Owner
Post by Franko10 ™ on Dec 1, 2005 7:04:39 GMT -5
El Capitan Reports on Verification of Alternative Assays Showing Higher Values; Mineralization Type of the El Capitan Mine is Detailed
07:00 EST Thursday, December 01, 2005
SCOTTSDALE, Ariz. (Business Wire) -- El Capitan Precious Metals, Inc. (OTCBB:ECPN): Chuck Mottley, the Company's President and CEO, states: "In the last two press releases we announced that the resource identified in Stage II of the drilling project was 37.4 million tons. We also stated that the Company had engaged several consultants and laboratories to perform additional assay techniques to accurately depict the full values of the deposit and that some of the preliminary results of these additional assays indicated higher grades than provided by the initial assays.
"In addition we stated that the Company has now staked and claimed close to 10,000 acres of property surrounding the initial El Capitan claims.
"Since those releases were published we have been asked a number of questions by investors. The majority of these questions can be classified into three categories: 1. Why is the assay verification process taking longer to complete than originally expected? 2. How unique is the geology and mineralization of the El Capitan Mine in that both gold and platinum have been detected in the same deposit? 3. Why has the Company claimed so many additional acres?
"We presented these questions to Dr. Clyde Smith, the Company's consulting geologist, and he provided the following answers to questions 1 and 2:" Quote:
"Independent Third Party Verification
".... El Capitan Precious Metals, Inc. has pursued an aggressive program of assay and metallurgical studies on the El Capitan Au-PGM-Fe mineralization. These studies have been and are being conducted by AuRIC Metallurgical Laboratories, Daniele Metal-Mineral Services, Wendell and Company, Mr. James Cousino, Mr. Roger Smid, MHS Research, and others. In all cases, the alternative assay or extraction procedures used by the above have reported results that are of potential economic grade, whereas standard fire assays initially carried out on 32 surface samples returned sub-economic results for most samples. Because the assay results El Capitan Precious Metals has reported appear to depend on the use of alternative assay procedures, the Company has been reluctant to report results without independent third-party laboratory verification. The AuRIC results reported above were verified by Daniele and Wendell. El Capitan Precious Metals has chosen a prudent and cautious approach in demanding independent verification of the other alternative procedures prior to release of results. The laboratory verification studies now in progress require more time than standard fire assay procedures; the company will release results as soon as verification results are available.
"Hydrothermal gold-platinum group metals deposits
"Gold occurs with platinum group metals in several classes of mineral deposits, many of which are hydrothermal in origin. Because the production of PGM has come almost exclusively from large Precambrian ultramafic layered intrusions, such as the Bushveld or Stillwater complexes, of South Africa and Montana, respectively, the majority of geologists are of the opinion that PGM are restricted to these high temperature magmatic segregation environments. Beginning in the early 1970's, however, a few detailed studies confirmed that PGM could be mobilized with Au in relatively lower temperature hydrothermal fluids outside of these environments. ... Numerous studies of Au-PGM deposits and laboratory research on the thermochemistry of PGM solubility, transport, and deposition since that time have shown that Au-PGM occur in a variety of hydrothermal deposit classes, including porphyry coppers, fracture-shear zone hosted, and sediment hosted. ...
"The Lincoln Country porphyry belt, which includes the El Capitan pluton, is dominated by intrusions of alkaline composition ... and is included in a belt of alkaline intrusive rocks that stretches through the eastern Rocky Mountains from British Columbia to New Mexico. Alkaline intrusions commonly occur in continental rifts, such as the Rio Grande Rift. Hydrothermal Au-PGM occur as minor constituents in porphyry copper mineralization in alkaline plutons within this belt, the best known example being the Allard stock in the Colorado Mineral Belt. The 70-65 Ma Allard syenite stock had a copper resource that included 0.02 opt Au, 0.05 opt Pt, 0.03 opt Pd. ... Although the El Capitan Au-PGM-Fe mineralization is hosted primarily in skarn, close proximity to the Capitan pluton and its apparent genetic association with the pluton indicates that the El Capitan deposit is a member of the Au-PGM mineralized alkaline porphyry belt of the eastern Rocky Mountains.
"The Coronation Hill Au-PGM deposit in Australia exhibits a strong hematite-precious metals association that bears a resemblance to El Capitan. At Coronation Hill hematite-calcite veinlets, breccias, disseminations and alteration in a 2500-1600 Ma sedimentary section intruded by quartz feldspar porphyry and quartz diorite host a deposit grading 0.20 opt Au, 0.008 opt Pt, 0.028 opt Pd. ... (It has been concluded) that a calcium-rich, highly oxidized, acidic, moderately saline brine transported Au-PGM in chloride complexes. This conclusion corresponds with the results of numerous thermochemical studies that conclude that significant Au-Pt-Pd can only be transported in chloride complexes in acidic, moderately to extremely oxidized (hematite stable) hydrothermal fluids."
