Bill,
NEWS RELEASE TRANSMITTED BY CANADIAN CORPORATE NEWS
FOR: PACIFIC RIM MINING CORP.
SEC File: 029704
TSE SYMBOL: PFG
SEPTEMBER 16, 1999
Pacific Rim Announces Luicho Project Acquired
VANCOUVER,BRITISH COLUMBIA--Pacific Rim Mining Corp. is very
pleased to announce it has signed a final agreement with a private Peruvian company, providing the Company with an option to earn a 100 percent interest in the Luicho gold Project. Luicho is located 540 km southeast of Lima in the Ayacucho Department, Parincochas Province. This acquisition is subject to approval by The Toronto Stock Exchange.
Pacific Rim can earn its 100 percent interest in Luicho by:
- making an initial payment of US$ 200,000 (paid);
- paying US$ 400,000 upon the first anniversary of regulatory approval of the agreement;
- paying US$ 1,000,000 upon the second anniversary of regulatory approval of the agreement; and,
- executing a final payment of US$ 24,220,000 upon the third
anniversary of regulatory approval.
If production from Luicho is achieved, a sliding scale royalty of 2.5 percent to 3.5 percent (depending on the price of gold) on the first 1 million ounces and 3 percent on additional ounces over 1 million is payable to the vendor.
The Luicho Project option covers a 1,000 hectare claim. Pacific Rim has additionally staked and owns the exclusive rights to a further 6,000 hectares adjacent to the Luicho property. A finder's fee will be payable to Lowell Mineral Exploration Ltda. and its business partner, pursuant to an agreement reached in February, 1999 (see NR #99-03).
The Luicho Project is a low-sulfidation epithermal prospect.
Mineralization is contained within quartzites and breccias and is controlled by stockwork quartz veining within these units. Pacific Rim has collected 431 continuous rock chip samples at Luicho from surface outcrops and historic underground workings. These samples ranged from 5 to 45 meters in length. The average of all 431 samples is 1.57 g/t gold. Of these, 59 percent exceed 0.31 g/t gold and 41 percent exceed 0.62 g/t gold. These higher grade sample groups average 2.56 g/t gold and 3.52 g/t gold respectively.
The majority of the samples that exceed 0.62 g/t gold occur within a wedge-shaped fault block that is 1.2 kilometers long and from 150 to 400 meters wide, with an apparent vertical relief of at least 300 meters.
Pacific Rim is extremely pleased that its alliance with David Lowell, former chairman of Arequipa Resources Ltd., resulted in the identification of this exceptional project and looks forward to building on the very positive results of its initial exploration of Luicho.
On behalf of the board of directors,
Thomas C. Shrake, CEO
This news release contains forward-looking statements regarding the approval of the agreement. Actual results may differ materially from those currently anticipated in such statements.
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FOR FURTHER INFORMATION PLEASE CONTACT:
Pacific Rim Mining Corp.
Thomas C. Shrake
CEO
(604) 689-1976 or Toll Free: 1- 888-775-7097
(604) 689-1978 (FAX)
E-mail: pacrim@direct.ca
Website: www.pacrim-mining.com
The TSE has neither reviewed nor accepts responsibility for the adequacy or accuracy of this release. |
