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Post by Franko10 ™ on Sept 16, 2004 7:31:44 GMT -5
Fri Dec 5, 2003
Morgain Minerals and Columbia Metals Corporation - Joint Venture on El Compa Gold
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Morgain Minerals Inc. (the "Morgain", TSX-Venture: MGM) has agreed in principle to a joint venture agreement with Columbia Metals Corporation Limited ("Columbia" TSX-Venture: YOM) of Toronto, Ontario whereby Columbia agrees to fund Morgain's El Compa gold project in the State of Sonora, Mexico into commercial production at an initial minimum rate of 75 tonnes per day, or 1500 tonnes per month and/or spend $US 1.0 million on the property over a three year period to earn a 60% equity interest.
This joint venture with Columbia allows the Morgain to focus on completing the bankable feasibility and the subsequent financing of the El Cairo heap leach oxide gold deposit to production in Durango, Mexico. The joint venture affords Morgain the opportunity to activate the El Compa gold project, which has been inactive since 1997, without contributing further capital to the project.
Once Columbia has earned its interest the parties shall transfer title of the claims to a newly formed Mexican corporation (New Co.) with Morgain retaining a 40% undivided equity interest and Columbia 60% in the New Co. Columbia will be the operator. Upon reaching commercial production a management committee is to be appointed whereby the parties will each have two representatives. A 25 square kms area of interest is to be assigned eventually to the New Co.
Morgain's El Compa holdings constitute gold-bearing gossans, 1,000 metres by 1,000 metres, sporadically worked via pits, trenches and adits by artisanal miners since the early Spanish era.
Historical exploration work carried out by the Company during the 1996-1997 period consisted of 14.5 kms of induced polarization (I.P.) resistivity survey as well as an extensive geochemical gold survey. Four strong, parallel I.P. anomalies ranging form 540 to 890 metres in length with coincidental geochemical gold anomalies were outlined by these surveys, all I.P. anomalies open along strike.
A total of forty short reverse circulation (RC) holes tested about 20% of the gossanous, geophysical and geochemical targets, outlining four parallel, steeply dipping gold-bearing quartz veins. The drilling results as tabulated represent a limited potential of adequate tonnage that are amenable to gold heap leach gold mining since oxide zone only extends to a depth of approximately 18.0 metres. These steeply dipping high-grade gold quartz veins have greater potential for underground mining via adits and connecting ramps.
Columbia intends to proceed initially with the underground development of the Santa Fe gold-bearing zone where three RC holes over a strike length of 100 metres intersected the following:
Sante Fe Zone
Hole No. Core Intercept Length Au
(feet) (feet) (gms/t) (ozs/t)
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Arg 1 235-240 5.0 7.55 0.240
245-250 5.0 5.45 0.175
Arg 8 105-110 5.0 4.90 0.157
110-115 5.0 6.95 0.220
Arg 19 180-185 5.0 8.3 0.267
190-195 5.0 13.5 0.441
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Avg 5.0 7.78 0.25
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The Argentina A and B zones, also intercepted gold bearing quartz veins with the better holes tabulated below:
Argentina Zone
Hole No. Core Intercept Length Au
(feet) (feet) (gms/t) (ozs/t)
---------------------------------------------------
A-ZONE
Arg 13 15.0 5.0 5.00 0.161
Arg 30 180-185 5.0 4.55 0.146
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B-ZONE
Arg 3 90-95 5.0 12.00 0.39
105-110 5.0 13.5 0.43
Arg 12 200-205 5.0 5.45 0.18
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Plans are to transport the near surface oxide gold-bearing quartz vein material as gold-bearing silica flux directly to Grupo Mexico's La Caridad smelter in the town of Nacazari de Gracia about 150 kms to the north of the El Compa site. The primary gold-bearing quartz vein material below the oxide zone is to be milled at a 100 tonne/day government mill nearby in the town of Arvechi subject to Columbia's assessment of the suitability of the mill and funding the rehabilitation of the mill.
Columbia is proceeding with an independent technical evaluation of the Company's historical data to conform with National Instrument 43-101 standards and disclosure.
