Artha Resources Corporation: Argentina-Aguilar Option/JV

Artha Resources Corporation: Argentina-Aguilar Option/JV Signed 
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 11/05/12 -- Artha
Resources Corporation (TSX VENTURE:AHC) ("Artha" or the "Company") is
pleased to announce that the Company has signed an Option/JV
Agreement with Teck Argentina Ltd. ("Teck") whereby Artha (through
its Argentinean subsidiary, Minera Argentina del Norte S.A.) has been
granted the option to acquire a 100% interest in Teck's Aguilar
property located in Jujuy Province, NW Argentina. Artha considers
this Agreement to be a further step towards its strategic goal of
becoming the prominent explorer in one of the more prospective under
explored regions of northern Argentina. Artha now has property
positions adjacent to the two largest operating mines in the Province
of Jujuy, namely Silver Standard's Pirquitas silver mine and Glencore
International's Aguilar-Esperanza lead-zinc-silver mine. Both of
these areas are highly prospective and have excellent potential for
the discovery of precious and base metal mineral deposits. Artha
intends to focus its initial exploration efforts at this new property
on identifying near-surface targets along strike from the known
Aguilar and Esperanza deposits, which remain largely unexplored by
modern methods. 
Property Summary 
The Aguilar property is located some 170km NNW of the city of Salta
in northern Argentina (see map 1). Claims totalling 118,000 ha cover
a 55 km long by 20 km wide belt of Early to Mid-Ordovician
stratigraphy that hosts the Aguilar-Esperanza Zn-Pb-Ag mines (see map
2). Estimated past production plus current mine resources from these
two mines total approximately 50Mt @ 6% Zn, 5% Pb, 100 g/t Ag
(greater than 5Mt of contained Zn+Pb and over 150 Moz of contained
Ag), ranking the Aguilar-Esperanza deposits amongst the largest
Paleozoic-aged SEDEX orebodies in the world. Historical production
estimates and the current resources from the Aguilar-Esperanza
Zn-Pb-Ag mines are not necessarily indicative of the mineral
potential of the Aguilar property and/or its commercial economic
viability.  
History 
The Aguilar deposit has been in operation for over 100 years, with
new mine reserves still being added at depth and along strike through
the employment of modern exploration methods. Exploration in the belt
has been focused principally around the two known deposits (Aguilar
and Esperanza), located within a 7 km long mineralized corridor of
outcropping ore-host stratigraphy of Early Ordovician age. Teck
explored the areas immediately north and south of Aguilar-Esperanza
between 1997 and 2001 in partnership with Rio Tinto, before
reacquiring the same licences in 2006 on a 100% basis. During this
period surface mapping, lithofacies studies, regional magnetic
surveys, stream geochemistry surveys, ore deposit studies, IP surveys
and a small program of diamond drilling was conducted in close
proximity to the known mines. The majority of the along strike areas
from the known deposits are still unexplored. The data collected by
Teck is being made available to Artha and is expected to provide
important technical data on the SEDEX style of mineral deposits which
occur at Aguilar and Esperanza. Artha considers the work to date to
be of high quality and is expected to deliver insights for targeting
new and unexplored areas in the mineralised belt, particularly to the
north of Esperanza where no modern work has been done to date.  
Geology 
Mineralization on the Aguilar property is hosted by strongly folded
and faulted, N-S striking early Ordovician quartzites and hornfels in
the contact aureole of the immediately adjacent, north-south trending
Cretaceous Aguilar granite. The ores are associated with sediments
formed in local depressions of a tectonically active, shallow-marine
environment and consist of strata-bound and stratiform sulfide lenses
and layers several hundreds of meters long and wide, and tens of
meters thick. 
Current geological models suggest that during Early Ordovician times
rift basins developed in Pre-Cambrian basement on the leading edge of
the proto-South American continental margin. First and second order
rift basins were controlled by N-striking listric (growth) faults
into which sub-seafloor / inhalative (Aguilar) and exhalative
(Esperanza) Zn-Pb-Ag mineralization was deposited during marine
sedimentation. Detailed depth-to-magnetic-basement modelling of
airborne magnetic data, commissioned by Teck, show the existence of
several fault-bounded second order basins in the Sierra de Aguilar.
The Aguilar and Esperanza ore bodies occupy just two of these
second-order sub basins. The Aguilar property covers the majority of
the remaining second-order basins, many of which still remain
unexplored. 
Agreement Summary 
The Option/JV Agreement provides that, subject to TSX Venture
Exchange ("TSX-V") approval, Artha may exercise the option by:  


