VANCOUVER,
Nov. 6, 2012 /PRNewswire/ - Guyana
Frontier Mining Corp. (TSXV: GYG, "Guyana Frontier") is pleased to
announce that it signed a definitive share purchase agreement (the
"Agreement") today to acquire the Falcao Gold Project located in
northern Brazil ("Falcao" or the
"Project") by purchasing all of the shares of a subsidiary company
of Horizonte Minerals Plc. ("Horizonte") of London, England (AIM and TSX: HZM), a company
at arm's length to Guyana Frontier. Falcao is subject to an option
agreement (the "AngloGold Option Agreement") with AngloGold Ashanti
Limited ("AngloGold"), one of the world's largest gold producers,
whereby AngloGold can earn an initial 51% interest in the Project
by incurring US$4.5 million in
exploration expenditures on the Project.
The purchase price for Falcao payable by Guyana
Frontier to Horizonte is CDN$4,200,000, which will be satisfied by the
issuance of 84,000,000 common shares of Guyana Frontier (the
"Consideration Shares") at a deemed price of $0.05 per Consideration Share (the "Acquisition
Transaction").
In connection with the signing of the Agreement,
Horizonte has subscribed on a private placement basis for 8,000,000
units of Guyana Frontier (each a
"Unit") at a price of $0.05 per Unit,
to raise gross proceeds to Guyana
frontier of $400,000 (the
"Placement"). Each Unit consisted of one common share and one
common share purchase warrant (a "Warrant"), with each Warrant
exercisable to acquire an additional common share of Guyana
Frontier at an exercise price of $0.10 for a period of two years from the date of
closing of the Placement. Upon closing the Acquisition Transaction,
including the common shares purchased by Horizonte in the
Placement, Horizonte will beneficially own approximately 47.1% of
the issued and outstanding common shares of Guyana Frontier.
The Acquisition Transaction and the Placement
are both subject to the acceptance of the TSX Venture Exchange (the
"TSXV"), and the Consideration Shares and the securities issued in
the Placement by Guyana Frontier will be subject to a four month
trading restriction pursuant to applicable securities laws and the
policies of the TSXV. The Consideration Shares will also be subject
to escrow requirements pursuant to the policies of the TSXV. The
Acquisition Transaction is subject to approval of the shareholders
of Guyana Frontier. Closing of the Acquisition Transaction is
expected to occur by the end of the calendar year.
The Falcao Project
Falcao consists of four exploration permits
totalling approximately 32,460 hectares (80,209 acres) located in
the Carajas Mineral Province of northern Brazil. The Project lies within the eastern
extension of the Serra do Inaja greenstone belt discovered by
Mineracao Colorado, (BHP Minerals) in the mid-1980s and covers a
very large (more than 40 square kilometres) historical multi-point
gold, silver and copper geochemical anomaly.
In August 2010,
Horizonte announced the AngloGold Option Agreement, pursuant to
which AngloGold can earn a 51% interest in the Project by spending
US$4.5 million on exploration and
development on the Project over a three-year period. Upon AngloGold
earning a 51% interest in the Project, the parties will operate the
Project on a joint venture basis and AngloGold may elect to earn an
additional 19% to increase its participating share to 70% by
funding a pre-feasibility study on the Project.
In late 2011, Horizonte, as operator on the
Project funded by AngloGold, completed a 15-hole, 3,663 metre
drilling program to test a four kilometre long by half-kilometre
wide gold-in-soil anomaly. Gold mineralization was encountered in
ten of the fifteen drill holes, including 48.90 metres grading 0.93
grams/tonne gold from 172 metres to 220.9 metres in hole FAL-002,
and 65.0 metres grading 0.82 grams/tonne gold from 73.0 to 138
metres in hole FAL-014, which included 16.01 metres of 2.63
grams/tonne gold (see all 2011 significant drilling results in
Table 1 below).
AngloGold has completed expenditures of over
US$2.5 million in the first two years
of the AngloGold Option Agreement, and currently has a US$2.0 million work commitment remaining.
