VANCOUVER, March 1, 2012 /CNW/ - Zimtu Capital Corp. (TSXv: ZC; FSE: ZCT1) (the "Company" or "Zimtu") is pleased to announce that the Company and one of its prospecting partners have signed an agreement with Pinestar Gold Inc. (TSXv: PNS) (FSE: 3PI) ("Pinestar") whereby Pinestar can earn a 100%-interest in a portfolio of graphite projects in Australia (the "Option").
The combined package is comprised of 11 tenements (the "Optioned Properties") with a total area of 533 km2 located in four different states in Australia. Of the 11 tenements subject to the Option, three comprise the Munglinup Project in Western Australia, one comprises the Eyre Point Project in South Australia, five cover various historical showings located in New South Wales, one covers the Furniss East Project in Western Australia, and one covers the Emu Plain project located in Queensland.
For its participation in the transaction, Zimtu will receive staged cash and share payments from Pinestar as follows: (i) $12,500 on signing (paid); (ii) $25,000 and 500,000 common shares on acceptance by the TSX Venture Exchange ("TSXv"); (iii) $37,500 and 500,000 common shares 12 months from the date of TSXv acceptance; and (iv) 375,000 common shares 18 months from the date of TSXv acceptance; (v) 375,000 common shares 24 months from the date of TSXv acceptance. Zimtu's prospecting partner will receive cash and share considerations equal to that of Zimtu. The vendors will collectively retain a 2% Net Smelter Returns Royalty on the Property; 1% of which can be purchased by Pinestar for C$1 million. During the period which is 6 months from the date of TSXv acceptance, Pinestar will complete a minimum of $100,000 of exploration on the properties.
The Optioned Properties are located in the main known graphite provinces in Australia. This includes the Munglinup region of Western Australia (host to the Munglinup Deposit of Adelaide Prospecting Pty Ltd.) and the Eyre Peninsula of South Australia (host to the Uley Deposit of Strategic Energy Resources Ltd. and Mega Graphite Inc.).
No recent or systematic exploration program has been carried out for the exploration of graphite on any of the Optioned Properties. The Optioned Properties are considered highly prospective for occurrences of graphite.
The Company considers the flagship property of the Optioned Properties to be the Munglinup Project. The Munglinup Project consists of three separate tenements covering an area of 174 km2. The project is located along strike and contiguous with the eastern and southern sides of the Munglinup Deposit, which is held by Adelaide Prospecting Pty Ltd. The Munglinup Deposit contains a reported in-situ historic non-NI 43-101-compliant geologic resource of graphite of 1.47 MT at 18.2% fixed carbon. This work had identified graphite mineralization of a length in excess of 500 m and to a depth of 55 m. The Munglinup Deposit is anticipated to be Western Australia's first commercial graphite mine. The Munglinup Deposit and the historical estimate related thereto is separate from the Munglinup Project area which is subject to the Option, but the Company believes that there is potential for similar style mineralization to occur within the Munglinup Project area.
A reconnaissance field program by an independent consulting geologist has been completed on the Munglinup Project and samples have been taken where outcropping graphite and float have been observed. Review of a previously completed electro-magnetic survey (completed in connection with previous nickel exploration) shows a significant anomaly to be coincident with the stratigraphy that hosts the Munglinup Deposit.
The Company anticipates that the results from this initial program will be available in the near future. The Company and Pinestar anticipate that future exploration programs for the Munglinup Project will include:
- Mapping and sampling.
- Geophysical acquisition and EM ground surveys.
- Data compilations.
EYRE POINT PROJECT
The Eyre Point project area is located 15 km to the north of the Uley Graphite Mine and covers three prospective areas within 71 km2.
The Uley Graphite Mine is an open-cut graphite mine at Uley on the Eyre Peninsula, South Australia and has recently been purchased by Mega Graphite Inc. Uley is recognized as an area of world class graphite mineralization. The graphite deposit is part of the Mikkira Graphite Province, one of the largest coarse flake graphite deposits in the world, containing disseminated, high-grade flake graphite.
The tenement subject to the Company's Option is located on the eastern Eyre Peninsula, where numerous graphite occurrences have been recorded over a 200 km long zone extending from south of port Lincoln to Kimba.
NEW SOUTH WALES PROJECTS
There are 14 recorded occurrences of graphite in New South Wales, all of which are in the area covered by the five tenements subject to the Option, covering a combined area of 228 km2. They occur in two main areas in the New England Orogen: Undercliff Falls, north of Tenterfield; and Walcha, south of Armidale.
The most exciting of the projects is the Plumbago and Winterbourne occurrences. The Plumbago occurrence is located in the Undercliff Falls area and hosts the Plumbago deposit where a total of 3000 tonnes has been mined in the past by previous owners. In the Undercliff Falls area there are nine separate graphite localities which includes the George Creek, Falls Creek, Nicklaus, Half Moon, Circular Quay Gully, Hutt Spur occurrences.
