Innocent Inc. (INCT): Independent Geological Report Indicates Exploitable Gold Deposits at Murciealago Vizcaya & Lilly Rai Pr...
August 16 2010 - 3:00PM
Business Wire
Innocent Inc. (OTCBB:INCT), a gold mining company focused in
Ecuador, announced today additional information in follow-up to its
regulatory filing and press release of August 9, 2010. Innocent
reported the findings of an independent geological report on the
Murciealagos Vizcaya and Lilly Rai mining concessions in Ecuador's
El Oro Province. The entire report can be viewed on the company web
site, www.Innocentinc.com.
The report, prepared by independent consultant Mr. Edgar Pillajo
G., MBA. P.Eng., conservatively estimates the concessions contain
144,492 ounces of inferred gold and recommends specific mining
approaches to enhance exploration and increase production.
Significantly, the report states that its estimates of potential
gold resources are very conservative as they are based on mining to
a depth of only 200 meters, whereas veins on the properties may
continue for up to two kilometers in depth, as reported in the
literature of epithermal deposits.
The Zaruma-Portovelo area, according to the report, is a large
epithermal system from which only 33 per cent of the potential
mineral resources have been extracted to date. The summary of the
inferred gold resources are as follows:
- Murciealagos Vizcaya area,
116,619 ounces
- Lilly Rai - El Gallinero area,
19,259 ounces
- Lilly Rai - Veta Lilly Rai area,
9,114 ounces
- Total inferred gold resources,
144,492 ounces.
"This geological report confirms our strong belief that the
Murciealagos Vizcaya and Lilly Rai properties hold abundant gold
resources that we will be able to exploit quickly and
economically," said Richard Diotte, Innocent's Vice-President,
South America Operations. "Based on the report's findings, we feel
the application of more advanced mining technologies and practices
at the concessions could lead to the discovery of larger gold
reserves at deeper depths and result in substantially higher
production capacity."
Innocent is in the process of closing the Murciealagos Vizcaya
and Lilly Rai acquisitions and expects to announce completion of
the agreements in the near future. Immediately following signing of
the deals, Innocent intends to introduce a new work plan that will
rapidly expand mining operations at the two properties.
Innocent's acquisition of the Murciealagos Vizcaya and Lilly Rai
concessions supports its core business strategy of acquiring
clusters of in-production and near-term production mines in both
the Zaruma-Portovelo Mining District and the nearby San Gerardo
Mining District, also located in El Oro Province.
Geological Report Recommendations
With respect to mining operations, the report recommends the
following:
- Implement a mining program in
which the properties' gold-bearing quartz veins are simultaneously exploited and
explored.
- The objective would be to put in
place within one year at least 15 work fronts.
- The production goal initially
would be 10 tons per day on each front, or 150 tons per day
total.
Mining in Ecuador: A Background on the Zaruma-Portovelo
Mining District.
The Incas were producing gold in the Zaruma-Portovelo area when
the Spanish founded the city of Zaruma in 1549, according to the
United Nations and other sources. This activity was interrupted by
the outbreak of the Wars of Independence in 1810, and gold
production ceased for a number of decades.
In 1897, an American mining company, the Southern American
Development Company (SADCO), gained control of the district's main
gold deposits. In the 53 years that followed, SADCO recovered some
3.5 million ounces of gold and 17 million ounces of silver from 8
million tonnes of ore mined from its Portovelo-Zaruma and Minas
Nuevas operations.
The bulk of gold, silver and base metals was produced from the
Portovelo Mine at the southern end of the Portovelo-Zaruma-Minas
Nuevas mineralized vein system. The Portovelo shaft reached a depth
of 660 meters below surface and the mining operations on the
multiple vein system extended over 2.6 kilometers of strike.
By 1946 SADCO stopped all exploration and development work and
concentrated on mining the remaining high-grade stopes (cut-off
grade of 12.5 g/t of gold).
Subsequent mining activity in the area has been mostly by
relatively small and informal operations owned by individuals and
small miners' associations from shallow underground workings.
About Innocent Inc.
Innocent Inc. (INCT:OTCBB) is a gold mining company focused on
rapid growth through acquisition of high-quality in-production and
near-term production properties that are performing significantly
below their projected capacity. Through improvements in processing
techniques and strategic investments in mechanization, we seek to
rapidly increase production levels and generate predictable,
sustainable value. Our current focus is on southern Ecuador
supported by a strong pipeline of acquisitions in various stages of
due diligence.
Safe Harbor
This press release contains statements, which may constitute
"forward-looking statements" within the meaning of the Securities
Act of 1933 and the Securities Exchange Act of 1934, as amended by
the Private Securities Litigation Reform Act of 1995. Those
statements include statements regarding the intent, belief or
current expectations of Innocent Inc. with members of its
management team as well as the assumptions on which such statements
are based. Prospective investors are cautioned that any such
forward-looking statements are not guarantees of future performance
and involve risks and uncertainties, and that actual results may
differ materially from those contemplated by such forward-looking
statements. Important factors currently known to management that
could cause actual results to differ materially from those in
forward-statements include fluctuation of operating results, the
ability to compete successfully and the ability to complete
before-mentioned transactions. The Company undertakes no obligation
to update or revise forward-looking statements to reflect changed
assumptions, the occurrence of unanticipated events or changes to
future operating results.
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