Apr. 16, 2010 (TheNewswire.ca) --
April 16, 2010, VANCOUVER, B.C. - St. Elias Mines Ltd. (TSXV:SLI) ("St. Elias") and Ansell Capital Corp. (TSXV:ACP) ("Ansell") are pleased to announce that St. Elias and Emilsen Medina Inga de Brophy (collectively, the "Vendors") and Ansell have entered into a letter agreement (the "Letter Agreement") whereby Ansell has agreed to acquire a 65% interest, subject to a 1.5% NSR, in the Vilcoro Gold Property (the "Property") located in north-central Peru.
Vilcoro Gold Property
The Vilcoro Gold Property comprises 1,600 hectares and is owned 50% by St. Elias and 50% by Emilsen Medina Inga de Brophy. The Property is located in the "sierra of northern Peru" which is one of the most prolific gold-producing regions in the world. Tertiary volcanics of the Callipuy Group host the largest of the gold deposits; including three producing multi-million-ounce deposits: Pierina (Barrick) with +6,000,000 oz(1). Au; Yanacocha Mine Complex (Newmont et. al.) with +50,000,000 oz. Au(2) and "Lagunas Norte" (Barrick) with + 9,000,000 oz Au(1). The Property is favourably located adjacent to the claim block that covers the Lagunas Norte deposit which was recently put into production by Barrick Gold (NYSE:ABX) (TSX:ABX) in the Alto Chicama mining district. In addition to Lagunas Norte, there are three important gold deposits within 14 to 24km of the Vilcoro Gold Property: Tres Cruces (1.75 million oz)(3) and La Arena (2,800,000 oz)(4).
(1)Barrick Gold Corporation website: www.barrick.com
(2)Newmont Mining Corp. website: www.newmont.com
(3)New Oro Peru Resources Inc. website: www.oroperu.com
(4)Rio Alto Mining Limited website: www.rioaltomining.com
The Property can be explored on a year-round basis as it located at a moderate elevation of between 2,500m and 3,250m and is connected to Trujillo (a major coastal Peruvian city) by a well-maintained, all-weather paved and hardpack-gravel road that actually transects the main mineralized zone.
Preliminary geological mapping and sampling indicates that the Property hosts a gold-bearing epithermal system. Anomalous to high-grade gold is present in quartz veins, mantos, breccias and hydrothermally altered volcanics, all coincident with a structural corridor measuring at least 400m x 1,800m. Anomalous gold is accompanied by anomalous silver (up to 31.8g/t), arsenic (up to 8,480ppm), antimony (up to >10,000ppm), and manganese (up to >10,000ppm).
To date, at least seven (7) historic adits developed on gold-bearing quartz veins and silicified alteration zones have been located. Within one of the adits, two samples of a 1.0m thick manto intersected by a quartz-veined structure returned gold grades of 29.1g/t (0.84 opt) and 56.8g/t (1.65 opt). The quartz vein itself has yielded multi-ounce gold assays and the pyroclastics adjacent to the mantos have grades that are comparable with ore at Yanacocha(1) and Lagunas Norte(1). Widespread argillic alteration occurs throughout the corridor. Sampling of this material includes 8.0m grading 1.05g/t Au.
Recent work on the property included a Phase I program consisting of geological and alteration mapping together with the collection and assaying/analysis of 727 rock samples and 858 soil samples (107 of the rock samples analyzed using PIMA (portable infrared mineral analysis.) The Phase I program resulted in outlining a mineralized area (the "Main Trend") that has been traced for 1.8km along strike (up to 400m wide and spanning a vertical extent of 400m.)
A phase II program, designed to follow-up the results of the Phase I program, was also completed. The Phase II program consisted of a geophysical survey (14km of induced polarization, resistivity and magnetometry) and the completion of an Environmental Impact Study. Phase II survey results show the "Main Trend" of gold mineralization is cored by a distinct chargeability (IP) anomaly (400m long X 200m wide) beginning approximately 100 meters below surface. This is considered a top-priority drill target;
A 4,000-metre drilling program on the Property is recommended.
Vilcoro Property Letter Agreement
Under the terms of the Letter Agreement, Ansell can acquire a 65% interest, subject to a 1.5% NSR, in the Property in consideration of:
(a) making cash payments of $500,000 to the Vendors over a two-year period;
(b) issuing 1,000,000 common shares in the capital of Ansell to the Vendors over a three-year period; and
(c) incurring $2,500,000 in exploration expenditures on the Property over a three-year period.
In addition, Ansell shall have the right to purchase one-half of the 1.5% NSR from the Vendors for the sum of $1,500,000, thereby reducing the NSR payable to the Option from 1.5% to 0.75%.
A finder's fee of 5% (67,500 common shares of St. Elias) is payable with respect to this property transaction.
All technical work is being supervised by, and the contents of this news release have been verified by, John Brophy, P.Geo., a Canadian geologist residing in Peru, who is a "qualified person" as defined in National Instrument 43-101, Standards of Disclosure for Mineral Projects.
For additional information on St. Elias and its projects, please visit us at www.steliasmines.com or call 1-888-895-5522 (toll free US and Canada).
ST. ELIAS MINES LTD.
(signed "Lori McClenahan")
For additional information on Ansell and its projects, please visit the website at www.ansellcapital.com or call 604-921-1810.
ANSELL CAPITAL CORP.
(signed "Rahoul Sharan")
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or the accuracy of the contents of this document.
This News Release may contain forward-looking statements including, but not limited to, comments regarding the timing and content of upcoming work programs, geological interpretations, potential mineral recovery processes, etc. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statement
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