OTTAWA, ONTARIO--(Marketwire - March 1, 2011) - Mazorro Resources Inc. ("Mazorro" or the "Company") (TSX VENTURE:MZO)(FRANKFURT:JAM) announces that it has entered into an option agreement with Pershimco Resources Inc. (TSX VENTURE:PRO) ("Pershimco") relating to the Figuery property in the Figuery Township of Québec and also a second group of claims in the limits of the Landrienne and Duverny Townships (the "Figuery Property") comprising a total of 55 claims. The Figuery Property is contiguous to the eastern boundary of Agnico-Eagle's Newconex deposit and covers part of the Porcupine-Destor fault, one of the principal gold bearing structures in Québec and Ontario.
Under the terms of the agreement, Mazorro may acquire up to 51% of Pershimco's right, title and interest in the Figuery Property (the "First Option"). Mazorro is required to provide total cash payments of $250,000, a total of 1,000,000 common shares and has committed to conduct exploration of $1,000,000 over a period of two years from the completion of a definitive option agreement as follows:
Following the exercise of the First Option, Mazorro shall have the option to acquire an additional 24% undivided interest in the Figuery Property (the "Second Option"), thereby acquiring a total undivided interest of 75%, by making additional cash and share payments valued at a total of $1,500,000 and by conducting additional exploration of $4,000,000 over another two year period including a feasibility study. Mazorro shall pay $500,000 of the required payments for the Second Option in common shares. Details of consideration under the Second Option are as follows:
(1) Number of common shares to be determined based upon a 15% discount to the average closing price of Mazorro common shares on the TSX Venture Exchange for the 10 day period preceding the written notice, subject to the minimum price permitted by the policies of the TSX Venture Exchange and subject to any required corporate approval, as applicable.
During the First Option and Second Option periods Pershimco will act as the operator of the Figuery Property.
"Mazorro is very pleased to start a new partnership with Pershimco to explore and develop properties in the Abitibi. Addition of the Figuery Property expands our focus on exciting Québec based projects. We look forward to all the benefits of working in the established Québec mining camps and leveraging the experience of Pershimco's local geology team who has worked in this region for years", stated Mr. André Audet, President and CEO of Mazorro.
The transaction disclosed herein is subject to certain conditions, including: (i) final board of director approval of each party; (ii) the receipt of any required regulatory approvals including that of the TSX Venture Exchange; and, (iii) completion of a definitive agreement no later than March 18, 2011.
In connection with this transaction, Mazorro will pay a finder's fee comprised of 281,250 common shares of the Company in accordance with the policies of the TSX Venture Exchange.
The Figuery Property
The Figuery Property is located in the south-central segment of the Archean Abitibi Greenstone Belt of the Canadian Shield's Superior Province. The Abitibi Greenstone Belt extends in a generally east-west direction for over a distance of five-hundred (500) kilometers from north-east to west, from Chibougamau, Québec, to Timmins, Ontario.
The Figuery claim group is located in the Superior province's subprovince of Abitibi. This Archaean subprovince is made up of ultramafic to felsic volcanics, clastic sediments and tonalitic and granitic, pre to post-tectonics intrusions. The volcanic-sedimentary units are separated by longitudinal deformation zones like Porcupine-Destor and Larder Lake-Cadillac breaks. The Porcupine-Destor break running through the Property is 350 kilometers long (from Timmins to 60 kilometers east-north-east of Val-d'Or). Major deposits like Hollinger, McIntyre, Dome, Lightning Zone, Holloway in Ontario and Beattie in Québec are associated with this fault. Two different kinds of deposits could be found in the area: massive sulfide deposits and gold veins in volcanic rocks associated with disseminated sulfides.
The Figuery claims cover the intersection of the Porcupine-Destor fault and the Macamic Fault. There are many gold bearing east-west trending shear zones on the Figuery Property. This makes the area of major interest in addition to its proximity to other important neighbors with historical resources (non-compliant 43-101). Agnico-Eagle Mines Limited owns the Newconex deposit located immediately to the west of the Figuery Property. In 1986, Roscoe Mining Services Inc. estimated historical mineral resources at Newconex of 393,523 short tons with 4.97% Zn, 40.45 g/t Ag and 0.35% Cu. Mineralization is composed of pyrite, sphalerite, chalcopyrite with traces of galena. Also to the east, the Landome deposit is held by Ressource Cogitore Inc. A historical reserves calculation for Landome dating back to 1975 by Placer Dome Inc. estimated that there were 251,304 tons at 2.5% Cu and 2.0% Zn. Mineralization consists of massive sulphide horizons associated with strong chlorite alteration of a felsic rock sequence.
Mr. Jean Lafleur, P. Geo., Director and Technical Advisor of Pershimco, is acting as qualified person (as defined by NI 43-101) and has reviewed and approved the scientific and technical information in this press release.
Neither the TSX Venture Exchange or 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.
Some statements in this release may contain forward-looking information. All statements, other than of historical fact, that address activities, events or developments that the Company believes, expects or anticipates will or may occur in the future (including, without limitation, statements regarding potential mineralization) are forward-looking statements. Forward-looking statements are generally identifiable by use of the words "may", "will", "should", "continue", "expect", "anticipate", "estimate", "believe", "intend", "plan" or "project" or the negative of these words or other variations on these words or comparable terminology. Forward-looking statements are subject to a number of risks and uncertainties, many of which are beyond the Company's ability to control or predict, that may cause the actual results of the Company to differ materially from those discussed in the forward-looking statements. Factors that could cause actual results or events to differ materially from current expectations include, among other things, without limitation, failure to establish estimated mineral resources, the possibility that future exploration results will not be consistent with the Company's expectations, changes in world gold markets or markets for other commodities, and other risks disclosed in the Company's public disclosure record on file with the relevant securities regulatory authorities. Any forward-looking statement speaks only as of the date on which it is made and except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement.
