Gitennes to acquire 100% ownership of Peruvian gold project
Vancouver, May 13, 2009: Gitennes Exploration Inc. (TSX-GIT) advises shareholders that it has reached an agreement whereby the concessions that comprise the Tucumachay Property are to be transferred to Gitennes in exchange for a sliding-scale Net Smelter Returns royalty on any future gold production. The NSR will apply as follows: 1.25% at gold prices above US$400 per ounce, 1.0% at gold prices between US$ 400 and US$ 330 per ounce, and 0.75% at gold prices below US$ 330 per ounce. The NSR royalty is to be registered in favour of a Peruvian company controlled by Inmet Mining Corporation.
The transfer agreement should be positive for the Tucumachay Project and Gitennes. The new, simplified ownership will remove the encumbrance of a post-discovery dilution due to the claw-back clause in the original option that was in favour of Inmet. Gitennes can now focus on a variety of alternative strategies to capitalize on Tucumachay?s exploration upside.
About Tucumachay: Exploration from mid-2004 to the end of 2006 was funded and conducted by Gitennes under an option agreement with Inmet Mining Corporation. Exploration was suspended in 2007 pending the transfer of the claims to Gitennes. During the exploration period crews collected over 1,830 rock samples (of which 1,700 are chip channel samples over an aggregate distance of over eight kilometres) as well as 1050 soil samples, and 367 MMI samples, completed 25 line kilometres of I.P. and VLF-EM surveys, and drilled 1,984 metres in 19 core holes and 1990 metres in 28 reverse circulation holes. Despite the amount of work completed to date the property is underexplored, particularly in light of current strong bullion prices.
The Tucumachay Property covers a large area of limestone-hosted gold mineralization similar in grades, appearance and mineralogy to the famous ?Carlin deposits? in Nevada. At Tucumachay higher grade gold mineralization is found in zones of silicified limestone along fractures, faults and against a thrust and folded regional-scale contact with younger shale and sandstone. A number of showings have been found in outcrop and a combination of systematic rock-chip sampling and soil geochemical surveys within an area that is 7,000 metres long by up to 4,000 metres wide. Within this large area, individual showings can be traced through outcrop sampling and drilling over lateral distances of 100 to 500 metres, and are up to 40 metres true thickness.
The belt of favourable geology is folded and can be traced from the high-grade Encantada gold zone in the northwest, south through the Greg, Leonardo and Cerro Oeste zones, then around the nose of the fold through the Cliff showing and northeast into Guapita, a distance of over six kilometres. Beyond Guapita the favourable contact is mineralized with a series of strong zinc, silver and lead prospects that extend three kilometres further onto Gitennes? Titimina Property.
Surface sampling of mineralized outcrops returned strong results, grading 2.0 to 10.0 g/t gold, sometimes higher, over individual sample lengths of two to nine metres. Drilling confirmed that extensive zones of gold mineralization occur near surface that grade 0.5 to 1.8 g/t, most notably at Leonardo ? Cerro Oeste where a deposit is beginning to take shape, though more drilling is needed as it is open to expansion and its ultimate grade and shape need better definition. An interactive 3-D model and cross sections of the drilling at Leonardo can be found at http://www.corebox..net/properties/tucumachay/ and interested readers are referred to our corporate website (www.gitennes.com) for more information.
The technical information in this release has been reviewed by J. Blackwell (P.Geo), a Qualified Person as defined by National Instrument 43-101. Note that the technical information herein has been previously released, and that the Company has filed two technical reports (in 2006 and 2007) on SEDAR that provide comprehensive reviews of the Tucumachay Project.
Shareholders may also be interested in looking at an additional interactive 3-D model and cross sections of the drilling at Gitennes? Urumalqui silver-gold project in north-central Peru by following http://www.corebox.net/properties/urumalqui/.
For further information, contact:
Jerry Blackwell, President
The Toronto Stock Exchange has neither approved nor disapproved the information herein.