 
a.  issuing to Teck such number of units in the capital of Artha as have an
    aggregate value of $125,000. Each unit will be comprised of one common
    share in the capital of Artha and one common share purchase warrant,
    each of which warrants will entitle Teck to purchase one common share of
    Artha for $0.125 for a period of two years. The value of the units will
    be determined from the price of the Artha common shares listed for
    trading on TSX-V and will be deemed to have a price per unit equal to
    the greater of the 10-day volume weighted average closing price of the
    Artha common shares on the TSX-V immediately prior to the date of the
    press release announcing the Option/JV Agreement and $0.05 per share;
    and 
b.  incurring exploration expenditures of at least US$2,875,000 by October
    31, 2015, which includes: 
    i.  as a firm commitment, incurring expenditures aggregating: 
        A.  US$100,000 on or before October 1, 2013; and 
        B.  US$500,000 on or before October 1, 2014;
    ii. as a firm commitment, completing a minimum of 4,000 meters of
        diamond drilling or combination RC/diamond drilling on the property
        prior to October 31, 2015.

 
Pursuant to the Agreement, Teck reserves for itself a 2% net smelter
returns (NSR) royalty on the ores and concentrates derived from the
Aguilar property. In addition, Teck has the right to earn back 60% of
the interest that Artha acquires in the property. The back-in right
may be exercised by Teck at any time after Artha has incurred
US$1,000,000 in exploration expenditures under the Agreement until 60
days after Artha gives notice to Teck that it has exercised its
option to earn 100%, at which point the back-in right expires if
unexercised. The 60% interest may be earned by Teck incurring
exploration expenditures on the property equal to 2.5 times Artha's
expenditures to the notice date; provided, that if Teck exercises the
back-in right, then the 2% NSR royalty shall be extinguished.
Finally, the Agreement provides that Teck shall have an offtake right
to purchase, by way of frame contracts, all or part of the base metal
mineral production from the Aguilar property. 
Charles Straw, B.Sc., is the qualified person under NI 43-101
responsible for the technical information in this news release. 
Artha was founded by a team of mining industry professionals with a
proven track record in project generation, exploration, mining and
finance. The team's primary goal is to build Artha into a world class
mining company, focused on the discovery, development and mining of
economic minerals deposits globally. 
On Behalf of the Board of Directors, 
Todd McMurray, President  
Forward-Looking Statements 
This press release contains forward-looking information within the
meaning of the British Columbia Securities Act relating to the
Company's expectations, intentions, plans and beliefs.
Forward-looking statements include statements regarding the Company's
exercise of the Aguilar option and the exploration and development of
the Aguilar property. Forward-looking statements involve known and
unknown risks, uncertainties and other factors, which may cause the
actual results to be materially different from any future result
expressed or implied by the forward-looking statements. Factors that
may cause actual results to vary include, but are not limited to,
risks inherent in mineral exploration and development including
environmental hazards, unusual or unexpected geological formations;
risks associated with the estimation of mineral resources and
reserves and the geology, grade and continuity of mineral deposits;
the Company's inability to obtain the required licences, permits and
regulatory approvals required for the exploration and development of
the Aguilar property; uncertain political and economic environments;
changes in laws or policies; completion for capital and skilled
workers; and changes in commodity prices and exchange rates. The
Company does not assume the obligation to revise or update these
forward-looking statements after the date of this document or to
revise them to reflect the occurrence of future unanticipated events,
except as may be required under applicable securities laws. 
To view Maps 1 and 2, click on the following link: http://media3.mark
etwire.com/docs/Artha-property-Locations-Argentina.pdf 
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 press
release. 
Contacts:
Artha Resources Corporation
Todd McMurray
President, Director
1 604 648 1530
todd@artharesources.com
www.artharesources.com
 
 
Press spacebar to pause and continue. Press esc to stop.