SAMEX Mining Corp. ("SAMEX" SXG-V) and International Chalice Resources Inc. ("Chalice" IRI-V) have signed a letter of intent concerning exploration on the Sora Sora property which covers precious metal targets in Bolivia. Under the agreement, SAMEX grants Chalice an option to earn a 35% joint venture interest by expending US $200,000 on the Sora Sora property before May 31, 2000. Upon earning a 35% joint venture interest, Chalice may elect to continue joint venture exploration and development on the property or revert to a carried 10% net proceeds interest. Consideration for the option is a cash payment of CDN $25,000 and the issuance of 100,000 common shares of Chalice to SAMEX.
Exploration on the property will be conducted by SAMEX under the guidance of a joint SAMEX/Chalice management committee. The property is drill-ready and SAMEX and Chalice are planning a drill program, the details of which, will be announced in a forthcoming news release.
The Sora Sora property lies within the Oruro-Patacamaya polymetallic mineral belt, one of the richest precious metals regions in Bolivia. This belt was exploited for silver and gold in the Inca period, and on a much wider scale during Spanish Colonial times. The property is
situated along the Coniri Structural Trend which also hosts the world-class Kori Kollo gold mine, situated 60 kilometers to the southeast.
The precious metal targets at Sora Sora are mineralized sinter/vein hot springs systems. Two of the target areas likely comprised a single large mineralizing system that is now split and offset along a strike-slip fault. When restored, the two areas once comprised a single vein swarm 1250-meters to 1500-meters long and 450-meters across. Three sinter piles, resulting from the ancient hot spring activity, were deposited along the vein swarm. The
restored vein alignment points directly along strike into the vein swarms of the Laurani Mining District several kilometers away which were mined for silver-gold and copper.
The targets at Sora Sora will be explored for two types of precious metal deposits; bulk-tonnage, hot spring-type precious metal mineralization at shallow depths beneath the
extensive outcrops of sinter and veins; and high-grade bonanza veins and vein-swarms at greater depth beneath the hot spring target. If the hot springs and bonanza vein targets show promising results, additional targets on the property could also be tested for mantos-style gold-silver mineralization.
SAMEX holds 100% interest in 1803 hectares of mining concessions comprising the Sora Sora property and also has an option until June 2000 to purchase an additional 160 hectares for US $160,000. If SAMEX and Chalice exercise the option to purchase the additional 160 hectares, each party will pay their portion of the US $160,000 option payment based on their respective joint venture interest.
Jeffrey P. Dahl - Vice Chairman
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