Highlights
North Arrow Minerals Inc. (TSXV-NAR) is pleased to announce that it has signed a Letter of Intent ("LOI") to acquire a 100% interest in the Agua Grande gold-copper project located approximately 100 kilometres northeast of La Serena and 565 kilometres north of Santiago by road, in Region IV of Chile.
After a recent visit to Chile, North Arrow Chairman and CEO Gren Thomas commented, "The Agua Grande project has all the indicators that it could host a substantial gold-copper deposit, including strong structural controls, an extensive hydrothermal alteration zone, and widespread gold placer deposits. Surface sampling and local small- scale mining from both the surface and subsurface have reported excellent grades of gold and copper, providing us with multiple targets for exploration. With this acquisition North Arrow is broadening its strategy to build a strong resource development program by focusing on proven areas within stable jurisdictions of South America. We will continue to support our portfolio of prospective northern Canadian exploration projects through our joint venture programs while building a significant presence in South America."
The Transaction
North Arrow executed the LOI with Chilean individuals who are the underlying owners of the Agua Grande project ("the Owners"). Under the terms of the LOI, North Arrow has made a cash payment of US$50,000 for the exclusive right to conduct technical and legal due diligence over a period of up to 90 days before executing a Definitive Agreement.
If North Arrow executes the Definitive Agreement, the Company will have the option to acquire a 100% interest in the project by making staged cash payments totaling US$10 million over approximately five years and completing a Feasibility Study. The Owners will retain a 1.5% net smelter royalty.
The transaction is subject to customary conditions, including regulatory and Exchange approval.
The Agua Grande project
The Agua Grande project lies approximately 100 kilometres (1.5 hours) northeast of La Serena at 900 metres elevation. The project consists of 18 claims covering 1,370 hectares within the Agua Grande mining district. It is accessible by a major highway for 75 kilometres followed by 20 kilometres of a relatively flat dirt road in good condition, suitable for all types of vehicles year round. The property is criss-crossed by several mining roads that provide excellent access. Grid power is available 20 kilometres to the north. Although there is water in the area, the property is just 25 kilometres from the Pacific Ocean, from which a pipeline with a gradual incline could be built to the site.
An intrusive complex of granitic to granodioritic composition outcrops in the project area. The complex has two district-scale intersecting faults running northeast and north-northwest and these are believed to be the main feeders of hydrothermal fluids to the system. Hydrothermal alteration covers an area of approximately six square kilometres, including a silicified core and an argillic outer zone. Copper and gold mineralization is found in large veins and stockworks in areas of fracturing and more intense silicic alteration. There are also significant placer gold deposits within the valleys. This geology at Agua Grande is similar to known iron oxide copper gold (IOCG) deposits related to the Atacama fault system in Chile.
Small scale open-pit and underground mining has occurred in several areas, most notably at the El Peralito, Venero Negro and Albrun mines. A 2007 report for the Chilean national agency ENAMI includes the following surface sampling results through those prospects:
Prospect |
Sample |
Au (g/t) |
Cu (%) |
|---|---|---|---|
Mina Peralito |
667819 |
5.5 |
0.66 |
667820 |
4.9 |
2.03 |
|
667821 |
3.8 |
0.82 |
|
667823 |
3.4 |
1.04 |
|
Mina Venero Negro |
65089 |
3.0 |
1.09 |
65096 |
2.2 |
1.04 |
|
65099 |
3.0 |
0.82 |
|
Mina Albrun |
65074 |
2.7 |
3.17 |
65085 |
3.8 |
1.93 |
Note to readers: The above data is historical in nature and the data has not been verified by the Company. However this data is considered relevant and will assist in future exploration plans should the Company proceed with the project.
As part of the technical due diligence the Company plans to drill a number of holes and complete an IP survey to test the presence of sulphides at depth and help define additional drill targets.
Chilean Operations
North Arrow is in the process of creating a Chilean subsidiary company to manage its exploration activities in the country. A new Country Manager, Mr. Rodrigo Ocampo, has been hired and will coordinate the set-up of the subsidiary and new exploration office. Mr. Ocampo holds an MBA from Northwestern University in Illinois and has held several senior management and financial advisory positions in the US, Mexico, Peru and Chile. Mr. Ocampo is the founder and Managing Director of South World Kapital, an investment services firm focused on the mining, real estate, energy and retail sectors.
Brian McEwen, P.Geol (Alberta), President and COO for North Arrow, is a qualified person under NI 43-101 and has reviewed the content of this release.
About North Arrow Minerals
North Arrow Minerals is a well-established junior exploration company with a diversified portfolio of gold, base metal and diamond projects. Most of the North Arrow's 2011 field programs on Canadian properties are funded through option or joint venture agreements, allowing the Company to focus its resources on the acquisition and development of advanced exploration properties in South America.
North Arrow Minerals Inc.
/s/ "Brian McEwen"
Brian McEwen
President and COO
For further information, please contact:
Julie Hajduk
Corporate Communications
Tel: 604-681-5543/ Cell : 778-240-7077
Email: [email protected]
Website: www.northarrowminerals.com
Neither the TSX Venture Exchange nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.
Cautionary Note Regarding Forward-Looking Statements The information in this press release includes certain "forward-looking statements" All statements, other than statements of historical fact, included herein including, without limitation, plans for and intentions with respect to the company's properties, statements regarding intentions with respect to obligations due for various projects, strategic alternatives, quantity of resources or reserves, timing of permitting, construction and production and other milestones, are forward looking statements. Statements concerning Mineral Reserves and Mineral Resources are also forward-looking statements in that they reflect an assessment, based on certain assumptions, of the mineralization that would be encountered and mining results if the project were developed and mined in the manner described. Forward-looking statements 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 NAR's expectations include the uncertainties involving the need for additional financing to explore and develop properties and availability of financing in the debt and capital markets; uncertainties involved in the interpretation of drilling results and geological tests and the estimation of reserves and resources; the need for cooperation of government agencies and First Nation groups in the exploration, and development of properties; and the need to obtain permits and governmental approval. NAR's forward looking statements reflect the beliefs, opinions and projections of management on the date the statements are made. NAR assumes no obligation to update the forward looking statements if management's beliefs, opinions, projections, or other factors should they change.
