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Soltoro
Ltd. (TSX VENTURE:SOL
- News) and Timmins Gold
Corp. (TSX VENTURE:TMM
- News) have signed an
option agreement whereby Timmins Gold may earn a 100% interest in a 12,000
hectare claim on the eastern section of Soltoro's
22,428 hectare Quila property in Jalisco, Mexico.
The 22,428 hectare Quila claim was staked by
Soltoro to cover roughly two thirds of a 25 km
mineralized magnetic trend. Timmins Gold's Cocula
property is a 234 hectare pre-existing internal claim surrounded by Soltoro's Quila claim. In
February of 2009, Timmins Gold announced assay results of a 26 hole, 1,974 metre reverse
circulation drill program carried out at Cocula.
Highlights of the program were reported as follows: "Hole RCC-01 which
intersected 1.30 g/t gold and 13 g/t silver across 37.5 metres
from surface, including 9.40 g/t gold and 22 g/t silver across 4.5 metres. Hole RCC-10 intersected 1.20 g/t gold and 13 g/t
silver across 37.5 metres from surface...the drill
program has identified a bulk tonnage target with a potential low strip
ratio." The Cocula discovery occurs on the
eastern flank of a magnetic high within the 25 km magnetic trend.
Timmins Gold has optioned the eastern portion of Soltoro's
Quila claim (the "Property") with a view
to expanding the surface oxide gold discovery made at Cocula.
Soltoro's 22,428 hectare Quila
concession surrounds the 234 hectare Cocula claim
where prior drilling by owner Timmins Gold made the initial oxide gold zone
discovery.
Timmins Gold may earn 100% interest in the Property by making a total
of $1,000,000 in cash payments and incurring $2,000,000 in exploration
expenditures on the Property over 3 years. On signing Timmins Gold made an
initial $100,000 payment to Soltoro. Once Timmins
Gold has earned its 100% interest in the Property, a 3% net smelter return
(NSR) royalty is payable to Soltoro from the
Timmins Gold's operations within the Property's external boundary including
the Cocula claim, any further internal claims
acquired by Timmins Gold within the Property and within a 2 km area of
interest to the north and east of the original Quila
property boundary. Timmins Gold may acquire 1/3 of the royalty (equal to 1%
of the NSR) for $1 million and 2/3 of the royalty (equal to 2% of the NSR)
for $2 million, up to six months from the date of commencement of commercial
production.
Andrew Thomson, President and C.E.O. of Soltoro
Ltd., stated: "The option arrangement with Timmins Gold is designed to
provide Soltoro with significant annual cash
payments and participation in an emerging bulk tonnage gold discovery.
Timmins Gold is focused on expanding a 30 metre
deep oxide gold zone at surface which trends off their Cocula
claim to the north-west and south-east onto the optioned portion of Soltoro's Quila property. The
royalty arrangement ensures Soltoro will
participate in any future metals production within the expanded oxide gold
trend. Soltoro has retained a significant portion
of the trend to the west for direct exploration."
A location map showing the Quila claim, the
portion optioned to Timmins and the internal Cocula
claim can be viewed at: http://www.soltoro.com/projects/pdf/TMMoptionground.pdf.
Soltoro
has retained roughly 45% of the surface area of the Quila
claim located to the west of Timmins Gold's option which is excluded from the
option agreement. This area covers a portion of the mineralized magnetic
trend including Soltoro's Texcalame
zone. In 2008, drilling intersected a strong fracture zone over 90 metres in length containing traces of chalcopyrite, bornite and native copper. The styles and distribution of
alteration and mineralization and particularly the association of copper and
gold mineralization with Fe-oxides such as hematite, specularite
and magnetite indicate the exploration potential for a large scale iron oxide
copper gold target.
About Soltoro:
Soltoro is
engaged in exploration for bulk tonnage gold and silver deposits in Mexico.
The Company continues to develop its El Rayo
silver-gold project to expand the existing NI 43-101 compliant primary silver
resource. Soltoro has also recently completed a
mapping and sampling program at its Pena Grande project; and is actively
advancing its Victoria, Quila, Tortuga, Chinipas and El Santuario
projects. Soltoro has 36,067,663 shares outstanding
and trades on the TSX Venture Exchange under the symbol SOL.
About Timmins Gold:
Focused solely in Mexico, Timmins Gold Corp is in commercial gold
production at its wholly owned San Francisco gold mine in Sonora, Mexico. The
mine is a past-producing open pit heap leach operation. Timmins Gold has
forecast production at a rate in excess of 80,000 ounces of gold per year at
a life of mine cash cost of approximately $410 per ounce (Micon
International Preliminary Feasibility Study, March 2008).
Neither he 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.
Contact:
Andrew Thomson
Soltoro Ltd.
President
(416) 987-0722
www.soltoro.com
Bruce Bragagnolo, LLB
Timmins Gold Corp. - Vancouver, BC
Chief Executive Officer
604-638-8980
bruce@timminsgold.com
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