Patriot Signs LOI for Additional Silver-Gold Project
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 11/28/12 -- Patriot
Minefinders Inc. (OTCBB:PROF) -
-- Patriot able to earn 75% interest and become operator of KM 66 project
-- KM 66 project will be Patriot's second in Central Mexico and will turn
Patriot into a major explorer in the region
-- Project contains a deposit with compliant NI 43-101 (historical, 2008)
resource of 22,297,800 silver equivalent ounces
Patriot Minefinders Inc. ("Patriot" or the "Company") (OTCBB:PROF) is
pleased to announce that the Company has executed a Letter of Intent
("LOI") with Bearing Resources Ltd. ("Bearing") 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
John H. Schweitzer, CEO states: "The Company is excited to be a part
of KM 66 Project. This new venture together with La Buena project
located 5.6 miles to the north of Goldcorp's Penasquito mine will
allow our Company to become a major explorer in the prolific
silver-gold belt of Central Mexico. 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 target illustrates 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") which 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 have not done
sufficient work to classify the historical estimate as a current
mineral resource. 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 e 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. 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 have
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.
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 with the Mexican vendors who retain a 3% NSR.
-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 at the end of year five
At Patriot's election it may 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. The
Company may purchase up to 1% of the NSR for US$650,000 per half
percent and holds a first right of refusal to purchase the remaining
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 appropriate regulatory approvals, and the negotiation
and execution of a Definitive Agreement.
About Patriot Minefinders Inc.
Patriot is operated by a management team consisting of individuals
with a track record of success in mining exploration, development and
production. Patriot is an exploration company with focus on
developing gold and silver deposits in the known mining districts in
Mexico. Patriot's first project is La Buena which is located only 5.6
miles north of Goldcorp's Penasquito Mine. The La Buena Project is
located in the mining friendly jurisdiction of Northern Zacatecas,
Mexico. Patriot has an option to earn 50% of the La Buena project
through an option agreement with a Canadian based mining exploration
company. The execution of a Definitive Agreement on KM 66 Project
with Bearing Resources Ltd. will turn Patriot into a major explorer
in the prolific silver-gold belt of Central Mexico. Patriot trades
under the symbol PROF.
Fred Tejada, P.Geo, Director of Patriot, is a qualified person within
the context of National Instrument 43-101, and has read and takes
responsibility for the technical content of this news release.
On behalf of the Board
JOHN H. SCHWEITZER, CEO & Director
Notice Regarding Forward-Looking Statements
This current report contains "forward-looking statements," as that
term is defined in Section 27A of the United States Securities Act of
1933 and Section 21E of the Securities Exchange Act of 1934.
Statements in this press release which are not purely historical are
forward-looking statements and include any statements regarding
beliefs, plans, expectations or intentions regarding the future,
including but not limited to, any mineralization, development or
exploration of the La Buena Project, any geological similarities with
the Penasquito deposit or other properties in the region, and the
timing of any work program or exploration activities, and any results
that may be obtained.
Actual results could differ from those projected in any
forward-looking statements due to numerous factors. Such factors
include, among others, the inherent uncertainties associated with
mineral exploration and difficulties associated with obtaining
financing on acceptable terms. We are not in control of metals prices
and these could vary to make development uneconomic. These
forward-looking statements are made as of the date of this news
release, and we assume no obligation to update the forward-looking
statements, or to update the reasons why actual results could differ
from those projected in the forward-looking statements. Although we
believe that the beliefs, plans, expectations and intentions
contained in this press release are reasonable, there can be no
assurance that such beliefs, plans, expectations or intentions will
prove to be accurate. Investors should consult all of the information
set forth herein and should also refer to the risk factors disclosure
outlined in our most recent annual report for our last fiscal year,
our quarterly reports, and other periodic reports filed from
time-to-time with the Securities and Exchange Commission.
Patriot Minefinders Inc.
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