SOURCE: Gitennes Exploration Inc.
For further information:
For more information on the Company and the Urumalqui Project please go to www.gitennes.com.