SAMEX has signed a letter agreement granting S. Bustos M., a Bolivian mineral processing group, the right to conduct an evaluation of vein material from the Walter property. The
agreement authorizes S. Bustos M. to retrieve forty (40) tonnes of stockpiled vein material to examine mineralization characteristics and recovery potentials of all metals present (Au,Ag,Pb,Zn,Cu,As,Bi). If the testing produces positive results, it is anticipated that S. Bustos
M. may offer to purchase the property and/or initiate a small production proposal for SAMEX to consider.
SAMEX holds 100% interest in the Walter Property located in the Altiplano region of Bolivia. The property covers a 13 kilometer strike along a regional trend of deep-seated faults that served as conduits for the emplacement of veins and dacite porphyry intrusions. The Company's activities to date have been exploratory in nature and aimed at defining mineable reserves of gold, silver, lead, zinc, copper, arsenic and bismuth which is hosted within "Bolivian-style" polymetallic veins. SAMEX has not conducted any work over the past two years, but prior to 1998, a total of 2,842 meters of drilling and 1,700 meters of underground
drifting was completed in the Walter South zone. The surface trace of veins combined with the lateral and vertical extent of the drilling and drifting indicates vein mineralization of approximately 2,000,000 tonnes within the limited dimensions explored up to 1998. Additional potential exists along the open-ended lateral and down-dip extents of these veins and other structures.
The Company has been seeking either a buyer or a joint venture partner to further explore and exploit the Walter Project and is hopeful that this agreement with S. Bustos M. will help to achieve this objective.
Jeffrey P. Dahl
Vice Chairman
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