VANCOUVER, May 30, 2014 /CNW/ - GMV Minerals Inc.
(the "Company" or "GMV") (TSX V: GMV) is pleased to
announce that it acquired 100% of the leasehold interest of
Norman A. Pearson ("Norman")
in an early-stage gold property located in Arizona (the "Mexican Hat Property")
pursuant to the terms of a mining property lease assignment
agreement (the "Lease Assignment Agreement") dated as of
May 14, 2014 among the Company,
Norman, and Manuel R. Hernandez
("Hernandez").
The Mexican Hat Property consists of 40
unpatented mining claims located in the SW ¾ of Section, township
19 South, Range 25 East, Turquoise Mining District, Cochise County, Arizona. Norman held its
leasehold interest in the Mexican Hat Property pursuant to a mining
property lease ("Lease") entered into with Hernandez in December,
2002.
In consideration for acquisition of Norman's
interest in the Lease, the Company made a Cdn.$40,000 cash payment to Norman. In
addition, Norman is to receive (i) 500,000 common share purchase
warrants, with each warrant (a "Warrant") entitling the
holder thereof to purchase one common share in the capital of GMV
(a "Share") at an exercise price of Cdn.$0.10 per Share for a period of 24 months from
the date of issuance, and (ii) 500,000 Warrants, with each Warrant
entitling the holder thereof to purchase one Share at an exercise
price of Cdn.$0.05 per Share for a
period of 24 months from the date of issuance.
The Mexican Hat Property is subject to a 3% net
smelter returns royalty (the "NSR Royalty") in favour of
Hernandez created pursuant to the terms of the Lease. The NSR
Royalty is subject to a buy-back right pursuant to which 1.5% of
the NSR Royalty can be purchased by the lessee in consideration of
US$1,500,000.
Pursuant to the terms of the Lease, the Company
will be required to make advance royalty payments to Hernandez in
the amount of US$4,500, payable
quarterly. In addition, the Company will be required to do
and record sufficient assessment work, make annual filings, and pay
taxes, fees and rents as required to maintain the Mexican Hat
Property in good standing.
The Mexican Hat Property hosts a historic
estimate of 5,234,000 tonnes grading 0.926 grams per tonne using a
0.345 gpt (0.01 ounce per ton) cut-off reported by M. Gray (1990)
for Placer Dome US Inc. The resource was based upon indicator
kriging of 82,134 meters of drilling in 120 RC holes and 17 diamond
drill holes. This historic estimate is not reported in current
classifications as Measured, Indicated or Inferred Resources
however Proven, Probable, and Possible Reserves (not equivalent to
NI 43-101 Proven, Probable, and Possible Reserves) are estimated
from this data using a 45 degree pit, a 0.345 gpt cut-off and a 90%
recovery resulting in a 183 meter deep pit and a 5:1 strip ratio,
to yield 3,720,000 tonnes grading 0.960 grams per tonne containing
103,320 ounces of gold. No top-cut is reported. Roughly 50% more
mineralization was believed to fall within this conceptual pit in
sparsely drilled areas between mineralized domains (Gray, 1990).
Subsequent work by others supports this assertion, however no
additional resource work has been completed.
The structurally-controlled deposit defined by
Gray (1990), hosted within volcanic tuffs and flows is
exposed over an area of 300 meters by 300 meters, dominated by
steep northeast-striking fractures and related breccias. Gold
occurs in free-grains concentrated in intensely microfractured and
brecciated zones up to 21 meters wide within the broader area. Work
by subsequent operators has confirmed this trend, with additional
drilling and surface sampling. The deposit is open along
strike and to depth (below 274 meters).
Metallurgical studies reported by Gray (1990)
show gold recoveries ranging between 82.8 and 97.4% in standard
bottle roll testing.
The resources and reserves reported above are
historical estimates, reported for completeness and are not NI
43-101 compliant mineral resources or reserves estimates. They have
been calculated in industry standard form current as of the time
reported (1990) and there are no concerns as to the sampling,
assaying or resource methodology. GMV is not treating the
historical estimate as current mineral resources or mineral
reserves. No blanks were reported, but duplicate and repeat samples
(10%) are acceptable for this level of work. Visibly unaltered or
visibly unmineralized rock can yield very elevated gold grades and
as such provides an opportunity to expand mineralization into areas
that had not been sampled. Further work is needed to confirm the
grade, distribution and metallurgy of the mineralization to
determine and define a NI 43-101 compliant mineral resources
estimate. The outcropping nature and near surface disposition of
the resource combined with the local topography presents an
opportunity for much of this work to be completed quickly and
cheaply using a combination of trenching and drilling. The
Historic Estimates reported here are not to be considered NI 43-101
Resources or Reserves.
Dr. D.R. Webb,
B.A.Sc. (Engineering), M.Sc. Ph.D., P.Geol. is a qualified person
within the meaning of NI 43-101, is independent of all parties to
the Lease Assignment Agreement and is responsible for the technical
details of this release. Dr. Webb has visited the property
but has not completed sufficient work to determine an NI 43-101
Reserve or Resource. Dr. Webb has not completed sufficient
work to verify the historic data, some of which cannot be verified
as drill samples have been lost or disposed of.
Forward Looking Information
This press release contains forward-looking
statements including with regard to planned exploration and
metallurgical work Forward-looking information is subject to
known and unknown risks and uncertainties, and depends on
assumptions and other factors, all of which may cause actual
results or events to differ materially from those anticipated in
such forward-looking information. Undue reliance should
not be placed on them. The forward-looking statements
contained in this press release are made as of the date hereof and
the Company undertakes no obligations to update publicly or revise
any forward-looking statements or information, whether as a result
of new information, future events or otherwise, unless so required
by applicable securities laws.
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 or has in any way passed
upon the merits of the transaction and has neither approved nor
disproved the contents of this press release.
SOURCE GMV Minerals Inc.