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Sand River Resources Ltd -
Interests acquired in 27 concessions in
Mexican polymetallic area
Sand River Resources
Ltd
SRIV
Shares issued 8836043
1997-10-16 close $0.3
Thursday Oct 16 1997
See Spokane Resources Ltd (SKN) News
Release
Dr Greg Myers and Mr G. Arnold Armstrong
report
Sand River Resources of Vancouver and Reno,
Nevada and Spokane Resources of Vancouver
(the Companies) have formed an association to
equally acquire rights to Mexican mineral
concessions. The concessions are polymetallic
with recent production on two concessions.
The Companies have entered into three option
agreements with Minera Pierdras Verdes Del
Norte, Mr Daniel Valenzuela Garcia, Mr
Daniel Valenzuela Bardon and Mr Julio C.
Saenz all of Chihuahua, Mexico (Optionors) to
acquire the interests noted below.
The Companies have a four month period from
the date of the option agreements to conduct
due diligence after which time the Optioners
will transfer title to the mineral concessions
described below to newly formed Mexican
companies (Mexcos) and the Companies shall
have the option to pay monies and issue shares
to the Optionors and advance monies to
Mexcos for the purpose of conducting
exploration and development work on the
mineral concessions. It is proposed that the
Companies appoint four persons and the
Optionors appoint two persons to the boards of
directors of Mexcos and designates of the
Companies be appointed as chairman and
president of Mexcos with designates of the
Optionors being appointed as vice-presidents of
Mexcos.
The options relate to 27 concessions
throughout the state of Chihuahua, Mexico.
Four of the concessions are highly prospective
zinc skarns, two of which have recently been
in production. The zinc skarn targets are
envisioned to host large tonnage potential
(greater than 15 million tonnes each) based on
the extent of the alteration and mineralization
in comparison with other zinc skarns currently
in production in Mexico.
The Minerales project is in the West Camp of
the Santa Euhlalia district. This mining district
has been in production since the late 1500s
having produced over 30 million tons of ore
grading 5-17% combined zinc, lead and
copper. The ores generally contain about 100
g/t Ag. Production ceased in 1992 due to labor
and financial problems. The Minerales
property has produced over 10 million tonnes
from a mill and concentrator on site, but has
not received any modern exploration. The
potential to significantly expand the reserves is
excellent. The 1998 program will sample and
map the underground workings and drill testing
of targets is expected to be under way by
mid-summer. The capability of the mill and
concentrator will be evaluated by consultants.
The Piedras Verdes project is 20km west of
Francisco Gold's El Sauzal project. The
property hosts a copper-zinc skarn, which was
recently in production (50 tons per day at 6%
copper, 2% zinc reported). Limited drilling, in
the immediate mine area, extended the high
grade fault related zone, but the 8 sq km of
alteration remain essentially untested. Mapping
sampling and geophysical surveys are planned
for early 1998 with a drilling program
scheduled for the summer.
The Descubridora project is on the eastern
edge of Chihuahua City, Chihuahua. The area
hosts gold, silver, lead and zinc prospects on
the surface and the area of alteration covers
over 12 sq km. The property was explored by
Kennecott in 1992. Twelve drillholes were
completed, the best of which were D-4 with a
reported 130 ft grading 1.5 g/t Au, D-12 with a
reported 40 ft grading 2.54% zinc, and D-13
with a reported 15 ft grading 10.82% zinc. The
1998 program will continue to drill test the
extent of high-grade zinc mineralization.
The Los Chinos project is in northern
Chihuahua adjacent to the Bismark mine of
Penoles, which is currently in production. The
Los Chinos area hosts multiple zinc skarn
systems centered around a series of tertiary
intrusives. The Los Chinos property was drilled
by BHP Minerals in 1991 and the best
reported intercept was 8.6m grading 7.8% zinc
and 3% lead with gold and silver credits.
Drilling is being planned for mid 1998 after a
mapping, sampling and geophysical program is
completed.
Cash and share consideration to the Optionors
and cash advances to Mexcos over a three
year period following the diligence period are
set out hereunder.
Minera Piedras Verdes
Shares to Optionors:
125,000 Sand River
125,000 Spokane
Cash to optionors: US$100,000
Cash to Mexco: US$1,400,000
Minera Minerales
Shares to Optionors:
200,000 Sand River
200,000 Spokane
Cash to optionors: US$400,000
Cash to Mexco: US$2,100,000
Minera Los Chinos, Descubidora
and others
Shares to Optionors:
300,000 Sand River
300,000 Spokane
Cash to optionors: US$10,000
Cash to Mexco: US$3,000,000
Mr Metals
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