Toronto, Ontario--(Newsfile Corp. - November 21, 2017) - Monarca Minerals Inc. (TSXV: MMN) ("Monarca" or the "Company") is pleased to announce that it has entered into to a Letter of Intent to acquire the San Jose Property, located in northern Chihuahua, Mexico.
San Jose Property
The 5,580-hectare San Jose Property area has excellent indications of multi-element mineralization associated with skarn, gossan and altered intrusive rocks. An existing geological report (2011) discloses assays of up to 26.84ppm Au, 161 g/tonne (5 opt) Ag, 6.5% Pb, 0.9% Zn, and 4.2% Cu, as summarized in the map below.
San Jose Property Map
The area was conventionally mapped by boots on the ground and utilizing a handheld GPS to obtain location (H. Pacheco). The "strong" alteration is indicated by pervasive visual occurrence of dissemination, stockwork and veins of skarn, gossan and altered intrusive rocks with disseminated pyrite.
The mapped area of the San Jose Property covers about 10% of the concession and indicates a strong area of continuous mineralization of about 1km by several hundred meters. The mapped area is coincident with a strong aeromagnetic anomaly, associated with outcropping mineralized intrusive rocks.
Early history is evidenced by about 15 old mining excavations, up to about 10m deep, exposing mineralization in areas of skarn, gossan and altered intrusive rocks. At San Jose, there are large areas of Fe-oxide in garnet skarn outcropping in the areas between and around mining excavations and veins. The historical mining and exploration work, as reported by the owner, was done in the early 1970s.
The mineralization at San Jose is very similar to the Bismark Mine, located about 50km to the southeast, which has been in production since 1992. The Bismark Mine had a starting resource of 8,200,000 tonnes at 8% Zn, 0.5 % Pb, 0.2 % Cu and 50 g/t Ag. The Bismarck Mine is a stock-contact skarn, with massive sulfide zones, within altered limestone and adjacent to a mineralized intrusive, like at San Jose. The mine started production in 1992 at 600,000 tons/year and is looking for ore to feed their processing facility.
Letter of Intent
Monarca signed a Letter of Intent ("LOI") with a group of landowners to acquire 100% ownership of the San Jose Property. The terms of the LOI call for a US$20,000 on execution of the LOI (paid), US$20,000 on execution of a definitive agreement, US$50,000 on the first anniversary of the definitive agreement and US$60,000 on the second anniversary of the definitive agreement. The owners retain a 2% NSR. One percent of the NSR can be purchased by Monarca for US$100,000. Back taxes on the property of US$390,000 will be paid over a period of time. Concession taxes per year are approximately US$46,000. There is a 4-month due diligence period from the date of the LOI until the date a definitive agreement needs be signed. Monarca personnel will be on the property in December.
Mr. Carlos Espinosa, President, reports, "Monarca is very pleased to sign a LOI for the San Jose Property in Chihuahua, Mexico, a friendly and familiar jurisdiction for Monarca's team and management. After reviewing several investment opportunities, we decided to move forward and sign a LOI for San Jose, an excellent opportunity to diversify our property portfolio."
Qualified Person
Michael R. Smith is the Qualified Person for Monarca Minerals Inc. He is a Registered Member, #04167376 (Geology), of the Society for Mining, Metallurgy & Exploration (SME). He has reviewed and approved of all technical data in this Press Release.
About Monarca Minerals Inc.
Monarca is a Canadian company focusing on the exploration and development of silver projects along a highly productive mineralized belt in Mexico. The Company has a portfolio of silver projects including a mineral resource of 28.7 million ounces of silver (19.8 million tonnes at 45.0 g/t Ag) at its Tejamen deposit.
