Mammoth Signs Option Agreement on Tenoriba Gold-Silver Project, Chihuahua State, Mexico
July 03 2012 - 11:36AM
Marketwired Canada
Editors Note: There are two figures associated with this press release.
Mammoth Resources Corp. (TSX VENTURE:MTH) is pleased to announce that it has
signed a definitive agreement to option the Tenoriba gold and silver project
located in southwestern Chihuahua State, Mexico (refer to Figure 1. Location Map
- Tenoriba Property, Chihuahua State, Mexico), (the "Agreement"). Tenoriba is
comprised of three concessions, Mapy 1, Mapy 2 and Fernanda, covering a land
package of approximately 8,100 hectares located approximately 100 kilometres
south-southwest of Mammoth's Urique Project. Previous exploration activity on
the property, including 2,566 metres of drilling, has yielded potentially
attractive gold values (see below). An estimated $2.0 million was spent on the
property during 2007-2008.
The terms of the Agreement permit Mammoth to acquire 100 percent of the Tenoriba
property by issuing a total of 950,000 Mammoth shares and making total cash
payments of $160,000 to the vendors over the four year option period and
spending US$1,000,000 in exploration expenditures on or before June 30, 2016. In
addition, the Company has recently paid US$40,000 in property back-taxes owing
to the Mexican government. The Agreement also allows for a 2 percent Net Smelter
Return royalty payable to the vendors upon commercial production. The royalty
can be purchased by Mammoth at any time within a three year period from
commencement of commercial production for US$1,500,000.
Mammoth President and CEO Thomas Atkins commented on this Agreement, stating:
"This option agreement illustrates how the combination of knowledgeable people
on the ground, good relationships and available capital can come together to
advance a great opportunity. Our objectives are to see money spent in the ground
to ensure the development of the property with both Mammoth shareholders and the
vendor realizing value from their respective holdings in Mammoth shares. We look
forward to reporting on progress from our initial program to consolidate all
historical data and to map and sample the entire property area. Our work
program, scheduled to begin within days, should extend towards the end of the
year and should be easily funded from the company's available cash."
Mammoth Vice President Exploration, Richard Simpson added: "We're very excited
to be able to begin field work that will enable us to advance our interpretation
of the geology of the property and, as a top priority, to better understand the
source and extent of the 45 grams per tonne gold intersection in drill hole
TDH-07. Evidence of gold mineralization, the type of rock in which this
mineralization is hosted and the grades and widths intersected in this hole and
others in the area are extremely encouraging. With this option Mammoth inherits
an estimated two million dollars worth of recent exploration data, including all
drill core and exploration infrastructure such as drill roads and a camp
facility."
Previous exploration, including an initial 15 diamond drill holes totaling
2,566.0 metres (all of the core from this drilling is available at the on-site
exploration camp) and 2,586 geochemical soil and rock chip samples, was
completed in 2007-2008 by Masuparia Gold Corporation (the previous optioning
party). Diamond drill locations are illustrated in Figure 2 - Drill Hole
Location Map, Masuparia Gold Diamond Drilling (2009), Tenoriba Property. Some of
the most attractive intersections from this 2008 drill program included:
Drill Hole Interval Gold
Number From To Length (Fire Assay)
(metres) (metres) (metres) (gpt)
----------------------------------------------------------------------------
TDH-01 3.50 14.70 11.20 0.54
----------------------------------------------------------------------------
TDH-07 35.00 51.00 16.00 0.49
61.00 64.70 3.70 5.33
(including) 62.80 64.70 1.90 45.90
120.50 132.00 11.50 2.26
(including) 129.50 132.00 2.50 9.21
----------------------------------------------------------------------------
TDH-11 27.30 67.00 39.70 0.48
40.80 49.00 8.20 1.45
(including) 110.00 144.40 34.40 1.03
116.80 124.20 7.40 2.82
(including) 135.00 144.40 9.40 1.37
----------------------------------------------------------------------------
TDH-12 21.00 46.60 25.60 0.56
----------------------------------------------------------------------------
TDH-14 50.00 62.00 12.00 0.64
----------------------------------------------------------------------------
Results were contained in a press release by the previous optionor; Masuparia
Gold Corporation on June 25, 2008 (refer to Sedar, Masuparia Gold Corporation)
and were approved by Masuparia's QP and met industry QC standards.
