HuntMountain
Finalizes Deal for the Bajo Pobre Gold Property in
Argentina
(Spokane, WA) HuntMountain Resources (OTCBB: HNTM)
is pleased to report that it has signed the final contract to
acquire a 100% interest in the Bajo Pobré gold property located
in Santa Cruz Province, Argentina. Cerro Cazador S.A.,
HuntMountain’s Argentine subsidiary has entered into a
lease-purchase agreement with FK Minera S.A., where it can earn up
to a 100% equity interest in the Bajo Pobré property by making
cash payments and exploration expenditures over a five-year earn-in
period.
The required expenditures and ownership levels upon
meeting those requirements are:
Year of the Agreement |
Payment to
FK Minera S.A. |
Exploration Expenditures |
Ownership |
First Year |
$50,000 |
$250,000 |
0%
|
Second Year |
$50,000 |
$250,000 |
0% |
Third Year |
$75,000 |
$0 |
51% |
Fourth Year |
$75,000 |
$0 |
60% |
Fifth Year |
$75,000 |
$0 |
100% |
After the fifth year, Cerro Cazador shall pay FK
Minera the greater of a 1% NSR R oyalty on commercial production or a
minimum royalty payment of US$100,000 per year. We have the
option
to purchase the NSR Royalty at any time for a lump sum payment of
US$1,000,000 less the sum of all royalty payments made to FK Minera to
that point.
“The finalization of the Bajo Pobre deal,
combined with the recent acceptance of our bid for the La Josefina
property, dramatically enhances our project portfolio and positions
HuntMountain as one of the premier exploration companies operating in
Santa Cruz Argentina. We firmly believe that both of these advanced
prospects have excellent potential to host major precious metal
deposits” stated Randal Hardy, President of HuntMountain
Resources.
The Bajo Pobré property was discovered in
1970 and has been worked intermittently by several government entities
and private companies. Serious exploration began in the
1990’s
with geologic mapping and surface sampling. Assays from this
sampling yielded values up to 40 grams per ton gold. Drill
targets
identified from surface sampling were augmented in 2002 with additional
targets derived from a geophysical survey. In 2003 and 2004, the
property saw a limited amount of exploration drilling which tested only
a
minor percentage of established targets. It is estimated that
approximately US$ 4,000,000 has been spent to date on exploration efforts
at Bajo Pobré .
The geology of the area is dominated by a
Jurassic-aged, andesitic composition, volcanic and volcanoclastic
rocks
of the Bajo Pobré formation. The property exhibits
widespread hydrothermal alteration and precious-metal mineralization.
The m ineralization is characterized as epithermal in nature,
hosted within multiple structurally controlled zones of quartz
veining, vein breccias, and stock works having a cumulative
strike
length of more than 9 kilometers. Individual veins range from 0.5 meters
to 6 meters in width.
After a thorough review of the existing database,
the
Company plans to expeditiously identify and delineate an economic
resource
by allocating the bulk of exploration expenditures to Diamond core
drilling of prioritized targets. In addition, a limited
percentage
of exploration expenditures will be allocated to property-wide
reconnaissance in an effort to identify additional drill targets. Cerro
Cazador now controls approximately 125,000 acres or more than 1,000
square kilometers of exploration rights in Santa Cruz Province
Argentina.
This news release may contain forward-looking
statements within the meaning of Section 27A of the Securities Act and
Section 21E of the Exchange Act. Forward-looking statements are
inherently
subject to risks and uncertainties, many of which cannot be predicted
with
accuracy, and some of which might not even be anticipated. This news
release is neither a prospectus nor an offer to sell securities or stocks
in the company. It is intended for informational purposes only.
FOR FURTHER INFORMATION PLEASE CONTACT:
Jonathan Smith, Investor Relations Manager
HuntMountain Resources
(509) 892-5287 x1802
jsmith@huntmountain.com
www.huntmountain.com |