Medoro Resources Completes Consolidation of Marmato District with Acquisition
of Mineros Nacionales S.A.
Acquisition includes a producing underground gold mine and mill on the Zona Baja property
TORONTO, Feb. 15 /CNW/ - Medoro Resources Ltd. (TSX-V: MRS) is pleased to announce that it has acquired all of the issued and outstanding ordinary shares of Mineros Nacionales S.A. from its parent company, Mineros S.A., for total cash consideration of US$35 million.
With this acquisition, Medoro has acquired 100% of Mineros Nacionales' interests in the Zona Baja concession (the "Zona Baja property") which is located directly beneath and contiguous with Medoro's Zona Alta property at Marmato in Colombia.
Highlights:
- With this acquisition, Medoro has consolidated the three primary gold
properties at Marmato and now owns most of the interests in the Zona
Alta, as well as Echandia and Zona Baja, which combined constitute
most of this historically prolific gold district.
- This acquisition includes an operating underground gold mine and mill
on the Zona Baja property which, based on information provided by
Mineros Nacionales, produces approximately 25,000 ounces of gold per
year.
- The combined NI 43-101 compliant measured and indicated resource
estimate for the Zona Alta and Echandia properties is approximately
3.4 million ounces of gold. In addition, the combined NI 43-101
inferred resource estimate for both properties is approximately
1.3 million ounces of gold. (See the resource estimate summary table
below.) The Company expects to complete and file a NI 43-101 technical
resource estimate report for the Zona Baja property by the end of
February 2010.
"Medoro already has a substantial gold resource at the Zona Alta area of Marmato and the Echandia area, and the addition of Zona Baja will allow the Company to explore and develop the region on a large scale. The indications are that the gold mineralization on these three properties are part of the same geological formation and we believe that exploring them as one will significantly increase the potential to expand and upgrade their gold resources," said John Hick, CEO of Medoro Resources Ltd.
"In a very short time frame, Medoro has added a producing gold operation and further exploration ground to its already significant exploration properties in Colombia. We are actively exploring and infill drilling the Zona Alta at Marmato and expect to expand and develop the potential of our gold assets with the same focus that we demonstrated in completing our consolidation strategy at Marmato," he added.
Medoro's immediate priorities on Zona Baja are to review the operating Mineros Nacionales underground mine to assess the potential for improving production efficiency, and to commence underground exploration drilling to complement the drilling from surface on the Zona Alta above.
Five drill rigs are currently in operation on the Zona Alta property conducting an exploration and infill drilling program. The drilling program commenced in mid-January 2010, with approximately 2,890 metres of drilling completed to date. Assay results are pending.
-------------------------------------------------------------------------
ZONA ALTA MEASURED AND INDICATED GOLD MINERAL RESOURCE
-------------------------------------------------------------------------
Measured Resource
-------------------------------------------------------------------------
Cut off Type Tonnes (000s) Grade Au g/t Ounces (000s)
-------------------------------------------------------------------------
0.30 Gold 13,065 0.87 364
-------------------------------------------------------------------------
Indicated Resource
-------------------------------------------------------------------------
0.30 Gold 75,142 0.81 1,955
-------------------------------------------------------------------------
Total Measured and Indicated Resource
-------------------------------------------------------------------------
0.30 Gold 88,207 0.82 2,319
-------------------------------------------------------------------------
-------------------------------------------------------------------------
ZONA ALTA INFERRED GOLD MINERAL RESOURCE
-------------------------------------------------------------------------
0.30 Gold 27,609 1.21 1,075
-------------------------------------------------------------------------
-------------------------------------------------------------------------
ECHANDIA MEASURED AND INDICATED GOLD MINERAL RESOURCE
-------------------------------------------------------------------------
Measured Resource
-------------------------------------------------------------------------
0.30 Gold 8,744 0.76 215
-------------------------------------------------------------------------
Indicated Resource
-------------------------------------------------------------------------
0.30 Gold 39,828 0.68 865
-------------------------------------------------------------------------
Total Measured and Indicated Resource
-------------------------------------------------------------------------
0.30 Gold 48,572 0.69 1,080
-------------------------------------------------------------------------
-------------------------------------------------------------------------
ECHANDIA INFERRED GOLD MINERAL RESOURCE
-------------------------------------------------------------------------
0.30 Gold 10,637 0.80 274
-------------------------------------------------------------------------
The Zona Alta estimate was based on 42,913 metres of diamond hole samples in 201 holes and using a cut off grade of 0.3 g/t. The Echandia estimate was based on 17,144 metres of diamond drilling in 96 holes and using a cut off grade of 0.3 g/t.
About Medoro Resources Ltd.
Medoro Resources Ltd. is a gold exploration and development company focused on acquiring gold properties of merit to bring to production, with a primary emphasis on Colombia. The Company owns the rights to interests in the Zona Alta, Echandia and Zona Baja exploration properties, including the operating underground Mineros Nacionales gold mine located on the Zona Baja Property, all in the Marmato District of Colombia. Medoro also holds a 100% interest in the Lo Increible 4A and 4B concessions in Venezuela and interests in other gold exploration areas outside of South America. Additional information on Medoro Resources Ltd. can be found by reviewing the Company's profile on SEDAR at www.sedar.com.
Qualified Person:
The Zona Alta and Echandia NI 43-101 Technical Reports were prepared by Scott E. Wilson Consulting, Inc. of Englewood, Colorado and are available on SEDAR at www.sedar.com and on the Company's website at www.medororesources.com.
Scott E. Wilson, of Scott E. Wilson Consulting, Inc. is the independent qualified person as defined by National Instrument 43-101 and has prepared or reviewed the preparation of the information which forms the basis of this press release. He is a Certified Professional Geologist and member of the American Institute of Professional Geologists (CPG No.10965) and a Registered Member (No.4025107) of the Society of Mining and Metallurgy and Exploration, Inc., a professional association and designation recognized by the Canadian regulatory authorizes. The samples were prepared by Inspectorate (ISO 9001:2000 and 9002:2004) certified) at sample preparation facilities in Medellin, Colombia, and Reno Nevada, and were assayed at their laboratories in Reno and Lima, Peru. Gold was assayed by fire assay with gravimetric or AAS finish. Silver was assayed by AAS finish or analyzed by ICP with a suite of multi-elements. Additional laboratories used were SGS in Medellin, Colombia (preparation) and Lima, Peru (analysis), and ALS Chemex in Reno, Nevada (analysis) using the same analytical methods. Blank, standard and duplicate samples were routinely inserted for quality assurance and quality control.
This press release contains forward-looking statements based on assumptions, uncertainties and management's best estimates of future events. Actual results may differ materially from those currently anticipated. Investors are cautioned that such forward-looking statements involve risks and uncertainties. Important factors that could cause actual results to differ materially from those expressed or implied by such forward looking statements are detailed from time to time in the company's periodic reports filed with the British Columbia Securities Commission and other regulatory authorities. The company has no intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
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.
%SEDAR: 00020446E
For further information: John Hick, President & CEO, (416) 603-4653, [email protected]; Linda Dorrington, Director, Investor Relations, (416) 603-4653, [email protected]
Share this article