Great Plains Metals Corp. press release
Sienna Up-Dates its Exploration Program and Land Additions in Pachin
TSXV - TSX Venture Exchange · Gold · Copper · Molybdenum · Rare Earth Elements · Uranium · Canada
CALGARY, Aug. 10 /CNW/ - Sienna Gold Inc. (SGP.V TSX Venture Exchange) announces that the Company has drilled six holes of an 8 hole program on its Pachin Alto concessions in northern Peru with mixed results. These first holes provided guidance to the ongoing exploration but did not provide economic grades of mineralization.
Drilling Results
Three holes drilled on geophysical targets encountered long lengths of propylitically altered andesite and andesitic tuff breccia forming flat lying beds. The andesitic rocks are cut by dykes of hydrothermal breccia bleached white or light green. The presence of some tourmaline suggests multiple phases of hydrothermal alteration. Hydrothermal and incipient crackle breccias enriched in magnetite and epidote suggest proximity to a porphyry system and there is some evidence of phyllic alteration at the bottom of the drill holes.
The vuggy quartz area was tested with one hole, porous, silicified rocks were encountered but no mineralization of precious or base metals were encountered. It is conjectured that, due to the leached nature of the rocks, multiple pulses of barren hydrothermal fluids passed through the zone.
The Company has drilled two of a planned four holes in the El Pollo zone of Pachin Alto and anomalous values of copper (300 - 500 ppm) were encountered beginning about 85 meters from surface. The bottom 15 meters of the hole was mapped as potassic alteration and could indicate that the top or side of a mineralized porphyry structure has been encountered. This possibility is being tested with two subsequent holes.
Land Additions
The Company has entered into a joint venture agreement on 3,200 hectares located along a structural trend immediately adjacent (southeast) to the Pena Blanca portion of the Pachin Alto concessions, with a group of 4 concession owners. The Company has 3 years to spend US$400,000 to earn 65% of the joint venture. If the Company does not spend this amount of money on exploration it will have the option to purchase the 65% by paying the owners the difference between US$400,000 and the amount spent on exploration. The Company will then have a further 2 years to exercise an option to purchase the remaining 35% of the joint venture for a one time payment of US$500,000 leaving the owners of the concessions with a Net Smelter Royalty of 0.5%.
Contract Amendments
The Company has also restructured its option agreement with Responsabilidad Sociedad Minera de Limitada Norte America XXI in order to reduce the monthly payments from a schedule of increasing payments commencing at $50,000 per month to a flat US$25,000 per month for 47 months with a balloon payment of $1,850,000 on the 48th month. The amended contract significantly reduces the cash requirement during the exploration phase. This option agreement covers the Pachin Alto concessions.
This press release has been reviewed and approved by Murray Lytle, PEng., the company's Qualified Person.
The TSX Venture Exchange has neither approved nor disapproved of the
information contained herein.
Statements in this press release regarding the Company's business which are not historical facts are "forward-looking statements" that involve risks and uncertainties, such as estimates and statements that describe the Company's future plans, objectives or goals, including words to the effect that the Company or management expects a stated condition or result to occur. Since forward-looking statements address future events and conditions, by their very nature, they involve inherent risks and uncertainties. Although the Company believes that the expectations reflected in such forward looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct. These statements are subject to certain risks and uncertainties and may be based on assumptions that could cause actual results to differ materially from those anticipated or implied in the forward looking statements. The Company is under no obligation to update or alter any forward looking statement. These risks include operational and geological risks, the risks involved with operating in a foreign jurisdiction and the ability of the Company to raise necessary funds for exploration. The Company's forward looking statements are expressly qualified in their entirety by this cautionary statement.
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