Transaction Details:
Mammoth will pay to the vendors of the Mapy 1 and Mapy 2 concessions, comprising
a total of 7,600 hectares of the Tenoriba property, payments in cash and Mammoth
shares, as follows:
---------------------------------------------------------
---------------------------------------------------------
Date Shares Cash (US$)
---------------------------------------------------------
30/12/2013 75,000 ---
---------------------------------------------------------
30/06/2014 75,000 ---
---------------------------------------------------------
30/12/2014 75,000 $ 12,500
---------------------------------------------------------
30/06/2015 75,000 $ 12,500
---------------------------------------------------------
30/12/2015 87,500 $ 18,750
---------------------------------------------------------
30/06/2016 87,500 $ 18,750
---------------------------------------------------------
---------------------------------------------------------
TOTAL 475,000 $ 62,500
---------------------------------------------------------
---------------------------------------------------------
In respect of the option of the Fernanda concession, comprising a total of 500
hectares centered within the two adjoining Mapy concessions, Mammoth will pay to
the vendor payments in cash and Mammoth shares, as follows:
---------------------------------------------------------
---------------------------------------------------------
Date Shares Cash (US$)
---------------------------------------------------------
30/12/2012 50,000 $ 5,000
---------------------------------------------------------
30/06/2013 50,000 $ 5,000
---------------------------------------------------------
30/12/2013 50,000 $ 12,500
---------------------------------------------------------
30/06/2014 50,000 $ 12,500
---------------------------------------------------------
30/12/2014 50,000 $ 12,500
---------------------------------------------------------
30/06/2015 50,000 $ 12,500
---------------------------------------------------------
30/12/2015 62,500 $ 18,750
---------------------------------------------------------
30/06/2016 62,500 $ 18,750
---------------------------------------------------------
---------------------------------------------------------
TOTAL 425,000 $ 97,500
---------------------------------------------------------
---------------------------------------------------------
In addition, Mammoth will incur on or before June 30, 2016 a total of
US$1,000,000 in exploration expenditures across both the Mapy and/or Fernanda
concessions with the timing and distribution of such expenditures at the sole
discretion of Mammoth.
Upon exercising the Mapy options Mammoth will grant a 2 percent Net Smelter
Return royalty to the vendors of the minerals exploited from the Mapy
concessions and a similar 2 percent Net Smelter Return royalty to the vendor of
the minerals exploited from the Fernanda concession. Mammoth's Mexican
subsidiary shall have the exclusive right of repurchase of each of these
royalties for a period of 3 years from the date of commercial production at a
cost of US$750,000 each.
About Mammoth Resources:
Mammoth Resources (TSX VENTURE:MTH) is a mineral exploration company focused on
acquiring and defining precious metal resources in Mexico and other attractive
mining friendly jurisdictions in the Americas. The Company has an option to
acquire 100% of the Urique Property and the Tenoriba Property located in the
Sierra Madre Precious Metal Belt in southwestern Chihuahua State, Mexico and
continues to seek other option agreements on other properties it deems to host
above average potential for economic concentrations of precious metals
mineralization.
Qualified Person / Quality Controls:
Richard Simpson, P.Geo., Vice-President Exploration for Mammoth Resources Corp.
is Mammoth's Qualified Person, according to National Instrument 43-101, for the
Tenoriba property and is responsible for any technical data mentioned in this
news release.
Mr. Simpson sampled 4 intervals from available core from the Masuparia 2009
diamond drill program and collected 16 rock chip samples from various outcrops
previously sampled on the property. Samples were prepared and analyzed by ALS
CHEMEX in their facilities in Mexico and Canada, respectively. Samples generally
consisted of 1-3 kg of material. Gold analyses were performed by 30 gram fire
assay with an AA finish. Silver, copper, lead and zinc were analyzed as part of
a multi-element ICP package using an aqua regia digestion. In the opinion of Mr.
Simpson, the samples he took and analyzed compared favourably with historic
results for these samples achieved by Masuparia.
To find out more about Mammoth Resources and to sign up to receive future press
releases, please visit the company's website at www.mammothresources.ca.
Forward Looking Information: This news release may contain or refer to
forward-looking information. All information other than statements of historical
fact that address activities, events or developments that the Company believes,
expects or anticipates will or may occur in the future are forward-looking
statements; examples include the listing of its shares on a stock exchange and
establishing mineral resources. These forward-looking statements are subject to
a variety of risks and uncertainties beyond the Company's ability to control or
predict that may cause actual events or results to differ materially from those
discussed in such forward-looking statements. Any forward-looking statement
speaks only as of the date on which it is made and, except as may be required by
applicable securities laws, the Company disclaims any intent or obligation to
update any forward-looking statement, whether as a result of new information,
future events or results or otherwise. Although the Company believes that the
assumptions inherent in the forward-looking statements are reasonable,
forward-looking statements are not guarantees of future performance and,
accordingly, undue reliance should not be placed on these forward-looking
statements due to the inherent uncertainty therein.
To view Figure 1. Location Map - Tenoriba Property, Chihuahua State, Mexico,
please visit the following link: http://media3.marketwire.com/docs/MTH-F1.jpg.
To view Figure 2. Drill Hole Location Map, Masuparia Gold Diamond Drilling
(2009), Tenoriba Property, please visit the following link:
http://media3.marketwire.com/docs/MTH-F2.jpg.
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