MEXIVADA MINING CORP.
Suite 1400 � 400 Burrard
Street
Vancouver, British
Columbia
V6C
3G2
Tel: (604) 689-1749
Fax: (604)
643-1789
February 1, 2008
TSX-V: MNV
OTC: MXVDF
Frankfurt:
M2Q
NEWS
RELEASE
MEXIVADA OPTIONS
JEFFERSON GOLD/SILVER PROJECT TO STONESHIELD CAPITAL
Mexivada Mining Corp.
is pleased to announce that it has entered into a letter of intent with StoneShield Capital Corp. (TSX-V: STS.P)
pursuant to which StoneShield has been granted an Option to earn up to a 70%
undivided interest in the Jefferson Gold/Silver property, located 50 miles north-northwest of
Tonopah, Nevada and three miles east of Round Mountain, Nevada. The Property comprises a contiguous
block of 85 unpatented lode mining claims, totaling approximately 1,750 acres.
Under the terms of the Option agreement, StoneShield can acquire an
initial 51% interest in the Property by incurring a total of US$3,500,000 in
exploration expenditures on the property as follows: a minimum US$100,000 in
expenditures on the Property to be incurred in the first year following TSX
Venture Exchange acceptance (�Acceptance�) of the agreement, a minimum
US$150,000 in expenditures in the second year, and a total US$3,250,000 in
expenditures on the project in the third and fourth years. In
addition, StoneShield will make cash payments of US$50,000 to Mexivada on
Acceptance and US$50,000 to Mexivada on the first, second and third anniversary
dates of Acceptance as well as issue to Mexivada 100,000 shares of StoneShield
on Acceptance, 150,000 shares on the second anniversary and an additional
250,000 shares upon notifying Mexivada that StoneShield has completed the
stipulated requirements for earning a 51% interest in the property. StoneShield
shall also pay all County, BLM and lease-option payments required to hold all of
the existing Jefferson property mining claims and any additional claims and
other properties acquired during the life of this option agreement and the
subsequent Mexivada-StoneShield joint venture.
StoneShield can acquire an additional 19% interest (for a total 70%
interest) in the Jefferson property by incurring an additional US$2,500,000 in
expenditures within 24 months of the date upon which StoneShield earns an
initial 51% interest in the Jefferson Property and completing a mining
feasibility study within 30 months of that date, at which time StoneShield must
issue a further 250,000 shares to Mexivada. Each party shall then be responsible for
financing its own share of the proposed mining operation. At this point, StoneShield and Mexivada
will also have the pro-rata right to purchase a 3% net smelter royalty (�NSR�)
from property lessor at the rate of US$1,000,000 for each 1% of NSR purchased
(70% as to StoneShield and 30% to Mexivada).
The Jefferson property is situated along the Round
Mountain-Northumberland Gold Trend, an Oligocene- to Miocene-age structural zone
that hosts the Barrick/Kinross' 14,000,000 ounce Round Mountain Mine and the
nearby Gold Hill gold mine and Newmont/Fronteer's Northumberland Mine, a Carlin-type, open pitted former gold producing mine. The Jefferson Canyon mining
district was mined for silver and gold beginning in the late 1870's, and was
explored by drilling by Echo Bay and its predecessor companies in the mid
1980's. It has since lain mostly dormant with only minor exploration by third
parties, until the arrival of Mexivada, which has conducted an extensive exploration program in 2005 and 2007, laying the foundation for renewed drilling
of gold and silver targets. Mexivada feels that the Jefferson Property holds
good potential to host a new gold-silver mine, with the delineation of several
new open pit and underground mine targets.
Six target areas of interest have been
identified on the Jefferson property: West Vein (Vein Swarm and Disseminated
Ag-Au target); Zone "Pit A" (open pit disseminated/vein Ag-Au); Zone "Pit B"
(Open Pit Round Mountain type Au-Ag); Mogul (Vein type Au-Ag); SG-1 / SG-2 (Open
Pit Disseminated Round Mountain type Au-Ag); and Porphyry Hill
(Vein/Disseminated Ag-Indium; Vein-type Au; Open Pit Round Mtn type Au;
Room-and-Pillar bulk mineable Skarn Gold; Skarn base metals associated with deep
Porphyry; Pluton-centered Carlin-type gold replacements).
2008 Exploration Program
Significant geologic mapping, geophysical data collection and
interpretation, and geochemical sampling were completed on the Jefferson project
based on recommendations in a technical report prepared in 2005 pursuant to
National Instrument 43-101.
StoneShield has commissioned the preparation of an updated 43-101 Report
to assess the results of recent work programs and to make further
recommendations.
Priorities in the 2008 exploration program contemplated by
StoneShield include acquiring more data from prior exploration companies that
worked on the project (Kinross/Barrick; Prochnau). Additionally, several old adits and
dumps are available to map and collect rock samples. Once acquired, all the available
geologic and geophysical data will be merged into one digital platform for drill
target definition. A 5,000-foot
drill program will target the highest priority targets. Total exploration cost for this first
phase of exploration is estimated to be about US$400,000.
Completion of any and all transactions contemplated by the Letter
of Intent is subject to, among other things, acceptance by the Exchange and all
other necessary regulatory approvals.
About Mexivada Mining Corp.
Mexivada is a diversified Canadian
mineral exploration company that controls a large portfolio of highly
prospective Gold-Silver, Molybdenum, Diamond, and Rare Metal exploration projects in Mexico, Nevada, and the Republic of Congo (�ROC�). Mexivada�s business plan is focused on
prospecting for, identifying, and acquiring high-grade mineral resource
properties, conducting initial exploration evaluations and tests of these
properties, and joint venturing the properties to exploration and mining companies that can facilitate taking these properties though mining feasibility
and into production. Managed by experienced and successful board members and
advisors, Mexivada is well financed with no debt. For further information, including area
maps and photos, please visit our web site at www.mexivada.com.
ON BEHALF OF THE BOARD OF DIRECTORS
"RICHARD R.
REDFERN"
Richard R. Redfern
President
Contact: LionsGate
Communication Corp.
Telephone: (866) 922-6774 or (604)
866-7700
info@mexivada.com www.mexivada.com
The TSX Venture Exchange does not accept
responsibility for the adequacy or accuracy of this
release.
Caution
Concerning Forward-Looking Statements
This news release and related texts and images
on Mexivada's website contain certain "forward-looking statements" including,
but not limited to, statements relating to interpretation of mineralization
potential, drilling assay results, future exploration work, and the expected
results of this work. Forward looking statements are statements that are not
historical facts and are subject to a variety of risks and uncertainties which
could cause actual events or results to differ materially from those reflected
in the forward-looking statements, including, without limitation: risks related
to fluctuations in metals and Diamond prices; uncertainties related to raising
sufficient financing to fund the planned work in a timely manner and on
acceptable terms; changes in planned work resulting from weather, logistical,
technical, governmental, social, or other factors; the possibility that results
of work will not fulfill expectations and realize the perceived potential of the
company's projects; uncertainties involved in the interpretation of sampling and
drilling results and other tests; the possibility that required permits and
access agreements may not be obtained in a timely manner; risk of accidents,
equipment breakdowns or other unanticipated difficulties or interruptions; the
possibility of cost overruns or unanticipated expenses in these work
programs.
Forward-looking statements contained in this
release are based on the beliefs, estimates, and opinions of management on the
date the statements are made. There can be no assurance that such statements
will prove accurate. Actual results may differ materially from those anticipated
or projected. Mexivada Mining Corp. undertakes no obligation to update these
forward-looking statements if management's beliefs, estimates, opinions, or
other factors, should change.