Toronto, Ontario
May
13, 2008
Press Release 08
� 2008
Nayarit
Gold consolidates the famous Orion
Silver-Gold
Mining District
Land position now in excess
of 1,100 square kilometres
Concessions include 19
silver-gold zones with 10 past producing mines
Nayarit Gold Inc.
(TSXV: NYG) is proud to announce that it has completed the consolidation of the
Orion Silver-Gold Mining District in the state of Nayarit,
Mexico.� The Company has acquired seven additional
mining concessions totalling 2,730 hectares in Orion Silver-Gold Mining
District, which hosts several highly prospective drill targets. �
The newly acquired
mining concessions are located in the northern portion of Orion Mining District
where the company has recently discovered the Animas zone. The consolidated
mining district has the potential to host a world class silver-gold deposit.. The Company believes the acquisition provides the
following immediate and long-term benefits:
a)
Historical
drill results on newly acquired ground intercepted up to 10.59 metres of 1,260
g/t silver equivalent or 25.39 g/t gold equivalent (817.10 g/t silver and 9.04
g/t gold), however, the limited drill program only tested down to 100m depth,
while previous mining operations only mined down to 60m depth. Mineralization
appears to be open in all directions.
b)
The
Company�s Animas Discovery zone extends along surface to the newly acquired
concessions, adding 2
kilometres of additional strike length to the
mineralized zone. This additional strike length will be tested with the ongoing
drill program.
c)
Previous
exploration work on newly acquired concessions only focused on high grade
silver-gold zones, and did not sample for the bulk-tonnage potential which is
now being tested at Nayarit�s Animas Discovery zone.
d)
Company�s
land position now encompasses in excess of 1,100 square kilometres, with at least 19 known silver and gold
zones, of which 10 are reportedly past producing mines.
The table below
lists historical drill hole highlights from the newly
acquired concessions.
�
Hole
|
From
(m)
|
To
(m)
|
Width (m)
|
Gold
(g/t)
|
Silver
(g/t)
|
Gold
Eq
|
Silver Eq
|
DH-2
|
25.60
|
26.75
|
1.15
|
19.40
|
39
|
20.18
|
1,009
|
And
|
37.98
|
50.04
|
12.06
|
1.60
|
56
|
2.71
|
135.7
|
|
|
|
|
|
|
|
|
DH-3
|
52.90
|
63.49
|
10.59
|
9.04
|
817.1
|
25.39
|
1,269
|
|
|
|
|
|
|
|
|
DH-4
|
58.36
|
69.32
|
10.96
|
4.48
|
188
|
8.24
|
412
|
including
|
58.36
|
64.79
|
6.43
|
7.75
|
319.60
|
14.14
|
707
|
|
|
|
|
|
|
|
|
DH-10
|
25.42
|
26.71
|
1.29
|
57.92
|
3,909.2
|
136.10
|
6,805
|
The newly acquired
concessions contain the historic Francisco mine. The Francisco mine is 1 kilometre west of the
Company�s Animas discovery zone, and has been mined along two parallel
east-west striking vein structures.� The
previous mining operations and drilling were carried out at shallow depths up
to 100m in a limited area.� A total of 21
drill holes exist in unofficial records, with the single best intersection
returning 10.59 metres
of 817 g/t silver and 9.04 g/t gold.�
This intercept is approximately 1.5 kilometres west
of our current drill program, and appears to be on the same structure as the
Animas Discovery zone. The table below lists highlights from the Company�s
drill program on the Animas Discovery zone.
�
Hole
|
From (m)
|
To
(m)
|
Width (m)
|
Gold
(g/t)
|
Silver
(g/t)
|
Gold Equiv
(g/t)
|
Silver Equiv (g/t)
|
Or-07-30
|
173.5
|
211.0
|
37.5
|
1.87
|
145
|
4.77
|
238
|
Or-07-31
|
116.0
|
146.0
|
30.0
|
0.88
|
131.6
|
3.51
|
176
|
Including
|
122.0
|
132.5
|
10.5
|
2.37
|
331.2
|
8.99
|
450
|
Or-07-32
|
175.5
|
237.0
|
61.5
|
1.68
|
171.2
|
5.10
|
255
|
Including
|
175.5
|
186.5
|
11.0
|
7.41
|
808.6
|
23.6
|
1179
|
Or-07-36
|
224.0
|
290.0
|
66.0
|
1.80
|
47.6
|
2.75
|
138
|
Including
|
263.0
|
276.0
|
13.0
|
7.97
|
100.9
|
9.98
|
499
|
Or-07-37
|
498.5
|
499.7
|
1.2
|
4.22
|
6.0
|
4.34
|
217
|
Or-08-55
|
159.0
|
172.0
|
13.0
|
3.66
|
178.3
|
7.22
|
361
|
The main
Animas Discovery zone is a series of sub-parallel structures and stockwork zones which have been traced on surface for more
than 800 metres,
and still open.� During the Phase I drill
program in 2007, the Company intersected both the Del Norte and Animas systems, and since January, 2008 has
further accelerated the drilling in its Phase II program, drilling in excess of
10,000 metres.� Based on the drill results received to date,
the Company believes the discovery zone is open to the east and west, as well
as to depth.
