To: George J. Tromp who wrote (645 ) 3/2/1998 6:27:00 PM From: Ross Dickie Read Replies (1) | Respond to of 2251
Hi George, Here is the latest News release from Canabrava. It may not be Diamonds but it is progress and news. I have been invested in and following Canabrava for the last 18 months. I appreciate the knowledge you are sharing on this thread. Ross Dickie NEWS RELEASE LETTER AGREEMENT SIGNED WITH MINORCO PERU S.A. CAYARANI PROJECT, PERU February 27, 1998 Vancouver, B.C.- Southwestern Gold Corporation (SWG-T) is pleased to announce it has signed a Letter Agreement with Minorco Peru S.A. on Southwestern's 100% owned Cayarani Project located about 180 kilometres northwest of Arequipa. The Project is comprised of five separate properties totalling 15,571 hectares of exploration concessions. The Cayarani Project is situated within the main Tertiary epithermal gold/silver belt of southern Peru which includes the Arcata and Orcopampa mines. Also occurring in this belt is the Company's Poracota and Liam Properties where large epithermal gold/silver systems have been discovered. Within the Cayarani Project, nine epithermal gold/silver systems have been identified. The largest system is roughly 4,500 metres by 1,500 metres trending in a northwesterly direction. Rock chip sampling within this zone returned values of 1 g/t gold over 42 metres. Another alteration zone measures 3,000 metres by 700 metres and rock chip sampling returned 1.02 g/t gold and 220 g/t silver over 38 metres. John Paterson, President states "We are very pleased with Minorco as a partner in our Cayarani Project. Minorco has recognized the potential of our properties and plans a very aggressive exploration program". Under the terms of the Letter Agreement, Minorco can earn 50% of the Cayarani Project by spending US$ 2.5 million over 3 years. Minorco has the option to earn a further 10%, exercisable if Minorco funds 100% of a Feasibility Study. At such time, the partners will contribute on a pro rata basis (Minorco 60%, Southwestern 40%). Minorco is part of the Anglo-American Group and will be the operator. The Letter Agreement is subject to a 45-day due diligence period. Southwestern Gold Corporation is a well-financed international exploration company exploring for precious and base metals in Peru, Chile, Brazil and China. Through its 52% owned subsidiary, Canabrava Diamond Corporation, the Company is exploring for diamonds in Brazil and Canada.