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Cream Minerals Announces Signing Of Joint Venture
Agreement With Roca Mines For The Nuevo Milenio Project
Vancouver, BC, July 27, 2009 - Cream Minerals Ltd. (TSXV - CMA) ("Cream" or the
"Company") is pleased to announce that it has entered into an
option agreement with Roca Mines Inc. ("Roca") that will allow
Roca to earn up to a 70% interest in Cream's Nuevo Milenio Project
("Nuevo Milenio") contingent upon a US$12 million exploration
expenditure by the fourth year of the option agreement date and the completion
of a positive feasibility study by the seventh year of the option agreement
date.
Cream is very pleased that Roca, after assessing several advanced stage
project opportunities, has chosen to partner with Cream on Nuevo Milenio.
The Nuevo Milenio meets Roca's criteria of revenue growth through the
potential near-term development of new mining operations, exposure to
additional mining friendly jurisdictions and diversification of metals
production that could generate a natural hedge to global economic and
financial conditions.
Cream's 100% owned Nuevo Milenio silver-gold Project encompasses 2,560
Hectares (Ha) and is located in Nayarit State, Mexico. Nuevo Milenio is 27
kilometres (kms) driving distance (24 kms of which are by highway and paved
roads, 3 kms are by gravel road) from Tepic, the capital of Nayarit State.
Tepic is an important commercial centre with a population of over 300,000
people located 150 kms northeast of Puerto Vallarta. Access to railway,
airport, power lines and water are within reasonable distance of the Nuevo
Milenio providing cost effective access to infrastructure.
The property contains low sulphidation, epithermal gold-silver resources
comprised of mineralization in quartz veins and stockwork zones in Miocene
volcanics within a collapsed caldera structure. Exploration work by Cream
has outlined four mineralized zones consisting of sub-parallel
vein-stockwork systems: the Veta Tomas, Dos Hornos 1, Dos Hornos 2,
("Dos Hornos Zone") Once Bocas and Chacuaco Zones. A resource estimate
includes the Veta Tomas, Dos Hornos Zone and Once Bocas Zones which
represent multiple mineralized systems and includes Spanish-era workings
highlighting excellent ground conditions. The workings were clearly
exploratory only and had limited production.
A revised National Instrument 43-101 Inferred Mineral Resources report was
prepared by Mr. Fred Holcapek, P.Eng and was filed on December 24, 2008,
based on exploration and drilling programs conducted between 2000 and 2007.
The report estimated an Inferred Mineral Resource of 54.6 million ounces
silver equivalent contained within 5.09 million tonnes. The average grade
was estimated at 1.6 g/t Gold and 251 g/t Silver. Particular attention was
given to defining mineable widths of the veins and continuity of grade. It
is important to note however that the estimate is based on low recoveries
of core observed in the mineralized zones and is therefore likely to
represent the low end of the range of actual tonnes and grade. This may be
particularly true of many of the gold values in the assays as the loss of
free-gold during the drilling process may have negatively impacted the
assay results.
NUEVO
MILENIO REVISED NI 43-101 INFERRED MINERAL RESOURCES
December 24, 2008
Dos Hornos (U/G)
|
Width (m)
|
Tonnes
|
Au (g/t)
|
Ag (g/t)
|
Au (oz)
|
Ag (oz)
|
Dos Hornos Segment 1
|
4.70
|
1,173,901.56
|
1.500
|
165.34
|
59,400.00
|
6,552,238.85
|
Dos Hornos Segment 2
|
4.06
|
746,528.32
|
1.770
|
201.95
|
42,390.25
|
4,847,215.70
|
Veta Tomas
|
5.09
|
1,246,162.50
|
1.280
|
351.19
|
51,344.17
|
14,070,467.48
|
Once Bocas
|
2.42
|
1,921,162.50
|
1.920
|
252.59
|
118,347.79
|
15,602,012.74
|
Total
|
|
5,087,754.88
|
1.660
|
251.09
|
271,482.21
|
41,071,934.77
|
Tonnes: 5,088,000 Au: 1.660 g/t, Ag 251.09 g/t Au:
271,500 oz, Ag: 41,072,000 oz
Silver Equivalent (Gold -- Silver price Ratio = 50:1): 54,647,000 oz
Roca intends to follow-up and expand on Cream's excellent work to date by
aggressively pursuing several clear opportunities at Nuevo Milenio
including the following;
- More
accurately assess the gold and silver grade of the three principal
zones identified by Cream to date through new drilling and underground
bulk sampling;
- Expand
the known zones laterally and vertically through new drilling;
- Follow-up
on many other geologically anomalous zones (including a 19.3 g/t gold
zone in core unrelated to known structures; and several untested zones
on the property);
- Upgrade
and expand the resource from inferred through new drilling; and,
- Advance
mine development plans for potential near-term operations.
In order to acquire a 50% legal
and beneficial interest in Nuevo Milenio, Roca must spend a cumulative
US$12,000,000 in exploration work on the property by July 24, 2013, in
accordance with the following schedule:
- US$1,000,000 by July 24 2010
- US$3,500,000 by July 24 2011
- US$7,000,000 by July 24 2012 and,
- US$12,000,000 by July 24 2013
If Roca meets these requirements
within four years, Roca will vest at 50% and will have a further option to
earn a further 20% interest in the property, for a total interest of 70%,
by completing at its own expense, a positive feasibility study within three
years by a mutually acceptable qualified third party. Once Roca vests at 50%
or 70% as applicable: Cream and Roca will form a joint venture for further
exploration and/or mine development work to be carried out on the property,
with all further costs to be shared on a pro rata basis.
For further information, please contact:
Frank A. Lang, BA, MA, P.Eng.
Chairman of the Board
Michael E. O'Connor
President & CEO
Robert Paul, Investor Relations
Tel: (604) 687-4622 Fax: (604) 687-4212 Toll Free: 1-888-267-1400
Email: info@creamminerals.com
The TSX
Venture Exchange has not reviewed and does not accept responsibility for
the adequacy or accuracy of the contents of this News Release. Management
has prepared this release and no regulatory authority has approved or
disapproved the information contained herein.
Cautionary Language and Forward-Looking Statements
This news release includes certain statements that may be deemed
"forward-looking statements." All statements in this release,
other than statements of historical facts, that address future production,
reserve potential, exploration drilling, exploitation activities and events
or developments that the Company expects are forward-looking statements.
Although the Company believes the expectations expressed in such
forward-looking statements are based on reasonable assumptions, such
statements are not guarantees of future performance and actual results or
developments may differ materially from those in the forward-looking
statements. Factors that could cause actual results to differ materially
from those in forward-looking statements include market prices, exploitation
and exploration successes, and continued availability of capital and
financing, and general economic, market or business conditions. Investors
are cautioned that any such statements are not guarantees of future
performance and those actual results or developments may differ materially
from those projected in the forward-looking statements. For more
information on the Company, investors should review the Company's filings
that are available at www.sedar.com or the
Company's website at www.creamminerals.com.
You can also
view this News Release on our website at:
http://www.creamminerals.com/s/NewsReleases.asp?ReportID=357457
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