Vancouver, British Columbia--(Newsfile Corp. - July 9, 2025) - Kingsmen Resources Ltd. (TSXV: KNG) (OTCQB: KNGRF) (FSE: TUY) ("Kingsmen" or the "Company") is pleased to announce that it has entered into a non-binding letter of intent dated July 04, 2025 (the "LOI") for an option to acquire the Almoloya Project (the "Almoloya Project"), a gold-silver project, located in the Parral Mining District of Chihuahua, Mexico. The Almoloya Project is located approximately 30 kilometres from the Company's flagship Las Coloradas silver project.
The Almoloya Project was identified as part of Kingsmen's ongoing regional exploration programs in the Parral mining district, which prioritizes historic past producing mines with silver-gold potential and has a focus on epithermal and carbonate replacement deposits ("CRD") precious metal systems. The Almoloya Project represents the culmination of a land consolidation process that has taken over 20 years to complete. The now-contiguous land package brings together historically fragmented claims, many of which were previously held and explored by major operators. Extensive historical data from these programs, conducted up until the early 2000s, is available to Kingsmen and provides a valuable foundation for future exploration. Since that time, the project has seen no systematic exploration by either junior or major companies, leaving potential untapped in a prospective and historically productive district.
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Artisanal mining for gold with accessory silver, lead, and zinc, has taken place on a small portion of the Almoloya Project up until recently. Mining was limited to shallow, near surface mineralization to a maximum depth of approximately 50 meters.
The Almoloya Project includes the past producing Cigarrero and Las Juliettas mines. The Almoloya Project represents a consolidation of five mineral claims into a single, contiguous land package covering 866.25 hectares (2,140.55 acres), with geology prospective for gold and CRD mineralization.
President Scott Emerson commented: "Since we began our regional exploration programs in the Parral Mining District, we have sought out properties of merit and had identified Almoloya as an acquisition target of interest, particularly since the project had been consolidated and offered district scale potential. With the completion of our recent financing, we moved to aggressively pursue the acquisition of the Almoloya project. This acquisition is part of our strategy to become the preeminent explorer in the Parral region and aligns with our objective of bringing new life to properties which have had historical production, through the application of modern day exploration techniques. The road-accessible Almoloya Project offers near-term potential for the discovery of gold and CRD deposits. Our current exploration programs are designed to deliver near-term significant discoveries."
The northwest-trending Julietta structural trend hosts gold mineralization in quartz veins and stockwork hosted in limestone and marble. There has been limited historic gold production from several old workings, and visible gold has recently been recovered by artisanal miners. Mineralization comprises native gold, haematite, limonite with trace amounts of pyrite and malachite. Servicio Geologico Mexicano (SGM; G13-A49) recorded gold values ranging from 1.7 to 7.8 g/t from old workings on the Julietta structural trend and interpreted the mineralization as stockwork-exoskarn related to intrusives mapped locally and also indicated by aeromagnetics (Figure 1).
There is potential for gold-rich oxide and sulphide mineralization along the Julietta structure. This structure is the primary, immediate target for diamond drilling.
The Cigarrero Mine lies on the north flank of the Sierra Almoloya and is road accessible. Historic reports indicate that more than twelve orebodies were exploited, with production totalling approximately 1.25 million tonnes of ore grading 600 g/t Ag, 40% Pb, and 25% Zn, with variable amounts of copper and gold. These high grades were primarily from secondary lead-zinc oxide material, which, according to historic sources, extended as deep as 400 meters below surface or approximately 150 meters below the valley floor.
Old mine sketches describe orebodies up to 50 meters wide, with even greater vertical dimension. Mining at Cigarrero ceased in the 1920s after depletion of shallow oxide reserves, as interest in deeper sulphide mineralization was limited at that time. Historic mining was terminated at the water table.
Geologically, the Sierra Almoloya district consists mainly of massive limestone and alteration equivalents of the Cretaceous Aurora Formation, which host silver-lead-zinc mineralization at the Naica mine located 40 km to the north. Structurally, Almoloya sits at the intersection of two major basement features. The first is a NE to ENE trending structure that extends from the Parral and the Santa Barbara - San Francisco del Oro districts. The second structure is the reflection of a WNW, major basement feature that may represent the Mojave- Sonora Megashear1. The Almoloya Project is situated within a large, 14 X 12 km hydrothermal system, with district-scale potential for large sulphide CRDs, with near-surface oxide potential2.
1Queenston Mining Inc. news release July 8, 2005.
2http://pdf.secdatabase.com/241/0001137171-05-001127.pdf
Terms of the LOI
The Company has entered into an LOI with arms length parties pursuant to which the Company has the option to acquire the Amoloya Project (the "Option"). The Company has a 60-day due diligence period under the LOI. The parties intend that the LOI will be replaced by definitive agreements within 60 days.
The Option may be exercised by the Company paying the Optionors total cash consideration of US $8,625,000 (the "Option Payments") over 8 years in staged payments from the effective date of the definitive agreements, with years 5 through 8 payable in the total amount of US $6.5 million. Following the exercise of the Option, the Company will grant a 2.5% net smelter returns royalty ("NSR") to the Optionors, with an option for the Company to repurchase 1% of the NSR for the cash payment of US $3 million.
No finder's fees or commissions will be paid in connection with the Option.
The Option will be subject to applicable regulatory approvals, including the approval of the TSX Venture Exchange ("TSXV") and the satisfaction of certain other closing conditions customary in transactions of this nature.
Qualified Person
Kieran Downes, Ph.D., P.Geo., a director of Kingsmen and Qualified Person as defined by National Instrument 43-101, has reviewed and approved the scientific and technical disclosure set out in this news release.
About Kingsmen Resources
Kingsmen Resources is a mineral exploration company focused on advancing its 100% held Las Coloradas Project located in the prolific mining district of Parral Mexico. The project hosts the historic past producing high-grade silver mine, Las Coloradas. It is considered to be prospective for hosting further precious metal deposits, being on the same structural and stratigraphic belts that host numerous other, on -trend, high- grade deposits. In addition, the company has a 1% NSR on the Los Ricos North project operated by GoGold Resources Inc.in Mexico. The Company's leaders have extensive experience in the mining and financial sectors. Kingsmen is a publicly-traded company (TSXV: KNG) (OTCQB: KNGRF) (FSE: TUY) and is headquartered in Vancouver, British Columbia.
On behalf of the Board,
"Scott Emerson"
Scott Emerson, President & CEO
Phone: 604- 685-9316
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Forward-Looking Statement
Certain disclosure contained in this news release may constitute forward-looking information or forward-looking statements, within the meaning of Canadian securities laws. These statements may relate to this news release and other matters identified in the Company's public filings. In making the forward-looking statements the Company has applied certain factors and assumptions that are based on the Company's current beliefs as well as assumptions made by and information currently available to the Company. These statements address future events and conditions and, as such, involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the statements. These risks and uncertainties include but are not limited to: the political environment in which the Company operates continuing to support the development and operation of mining projects; the threat associated with outbreaks of viruses and infectious diseases; risks related to negative publicity with respect to the Company or the mining industry in general; planned work programs; permitting; and community relations. Readers are cautioned not to place undue reliance on forward-looking statements. The Company does not intend, and expressly disclaims any intention or obligation to, update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by law.
Neither the 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 news.
