MONTREAL, QUEBEC, Apr. 8, 2010 (Marketwire) -- BOWMORE Exploration Ltd. (TSX VENTURE:BOW) ("The Company") is pleased to announce that it has signed an Option Agreement to acquire 70% of the Natora-South gold property (the "Property") in the State of Sonora, Mexico from Amex Exploration Inc. subsidiary, "Minerales X-Ore de S.A. de C.V.", a Mexican mining corporation.
The Property covers 24,841 hectares and is located on the Sierra Madre gold belt, with the same geological setting as that of "Minefinders" Dolores mine located 15 km East, "Alamos" Mulatos deposit 40 km south and "Gammon Gold" Ocampo deposit 80 km south. The property has been the object of sampling, geological mapping, trenching and some core drilling.
Pursuant to the Option Agreement (the "Agreement") between Amex Exploration Inc. ("Amex") and Bowmore Exploration Ltd., whereas the Company may acquire from Minerales X-Ore de S.A. de C.V a 50% interest in the Property and will keep the exclusive rights to explore and develop the Property over the next two years in consideration of:
(i) The issuance of 150,000 common shares of the Company as follows:
a. 25,000 common shares of the Company upon execution of the agreement;
b. 50,000 common shares of the Company 12 months following the date of the Agreement;
c. 75,000 common shares of the Company 24 months following the date of the Agreement and
(ii) Total cash payments of $312,500 payable as follows:
a. $62,500 in the form of a private placement in Amex exploration upon execution of the agreement;
b. $100,000 payable on the first anniversary date of the Agreement;
c. $150,000 payable on the second anniversary date of the Agreement and;
(iii) Incur expenditures in the aggregate amount of at least $1,250,000 on or before the second anniversary date of the agreement.
At the end of this period Bowmore will have 60 days where it may elect to acquire an additional 20% of the property by:
(iv) Issuing to Amex 100,000 common shares of the Company as follows:
a. Issuance of 50,000 common shares of the Company upon the election to exercise the additional 20%;
b. Issuance of 50,000 common shares of the Company 24 months following the date of election of the additional 20% and
(v) Total cash payments of $200,000 payable as follows:
a. $100,000 payable upon election to acquire an additional 20% of the property
b. $100,000 payable before the 24 month period from the date of election of the additional 20% and;
(vi) Incur expenditures in the aggregate amount of $750,000 that is within a 24 month period of the election date.
The property is not subject to any NSR.
ABOUT NATORA-SOUTH PROPERTY
The NATORA-SOUTH property is located in the north-western part of Mexico, along the central east border of the State of Sonora, 180 km northeast of Hermosillo. The property is easily accessible by paved road from Hermosillo and then from dirt roads directly to the property. The property is situated on the Sierra Madre gold trend (better known as the "Sierra Madre Occidental "SMO") which is part of the well known northwest tectonic gold trend where a number of multi-million ounce gold deposits have been discovered, such as the "Dolores Mine"(Minefinders) with proven and probable reserves of 2,44 million ounces of gold and 126.64 million ounces of silver (www.minefinders.com). Other such discoveries are; "Mulatos Mine"(Alamos Gold) with indicated resources of 3.7 million ounces of gold, "Pinos Altos" (Agnico-Eagle) with probable gold reserves of 2.5 million ounces and 73.1 million ounces silver, "Ocampo Mine" (Gammon Gold) with 1.46 million ounces of gold and 66.3 million ounces of silver.
The property has been subject to historical work from 1996 to 1998 by Cambior and from 2006 to 2008 by Minerales X-Ore de S.A. de C.V. The following are highlights of some of the work that was performed:
- Several areas with strong argillic alteration observed from an ASTER satellite image bearing similarities to the alteration of the Dolores deposit located 15 km to the east. So far, only 2 of those areas have been investigated by drilling;
- In 2006, follow up work was carried out on the Piedra Rodante area to outline potential future drill targets.
- In 2007, a drill campaign was completed and a total of 3,427.44 meters were drilled of which 3,101.64 meters on the Piedra Rodante zone.
Best drilling results 2007
Drill Hole From To Length(1) Au Ag Zone
(m) (g/t) (g/t)
PR-07-19 70.10 85.34 15.24 1.26 182 PR north-south
incl. 82.30 85.34 3.04 2.94 342
PR-07-20 24.38 33.53 9.15 1.16 48 PR north-south
incl. 30.48 33.53 3.05 2.85 111
PR-07-17 60.96 80.77 19.81 0.64 25.2 PR north-west
PR-07-16 73.15 83.82 10.67 0.51 13.8 PR north-west
PR-07-12 47.24 64.01 16.77 0.31 17.3 PR north-west
PR-07-11 42.67 47.24 4.57 0.28 21.0 PR north-west
PR-07-15 83.82 89.92 6.10 0.26 5.9 PR north-west
(1) True width estimated at 80% of mineralized intersections
- Best trenches results 2007:
7.5 m @ 4.05 g/t Au, 193.3 g/t Ag
7.5 m @ 2.80 g/t Au, 63.3 g/t Ag
9 m @ 2.34 g/t Au, 54.8 g/t Ag
6 m @ 2.52 g/t Au, 65.45 g/t Ag
4.5 m @ 3.23 g/t Au, 37.6 g/t Ag
- Best 2006 results from channel sampling:
20 m @ 2.96 g/t Au and 69 g/t Ag
Hole PR-0602, 7 m @ 2.3 g/t Au and 317 g/t Ag, incl. 1 m @ 10.4 g/t Au and 1,470 g/t Ag
Hole PR-0601, 4 m @ 2.9 g/t Au and 177 g/t Ag
Mr. Jacques Marchand P. Geo., in his complying 43-101 report on the Natora Project dated March 1st 2010, describes similarities between the Project geological environment and other Sierra Madre Occidental (SMO) gold mines such as "non adjacent" Minefinders' Dolores deposit, the Alamos' Mulatos mine and the Gammon Gold's Ocampo mine. In the Piedra Rodante sector, the limited drilling has indicated a potential for a gold resources open at depth and length.
Mr. Paul Dumas, President of Bowmore, stated "The optioning of the NATORA-SOUTH property is an excellent choice to expand our exploration programs in Mexico. The property being located in an area that is recognized for its gold rich deposits within the SMO provides the Company with excellent discovery potential given the size and location of the property. This acquisition complements our continued efforts in increasing our asset base and becoming an important gold exploration company in Mexico."
The technical information reported in this news release has been approved by Brigitte Dejou P. Eng., and is the Qualified Person as defined by Canadian NI 43-101.
BOWMORE is a Canadian exploration mining company focused on precious metal exploration in Canada and Mexico.
The Company trades on the TSX Venture Exchange under the symbol "BOW".
For further information on BOWMORE, visit www.bowmorexploration.com.
Except for statements of historical facts, all statements in this news release regarding, without limitation, new project acquisitions, future plans and objectives are forward-looking statements which involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate; Actual results and future events could differ materially from those anticipated in such statements.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.