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Post by Franko10 ™ on Nov 7, 2005 12:25:52 GMT -5
Morgain Minerals-Update on Acquisition of La Fortuna
12:12 EST Monday, November 07, 2005
VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Nov. 7, 2005) - On November 1, 2005, Morgain Minerals Inc. (TSX VENTURE:MGM) announced that it had signed a letter agreement to acquire La Fortuna Property located in the State of Durango, Mexico from Alamos Gold Inc. (TSX:AGI).
Chester Millar, President & CEO, states: "We are very pleased with the acquisition of La Fortuna property. This agreement is consistent with Morgain's corporate strategy of acquiring low cost, heap leachable gold projects in Mexico."
A report dated June 12, 1997 on La Fortuna (the "Report") was prepared by J. Peter Davies, Consulting Mining Engineer. The Executive Summary of the Report read as follows:
"The property is accessible by road from Culiacan, the capital of the State of Sinaloa, which in turn is served by the international airline network and the nearby ports of Mazatlan and Los Mochis.
The property has been mined intermittently for gold by successive owners since its discovery in 1884 until about 1990. Selective underground mining methods were employed, together with a variety of processes, including garvity and froth flotation.
Close spaced core drilling carried out by the most recent owners San Fernando Mining Company Ltd., has outlined a geological resource of 4,451,000 tonnes averaging 2.25 GPT gold and 34.8 GPT silver at a 0.5 GPT gold cut-off grade.
Most of this tonnage would be recoverable in an open pit. Fluor Daniel Wright's estimate of the open pit potential, at a 0.5 GPT gold cut-off grade, is 13,614,300 total tonnes, of which 10,698,000 tonnes would be waste, and 2,915,000 tonnes would be ore grading 2.57 GPT gold and 34.8 GPT silver. Fluor noted that further work would be necessary in order to confirm metallurgical parameters and costs.
Subsequent metallurgical test work carried out by two independent laboratories, Colorado Metallurgical Institute in Golden, Colorado and METCON Inc. in Tucson, Arizona has given encouragement that reasonable gold recoveries of up to 65% may be obtained following moderate crushing to about minus 1/2 inch."
The historical resource quoted herein calculated by J. Peter Davies, Consulting Mining Engineer, in the Report was prior to the implementation of National Instrument 43-101. Morgain has not completed the work necessary to verify the classification of the mineral resource estimates, and is not treating the mineral resource estimates as NI 43-101 defined resources verified by a qualified person. The historical estimates should not be relied upon. La Fortuna will require considerable further evaluation which Morgain intends to carry out.
Morgain plans to initiate preliminary permitting steps and re-examine the metallurgy. The recent increase in gold and silver prices indicates that finer crushing to improve recoveries of precious metals should be considered.
Morgain is currently bringing its Castillo Property located in the State of Durango, Mexico into production.
About Morgain Minerals Inc.
Morgain Minerals is a resource exploration company with a number of precious and base metal properties in Mexico. Its corporate strategy is to explore and develop properties with known resources that can be further explored to a production status. Visit our website at www.morgainminerals.com for the latest corporate information.
FOR FURTHER INFORMATION PLEASE CONTACT:
Morgain Minerals Inc.
Chester F. Millar
President and CEO
(604) 643-1727
(604) 643-1726 (FAX)
morgain@telus.net
www.morgainminerals.com
The TSX Venture Exchange has neither approved nor disapproved of the information contained herein
12:12 EST Monday, November 07, 2005
VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Nov. 7, 2005) - On November 1, 2005, Morgain Minerals Inc. (TSX VENTURE:MGM) announced that it had signed a letter agreement to acquire La Fortuna Property located in the State of Durango, Mexico from Alamos Gold Inc. (TSX:AGI).
Chester Millar, President & CEO, states: "We are very pleased with the acquisition of La Fortuna property. This agreement is consistent with Morgain's corporate strategy of acquiring low cost, heap leachable gold projects in Mexico."
A report dated June 12, 1997 on La Fortuna (the "Report") was prepared by J. Peter Davies, Consulting Mining Engineer. The Executive Summary of the Report read as follows:
"The property is accessible by road from Culiacan, the capital of the State of Sinaloa, which in turn is served by the international airline network and the nearby ports of Mazatlan and Los Mochis.
The property has been mined intermittently for gold by successive owners since its discovery in 1884 until about 1990. Selective underground mining methods were employed, together with a variety of processes, including garvity and froth flotation.
Close spaced core drilling carried out by the most recent owners San Fernando Mining Company Ltd., has outlined a geological resource of 4,451,000 tonnes averaging 2.25 GPT gold and 34.8 GPT silver at a 0.5 GPT gold cut-off grade.
Most of this tonnage would be recoverable in an open pit. Fluor Daniel Wright's estimate of the open pit potential, at a 0.5 GPT gold cut-off grade, is 13,614,300 total tonnes, of which 10,698,000 tonnes would be waste, and 2,915,000 tonnes would be ore grading 2.57 GPT gold and 34.8 GPT silver. Fluor noted that further work would be necessary in order to confirm metallurgical parameters and costs.
Subsequent metallurgical test work carried out by two independent laboratories, Colorado Metallurgical Institute in Golden, Colorado and METCON Inc. in Tucson, Arizona has given encouragement that reasonable gold recoveries of up to 65% may be obtained following moderate crushing to about minus 1/2 inch."
The historical resource quoted herein calculated by J. Peter Davies, Consulting Mining Engineer, in the Report was prior to the implementation of National Instrument 43-101. Morgain has not completed the work necessary to verify the classification of the mineral resource estimates, and is not treating the mineral resource estimates as NI 43-101 defined resources verified by a qualified person. The historical estimates should not be relied upon. La Fortuna will require considerable further evaluation which Morgain intends to carry out.
Morgain plans to initiate preliminary permitting steps and re-examine the metallurgy. The recent increase in gold and silver prices indicates that finer crushing to improve recoveries of precious metals should be considered.
Morgain is currently bringing its Castillo Property located in the State of Durango, Mexico into production.
About Morgain Minerals Inc.
Morgain Minerals is a resource exploration company with a number of precious and base metal properties in Mexico. Its corporate strategy is to explore and develop properties with known resources that can be further explored to a production status. Visit our website at www.morgainminerals.com for the latest corporate information.
FOR FURTHER INFORMATION PLEASE CONTACT:
Morgain Minerals Inc.
Chester F. Millar
President and CEO
(604) 643-1727
(604) 643-1726 (FAX)
morgain@telus.net
www.morgainminerals.com
The TSX Venture Exchange has neither approved nor disapproved of the information contained herein
