Animas Resources Joint Ventures Santa Gertrudis for Gold Production
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 02/25/13 -- Animas
Resources Ltd. (TSX VENTURE:ANI) has signed a letter of intent with
Dore King Min SA de CV ("DKM"), a private Mexican gold mining
company, which will work towards permitting, development,
construction, and restarting gold production at the Santa Gertrudis
The Letter of Intent was signed to establish a 50/50 arrangement
whereby Animas will provide the mining claims at Santa Gertrudis
along with its knowledge and exploration database, and DKM will
provide the necessary funding to resume production at the Santa
Gertrudis Gold Project. The following is a summary of the principal
terms of the Letter of Intent:
-- DKM, through a wholly-owned subsidiary, will enter into an exploration
and exploitation agreement with Animas' Mexican subsidiaries (the
"Animas Subs") which own the Santa Gertrudis Gold Project, which will
grant DKM full rights to explore and develop the project.
-- DKM will provide the funding, equipment and operational knowledge to
begin gold mining and recovery at the Cristina and other gold deposits
at Santa Gertrudis.
-- Upon obtaining commercial production, the Animas Subs will become 50%
shareholders of DKM's Mexican subsidiary, which will continue to operate
-- 10% of the pre-tax cash flow from operations will be used for further
exploration on site.
-- The remaining 90% of the pre-tax cash flow from operations will be split
on a 50/50 basis between the Animas and DKM.
-- Any molybdenum discovered on the project and any such occurrences are
excluded from this Letter of Intent and remain 100% owned by Animas.
DKM has detailed operations knowledge of other producing gold mines
in Mexico and the Santa Gertrudis Gold Project and will begin
permitting as soon as possible. During that time, DKM, which will be
the financier and operator of the project, will plan the mining
operation and the construction of the gold recovery plant. The
operation contemplated is an open pit mine, heap leaching and gold
recovery using conventional and proven technologies and equipment. A
feasibility study has not been completed and there is no certainty
such an operation will be economically viable.
The Santa Gertrudis Gold Project (the "SG Property"), located 180 km
north of Hermosillo, Sonora, Mexico, was discovered by Phelps Dodge
in 1986 and advanced to open pit heap leach production in 1991. From
May 1991 to October 2000, the Santa Gertrudis Property produced
564,000 ounces of gold at an average grade of 2.13 grams per tonne.
Phelps Dodge sold part of the Santa Gertrudis Property to Campbell
Resources in 1994 for US$10 million. Campbell later ceased mining and
processing activity due to low gold prices during the late 1990's and
settled some outstanding debts by assigning several core area
concessions, including the un-mined Cristina deposit, to certain
local Mexican contractors. The Amelia Mine, also on Animas' project
area, was estimated to have historically produced over 1 million
tonnes at 2.88g Au/tonne.
DKM is a private Mexican company involved in gold mining in Mexico.
It is led by a group of experienced miners and financiers from Mexico
About Animas Resources Ltd.
Animas Resources Ltd., a North American mineral resource company
focused on acquisition and discovery, consolidated the Santa Teresa
District's Santa Gertrudis precious metal and related deposits and
prospects within a 562 square kilometer land holding. Our mission is
to grow Animas through development, discovery and acquisition of
high-quality mineral deposits and to build upon the historic gold
resource base at Santa Gertrudis, Mexico, and maintain a pipeline of
only the highest quality projects.
This news release was prepared by Company management, who take full
responsibility for its content. The technical disclosure in this
press release has been reviewed by John R. Wilson, a Qualified Person
as defined by National Instrument 43-101 of the Canadian Securities
Administrators, and the President and CEO of Animas.
Register to receive future news releases at www.animasresources.com.
John R. Wilson, President & CEO
This press release contains "forward-looking information" which may
include, but is not limited to, statements with respect to drilling
plans, timing of our planned NI 43-101 resource report, timing of
assays, resource estimates, projections, our planned exploration and
drilling programs, the availability of future financing for
exploration and other plans, projections, estimates and expectations.
Such forward-looking statements reflect our current views with
respect to future events and are subject to certain risks,
uncertainties and assumptions, including, the risks and uncertainties
outlined in our most recent financial statements and reports and
registration statement filed with the Canadian securities
administrators (available at www.sedar.com). Should one or more of
these risks or uncertainties materialize, or should underlying
assumptions prove incorrect, actual results may vary materially from
those anticipated, believed, estimated or expected.
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.
Animas Resources Ltd.
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