Latin
American Minerals Inc. Signs Joint Venture Agreement with VotorantimMetais
for Rio Tendal Massive Sulphide Project
TORONTO, ONTARIO--(Marketwire - Sept.
27, 2010) - Latin American
Minerals Inc. (TSX VENTURE:LAT)('Latin American') and VotorantimMetais
Argentina SA ('Votorantim') have signed an agreement whereby Latin American
has granted to Votorantim the right to acquire an initial 51% interest in the
Tendal Mineral Concessions in La Rioja Province, Argentina by funding USD
4,500,000 in exploration development over a three year joint venture period.
The agreement also stipulates that Votorantim has an
additional option to earn a 19% additional interest in the property by solely
funding development to the completion of the feasibility study during another
period of three years. Votorantim has 60 days from the exercise date of the
initial option to elect this additional interest.
Details of the agreement stipulate a minimum
exploration expenditure of USD 500,000 in the first year of the agreement
and, in addition to the exploration expenditures, USD 50,000 annual cash
payments to Latin American during the JV period.
Votorantim is a subsidiary of VotorantimMetais, the
largest producer of zinc in Latin America and one of the ten largest
worldwide. VotorantimMetais' activity in the zinc market began in 1956 in
Minas Gerais, Brazil. Votorantim has enjoyed excellent national and
international growth featuring the key acquisitions of the Juiz de Fora Zinc
Refinery in 2002; the Cajamarquilla Zinc Refinery in Peru in 2004; a 51%
interest in the Milpo Mining Company, the fourth largest Peruvian zinc miner
(2005/2010) and the acquisition of US Zinc in 2007. The Mineral Exploration
division of VotorantimMetais is actively exploring in Brazil, Canada, Mexico,
Colombia, Peru and Argentina.
Latin American Minerals holds a 100% interest in the
six Tendal mineral concessions, which comprise two land parcels totaling
36,488 hectares. The Tendal zinc, copper, lead and silver property is located
in the province of La Rioja in northwestern Argentina and is accessible by
all-season gravel road.
At Tendal, massive sulphides outcrop on surface in
the Espinal Formation and in the Rio Bonete Formation. The sulphides have
suffered deformation but are concordant to schistosity and major lithologic
units indicating syngenetic deposition with the sedimentary host units.
Massive sulphides outcrop in the Espinal Formation
on surface for over 2 km extent, in stacked lenses up to 18m thick extending
along an 80m zone. Saw-cut channel samples along the massive sulphide bodies
confirm zinc mineralization on surface extending for up to 18.5 meters true
width with 4.28% Zn. Drill hole results confirm the extension of the
mineralization at depth with a 4.41m intersection having 4.49% Zn.
Massive lead-zinc sulphides in the Rio Bonete
Formation have a smaller footprint on surface, extending 400m in length along
two zones of 8m width. Trench samples in these mineralized zones yielded up
to 8m width of 8% Pb and 3% Zn. Drill holes yielded 4m with 5.18% Zn and
3.15% Pb including 1.7m with 9.18% Zn and 3.18% Pb.
Latin American has performed 2079m of diamond
drilling in the district to date. The extension of mineralization found on
surface and the promising results at depth show that the mineral camp has
exploration potential for a major new zinc discovery in Argentina.
Miles Rideout, President of Latin American Minerals
stated that 'We are extremely pleased that the preeminent South American zinc
producer will lead development of the Tendal Project.'
LAT is a mineral exploration company focused on the
acquisition and development of base and precious metals projects in
under-explored but highly prospective countries of Latin America. Dr. Waldo
Perez is the Company's internal "Qualified Person" under the
requirements of National Instrument 43-101.
This news release contains forward-looking
statements, which can be identified by the use of statements that include
words such as "could", "potential", "believe",
"expect", "anticipate", "intend", "plan",
"likely", "will" or other similar words or phrases. These
forward-looking statements, including statements regarding the Corporation's
beliefs in potential mineralization, are based on current expectations,
assumptions and projections about future events and entail various risks and
uncertainties that are beyond the Corporation's ability to control or
predict. Actual results may materially differ from expectations as more
information regarding a property is gathered or if the Corporation's
estimates or assumptions prove inaccurate. Factors that may materially affect
actual results include, but are not limited to, political, business and
economic conditions in Argentina and in jurisdictions where the Corporation
conducts business, and risks associated with mineral exploration and
production. The Corporation does not intend, and does not assume any
obligations, to update forward-looking statements, whether as a result of new
information, future events or otherwise except as required by applicable
securities law. Readers should not place undue reliance on forward-looking
statements. The results described herein are exploratory in nature and there
can be no assurance that they are indicative of Mineral Resources as defined
in accordance with National Instrument 43-101.
Neither the 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.
For more information, please contact
Latin American Minerals Inc.
Miles Rideout
President and CEO
Argentina: (54-261) 439-9268
Toronto: (1-416) 902-8558 or 363-0841
www.latinamericanminerals.com
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