Bearing Resources Ltd.: Patriot Minefinders to Earn Interest in Km 66
Project, Durango, Mexico
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 11/28/12 -- Bearing
Resources Ltd. ("Bearing", or the "Company") (TSX VENTURE:BRZ) is
pleased to announce that the Company has executed a letter of intent
("LOI") with Patriot Minefinders Ltd ("Patriot") (OTCBB:PROF) whereby
Patriot may earn up to a 75% interest in the 13,400 hectare Kilometer
66 ("Km 66", also known as Mapimi) silver-gold-lead-zinc property
located in Durango, Mexico.
Under the terms of the Letter of Intent the companies will complete a
Definitive Agreement that will include the following business terms.
Patriot will be granted the right to earn a 75% interest in the
property by assuming the remaining obligations of the underlying
option agreement, which are to be paid to Bearing in advance of the
underlying option agreement:
-US$150,000 on signing the Definitive Agreement
-US$150,000 on the first anniversary
-US$400,000 on the second anniversary
-US$500,000 on the third anniversary
-US$7,875,000 on the fourth anniversary
Patriot may also exercise Bearing's rights under the original
agreement to purchase the property outright on the first anniversary
for US$5,575,000 or after the second anniversary for US$5,875,000, or
after the third anniversary for US$6,875,000. Patriot may also
exercise Bearing's rights to purchase up to 1% of the underlying Net
Smelter Royalty ("NSR") for US$650,000 per half percent and will hold
a first right of refusal to purchase the remaining 2% NSR.
In addition, Patriot must undertake work expenditures totaling
US$2,000,000 before April 23, 2015 of which US$200,000 must be
completed before April 23, 2013 (firm commitment), maintain the
property in good standing, complete a bankable feasibility study by
the eighth anniversary and pay to Bearing on signing of the
Definitive Agreement 1,200,000 shares of Patriot. Should Patriot
complete all its work commitments and payment obligations but fail to
prepare a bankable feasibility study by the eighth anniversary it
shall be deemed to have earned a 65% interest.
Completion of the transaction is subject to a number of conditions,
including the negotiation and execution of a definitive agreement and
Robert Cameron, President and CEO commented, "The Company welcomes
Patriot as a partner on our silver-gold-lead-zinc Km 66 project. This
arrangement allows for the continued advancement of the project while
freeing up resources to concurrently move forward on our HP Breccia
target located on the adjacent wholly owned Pedro property. The
Company believes that the silver-gold-lead-zinc mineralization
identified to date on the Km 66 property may well be indicative of a
larger system under shallow cover while the newly discovered
Victorinos and HP breccia targets illustrate the excellent
exploration potential in the region."
Km 66 Property
The Km 66 property, is located 100 kilometres from the Penoles
smelter at Torreon, and is bisected by a paved highway and power
lines. Km 66 covers a five kilometre-long trend of mineralization
that includes the La Gloria and Las Palmitas breccia-hosted
epithermal silver-gold-lead-zinc deposits. Great Panther Silver Ltd.
("Great Panther") (who previously held an option to acquire Km 66)
filed a technical report containing a mineral resource estimate
compliant with NI 43-101 for the La Gloria and Las Palmitas deposits
titled "Technical Report on the Mapimi Project, Mexico" dated May 8,
2008 and prepared by Wardrop Engineering ("Wardrop") of Vancouver,
B.C. (the "Technical Report") (a copy of the Technical Report can be
found at www.sedar.com under the profile of Great Panther). The
Technical Report calculated a total of 22,297,800 silver equivalent
ounces (6,585,900 tonnes grading 28 g/t silver, 0.09 g/t gold, 0.41%
lead, 1.14% zinc) in the indicated category and a further 6,305,000
silver equivalent ounces (2,027,900 million tonnes grading 34 g/t
silver, 0.13 g/t gold, 0.54% lead, 0.81% zinc) in the inferred
category using a cut-off grade of 50 g/t silver equivalent. Metal
prices and recoveries used Wardrop were US $9.55 per ounce and 76 per
cent, respectively, for silver, US $530 per ounce and 70 per cent for
gold, US $0.63 per pound and 80 per cent for lead, and US$1 per pound
and 80 per cent for zinc.
Bearing and Patriot cautions the reader that the resource prepared by
Wardrop for Great Panther is considered a "historical estimate" under
NI 43-101 and a qualified person from the Companies has not done
sufficient work to classify the historical estimate as a current
mineral resource. In order to verify the historical estimate
additional work may be required. This may include, but may not be
limited to, re-evaluation and confirmation of previous drilling and
assay results; validation of QA/QC (quality assurance/quality
control) procedures and recalculation of the resource model using
current metal price and recovery assumptions. Bearing and Patriot are
not treating the historical estimate as a current mineral resource.
In addition to the La Gloria and Las Palmitas resource areas,
drilling by Great Panther identified quartz-molybdenite veins in the
Bull's-Eye zone (186.22 metres grading 440ppm molybdenum) and
carbonate replacement deposits in the North Zone (2.14 metres grading
2.98% zinc and 0.41% lead). The Bull's-Eye zone is defined by a
2,000-by-800-metre induced polarization anomaly with a magnetic high
near its centre. This is interpreted to represent a buried intrusive
body, however no intrusive rocks have been observed in the drilling.
At the North Zone, mineralization is dominated by zinc with lesser
amounts of lead, copper, gold and silver, and occurs in altered
rhyolite sills, skarn altered limestone/marble, and in carbonate
veinlets within the limestone/marble.
Recent work by Bearing has outlined a new target at Victorinos, some
5 Km east of la Gloria where soil sampling and prospecting has
defined a 500m by 600m gold-silver-lead-zinc soil anomaly hosted by
rhyolite. The target is a volcanic-hosted bulk-tonnage silver base
metal deposit and rock sampling has indicated silver in sheeted and
disseminated zones in altered rhyolite and local high grade silver
base metal veins.
Robert Cameron P.Geo., President and CEO of Bearing, is a qualified
person within the context of National Instrument 43-101, and has read
and takes responsibility for this news release.
About Bearing Resources
Bearing is a Canadian based precious and base metal exploration
company with projects located in British Columbia, the Yukon and
Mexico. Bearing is exploring at the approx. 40,000 hectares Mapimi
gold-silver project located in the Altiplano Region of eastern
Durango, Mexico. The Company's Mount Polley and October Dome
copper-gold projects are located in British Columbia near Imperial
Metals Corporation's ("Imperial") Mt. Polley copper-gold mine and
includes a production royalty on the Boundary property, with
Imperial. In the Yukon, the company has three projects optioned out
including the Flume Project where Ryan Gold Corp. has been granted a
right to earn up to 75% interest.
BEARING RESOURCES LTD.
Robert Cameron, President & CEO
This news release includes certain "forward-looking statements" under
applicable Canadian securities legislation. Such forward-looking
statements or information, including but not limited to, those with
respect to potential future and exploration potential of anomalies
and properties involve known and unknown risks, uncertainties, and
other factors which may cause the actual results, performance or
achievements of Bearing to be materially different from any future
results, performance or achievements expressed or implied by such
forward-looking statements or information. Such factors include,
among others, the actual prices of commodities, the factual results
of current exploration, development and mining activities, changes in
project parameters as plans continue to be evaluated, as well as
those factors disclosed in documents filed from time to time with the
securities regulators in the applicable Provinces of British Columbia
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.
Bearing Resources Ltd.
Bearing Resources Ltd.
Press spacebar to pause and continue. Press esc to stop.