TORONTO--(BUSINESS WIRE)--
Karmin Peru S.A.C. (“KarPeru”), a wholly owned subsidiary of
Karmin Exploration Inc. (“Karmin”) (TSXV and the Lima Stock
Exchange: KAR) is pleased to report that KarPeru has engaged Kallpa
Securities (“Kallpa”) to conduct a strategic review of KarPeru
and its 100% owned Cushuro Gold Project (“Cushuro”) located in
the Alto Chicama gold district of northern Peru. The objective of this
review is to transform KarPeru and its Cushuro Gold Project into a stand
alone public entity focused on the exploration and development of
Cushuro and other projects in Peru.
KarPeru’s Cushuro Gold Project covers a 25 square kilometre area on the
eastern border of Rio Alto’s La Arena mine which is forecast to produce
200,000 to 220,000 ounces of gold in 2014 according to Rio Alto’s public
filings. The Summary Report on the Cushuro Gold-Silver Project prepared
in accordance with National Instrument 43-101 (see Karmin press release
dated November 22, 2011) notes that the Cushuro mineralization is
similar to other operating mines in the district inasmuch as the
low-grade (typically < 1 gram gold per tonne) gold mineralization is
hosted in quartzites of the Chimu Formation. Since 2012, Cushuro has
been explored on surface by Karmin and small scale gold mining by
informal miners is commonplace.
Recently, the owners of a small fraction of surface rights in the
northern portion of the Cushuro Gold Project have conducted larger scale
mining activities without the permission of KarPeru or government
authorities. Negotiating mutually beneficial agreements with the local
small miners and the surface land owners is a high priority for KarPeru.
The Alto Chicama gold district is home to a number of world class and
medium size gold mines and projects including Barrick Gold's Lagunas
Norte Mine, 25 km west of Cushuro (2013 production: 606,000 ounces of
gold ), Rio Alto's Shahuindo Project, 30 km to the north of Cushuro
(measured and indicated resources of 2.4 million ounces of gold plus
inferred resources of 1.6 million ounces of gold), and the privately
owned La Virgen Mine (2013 production: approximately 60,000 ounces of
gold) situated 5 km south of Cushuro.
David Brace, Karmin’s CEO stated, “as a separate public entity KarPeru
will be able to focus on the advancement of the Cushuro Gold Project and
Kallpa’s expertise is ideal to help finance Cushuro or find strategic
associations for what we consider a very prospective property in one of
the world’s most prolific gold mining districts. Additionally, Karmin
continues to concentrate on the continuing development of the world
class Aripuanã Zinc Project in Brazil.”
Qualified Person
A.E. Olson, FAusIMM, a Qualified Person as defined under Canadian
National Instrument 43-101 Standards of Disclosure for Mineral
Projects, and a consultant to Karmin, has reviewed and approved the
technical content of this news release in the form and context in which
it appears.
About Karmin
The common shares of Karmin are listed on the TSX Venture Exchange and
the Lima Stock Exchange and trade in both markets under the symbol
“KAR”. The principal business of Karmin is to acquire, explore and
develop resource properties.
Karmin owns 30% of the Aripuanã Zinc Project, one of the ten largest
undeveloped zinc projects in the world. The Aripuanã Zinc Project covers
an 820 square kilometre mineralized massive-sulphide district that
includes five areas of mineralization (Ambrex, Arex, Babacu,
Massaranduba and Mocoto) over a 25-kilometre strike length. Votorantim
owns 70% of the Aripuanã zinc project, but is responsible for 100% of
the project costs until the completion of a bankable feasibility study.
On October 30, 2014 it was reported that the Milpo approved the purchase
of a participation in the Aripuanã Zinc Project from Votorantim (See
Karmin press release dated November 4, 2014).
The Summary of Mineral resources at the Aripuanã Zinc Project is
outlined in Table 1 (for more information see Karmin press release dated
February 21, 2013).
