Karmin's Aripuana Zinc Project, Brazil: Scoping Study Ongoing and
Sulphide Mineralization at Babacu
Scoping study by AMEC in progress
US$3.5 million 2007 budget ahead of schedule
Drilling in progress identifies massive sulphides at
Babacu
Detailed geological mapping
ongoing
Toronto 26th June
2007. Karmin Exploration Incorporated (TSXV.KAR) is pleased to announce an
update on their 30% owned, free-carried Aripuana zinc/copper/lead/gold/silver
massive sulphide district in Mato Grosso, Brazil.
Independent Scoping study by
AMEC The
independent engineers, AMEC, are preparing a scoping study on the Arex and
Ambrex deposits, which was slated to be completed in the first quarter of 2007.
The publication of the study has been delayed due to limited human resources at
the consultant, a common event throughout the industry. This is the first scoping study ever
carried out independently on the property. Karmin will release the study as soon
as it is received and the data verified to meet Canada's NI 43-101 reporting
requirements.
Budget for 2007
Votorantim are responsible for all expenditures up to a completed bankable feasibility study. Karmin is free carried to that point. In December
2006, Votorantim presented to Karmin a development budget for the joint venture
for 2007 of US$3.5 million, and the program is ahead of schedule. The project
operator, Votorantim, have informed Karmin that an underground decline may be
commenced in the second half of 2007.
Drilling update
Drilling is investigating east of the Ambrex deposit below Babacu, a
1,700 metre gap between Ambrex and Massaranduba (see attached map). Karmin
discovered the Ambrex, Babacu and Massranduba deposits in 1995.
At Babacu, hydrothermal
alteration was intersected in all the 5 holes drilled in April, with massive
sulphides described over 3.65 metres in hole FPAR-105 initially interpreted as
having "feeder zone" affinities and massive and semi-massive sulphides described
over 22.4 metres in FPAR-106. This hole also included 138 metres displaying a
weakly mineralized stringer zone often associated with feeder zones below
massive sulphide bodies. Assay results are pending.
The 2004 - 2006 drilling
covered an extensive scout drilling program plus infill and extensional drilling
at Ambrex and Arex. All this data will be incorporated in the AMEC scoping
study. The Cafundo drilling, 30 kms to the east of Aripuana did not intersect
meaningful mineralization, and much of the 2004-2006 scout drilling did not
intersect meaningful mineralization. Resource evaluation is concentrating on
Ambrex, Arex and potentially Babacu.
The Aripuana project has been
drilled as follows:
Date
Diamond
Total
Drill holes
Metres
2007 (to date) 20
8,320
2006
26
12,356
2005
34 9,435
2004
25 9,189
Pre- 2004
Anglo
American
95 29,000
Karmin 51
16,300
TOTAL
251 84,600
Ground
investigations
In 2007, Votorantim field crews
have completed 34,000 metres of line-cutting over the Boroca, Vaca-Bigode and
Mocoto targets, 6-10 kilometres south of the main Ambrex/Arex deposits (see
attached map). 430 samples were sent to the laboratory in March and a further
331 samples were sent in April. At Mocoto, mapping has identified shear zones,
previously described in drilling by Anglo American, while Votorantim report
limited potential at Vaca-Bigode. The main ongoing surface mapping program will
focus on the Boroca area.
Karmin, Anglo-American & Votorantim
Karmin Exploration is a mineral
exploration company focused on exploration and development in Brazil. Karmin
through its subsidiary Mineracao Rio Aripuan Ltda. holds 30% of the Aripuana
project. Karmin is free carried to the completion of a fully independent bankable feasibility study. The remaining 70% is owned by Anglo American Corporation who is optioning their interest to Votorantim Metais (a division of
the privately-held Votorantim Group), the project operator. Votorantim, the
world's 6th largest zinc producer, have three zinc smelters, and are
currently purchasing between 55% and 60% of their concentrate needs. Their
stated objective is to find more zinc resources from their own mines to feed
concentrates to their smelters, rather than rely on external mining
companies.
Karmin is publicly traded on
the TSX-Venture Exchange under the symbol KAR. The company has 38,453,591 shares
outstanding and 40,053,591 fully diluted. William Fisher, P.Geo. President of
Karmin, is the designated Qualified Person under NI 43-101. He has reviewed this
release for accuracy.
FOR FURTHER INFORMATION PLEASE
CONTACT:
William (Bill) Fisher
P.Geo
Robert Ciccarelli
President & CEO, Karmin
Exploration Chairman, Karmin Exploration
Tel: +1 (416) 367 0369
Tel: +1 (416) 367 0369
Fax: +1 (416) 868 6467
Fax: +1 (416) 868 6467
Email:
wfisher@karmin.com
Email:
rcicc@karmin.com
Website: www.karmin.com
Website: www.karmin.com
The TSX Venture Exchange neither approves nor disapproves of the
information contained in this news
release.
FORWARD-LOOKING
STATEMENTS: Except for statements of historical
fact, all statements in this news release -- including, without limitation,
statements regarding production estimates and future plans and objectives of Karmin are forward-looking
statements that involve various risks and uncertainties. There can be no assurance that such statements will prove
to be accurate; actual results and future events could differ materially
from those anticipated in such
statements.
Figure 1. Location of Babacu
drilling and Boroca mapping area