VANCOUVER, BRITISH COLUMBIA--(Marketwired - Apr 14, 2014) - Colombian Mines Corporation (TSX VENTURE:CMJ)(X6C.F) ("Colombian Mines" or the "Company") is pleased to announce MPX Drilling Colombia has advised the Company that the drill is on-site and being positioned at El Dovio.
Additionally, joint venture partner Overland Resources Limited (OVR.AX) ("Overland") has made the first payment due under the terms of the Rio Negro joint venture option agreement by issuing 11,351,722 shares to Colombian Mines on April 11, 2014. As a result, Colombian Mines holds approximately 5.5% of the issued and outstanding shares of Overland. Combined with the Company's 10% interest that is 100% carried through to production, the Company holds approximately a 15% beneficial interest in the project when Overland earns its interest.
Overland has provided Colombian Mines results from 386 soil geochemical samples from its ongoing work program at Rio Negro. Highlights of Overland's program include:
- Recent soil sampling has better defined an anomalous gold in soil geochemical corridor, extending over approximately 600m x 200m, in the Central area of the Rio Negro Project, with individual soil samples containing more than 2.7 grams gold per metric tonne. Mapping in the Central area has delineated several gold bearing quartz veins with strike orientations similar to the newly identified north-northwest gold in soils trend. Overland advises that it intends to expand the mapping and soil geochemical coverage to the north to better define the nature and extent of the mineralization.
- Three anomalous gold centers identified within the overall northeast-southwest anomalous corridor.
- A second northwest trending anomalous corridor, perpendicular to the original anomalous gold zone, has been identified. This new trend is consistent with the regional structures that control extensive mineralization in the proximal California gold fields. The anomaly remains open to the north.
- Results from limited soil sampling in the northern area of the Rio Negro Project, where alteration is indicative of porphyry related intrusive activity, indicates gold is present in the alteration system.
- Additional follow-up field work currently being planned and expected to commence shortly.
More information on these geochemical results is available on Overland's website at www.overlandresources.com.
About Rio Negro: The Rio Negro Project (the "Project") is comprised of three (3) contiguous concession contracts together with three (3) pending concession applications that cover approximately 2,245 hectares and 17 kilometers of strike length of highly prospective ground along the Bucaramunga Fault Zone located in north-eastern Colombia, 20 km north of Bucaramanga. The Project is interpreted to lie at the intersection of the deep seated Bucaramunga Fault Zone and other oblique north-west trending structures that hosts the 10 Moz Au Angostura and the 3.5 Moz Au La Bodega deposits in the California gold fields of Colombia.
Colombian Mines owns a 100% interest in the Concession Contracts and Applications that comprise the Rio Negro Project. In September 2013, the Company granted Overland Resources an option to earn a 90% undivided joint venture interest in the Project providing that Colombian Mines interest is 100% carried through to production.