Mottley continued: "The reason for claiming the additional acreage was based on Dr. Smith's previous statement that the boundaries of the deposit, based on the original 140 acres drilled, had not been determined either to the North, South, East, West or in depth. Therefore, it seemed prudent for the Company to claim the additional acreage in an effort to secure the entire deposit or any other deposits that may not yet have been identified in the El Capitan area."
El Capitan Precious Metals, Inc. is an exploration stage company that owns a 40% interest in the El Capitan mine located near Capitan, New Mexico as well as a joint venture and 20% ownership of 13 mining claims and other assets known as the C.O.D. mine located near Kingman, Arizona. In addition, the Company owns contractual rights to the Rainbow Valley mine consisting of 1660 acres and 100 % of the Weaver mine, both near Phoenix, Arizona.
The statements included in this press release concerning predictions of economic performance and management's plans and objectives constitute forward-looking statements made pursuant to the safe harbor provisions of Section 21E of the Securities Exchange Act of 1934, as amended, and Section 27A of the Securities Act of 1933, as amended. This press release contains forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially. These risks and uncertainties include, among others, the results of metallurgical testing, interpretation of drill results, the geology, grade and continuity of mineral deposits, results of initial feasibility, prefeasibility and feasibility studies and the possibility that future exploration, development or mining results will not be consistent with past results and/or the company's expectations, discrepancies between different types of testing methods, the ability to mine precious and other minerals on a cost effective basis, the Company's ability to successfully complete contracts for the sale of its iron ore and other products; fluctuations in world market prices for the Company's products; the Company's ability to arrange transportation from its mining properties to ocean ports on satisfactory terms; the Company's ability to obtain or maintain regulatory approvals; the Company's ability to obtain financing for the commencement of mining activities on satisfactory terms; the Company's ability to obtain necessary financing; The Company's ability to enter into and meet all the condition to close contract to sell its mining properties that it chooses to list for sale, and other risks and uncertainties described in the Company's filings from time to time with the Securities and Exchange Commission. The Company disclaims any obligation to update its forward-looking statements.
El Capitan Precious Metals, Inc.
Ron Perkins, 480-607-7093
www.elcapitanpmi.com
07:00 EST Thursday, December 01, 2005
SCOTTSDALE, Ariz. (Business Wire) -- El Capitan Precious Metals, Inc. (OTCBB:ECPN): Chuck Mottley, the Company's President and CEO, states: "In the last two press releases we announced that the resource identified in Stage II of the drilling project was 37.4 million tons. We also stated that the Company had engaged several consultants and laboratories to perform additional assay techniques to accurately depict the full values of the deposit and that some of the preliminary results of these additional assays indicated higher grades than provided by the initial assays.
"In addition we stated that the Company has now staked and claimed close to 10,000 acres of property surrounding the initial El Capitan claims.
"Since those releases were published we have been asked a number of questions by investors. The majority of these questions can be classified into three categories: 1. Why is the assay verification process taking longer to complete than originally expected? 2. How unique is the geology and mineralization of the El Capitan Mine in that both gold and platinum have been detected in the same deposit? 3. Why has the Company claimed so many additional acres?
"We presented these questions to Dr. Clyde Smith, the Company's consulting geologist, and he provided the following answers to questions 1 and 2:" Quote:
"Independent Third Party Verification
".... El Capitan Precious Metals, Inc. has pursued an aggressive program of assay and metallurgical studies on the El Capitan Au-PGM-Fe mineralization. These studies have been and are being conducted by AuRIC Metallurgical Laboratories, Daniele Metal-Mineral Services, Wendell and Company, Mr. James Cousino, Mr. Roger Smid, MHS Research, and others. In all cases, the alternative assay or extraction procedures used by the above have reported results that are of potential economic grade, whereas standard fire assays initially carried out on 32 surface samples returned sub-economic results for most samples. Because the assay results El Capitan Precious Metals has reported appear to depend on the use of alternative assay procedures, the Company has been reluctant to report results without independent third-party laboratory verification. The AuRIC results reported above were verified by Daniele and Wendell. El Capitan Precious Metals has chosen a prudent and cautious approach in demanding independent verification of the other alternative procedures prior to release of results. The laboratory verification studies now in progress require more time than standard fire assay procedures; the company will release results as soon as verification results are available.
