Minaurum Options La Quintera Silver Project in the Sierra Madre Silver Belt
Vancouver, British Columbia--(Newsfile Corp. - September 13, 2016) - Minaurum Gold Inc. (TSXV: MGG) ("Minaurum") is pleased to announce that it has entered into an option agreement to earn a 100% interest in the La Quintera Silver Project ("Quintera") in the historic Alamos District in Sonora, Mexico from a private Mexican vendor. Quintera encompasses a number of wide, high-grade epithermal veins with significant historical production. The project has seen little modern exploration and has never been drilled.
Quintera covers 4,698 hectares and is located 8km west of Alamos, 45km northwest of Pan American's Alamo Dorado silver mine, and 15km south of Cobre Del Mayo's Piedras Verdes copper mine. Quintera hosts excellent infrastructure and is fully permitted from exploration through to production.
The Quintera Project, which includes the Promontorio, La Quintera, La Aduana, and Minas Nuevas mines, is estimated to have produced more than 120 Moz of silver from about 1680 to the early 1900s. Vein widths average 4m but locally range up to 20m. The primary target vein has a strike length of 3.5km and the entire vein system measures more than 7 km long. Historical records of selective mining indicate grades of over 2,000 g/t Ag were recovered using a cut-off grade of 1,000 g/t Ag.
Director of Minaurum, Dr. Peter Megaw, stated "The Quintera vein swarm produced the majority of the silver mined in the historic Alamos Silver Camp and has somehow eluded systematic exploration for over 100 years. We look forward to having the first crack at applying modern epithermal vein exploration concepts to this system."
The last known production in the district occurred between 1948-1957 in which an American Company processed historical dumps at a rate of 300tpd. In 2012, the Servicio Geológico Mexicano ("SGM") took a total of 105 samples over 3 waste piles and 4 tailings ponds at the La Quintera and the Promontorio mines. Based on the results, the SGM estimated that the Promontorio Waste Dump hosted 157,728 tonnes grading 169g/t Ag, 0.69g/t Au, 1.61% Pb, 0.77% Cu and 3.12% Zn. SGM also estimated that the Quintera dump hosted 66,712 tonnes grading 173g/t Ag, 0.57% Pb and 0.84% Zn. Neither of these estimates is NI43-101 compliant.
At Quintera, low-sulphidation epithermal quartz veins are exposed in several surface cuts, pits, and underground workings. Veins occupy north-northeast-striking, steeply dipping, structurally controlled mineralized zones. Exploration work done since 2010 included the identification of 44 historic mine workings and the collection of 334 rock samples of which 97 assayed 100-1,380 g/t Ag and 106 returned values 30 - 100 g/t Ag. Thirteen samples assayed more than 1 g/t gold, the highest gold grade returned was 4.1 g/t Au.
Option Schedule to Earn a 100% interest in the Quintera District (all amounts in CDN$)
| MILESTONE | CASH | SHARES | WORK EXPENDITURES | NOTES |
| Upon Signing | 1,500,000 | |||
| 1st Anniversary | $25,000 | 750,000 | $500,000 | |
| 2nd Anniversary | $25,000 | 750,000 | $500,000 | |
| 3rd Anniversary | $50,000 | 1,000,000 | $500,000 | |
| 4th Anniversary | $50,000 | 1,000,000 | $500,000 | |
| 5th Anniversary | $50,000 | 1,000,000 | $500,000 | |
| 6th Anniversary | $400,000 | $500,000 | Cash Payment Payable in cash or shares at Discretion of MGG | |
| Total: | $600,000 | 6,000,000 | $3,000,000 |
In addition to the above schedule, there is a $2,000,000 payment due upon commercial production and the property vendor retains a 2% NSR (0.5% of which can be purchased for $1,000,000).
The acquisition of the Quintera Silver District adds another highly-prospective project to Minaurum's property portfolio. Over the last year, Minaurum has pursued the addition of high-quality projects that offer significant optionality in three key operating areas in Mexico. These regions include; the Guerrero Gold Belt, the Oaxaca-Chiapas Region and Southern Sonora State. Minaurum continues to pursue advanced stage assets in these regions while continuing exploration work in the Guerrero Gold Belt and drill permitting at Santa Marta.
Stephen R. Maynard, Vice President Exploration of Minaurum and a Qualified Person as defined by National Instrument 43-101, has reviewed the technical data in this release. However, the technical data has not been verified due to its historical nature.
Minaurum Gold is a regional explorer focusing on the exploration and development of high-grade gold and silver projects in Mexico. For more information, please visit our website at www.minaurum.com and our YouTube Minaurum Video Channel.
ON BEHALF OF THE BOARD
"Darrell A. Rader"
Darrell A. Rader
President and CEO
For more information, please contact:
Sunny Pannu - Investor Relations Manager
(778) 330 0994 or via email at pannu@minaurum.com
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this news release.
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