Horizonte, as operator of the Project, has been reviewing all
exploration data with AngloGold as well as awaiting results from
recent geochemical and geophysical surveys in order to plan a
second phase of diamond drilling at Falcao.
Table 1. Significant Gold Intersections from Falcao
2011 Drilling
Drill Hole # |
Depth From
(m) |
Depth To
(m) |
Intersected
Width (m) |
Gold Value
(grams/tonne) |
FAL-DDH-001 |
19.00 |
19.26 |
0.26 |
10.65 |
|
59.09 |
88.44 |
29.35 |
0.68 |
Including: |
59.09 |
70.19 |
11.10 |
1.21 |
FAL-DDH-002 |
172.00 |
220.90 |
48.90 |
0.93 |
Including: |
205.14 |
220.90 |
15.76 |
1.65 |
with: |
172.00 |
174.00 |
2.00 |
3.03 |
|
189.00 |
190.00 |
1.00 |
2.36 |
|
205.14 |
208.00 |
2.86 |
3.50 |
|
216.00 |
217.00 |
1.00 |
12.1 |
also: |
13.00 |
13.88 |
0.88 |
1.25 |
|
50.00 |
55.00 |
5.00 |
0.80 |
|
68.00 |
70.00 |
2.00 |
1.10 |
|
83.00 |
85.00 |
2.00 |
0.91 |
|
287.00 |
288.22 |
1.22 |
2.30 |
|
332.00 |
333.00 |
1.00 |
0.93 |
FAL-DDH-003 |
28.00 |
29.00 |
1.00 |
8.14 |
|
170.75 |
172.42 |
1.67 |
27.70 |
|
179.25 |
180.80 |
1.55 |
0.72 |
FAL-DDH-004 |
25.00 |
28.00 |
3.00 |
0.84 |
|
84.00 |
85.00 |
1.00 |
4.16 |
|
91.00 |
92.00 |
1.00 |
0.74 |
|
142.00 |
143.00 |
1.00 |
1.24 |
FAL-DDH-005 |
37.00 |
38.00 |
1.00 |
2.64 |
|
182.30 |
183.30 |
1.00 |
2.09 |
|
253.00 |
254.00 |
1.00 |
20.26 |
FAL-DDH-006 |
163.00 |
164.00 |
1.00 |
0.79 |
FAL-DDH-007 |
2.00 |
3.30 |
1.33 |
1.11 |
|
85.00 |
92.64 |
7.64 |
0.90 |
|
86.25 |
94.00 |
2.93 |
1.94 |
|
158.00 |
159.00 |
1.00 |
4.63 |
FAL-DDH-012 |
86.00 |
112.20 |
26.20 |
0.35 |
Including: |
93.90 |
108.00 |
14.10 |
0.55 |
and: |
93.90 |
101.00 |
7.10 |
0.81 |
FAL-DDH-013 |
147.00 |
148.00 |
1.00 |
5.62 |
FAL-DDH-014 |
73.00 |
138.00 |
65.00 |
0.82 |
Including: |
86.99 |
103.00 |
16.01 |
2.63 |
and: |
112.00 |
138.00 |
26.00 |
1.14 |
No significant gold values were obtained in
holes FAL-008, -009, -010, -011, and -015. True widths of the
mineralized intervals have not yet been determined. All 2011 Falcao
exploration results are provided to Guyana Frontier by Horizonte,
and have been reviewed by non-executive Chairman of Horizonte David
J. Hall, EurGeol, fellow of the Society of Economic Geologists, and
a Qualified Person under the standards of National Instrument
43-101. Mr. Hall has reviewed and approved all technical disclosure
regarding Falcao contained in this news release.
Sample preparation and analyses
HQ drill core is collected in the oxide zone and
NQ on passing to fresh rock. After orientation, the core is split
in the oxide zone and cut in the rock intervals to produce
half-core samples on a nominal one-metre interval. These samples
are despatched to the ACME sample preparation facility in Goiania,
Brazil where the drill core is
crushed (whole sample) and then split (500 grams) and pulverized.
