Camino Minerals Closes Acquisition of Los Chapitos Oxide Copper Project
TSX VENTURE: COR
VANCOUVER, July 19, 2016 /CNW/ - Camino Minerals Corporation ("Camino" or the "Company") (COR: TSX-V), is pleased to announce the signing of the final agreement with Minas Andinas SA (the "Vendor"), pursuant to which Camino can acquire through a wholly owned subsidiary, Camino Resources SAC, a 100% interest in the Los Chapitos project. The property has been expanded by the Company and now consists of 10 claims, totaling 5,000 hectares (12,300 acres), and is located 15 kilometers north of the coastal city of Chala, Department of Arequipa, Peru.
Los Chapitos, is located in the Peruvian Iron Oxide Copper Gold belt (IOCG), and hosts two separate mineralized trends. On the western side of the property, small scale mining was active in the 1940's and 50's which produced high grade copper oxide mineralization from the Atajo Zone. These historical surface workings define a strike length of at least 400 meters. The Company completed two chip sample lines across the middle of the zone which returned a length weighted average of 2.10% copper and 9.4 gpt silver, over 38 meters, and 1.57% copper and 3.5 gpt silver across 64 meters. The Atajo Zone is open along strike and at depth.
Approximately six kilometers to the east are numerous zones which outcrop along a 2.5 kilometer trend, of which the Adriana and Katty zones were sampled extensively by the vendor. The Adriana Zone is exposed over an area measuring 75 meters by 150 meters, with historical sampling averaging 1.40% copper and 16 gpt silver. The Company completed a chip sample line over the middle of the zone which returned a length weighted average grade of 1.42% copper and 28.7 gpt silver across 58 meters. The Katty Zone lies along trend about 1 kilometer to the southeast, measures 50 meters by 125 meters, and has historical sampling which averaged 2.10% copper and 16 gpt silver. Spot chip sampling by the Company supports the historical values. Both the Adriana and Katty Zones are open in all directions and at depth.
Los Chapitos is covered by rolling hills with elevations between 500 masl and 1250 masl. It is crossed by numerous gravel roads and trails which connect back to the Pan American Highway near the cities of Chala and Tanaka. Regionally, the project is located along the major Treinta Libras structural lineament, which hosts the Mina Justa IOCG deposit 100 kilometers to the northwest. Mina Justa is reported to contain a resource of 374 million tonnes averaging 0.71% copper and 9.0 gpt silver. A presentation on the Los Chapitos project is available on the Company website at www.caminominerals.com.
Over the coming months, the field crews will complete additional chip and trench sampling to better define the known zones. The Company has engaged an environmental consultant to prepare the necessary documentation for submission of a drill permit application.
Under the terms of the agreement, Camino has the right to earn 100% interest in the Project, subject to a 1.5% Net Smelter Royalty ("NSR), by making staged option payments and issuing common shares of Camino as follows:
|Date for Option Payment||Amount
|On execution of the option agreement (the "Effective Date")||$50,000||50,000|
|12 months after Effective Date||$75,000||75,000|
|24 months after Effective Date||$100,000||100,000|
|36 months after Effective Date||$125,000||125,000|
|48 months after Effective Date||$150,000||150,000|
The 1.5% NSR is payable up to a maximum of US$10 million. Camino retains the first right of offer to purchase the NSR. Advance royalty payments of US$500,000 will be payable for each 500 million pounds of copper equivalent ("CuEQ") incremental increase in Measured and Indicated resources. For the purposes of this agreement, CuEQ will be based on the contained pounds of copper, contained ounces of gold and silver, and the LME closing spot price on the date of release of each resource.
The TSX Venture Exchange accepted for filing the Letter of Intent dated June 17, 2016 and the first option payment has been made.
Kenneth C. McNaughton , M.A.Sc., P.Eng., is the Qualified Person (QP) responsible for the Los Chapitos project.
About Camino Minerals Corporation
Camino is a discovery-oriented mineral exploration company. The Company is focused on the acquisition and development of high grade copper and precious metal projects. For more information, please refer to Camino's website at www.caminominerals.com
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This News Release contains "forward-looking information" and "forward looking statements" within the meaning of applicable Canadian and United States securities legislation. Statements contained herein that are not based on historical or current fact, including without limitation statements containing the words "anticipates," "believes," "may," "continues," "estimates," "expects," and "will" and words of similar import, constitute "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995.
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SOURCE Camino Minerals Corporation