Morgain Minerals and Columbia Metals Corporation - Joint Venture on El Compa Gold
--------------------------------------------------------------------------------
Morgain Minerals Inc. (the "Morgain", TSX-Venture: MGM) has agreed in principle to a joint venture agreement with Columbia Metals Corporation Limited ("Columbia" TSX-Venture: YOM) of Toronto, Ontario whereby Columbia agrees to fund Morgain's El Compa gold project in the State of Sonora, Mexico into commercial production at an initial minimum rate of 75 tonnes per day, or 1500 tonnes per month and/or spend $US 1.0 million on the property over a three year period to earn a 60% equity interest.
This joint venture with Columbia allows the Morgain to focus on completing the bankable feasibility and the subsequent financing of the El Cairo heap leach oxide gold deposit to production in Durango, Mexico. The joint venture affords Morgain the opportunity to activate the El Compa gold project, which has been inactive since 1997, without contributing further capital to the project.
Once Columbia has earned its interest the parties shall transfer title of the claims to a newly formed Mexican corporation (New Co.) with Morgain retaining a 40% undivided equity interest and Columbia 60% in the New Co. Columbia will be the operator. Upon reaching commercial production a management committee is to be appointed whereby the parties will each have two representatives. A 25 square kms area of interest is to be assigned eventually to the New Co.
Morgain's El Compa holdings constitute gold-bearing gossans, 1,000 metres by 1,000 metres, sporadically worked via pits, trenches and adits by artisanal miners since the early Spanish era.
Historical exploration work carried out by the Company during the 1996-1997 period consisted of 14.5 kms of induced polarization (I.P.) resistivity survey as well as an extensive geochemical gold survey. Four strong, parallel I.P. anomalies ranging form 540 to 890 metres in length with coincidental geochemical gold anomalies were outlined by these surveys, all I.P. anomalies open along strike.
A total of forty short reverse circulation (RC) holes tested about 20% of the gossanous, geophysical and geochemical targets, outlining four parallel, steeply dipping gold-bearing quartz veins. The drilling results as tabulated represent a limited potential of adequate tonnage that are amenable to gold heap leach gold mining since oxide zone only extends to a depth of approximately 18.0 metres. These steeply dipping high-grade gold quartz veins have greater potential for underground mining via adits and connecting ramps.
Columbia intends to proceed initially with the underground development of the Santa Fe gold-bearing zone where three RC holes over a strike length of 100 metres intersected the following:
Sante Fe Zone
Hole No. Core Intercept Length Au
(feet) (feet) (gms/t) (ozs/t)
---------------------------------------------------
Arg 1 235-240 5.0 7.55 0.240
245-250 5.0 5.45 0.175
Arg 8 105-110 5.0 4.90 0.157
110-115 5.0 6.95 0.220
Arg 19 180-185 5.0 8.3 0.267
190-195 5.0 13.5 0.441
---------------------------------------------------
Avg 5.0 7.78 0.25
---------------------------------------------------
The Argentina A and B zones, also intercepted gold bearing quartz veins with the better holes tabulated below:
Argentina Zone
Hole No. Core Intercept Length Au
(feet) (feet) (gms/t) (ozs/t)
---------------------------------------------------
A-ZONE
Arg 13 15.0 5.0 5.00 0.161
Arg 30 180-185 5.0 4.55 0.146
---------------------------------------------------
B-ZONE
Arg 3 90-95 5.0 12.00 0.39
105-110 5.0 13.5 0.43
Arg 12 200-205 5.0 5.45 0.18
---------------------------------------------------
Plans are to transport the near surface oxide gold-bearing quartz vein material as gold-bearing silica flux directly to Grupo Mexico's La Caridad smelter in the town of Nacazari de Gracia about 150 kms to the north of the El Compa site. The primary gold-bearing quartz vein material below the oxide zone is to be milled at a 100 tonne/day government mill nearby in the town of Arvechi subject to Columbia's assessment of the suitability of the mill and funding the rehabilitation of the mill.
Columbia is proceeding with an independent technical evaluation of the Company's historical data to conform with National Instrument 43-101 standards and disclosure.
