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Arena exercises Atacama option; JV partners opt out2017-11-01 11:42 ET - News Release
Mr. William Randall reports
ARENA PROVIDES JOINT VENTURE AGREEMENT AND CORPORATE UPDATE
Arena Minerals Inc. has decided to exercise the underlying Atacama option agreement with Sociedad Quimica y Minera de Chile (SQM) on two projects consisting of a total of 7,061 hectares. The company also wishes to inform that both the Japan Oil, Gas and Mineral National Corp. (Jogmec) and Teck Chile Ltd. have opted out of the respective joint venture agreements with the company The two projects retained by Arena are the epithermal gold Paciencia project and the copper porphyry Pampa Union project, which are anticipated to form two joint venture companies with SQM on a 80% Arena and 20% SQM basis. Arena and SQM have agreed to a six month time period to complete the formation of these joint venture companies, which includes Arena making the underlying payment of USD30 per hectare retained.
William Randall, President and CEO of Arena commented, "While we would have liked for our joint venture partners to continue, this does create an opportunity for us to create additional e value in a much stronger copper environment by potentially engaging other partners to projects that have been significantly advanced by third party funding and left with very promising targets."
Pampa Union Copper Project
Pampa Union is located approximately 15 kilometres Southwest of the Sierra Gorda and Spence mines. A total of 14,572 metres of primarily reverse circulation ("RC") drilling has been completed in 55 drill holes resulting in the discovery of two porphyry systems contained within the Pampa Union project. A program of wide spaced reverse circulation drilling combined with ground magnetic and vector IP (induced polarization) resulted in the discovery of a silica cap with associated with moderate to strong phyllic alteration in RC-PU-039 and RC-PU-080 as previously reported by the company (see press release dated September 5th, 2017). Drill hole PU-RC-94, drilled 5km southeast of PU-RC-80 in the north eastern portion of the Pampa Union block, intersected what the company interprets to be a new prospective area for porphyry mineralization, with strong phyllic and argillic alteration within a porphyritic andesite unit. PU-RC-94 returned geochemically anomalous values of As, Sb, Cu and Mo, related to a hydrothermal brecciation with quartz, tourmaline, chalcocite and molybdenite, typical of a porphyry system.
Drill hole PU-RC-94 collared in strong argillic alteration from 64 meters to 169 meters followed by a strong phyllic alteration from 169 meters to 268 meters. From 206 meters to 210 meters, the hole intersected a hydrothermal quartz breccia, with chalcopyrite, chalcocite, molybdenite and tourmaline, carrying anomalous values of Cu, Mo, As, Sb and Pb. From 268 meters down to the end of the hole at 401 meters, the hole cut a sequence of propylitic altered porphyrityc andesites including short sections of phyllic alteration. Sections of phyllic alteration continue with lesser intensity and decreased geochemical anomalism to the end of the hole at 401 meters. Hole PU-RC-94 is interpreted as a strong indication of increased proximity to a mineralized intrusive body, representing a new high quality target for the next phase of drilling. In addition to PU-RC-094, drill holes PU-RC-92, PU-RC-69, and PU-RC-88 all intersected significant thicknesses of strong argillic and phyllic alteration with various levels of anomalous Cu, Mo, Sb and As. It is important to note that the distance between the holes referred to above varies between 400 meters and 1000 meters from PU-RC-094 and the target area remains largely open, almost 5km southeast of PU-RC-80.
Paciencia Gold Project
The Pampa Paciencia prospect is located approximately 10 kilometres north and northeast of the Sierra Gorda and Spence mines, respectively. Pampa Paciencia is also located approximately five kilometres north of the Faride gold mine.
Two distinct mineralized areas, approximately two kilometres apart, have been discovered hosted by altered dioritic and grandioritic rocks. Mineralization consists of exposed quartz veins and angular quartz fields that subcrop and are aligned with east-west to west-northwest lineaments.
The surface program at Paciencia was successful in identifying a number of epithermal gold and silver bearing veins up to 2.8 km in strike length. Results from the trenching include intersections of 8.6m of 4.6g/t Au and 99.30 g/t Ag including 5m of 7.7g/t Au and 162.20 g/t Ag, and 2.7m of 2.9g/t Au and 43.00 g/t Ag, including 0.6m of 5.58 g/t Au and 83.70 g/t Ag . Only the North Zone was drilled at Paciencia.
A total of 1,640 metres were drilled in 11 holes which confirmed the extension of the mineralized veins along strike and at depth. The structure was traced by drilling for a distance of just over 1.3 km, and it remains open along strike and at depth.
Significant intervals include:
PP15-001 intersected 70.65-73.53, 2.88 m @ 1.3 g/t Au; 33.39 ppm Ag including 1.4 m @ 2.3 g/t Au; 35.3 ppm Ag; 85.40{a -}91.70, 6.30 m @ 0.812 g/t Au; 45.35 ppm Ag (including 1.25 m @ 1.6 g/t PP15-006 :73-78.05 m, 5.05 m @ 1.35 g/t Au; 26.96 ppm Ag; 81.8-96.5 m, 14.7 m @1.91 g/t Au/18.7 ppm Ag (including 6.4 m @ 3.76 g/t Au; 26.76 ppm Ag). Au; 105.28 ppm Ag); and 98.20-101.40, 3.2 m @ 1.15 g/t Au; 35.9 ppm Ag) PP15-007 intersected significant intervals as follows: 78.7-81.1, 2.4 m @ 1.01 g/t Au; 9.46 ppm Ag; 82.9-83.95, 1.05 m @ 3.87 g/t Au; 29.77 ppm Ag; 89.1-90.2, 1.1 m @ 0.98 g/t Au; 25.7 ppm Ag; and 93-96.75, 3.75m @ 7.71 g/t Au; 46.58 ppm Ag
The gold bearing veins at Paciencia are associated with adularia, chalcedony, sulfosalts and crustiform-colloform textures typical of low sulfidation gold-silver bearing systems that are found elsewhere in northern Chile. The geochemical signature of the gold bearing veins discovered to date at Paciencia exhibit a strong correlation of gold with Ag, Sb, Pb, Mo and lesser Cu, which is also common in other low sulfidation Au-Ag systems.
Corporate Update
The Company also wishes to welcome Paul Kania C.P.A. as Chief Financial Officer and Corporate Secretary of the Company. Paul has over 12 years of private and public company experience in both Canada and the US. He is a registered Certified Public Accountant with the State of New York. Paul is to replace Ryan Ptolemy as Chief Financial Officer and Neil Said as Corporate Secretary. The Company would like to thank Ryan and Neil for their contributions and hard work and wishes them well in future endeavours.
The technical and scientific aspects of this news release have been reviewed and approved by Mr. Vernon Arseneau, P.Geo, who is a qualified person pursuant to NI 43-101. As the Vice President of Exploration of the Company, Mr. Arseneau is not considered independent.
About Arena Minerals
Arena Minerals is a prospect generator that has two properties under option covering approximately 7,000 hectares within the Antofagasta region of Chile. The properties are at low altitudes, within producing mining camps in infrastructure rich areas. The Company's flagship asset is the Atacama Copper Property, consisting of approximately 7,000 hectares, in the heart of Chile's premier copper mining district. The technical and scientific aspects of this news release have been reviewed and approved by Mr. Vernon Arseneau, P.Geo, who is a qualified person pursuant to NI 43-101. As the Vice President of Exploration of the Company, Mr. Arseneau is not considered independent.
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