MAPLE GROVE, Minn.,
June 13, 2013 /PRNewswire/
-- Affinity Gold Corp. (OTC Pink: AFYG) ("Affinity" or "the
Company") announces it has entered into a Letter of Intent with
Corizona Mining Partners, LLC to jointly develop of a portfolio of
near-term production precious mineral assets in Peru beginning with a 966 hectare low
sulphidation epithermal gold and silver project called "Machacala"
("Machacala").
About Project Machacala:
The project is a low-sulphidation epithermal gold-silver-copper
deposit located in the District of Carabamba, province of Julcan,
La Libertad region to the North of Peru, at an elevation of 3,300 masl. The
property is approximately 110 miles southeast of the city of
Trujillo, capital of the region, and 574 Km of Lima, capital of Peru.
- Project was most recently explored by Gold Hawk Resources and
Meridian Gold between 1997 and 2004 with a total of 8,500m in 45
core and RC drill holes completed.
- Mine has multiple low sulphidation epithermal Au-Ag veins on
property of which thirteen (13) have been identified and four (4)
have been only modestly exploited where average grades are
estimated to be 5 g/T Au and 155 g/T Ag.
- In 2004, Gold Hawk Resources, Inc. estimated a total inferred
resource of over 1,560,000 tons with a gold equivalent of 420,000
ounces for the overall project. (Gold Hawk, 2004)
- 210,000 metric tons of tailings with grades estimated at 1.34
g/T Au and 56.36g/T Ag (Gold Hawk, 1997)
- Metallurgical studies show 85%+ Au, 50%+ Ag recoveries in 24
hrs. leaching of un-milled tailings. Re-milling (-400 mesh) shows
ability to increase recoveries to 90% Au, 73% Ag in 24 hrs.
leaching (Corizona, 2012)
According to the terms of the Letter of Intent, Affinity will
earn a 60% interest in the joint venture upon the execution of the
Formal Agreement and the following obligations being met:
- a total capital investment of USD $2MM over the course of two
(2) years which will be used towards exploration, development and
production expenditures.
- 15M warrants issued over the course of two years in step with
the capital investments and project milestones accomplished as
responsible for by Corizona.
Additional terms and conditions will be included in the
definitive agreement which is expected to be signed by August 31st, 2013.
About Corizona Mining Partners, LLC
Corizona Mining Partners was founded in 2011 as a
junior mining company focused on the acquisition and immediate
production of hard-rock and alluvial mining concessions in the
Americas. Corizona's strategy is built around locating projects
that can go into production and generate revenue quickly.
About Affinity Gold Corp.:
Affinity Gold Corp. is a
mineral exploration and development company engaged in the
acquisition and development of near-term precious mineral
production properties within Peru.
Affinity Gold Corp.'s primary focus is on developing assets that
have demonstrated historical production, contain documented and
reliable data and can reasonably begin producing within 12-18
months at a cost of less than $900
per gold equivalent ounce.
www.affinitygold.com
CONTACT:
AFFINITY GOLD CORP.
Corey J. Sandberg
763-424-4754
csandberg@affinitygold.com
For further information please refer to the Company's filings
with the SEC on EDGAR available at www.sec.gov
FORWARD-LOOKING STATEMENTS
This news release may include "forward-looking statements"
regarding Affinity Gold Corp., and its subsidiaries, business and
project plans. Such forward-looking statements are within the
meaning of Section 27A of the Securities Act of 1933, as amended,
and section 21E of the United States Securities and Exchange Act of
1934, as amended, and are intended to be covered by the safe harbor
created by such sections. Where Affinity Gold Corp. expresses or
implies an expectation or belief as to future events or results,
such expectation or belief is believed to have a reasonable basis.
However, forward-looking statements are subject to risks,
uncertainties and other factors, which could cause actual results
to differ materially from future results expressed, projected or
implied by such forward-looking statements. Affinity Gold Corp.
does not undertake any obligation to update any forward-looking
statement, except as required under applicable law.
SOURCE Affinity Gold Corp.