"Hydrothermal gold-platinum group metals deposits
"Gold occurs with platinum group metals in several classes of mineral deposits, many of which are hydrothermal in origin. Because the production of PGM has come almost exclusively from large Precambrian ultramafic layered intrusions, such as the Bushveld or Stillwater complexes, of South Africa and Montana, respectively, the majority of geologists are of the opinion that PGM are restricted to these high temperature magmatic segregation environments. Beginning in the early 1970's, however, a few detailed studies confirmed that PGM could be mobilized with Au in relatively lower temperature hydrothermal fluids outside of these environments. ... Numerous studies of Au-PGM deposits and laboratory research on the thermochemistry of PGM solubility, transport, and deposition since that time have shown that Au-PGM occur in a variety of hydrothermal deposit classes, including porphyry coppers, fracture-shear zone hosted, and sediment hosted. ...
"The Lincoln Country porphyry belt, which includes the El Capitan pluton, is dominated by intrusions of alkaline composition ... and is included in a belt of alkaline intrusive rocks that stretches through the eastern Rocky Mountains from British Columbia to New Mexico. Alkaline intrusions commonly occur in continental rifts, such as the Rio Grande Rift. Hydrothermal Au-PGM occur as minor constituents in porphyry copper mineralization in alkaline plutons within this belt, the best known example being the Allard stock in the Colorado Mineral Belt. The 70-65 Ma Allard syenite stock had a copper resource that included 0.02 opt Au, 0.05 opt Pt, 0.03 opt Pd. ... Although the El Capitan Au-PGM-Fe mineralization is hosted primarily in skarn, close proximity to the Capitan pluton and its apparent genetic association with the pluton indicates that the El Capitan deposit is a member of the Au-PGM mineralized alkaline porphyry belt of the eastern Rocky Mountains.
"The Coronation Hill Au-PGM deposit in Australia exhibits a strong hematite-precious metals association that bears a resemblance to El Capitan. At Coronation Hill hematite-calcite veinlets, breccias, disseminations and alteration in a 2500-1600 Ma sedimentary section intruded by quartz feldspar porphyry and quartz diorite host a deposit grading 0.20 opt Au, 0.008 opt Pt, 0.028 opt Pd. ... (It has been concluded) that a calcium-rich, highly oxidized, acidic, moderately saline brine transported Au-PGM in chloride complexes. This conclusion corresponds with the results of numerous thermochemical studies that conclude that significant Au-Pt-Pd can only be transported in chloride complexes in acidic, moderately to extremely oxidized (hematite stable) hydrothermal fluids."
Mottley continued: "The reason for claiming the additional acreage was based on Dr. Smith's previous statement that the boundaries of the deposit, based on the original 140 acres drilled, had not been determined either to the North, South, East, West or in depth. Therefore, it seemed prudent for the Company to claim the additional acreage in an effort to secure the entire deposit or any other deposits that may not yet have been identified in the El Capitan area."
El Capitan Precious Metals, Inc. is an exploration stage company that owns a 40% interest in the El Capitan mine located near Capitan, New Mexico as well as a joint venture and 20% ownership of 13 mining claims and other assets known as the C.O.D. mine located near Kingman, Arizona. In addition, the Company owns contractual rights to the Rainbow Valley mine consisting of 1660 acres and 100 % of the Weaver mine, both near Phoenix, Arizona.
The statements included in this press release concerning predictions of economic performance and management's plans and objectives constitute forward-looking statements made pursuant to the safe harbor provisions of Section 21E of the Securities Exchange Act of 1934, as amended, and Section 27A of the Securities Act of 1933, as amended. This press release contains forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially. These risks and uncertainties include, among others, the results of metallurgical testing, interpretation of drill results, the geology, grade and continuity of mineral deposits, results of initial feasibility, prefeasibility and feasibility studies and the possibility that future exploration, development or mining results will not be consistent with past results and/or the company's expectations, discrepancies between different types of testing methods, the ability to mine precious and other minerals on a cost effective basis, the Company's ability to successfully complete contracts for the sale of its iron ore and other products; fluctuations in world market prices for the Company's products; the Company's ability to arrange transportation from its mining properties to ocean ports on satisfactory terms; the Company's ability to obtain or maintain regulatory approvals; the Company's ability to obtain financing for the commencement of mining activities on satisfactory terms; the Company's ability to obtain necessary financing; The Company's ability to enter into and meet all the condition to close contract to sell its mining properties that it chooses to list for sale, and other risks and uncertainties described in the Company's filings from time to time with the Securities and Exchange Commission. The Company disclaims any obligation to update its forward-looking statements.
El Capitan Precious Metals, Inc.
Ron Perkins, 480-607-7093
www.elcapitanpmi.com