The newly acquired
concessions also host the Pantaleon mine which is
located about 1
kilometre east of the Company�s Animas Discovery
zone.� Mapping suggests the structure
that hosts the Pantaleon is a continuation of the
structure presently being drilled at the Company�s Animas Discovery zone. The
present drill program will be expanded to test the potential of the mineralized
system in both directions from the Company�s Animas Discovery zone. A map
illustrating the new concessions can be found on Nayarit�s
webpage at http://www.nayaritgold.com/projects_orion.html.
Colin Sutherland,
President & CEO commented, �The Company believes this is a historic event
in our forward progress, and the consolidation unlocks the potential for a
major discovery in the Orion Silver-Gold District.� The Company is extremely pleased that it has
consolidated the land position which surrounds the main Animas Discovery zone,
and is now positioned to unlock the potential of the mineralized system.� The Company has immediately undertaken an
aggressive mapping and sampling program on the newly acquired concessions, and
will incorporate the area in to our Phase II drill program currently in
progress.�
The terms of the acquisition are as follows:
a)
US$2,500,000 in cash, payable in instalments of US$500,000
every six months commencing on June 8, 2008;
b)
3,500,000 shares in Nayarit Gold
Inc., with initial instalment of 500,000 shares due on June 8, 2008 with
remaining balance due in equal instalments every six months;
c)
Option of the vendor to acquire an additional 500,000 shares
in Nayarit Gold Inc. on December 8, 2010 by
eliminating last cash instalment of US$500,000;
d)
The Company commits to exploration expenditures on acquired
concessions of US$3 million over 2 years;
e)
3% Net Smelter Royalty (NSR) on production from acquired
concessions, with Company option to purchase NSR for US$3 million.
The agreement is subject to regulatory approval of the TSX Venture
Exchange. �
William J. Warren Jr., M.Sc., P.Geo and Vice
President, Exploration is a Qualified Person (QP) as defined in NI 43-101 and
has reviewed this release. William J. Warren, Jr., Nayarit
Gold�s QP, states that �The historical drill results, underground sample
results, and metallurgical test results received from the newly acquired
concessions are believed to be accurate, but have not been verified at this
time.� As a result, the information as
currently presented does not meet NI 43-101 reporting standards and should be
viewed in that context.�
QA/QC
Procedures: The Company has implemented a quality control program to ensure
best practices in sampling and analysis of the core samples. The core is first
logged then split in half during the sampling process with the remaining half
being retained for verification and reference purposes. Duplicates, standards
and blanks are inserted randomly into the sample stream. The samples are delivered
directly in security sealed bags to ALS-Chemex
Laboratories preparation facility in Guadalajara,
Jalisco (Certification ISO 9001). Sample pulps are
shipped from there to ALS-Chemex Laboratories in North Vancouver, Canada
for analysis by ICP techniques. Metallic screen fire analyses for silver are
also regularly run as an additional QA/QC check.� Gold equivalent values are calculated using a
50:1 ratio.
The
Company has also granted 100,000 stock options to consultants of the
company.� The options are exercisable at
$0.50 and expire on May 6, 2013.� �
Nayarit Gold Inc. is a Halifax based junior resource company dedicated
to gold exploration in the proven precious metal districts of Mexico.� Management�s goal is to build a profitable
resource company and maximize shareholder value through successful exploration
programs and continued development.� �
For further information on Nayarit Gold please
visit the company�s website at www.nayaritgold.com or contact:
Mr.
Colin P. Sutherland
President & CEO
(902)
252-3833
info@nayaritgold.com
CAUTIONARY STATEMENT
The TSX Venture Exchange does not accept responsibility for the adequacy
or accuracy of this release.� No stock
exchange, securities commission or other regulatory authority has approved or
disapproved the information contained herein.�
This News Release includes certain �forward-looking statements�.� All statements other than statements of
historical fact, included in this release, including, without limitation,
statements regarding potential mineralization and reserves, exploration
results, and future plans and objectives of Nayarit,
are forward-looking statements that involve various risks and
uncertainties.� There can be no assurance
that such statements will prove to be accurate and actual results and future
events could differ materially from those anticipated in such statements.� Important factors that could cause actual
results to differ materially from Nayarit�s
expectations are exploration risks detailed herein and from time to time in the
filings made by Nayarit with securities regulators.
Filing Services Canada Inc. | 300 4015 17 Avenue S.E. |
Calgary | Alberta | t2a 0s8 | Canada
|
|