TORONTO, Sept. 20 /CNW/ - Zaruma Resources Inc., (TSX-ZMR) today reported
that it is completing arrangements for the commencement of a drilling
programme in the second week of October on its wholly owned "Trion" area which
is immediately to the west of the proposed Luz del Cobre open pit mine at San
Antonio, Sonora, Mexico.
The four month US$750,000 programme will drill 3,300 metres on targets
identified to date, and continue the surface work at Trion by completion of
trenching and geochemical sampling on five copper target areas within the 375
hectare Trion Area. On successful completion of the initial programme a second
phase, requiring a similar amount of funding, is anticipated to complete the
evaluation of the area.
The initial programme also includes a minimum of five holes on the open
ended southwest portion of the Luz del Cobre deposit to expand the existing
Previously reported rock chip and channel sampling along new access roads
and trenches delineated a strongly developed structural corridor between 100
and 150 metres wide, characterized by intensive fracturing and local breccia
development, and has been traced for 1,500 metres, culminating on the
northeast end at Luz del Cobre. Assays within the structural corridor are
often in excess of 0.2% copper, (near the estimated economic cut-off grade for
Luz del Cobre, assuming a copper price of US$2.23), and includes one open
ended, 90 by 30 metre breccia zone with visible oxide copper, with 43 samples
grading an average of 0.43% copper.
Funding for the programme is expected to be from the Glencore
International AG group of companies. As previously announced, Glencore intends
to provide US$22 million in debt financing to produce 15 million pounds of
copper per year from the Luz del Cobre project and additionally, will provide
up to $1.5 million for the exploration and development of the Trion area,
which could extend the mine life beyond the current six year estimate.
Glencore also intends to enter into negotiated joint ventures with the Company
to explore for other base metal deposits on other parts of the Company's
11,200 hectare San Antonio property.
Legal agreements for the debt financing of Luz del Cobre, the funding of
the Trion programme, and the initial exploration joint venture are currently
being prepared for execution.
The estimated time to first production from Luz del Cobre remains at
12-15 months from the date of financing. The selection of contractors is in
Zaruma Resources Inc. is a pre-production mineral exploration company
listed on The Toronto and Frankfurt Stock Exchanges (symbol: ZMR). Common
shares outstanding: 109,414,909.
This News Release contains forward-looking statements which are typically
preceded by, followed by or including the words "believes", "expects",
"anticipates", "estimates", "intends", "plans" or similar expressions.
Forward-looking statements are not guarantees of future performance as they
involve risks, uncertainties and assumptions, including, but not limited to
securing funding to continue its development programmes.
For further information:
For further information: Zaruma Resources Inc., 20 Toronto Street, 12th
Floor, Toronto ON, M5C 2B8, Canada, Fax: (416) 367-3638, email@example.com,
www.zaruma.com; Dr. Thomas Utter, President and CEO, Tel.: 52 1 662 222 0063,
52 662 210 5650, firstname.lastname@example.org; Frank van de Water, CFO and
Secretary, Tel.: (416) 869-0772; email@example.com