TABLE #1 SUMMARY OF MINERAL RESOURCES – ARIPUANÃ
September 12, 2012
|
|
|
|
|
|
|
|
Grade
|
|
Contained Metal
|
|
|
|
Tonnage
|
|
Zn
|
|
Pb
|
|
Cu
|
|
Au
|
|
Ag
|
|
Zn
|
|
Pb
|
|
Cu
|
|
Au
|
|
Ag
|
|
|
|
Mt
|
|
%
|
|
%
|
|
%
|
|
g/t
|
|
g/t
|
|
M lb
|
|
M lb
|
|
M lb
|
|
Oz
|
|
K Oz
|
|
AREX
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Measured
|
|
2.4
|
|
7.15
|
|
2.50
|
|
0.51
|
|
0.24
|
|
73
|
|
378
|
|
132
|
|
27
|
|
19,000
|
|
5,633
|
|
Indicated
|
|
2.5
|
|
3.50
|
|
1.18
|
|
1.36
|
|
0.64
|
|
37
|
|
195
|
|
65
|
|
76
|
|
52,000
|
|
2,996
|
|
Inferred
|
|
3.2
|
|
3.9
|
|
1.4
|
|
0.8
|
|
0.7
|
|
39
|
|
278
|
|
101
|
|
57
|
|
73,000
|
|
4,001
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AMBREX
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Indicated
|
|
14.2
|
|
3.39
|
|
1.23
|
|
0.07
|
|
0.18
|
|
29
|
|
1,062
|
|
386
|
|
23
|
|
82,000
|
|
13,389
|
|
Inferred
|
|
11.5
|
|
5.0
|
|
1.7
|
|
0.1
|
|
0.30
|
|
40
|
|
1,269
|
|
436
|
|
36
|
|
108,000
|
|
14,657
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AREX + AMBREX
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Measured + Indicated
|
|
19.1
|
|
3.87
|
|
1.38
|
|
0.30
|
|
0.25
|
|
36
|
|
1,635
|
|
584
|
|
125
|
|
153,000
|
|
22,018
|
|
Inferred
|
|
14.7
|
|
4.8
|
|
1.7
|
|
0.3
|
|
0.4
|
|
39
|
|
1,547
|
|
536
|
|
93
|
|
181,000
|
|
8,560
|
|
Notes:
1. CIM definitions were followed for Mineral Resources.
2. Mineral Resources are reported as within mineralized wireframes
modelled at 3% Zn in the stratabound zone and 0.5% Cu in the stringer
zone and include internal dilution.
3. The Ambrex resource database does not include results of
drilling in 2012.
4. Numbers may not add due to rounding.
Karmin owns 100% of the Aripuanã Gold Project, which encompasses the
gold and silver mineralization associated with near-surface oxidized
portions of numerous massive-sulphide deposits in the
820-square-kilometre Aripuanã Zinc Project in north western Brazil.
Karmin owns 100% of the 25-square-kilometre Cushuro Gold Project located
in the world-class Alto Chicama gold-mining district of northern Peru.
Disclaimer Relating to Forward-Looking Information
This news release contains forward-looking statements that are based on
the belief of management and reflect Karmin’s current expectations.
Forward-looking statements include, but are not limited to, possible
events and statements. The words “potential,” “possible,” “expects,”
“plans,” “scheduled,” “estimates,” “anticipates” or “believes,” or
variations of such words and phrases or statements that certain actions,
events or results “may,” “could,” “would,” “might,” or “will” be taken
or occur, and similar expressions identify forward-looking statements.
The forward-looking statements and information in this press release
include, but are not limited to the mineral resource estimates and the
business plans of Karmin. Such statements and information reflect the
current view of Karmin with respect to risks and uncertainties that may
cause actual results to differ materially from those contemplated in
those forward-looking statements and information.
Such statements are not historical facts. Readers are cautioned not to
place undue reliance on forward-looking statements, as there can be no
assurance that the plans, intentions or expectations upon which they are
based will occur. By their nature, forward-looking statements involve
numerous assumptions, known and unknown risks and uncertainties, both
general and specific, that contribute to the possibility that the
predictions, forecasts, projections in the forward-looking statements
will not occur, and that actual performance and results in future
periods may differ materially from any estimates or projections of
future performance or results expressed or implied by such
forward-looking statements.
The Aripuanã Zinc Project and the land it relates to is an exploration
property only. Accordingly, there are a number of important factors that
could cause Karmin’s actual results to differ materially from those
indicated or implied by forward-looking statements and information. Such
factors relating to the Aripuanã Zinc Project include, among others, the
timing and content of work programs, results of the development of
mineral properties, the interpretation of drilling results and other
geological data, the uncertainties of resource and reserve estimates,
receipt and security of mineral property titles, receipt of licenses to
conduct mining activities, project cost overruns or unanticipated costs
and expenses, fluctuations in metal prices and general market and
industry conditions, changes in national and local government
legislation, taxation, controls, policies and regulations, the security
of personnel and assets, and political or economic developments in
Canada and Brazil, operating or technical difficulties in connection
with mining or development activities, employee relations, the
speculative nature of mineral exploration and development and the risks
and hazards associated with the business of mineral exploration,
development and mining, including environmental hazards, industrial
accidents, unusual or unexpected formations, pressures, cave-ins and
flooding.
The forward-looking statements contained in this news release are made
as of the date of this news release. Readers should not place undue
importance on forward-looking information and should not rely upon this
information as of any other date. Except as required by law, Karmin
disclaims any intention and assumes no obligation to update or revise
any forward-looking statements, whether as a result of new information,
future events or otherwise. Additionally, Karmin undertakes no
obligation to comment on the expectations of, or statements made by,
third parties in respect of the matters discussed above.
Neither TSX Venture Exchange nor its Regulation Services Provider (as
that term is defined in policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this release.