Amato announces high-grade iron assay results from El Creston samples

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TSX-V: AMT

VANCOUVER , Feb. 3 /CNW/ - Amato Exploration Ltd. (the "Company" or "Amato") (TSX-V:AMT), (http://www.amatoexploration.com), is pleased to announce significant analytical results have been received from surface rock samples taken at the El Creston magnetite project.

The El Creston property is located approximately 24 kilometers northeast of the town of Choix, at the northeastern extent of Sinaloa state, Mexico . Choix is reached via paved Highway 32 from Los Mochis, which is located approximately 150 km to the southwest.

A reconnaissance geological survey was conducted in December 2009 to examine known magnetite skarn occurrences identified from previous historical work, to take representative samples for laboratory analysis and to examine the geological setting in order to plan for additional exploration.

A total of six chip and eight grab samples were collected from the property and submitted to ALS Chemex in Hermosillo ( Mexico ) for processing. The samples were then shipped by ALS Chemex to their North Vancouver ( Canada ) lab for analysis.

Significant sample results include 62.7% Fe over a chip sample length of 2.45 m from sample M783656, and 49.9% Fe over a chip sample length of 1.5 m from sample M783661. Additional results are provided in the table below.

Geological Setting:

The reconnaissance survey confirmed the earlier reported presence of semi-massive to massive magnetite mineralization in an area of strong skarn development. Skarn development is similar to that at the nearby Mazomique iron mine, and occurs at the contact between Cretaceous granodiorite intrusive and gently-dipping limestone host rocks. Massive iron mineralization (magnetite +/- specular hematite) is intercalated with metasomatized host limestone and calc-silicate skarn assemblages.

Magnetite-bearing skarn mineralization is unevenly exposed at surface as intermittent outcrops and scattered boulders over an area of about 300 metres by 100 metres. Shallow historical excavations within this area have exposed gentle- to moderately-dipping magnetite skarn mineralization up to an exposed true thickness of 3.5 metres. The dimensions of the magnetite skarn zone remain open at depth, along strike, and along dip.

The magnetite skarn is believed to represent a mineralized contact zone, exposed in an erosional "window", between the overlying limestone and underlying granodiorite. The prospective contact zone appears to extend both west and east of the "window" area and will be tested initially by magnetometer surveys and, if warranted, by drilling.

Analytical Results:

Magnetite skarn samples returned high grade iron in the range of 45.1 to 62.7% Fe. High grade iron samples were consequently also relatively low in major oxides, including SiO(2), Al(2)O(3), and MgO. Significant results from 6 chip samples are identified in the table below.

Six samples returned anomalous copper values ranging from 1320 ppm to greater than 10,000 ppm with no apparent preferential association with any one skarn assemblage. Samples M783657 and M783659 returned the highest grade copper assays: at 1.33 % Cu and 1.19 % Cu, respectively.

Two chip samples were taken at the Vente Pit, a small open-cast working developed in well-layered magnetite skarn. Sample M783656 is a 2.45 m chip sample taken from the massive magnetite hangingwall zone and returned 62.7% Fe and 1320 ppm Cu. Sample M783657 is a 1.10 m chip sample taken from the footwall zone and returned 54% Fe and 1.33% Cu. Copper oxide minerals are readily apparent in the footwall zone at the Vente Pit. The full thickness of the FW zone is unknown and is at least partially obscured by cave on the pit floor.

Significant chip sample results are provided in the table below:

    
    -------------------------------------------------------------------------
    Sample     Fe   SiO2  Al2O3  MgO     Cu
                %     %     %     %     ppm     S % Description  Sample Type
    -------------------------------------------------------------------------
    M783656  62.70  5.14  0.86  1.31    1320   less  Magnetite  2.45m chip HW
                                               than   skarn      Vente Pit
                                               0.01
    -------------------------------------------------------------------------
    M783657  54.00 18.98  0.66   1.9 *1.33%  0.02  Magnetite  1.10m chip FW
                                                      skarn      Vente Pit
    -------------------------------------------------------------------------
    M783658  45.10 19.68  0.45  5.89      26   less  Magnetite  0.95m chip
                                               than   skarn
                                               0.01
    -------------------------------------------------------------------------
    M783659  39.80 19.68  2.03  0.76 *1.19%  0.02  Copper     1.3m chip
                                                      oxide
                                                      skarn
    -------------------------------------------------------------------------
    M783660  22.30 35.46  3.57  0.62    3130   0.01  Copper     1.2m chip
                                                      oxide
                                                      skarn
    -------------------------------------------------------------------------
    M783661  49.90  6.77  0.34  0.08    1410   0.63  Magnetite  1.5m chip
                                                      Skarn
    -------------------------------------------------------------------------
    * copper assay after geochemical analysis
    

The geochemical and assay techniques used by ALS Chemex yield Total Fe percentage and are not meant as a final determination of recoverable magnetite. Future sampling for determination of recoverable magnetite will be conducted using metallurgical methods, such as Davis Tube testing or magnetic drum separation.

The results from analysis confirm the relatively high-grade nature of the magnetite mineralization and warrant further follow-up. Amato is planning additional mineral exploration on the El Creston magnetite skarn project during 2010. Planned exploration includes close-spaced line cutting, a detailed ground magnetometer survey, geological mapping and, if warranted, diamond drilling. The exploration will focus on those areas with the best potential for relatively low-cost direct shipping ore.

