Alturas Signs Amendment to Its Joint Venture Agreement With Minera IRL on the Huaquirca Copper-Gold District
Posted on January 13, 2011 at 10:30 AM EST
TORONTO, ONTARIO--(Marketwire - Jan. 13, 2011) - Alturas Minerals Corp. (the "Company" or "Alturas") (TSX VENTURE:ALT)(BVLAC:ALT) announced today that it has entered into an amendment of a letter agreement with Minera IRL Limited, a Jersey-registered company listed on the Toronto Stock Exchange, the London AIM market and the Lima Stock Exchange ("IRL"), regarding the adjacent Utupara and Chapi Chapi properties within the Huaquirca copper-gold district in southern Peru ("Huaquirca Joint Venture). The amendment modifies an earlier letter agreement announced by the Company on June 2, 2010 and grants Alturas extensions of the terms within which to execute drilling at Huaquirca.
Miguel Cardozo, Chairman and President and CEO of Alturas commented: "We are pleased to have renegotiated the terms of the Huaquirca Joint Venture with IRL, and look forward to advancing drill exploration on this highly prospective district. Previous surface exploration completed by Alturas in the Chapi Chapi area identified a number of large and strong copper-gold geochemical anomalies that require drill testing. The Company also has recently signed a new 2-year agreement with the Huaquirca community that gives Alturas access to community land for its planned exploration program. We will therefore be able to start field work immediately".
Mr. Cardozo added that: "After the completion of a $4.04 million private placement in late November, Alturas is well positioned to increase value to our shareholders by drilling our two best copper-gold projects, Huaquirca and Sombrero, during 2011."
Under the Letter Agreement and its Amendment, the two parties propose a Joint Venture ("Huaquirca Joint Venture") covering the combined Chapi Chapi-Utupara properties, with IRL contributing the Chapi Chapi property and Alturas contributing the adjacent Utupara property.
Alturas now has the option to gain an 80% interest in the Huaquirca Joint Venture by starting drilling on the joint venture property no later than June 30, 2011 and must complete at least 15,000 meters of drilling on the Chapi-Chapi Property and completing a scoping study on any potential discovery before December 31, 2012. In consideration for IRL granting Alturas the terms extensions, Alturas will pay IRL US$ 200,000. This payment is being made by paying US$100,000 in cash and issuing 398,224 common shares priced at $0.2477 per share. The shares will be legended and restricted from trading until May 14, 2010.
Once Alturas has fulfilled its obligations and have earned an 80% interest in the Joint Venture, both parties would contribute pro-rata according to their percentage interests, subject to usual dilution. If IRL were to dilute below 20% interest it could convert that part of its interest to a 2% NSR. If IRL were to further dilute its interest to below 10%, it would be entitled to an additional 1% NSR (for a total 3% NSR in consideration of its 20% interest). The NSR is subject to a total buyout for US$ 5 million at Alturas's option.
Alturas will be operator during the Drilling and Scoping Study phases.
About the Huaquirca copper-gold district
The 6,903 hectare Chapi Chapi project occurs in the department of Apurimac in southern Peru. The Chapi Chapi property block is immediately adjacent to 5,276 hectare Alturas's Utupara property, both within the copper-gold Huaquirca district. Together the two projects now comprise a larger joint venture area ("Huaquirca Joint Venture") of Alturas with Minera IRL Limited.
In Utupara, alteration and mineralization occur over +4.0 x 4.0 kilometers. Alteration is dominately a potassic style kfeldspar-biotite-magnetite) with widespread phyllic and propylitic alteration overprints and bodies of fault-controlled skarns occurring along the eastern contact of the intrusive complex with the sedimentary rocks.
The Chapi Chapi property hosts a large copper-gold-molybdenum skarn system (the +3 km long "Chapi Chapi Corridor") hosted by Cretaceous limestones and cut by dioritic to monzonitic stocks. In addition, the property hosts a large gold-in-soils geochemical anomaly ("Huarajo" anomaly) located within fractured and limonitized Cretaceous sandstones.
The limestones in the Huaquirca District are part of the same unit that hosts large skarn deposits in the Apurimac-Cusco porphyry-skarn belt, such as the Tintaya and Las Bambas copper-gold skarn projects of XStrata. The quartzite unit also hosts a significant copper oxide resource at the nearby Antilla project of Panoro Minerals, situated some 20 kilometers to the west.
For maps and an extended summary of exploration results, refer to the Company's website www.alturasminerals.com/project-pdfs.html
About Minera IRL
Minera IRL Limited together with its subsidiaries (the "Group") is a Latin American precious metals mining, development and exploration company. Managed by a team of experienced mining executives, the Group's business was privately funded from inception in 2000 until listing on the London AIM Market in April 2007. Minera IRL Limited is currently quoted on the Toronto Stock Exchange (TSX:IRL), AIM London (AIM:MIRL) and the BVL, Lima, Peru (BVLAC:MIRL) stock exchanges.
The Group operates the Corihuarmi Gold Mine, is exploring the Ollachea Project, both of which are in Peru, and is also undertaking a feasibility study at the Don Nicolas gold project in Patagonia, Argentina.
About Alturas Minerals Corp.
Alturas is a Canadian corporation, and is the parent of Alturas Minerals S.A. ("Alturas Peru") and Alturas Minerals Chile Ltda ("Alturas Chile"). Alturas' exploration strategy is focused on the discovery of large epithermal gold mineralized deposits and copper-gold porphyry/skarn deposits in Peru and Chile.
Alturas Peru has been actively exploring various mineral projects in Peru since January 2004. Alturas' properties include four drill-ready mineral exploration projects located in central and southern Peru, which includes the Chapi Chapi-Utupara Copper-Gold Project, the Sombrero Copper-Gold Project, the Ccaccapaqui Gold-Silver Project and the Huajoto Gold-Silver-Zinc Project. In addition, Alturas Peru has interests in four other exploration projects in Peru.
Alturas Chile has recently entered into a Final Option Agreement to acquire 100% of the La Corina copper-gold porphyry property in northern Chile. Drilling of the property is programmed for the second quarter of 2010.
For further information, please visit the Company's website at www.alturasminerals.com.
Alturas Minerals Corp.
Suite 3100, Scotia Plaza, 40 King St. W., Toronto, ON Canada M5H 3Y2
Calle Francisco de Zela # 2579, Int. D, Lince, Lima 14, Peru
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Cautionary Language and Forward Looking Statements
This press release may contain "forward-looking statements", which are subject to various risks and uncertainties that could cause actual results and future events to differ materially from those expressed or implied by such statements. Investors are cautioned that such statements are not guarantees of future performance and results. Risks and uncertainties about the Company's business are more fully discussed in the Company's disclosure documents filed from time to time with the Canadian securities authoritiesThe TSX Venture Exchange and the Bolsa de Valores de Lima do not accept responsibility for the adequacy or accuracy of this release.
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