Mr. Charters,
Could you share some thoughts on high-sulfidation (acid-sulfate)
epithermal deposits.
PFGs latest release indicates they've found one ... and they appear to be willing to put their money where their mouth is.
Any thoughts?
Rick
NEWS RELEASE TRANSMITTED BY CANADIAN CORPORATE NEWS
FOR: PACIFIC RIM MINING CORP.
SEC File: 029704
TSE SYMBOL: PFG
JANUARY 18, 1999
Pacific Rim Acquires Peruvian Property
VANCOUVER, BRITISH COLUMBIA--Pacific Rim Mining Corp. is pleased
to announce that it has executed an agreement that gives the
Company the option to earn a 100 percent interest in the Cofradia
property by purchasing SMRL La Capilla, a Peruvian holding
company. Subject to signing of a formal agreement and regulatory
acceptance, Pacific Rim can complete this acquisition, earning its
100 percent interest by:
- making an initial payment of US$ 150,000 (US$ 20,000 upon
signing of a formal agreement and US$ 130,000 upon regulatory
acceptance and completion of a corporate due diligence review of
SMRL La Capilla);
- expending US$ 500,000 on exploration, including 3,000 meters of
drilling, within 12 months of regulatory acceptance;
- making staged payments of an additional US$ 350,000 over 12
months from the date of regulatory acceptance; and
- executing a final purchase payment of US$ 25 million within 18
months of regulatory acceptance.
If production from Cofradia is achieved, a sliding scale royalty,
to a maximum of 4 percent, is payable to the vendors.
Pacific Rim is solely responsible for carrying out and managing
all work programs at Cofradia. At any time after making the
initial payment and completing the required exploration
expenditures, and prior to acquiring a 100 percent interest in the
property, Pacific Rim may terminate the option.
The Cofradia property is located immediately north of Pacific
Rim's La Espina property, approximately 300 kilometers southeast
of Lima, Peru. The property totals 7,600 hectares, is at an
elevation of 4,200 meters and is generally workable year-round.
Cofradia is an un-drilled, high-sulfidation (acid-sulfate)
epithermal prospect that the Company believes has the potential to
contain a multi-million ounce gold (plus/minus silver) deposit.
The gold-bearing part of the epithermal alteration system covers
an area 2.5 by 1 kilometer wide and is characterized by
silicification and argillic alteration. The key geologic feature
is a very porous, 50 plus/minus meter thick volcaniclastic unit.
This unit is an excellent host rock for these types of systems and
is similar to the host rocks at the Pierina and Yanacocha Mines in
Peru. The volcaniclastic unit is overlain by a relatively
impermeable andesite, which is in turn overlain by a tuff. Most
of the property is covered on surface by the andesite and tuff
units.
The volcaniclastic unit only outcrops along the eastern edge of
the alteration system. The average grade of 9 samples taken from
a silicified exposure of the volcaniclastic unit is 1.23 g/t Au
over an area measuring 200 by 100 meters. Two soil samples taken
adjacent to the outcrops assayed 1.25 and 24.7 g/t Au (a duplicate
sample of the latter assayed 5.0 g/t Au). Often the higher grade
parts of these systems do not outcrop.
The other areas that contain significant gold mineralization are
confined to the overlying andesite. Beneath these gold-anomalous
areas in the andesite, mineralization is expected to blossom in
the better host rock (the volcaniclastic unit). Drilling will
obviously be required to test this expectation. Depth from
surface to the underlying volcaniclastic unit is interpreted to
average less than 100 meters.
Pacific Rim intends to immediately launch an aggressive
exploration program at Cofradia including the completion of a
ground magnetic geophysical survey, soil sampling survey,
geological map and drill target delineation. A reverse
circulation drill will be mobilized onto the property, and the
Company anticipates commencing a drill program in late March 1999.
Tom Shrake, CEO, states, "Pacific Rim Mining is very pleased to
have executed the Cofradia Purchase Agreement. The Company has
evaluated over 300 properties in Latin America over the last year,
and we have successfully landed what we believe is the best
prospect of the group. The boldness of this deal speaks for the
potential we see in the Cofradia property."
Catherine McLeod-Seltzer, President, adds, "In combination with
our La Espina property, Pacific Rim's acquisition of Cofradia has
created a regional play for the Company in southern Peru. Most
importantly, the Cofradia agreement allows Pacific Rim to acquire
100 percent of a large epithermal system with the potential to
host a high-grade, multi-million ounce gold deposit. There is
very little up-front risk in this agreement but enormous upside
potential."
On behalf of the board of directors,
Thomas C. Shrake, CEO
This news release contains forward-looking statements regarding
upcoming work programs, expenditures and payments, and expected
geometry of geological formations and structures. Actual results
may differ materially from those currently anticipated in such
statements. |
