Planet Exploration to Acquire High Grade Gold/Silver Project in Durango, Mexico
Thursday August 28, 8:30 am ET
(TSX-VEN: PXI)
CALGARY, Aug. 28 /CNW/ - Planet Exploration Inc. (TSX-VEN: PXI) is pleased to announce that it has successfully secured an option to earn a 100% interest in the high grade 7,005 hectare Copalquin gold/silver Property located in Durango, Mexico. The option agreement and the related finder's fee described below are subject to approval of the TSX Venture Exchange ("the Exchange").
The Copalquin district and surrounding areas form a significant gold and silver region. The Copalquin Property lies within the Sierra Madre mineralogical belt in Durango, Mexico. The belt is home to 23 historic gold & silver mines and prospects. Previous extensive sampling programs by Kennecot and Fransisco Gold outlined a target potential of a one million ounce gold and a fifty million ounce silver deposit on the Property within a low-grade horizontal quartz breccia formation. Assays and conclusions from these programs correlate to a 1940's work program conducted on behalf of Compania Minera CIBOLA.
The Copalquin Property has a series of parallel ridges of fault breccia over 3 kilometers. A 1998 shallow angle diamond exploratory drill hole intersected a previously unknown high-grade vertical fault zone at 25 meters that crosscut the previously known horizontal low-grade quartz breccia. Based on previous published exploration results, Planet believes the Copalquin Property has excellent potential for both high grade vein targets and low grade bulk tonnage targets.
Although resource estimates have not been calculated since the discovery of the high-grade vertical fault zone, its existence may significantly alter Kennecot's and Fransisco Gold's original target potential of one million ounces gold and fifty million ounces of silver on the project.
Under the terms of the option agreement, Planet is obligated to make a series of cash payments totaling $415,000 (US) over five years, to issue a total of $24,000 (US) in Planet shares upon acceptance of the option agreement by the Exchange and is required to conduct exploration programs on the property in the amount of $1,000,000 (US) over five years. At the feasibility study stage, and subject to regulatory approval at that time, Planet is obligated to pay the Property owner $1.00 (US) per ounce of recoverable gold or its equivalent in recoverable silver. Planet is also responsible for a 2.5% Net Smelter Return to the owner and has an option to purchase 1.5% for $1,000,000 (US). Subject to regulatory approval, Planet has agreed to pay Mr. Steve Vanry a finder's fee of $25,000 (Cdn) on July 15, 2004, $25,000 (Cdn) on July 15, 2005, and such number of shares of Planet as may be approved by the TSX Venture Exchange.
Dr. Adrian Mann, a director of Planet, will conduct a property visit in early September to complete the formal agreements and to conduct Planet's initial exploration phase which will include planning for the first diamond drill program.
"We view the Copalquin property acquisition as a tremendous opportunity for Planet to further diversify its exploration portfolio with a very exciting project", stated Ranjeet Sundher, President of Planet. "Our joint exploration program with Goldcorp Inc. on the Sidace Lake project provides us with the flexibility to expand our exploration activities within the constraints of our current resources and gives us another opportunity to participate in a new gold discovery", he continued.
Planet is a junior mineral exploration company with active gold projects in Canada (Red Lake) and Mongolia.
Ranjeet Sundher
President
(403) 262-3238
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
For further information
Paul McKenzie, Tel: (604) 681-9897, Toll Free 1-866-733-5253, Email: Investor@planetexploration.info, Website: www.planetexploration.info
European Investor Relations: Nick Fuller/Sam Fletcher, N C Fuller Associates Ltd, Tel: +44 207 256 5204, Email: sam@nickfuller.com |