The resultant pulps are analyzed at the ACME laboratory in
Vancouver, Canada, for gold (Au),
platinum (Pt) and palladium (Pd) using a 50-gram FA assay with AA
finish. Overlimit samples (10 grams/tonne) are re-assayed using a
gravimetric determination. A package of 41 elements including Au is
analyzed using a 15-gram charge and hot four-acid dilution by
ICP-MS. Full QA/QC (quality assurance/quality control) procedures
were implemented, including the insertion of standards, duplicates
and blanks. Check samples representing approximately 5 per cent of
all the samples are checked at another international laboratory for
analysis by FA.
About Horizonte
Horizonte Minerals Plc. is an AIM and TSX listed
mineral exploration and development company focused on nickel and
gold projects, principally in Brazil. Horizonte has two committed major
mining partners: Teck Resources Limited, a major strategic
shareholder in the company, and AngloGold, a joint venture partner
on selected projects.
Horizonte's principal asset is its wholly-owned
Araguaia nickel project located in Pará State in Brazil. In January
2012, Horizonte released an updated National Instrument
43-101 compliant nickel mineral resource, which included an
Indicated Mineral Resource of 39.3 million tonnes grading 1.39%
nickel together with an Inferred Mineral Resource of 60.9 million
tonnes grading 1.22% nickel, both at a 0.95% nickel cut-off.
About Guyana Frontier
Guyana Frontier is a TSXV-listed public mineral
exploration company focused on the exploration, discovery and
development of precious metals deposits in Guyana and Brazil, South
America. Guyana Frontier began acquiring interests in
Guyanese exploration properties in 2007, and now holds various
rights to obtain working interests in approximately 247,243 acres
(100,058 hectares) of prospective lands in Guyana.
Guyana Frontier's primary goal is to develop a
significant gold resource at the Marudi Mountain Gold Project, and
to explore its other projects in Guyana and Brazil with joint venture partners.
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
release.
Forward Looking Statements
This release contains "forward-looking
statements" within the meaning of applicable Canadian securities
legislation, including predictions, projections and
forecasts. Forward-looking statements include, but are not
limited to, statements that address activities, events or
developments that Guyana Frontier expects or anticipates will or
may occur in the future, including such things as the closing of
the Acquisition Transaction, the acquisition by Guyana Frontier of
an interest in the Project, Guyana Frontier's future exploration
activities and the growth of Guyana Frontier's businesses and
general operations and plans.
Often, but not always, forward-looking
statements can be identified by the use of words such as "plans",
"planning", "planned", "expects" or "looking forward", "does not
expect", "continues", "scheduled", "estimates", "forecasts",
"intends", "potential", "anticipates", "does not anticipate", or
"belief", or describes a "goal", or variation of such words and
phrases or state that certain actions, events or results "may",
"could", "would", "might" or "will" be taken, occur or be
achieved.
Forward-looking statements are based on a
number of material factors and assumptions, including the
completion of various conditions precedent to the closing of the
Acquisition Transaction, such as receipt of all regulatory
approvals, including that of the TSX Venture Exchange, and receipt
of the approval of Guyana Frontier's shareholders. Although Guyana
Frontier has attempted to identify important factors that could
cause actual actions, events or results to differ materially from
those described in forward-looking statements, there may be other
factors that cause actions, events or results not to be as
anticipated, estimated or intended. There can be no assurance that
forward-looking statements will prove to be accurate, as actual
results and future events could differ materially from those
anticipated in such statements. Accordingly, readers should not
place undue reliance on forward-looking statements.
Guyana Frontier does not assume the obligation to revise or update
these forward-looking statements after the date of this document or
to revise them to reflect the occurrence of future unanticipated
events, except as may be required under applicable securities
laws.
SOURCE Guyana Frontier Mining Corp.