Mr. Mel Reeves , President of Amato Exploration Ltd., stated: "I am very pleased with the progress being made on the El Creston exploration program. We have completed a preliminary sampling program, have contracted a ground magnetometer survey to Geofisica TMC S.A. de C.V. of Mexico , and are planning to extend the mapping and sampling program once a grid has been established. We expect to commence the geophysical program next week."

Mr. Reeves also stated: "The sample results, when combined with the anticipated analysis from the magnetometer survey, will help define the company's future exploration plans." The magnetometer survey will encompass approximately 55 line kilometers and will cover the majority of the El Creston property.

Quality Assurance/Quality Control:

ALS Chemex has implemented a Quality Assurance and Quality Control system that complies with the requirements of the international standards ISO 9001:2000 and ISO 17025:2005, and that system is operational in all of their laboratory sites.

ALS Chemex performed a series of internal lab quality checks using inserted standards, blanks and check duplicates. The company is satisfied with the reproducibility of analyses for the elements reported.

Prior to analysis, each sample was weighed, dried and the entire sample was fine crushed to better than 70% -2mm. Each sample was then riffle split to a 250g sample and pulverize split to better than 85% passing 75 microns.

After receipt of processed samples in North Vancouver , each sample was subjected to whole rock analysis for major oxides by X-Ray Fluorescence ("XRF") with borate fusion technique. XRF provides highly accurate and precise iron oxide results for iron ore samples. Those samples that returned greater than 10% Fe by XRF analysis were rerun by Fe assay for % Fe.

All samples were also analyzed for trace element geochemistry using 33-element ICP-AES method and four-acid digestion. Any sample that returned greater than 10,000 ppm for copper or zinc was re-run by four acid digestion with ICP-AES or AAS finish. All samples were also subjected to quantitative analysis of gold by fire assay and AAS using a 30g nominal sample weight.

Mr. Ken MacDonald , P. Geo., an independent geological consultant, is the Qualified Person under the guidelines of NI 43-101. Mr. MacDonald oversees the Company's exploration program with respect to the El Creston Project and has reviewed and approved the technical disclosure contained in this news release.

El Creston Project:

The property is underlain by Upper Jurassic to Lower Cretaceous limestone, of variable thickness, which overlies and is partially intruded by granodiorite and related compositional phases of the Late Cretaceous to Mid-Tertiary Choix Batholith. The limestone has been subject to contact metamorphic and metasomatic effects from the underlying intrusive granodiorite body. The limestone sequences appear to be "resting" on top or embedded in the intrusive body, and probably represent roof pendants of the batholith.

It is likely the roof pendants have served as loci for intrusive contact-replacement processes that have formed localized significant concentrations of magnetite and hematite in garnet-epidote bearing skarn assemblages. Skarn assemblages range from massive magnetite with subordinate hematite to locally massive hematite predominant with yellow goethite and limonite alteration prevalent on surface fractures. Other skarn facies include strongly oxidized copper-rich skarn, olivine-garnet-epidote skarn and wollastonite skarn.

Magnetite occurs as subhedral masses, aggregates, granulations, and very coarse euhedral, crystals up to 2mm across. Surface exposures can range from cm-scale interlayers of semi-massive to massive magnetite, in intensely altered epidote skarn, to exposures of (greater than)80% magnetite over 2.5 m with minor gangue minerals.

About Amato Exploration Ltd.:

Amato Exploration Ltd. is a North American mineral exploration company, based in Vancouver , B.C., Canada . We are currently focused on exploring for silver and gold deposits in northern Mexico and securing other leading mineral properties in the Americas. The Company's primary asset is its Colosio-Los Letreros property located in southwestern Chihuahua State, in northern Mexico .

DISCLAIMER

This news release contains forward-looking statements which reflect management's current expectations regarding the Company's objectives, plans, goals, strategies, future growth, results of operations, performance and business prospects and opportunities. These forward-looking statements are not guarantees, but only predictions. Although the Company believes that these statements are based on information and assumptions which are current, reasonable and complete, these statements are necessarily subject to a number of factors that could cause actual results to vary significantly from current expectations. These factors and other risks and uncertainties are discussed in the Company's materials filed with the Canadian securities regulatory authorities from time to time, as identified in the Company's disclosure record on www.sedar.com. The forward-looking statements included in this news release are made only as of the date of this news release and the Company does not undertake to publicly update these forward-looking statements to reflect new information, future events or otherwise, except as required by law.

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 news release.

THIS PRESS RELEASE, REQUIRED BY APPLICABLE CANADIAN LAWS, IS NOT FOR DISTRIBUTION TO U.S. NEWS SERVICES OR FOR DISSEMINATION IN THE UNITED STATES , AND DOES NOT CONSTITUTE AN OFFER TO SELL OR A SOLICITATION OF AN OFFER TO SELL ANY OF THE SECURITIES DESCRIBED HEREIN IN THE UNITED STATES . THESE SECURITIES HAVE NOT BEEN, AND WILL NOT BE, REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAWS, AND MAY NOT BE OFFERED OR SOLD IN THE UNITED STATES OR TO U.S. PERSONS UNLESS REGISTERED OR EXEMPT THEREFROM.

%SEDAR: 00028188E

For further information: Mr. Melvin R. Reeves, Chief Executive Officer, Amato Exploration Ltd., Tel: [phone]; Investor relations contact: Mr. John Bevilacqua, Acqua Capital Group., Tel: [phone]; For further information, please send enquires to [email protected]