The Winterbourne occurrence contains the formerly operating Winterbourne graphite mine and is developed in a north-trending micropegmatite dyke that intrudes granitic stocks of the Cheyenne Complex, Hillgrove Supersuite.
The dyke is 2 m to 30 m wide and is exposed over a distance of about 250 m. It contains abundant segregations of fine-grained graphitic material.
Graphite is one of three forms of naturally occurring carbon, the others being charcoal and diamond. It is a black to grey, lustrous mineral that crystallizes in a hexagonal system, is soft (H = 1-2) and has a specific gravity of 2.1 to 2.2. Plumbago and black lead are old names for graphite, owing to its lead-like appearance. Graphite is compressible and malleable, an excellent conductor of heat and electricity and is highly refractory — with a melting point of 3650°C. Thermal oxidation of natural graphite begins at about 300°C, and it is commonly stable and chemically unreactive at lower temperatures. Natural graphite is also typically resistant to chemical degradation, thermal shock, shrinkage and oxidation.
Three discrete commercial types of natural graphite are recognized: flake (also referred to as crystalline or disseminated flake); crystalline vein (or lump); and amorphous (microcrystalline).
- Flake graphite is the most important commercially. The name refers to graphite that occurs as thin disseminated flakes in metamorphic rocks.
- Crystalline vein graphite consists of coarse, platy or needle-like crystals in veins, mainly in Precambrian igneous and metamorphic rocks.
- Amorphous graphite is massive microcrystalline graphite, generally derived from thermally metamorphosed coal seams or carbonaceous sedimentary rocks.
Graphite deposits of commercial interest occur widely in regionally or thermally metamorphosed sedimentary rocks and in hydrothermal and metasomatic deposits. There are five identified deposit types.
- Early magmatic deposits (rare)
- Deposits formed by concentration and crystallization of carbon (from coal or carbonaceous sedimentary rocks) during regional or contact metamorphism
- Vein deposits
- Contact metasomatic (skarn) deposits
- Residual deposits
China produces around 70-80% of the world's graphite. Quality is declining as surface oxide deposits are depleted resulting in increasing costs as mines go deeper. Supply suffers from the seasonal closure of mines in northern China over winter.
The optioned claims were acquired by the Company and its partners by staking, and were acquired for project generation. Zimtu, along with its prospecting partners, continue to evaluate and acquire prospective resource properties to make available for sale or joint venture. As part of the Company's business, Zimtu provides mineral property advisory services and helps to connect companies with mineral properties of interest.
Mr. Andrew Spinks B.App.Sc, Grad.Dip (Mining), a member of AusIMM, and an independent consultant geologist, is a Qualified Person as defined in National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101"). Mr. Spinks is a principal shareholder of SRM, and is an arm's length party to the Company. Mr. Spinks has reviewed and approved the technical disclosure contained in this news release.
About Zimtu Capital Corp.
Zimtu Capital Corp. invests in, creates and grows natural resource companies thereby providing a way for shareholders to indirectly participate and profit in the public company building process. The Company also provides mineral property advisory services helping to connect companies to properties of interest.
Zimtu Capital trades on the TSX Venture Exchange under the symbol "ZC" and the Frankfurt Stock Exchange under the symbol "ZCT1."
On Behalf of the Board of Directors
ZIMTU CAPITAL CORP.
President & Director
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.
Statements in this document which are not purely historical are forward-looking statements, including any statements regarding beliefs, plans, expectations or intentions regarding the future.
Forward-looking statements in this news release include that Pinestar can earn a 100%-interest in a portfolio of graphite assets in Australia; that in consideration for its interest, Zimtu will receive staged cash and share payments from Pinestar, that Zimtu's partner will receive cash and share consideration equal to that of Zimtu; that the vendors will collectively retain a 2% Net Smelter Royalty on the property, 1% of which can be purchased by Pinestar for C$1 million; that Pinestar anticipates that the results of the initial exploration at Munlinup by a consulting geologist to the vendors will be available in the near future; that future exploration programs at Munlinup will include: mapping and sampling, geophysical acquisition, EM ground surveys, and data compilations; and that Zimtu with the support of its prospecting partners will continue to evaluate and acquire prospective resource properties to make available for sale or joint venture.
It is important to note that actual outcomes and the Company's actual results could differ materially from those in such forward-looking statements. Risks and uncertainties include, but are not limited to, economic, competitive, governmental, environmental and technological factors that may affect the Company's operations, markets, products and prices. Readers should refer to the risk disclosures outlined in the Company's Management Discussion and Analysis of its audited financial statements filed with the British Columbia Securities Commission.
For further information:
please visit the corporate website at http://www.zimtu.com or contact:
Toll Free: 1.877.377.6222
Email: [email protected]