Phase III Drilling Completed At Maguarichic

VANCOUVER, BC - EXMIN Resources Inc. reported results from the recently completed phase III drill program at the Maguarichic Project, a joint venture with Exploraciones Mineras Parrena, S.A. de C.V., a subsidiary of Fresnillo plc. The phase III drill program totalled 4,759.5 metres of core drilled in 10 holes. Phase I and II drilling totalled 5,005.78 metres of RC and 6,359.4 metres of core, respectively. A total of 16,124.68 metres have been drilled in 56 holes by the joint venture. Exploration expenditures by Penoles in the first three years of the joint venture totalled nearly US$ 3.8 million. Cash payments to EXMIN totalled U$250,000 over the same period.
With the current year's expenditures, Fresnillo has earned and additional 10% of the project and now holds 30% title ownership to the project concessions, while EXMIN continues to retain 70% title ownership to the project concessions. Based on the exploration results, Fresnillo has informed EXMIN that it will not proceed further with the earn-in option of the joint venture, and instead has decided to go forward with a minority interest and with EXMIN as the project Operator. The partnership has also decided to reduce the land package from 38,989 hectares to 12,933 hectares that cover the most promising areas. Fresnillo has also ceded to EXMIN its wholly owned Santo Nino concession, covering 338 hectares within the boundaries of the project land package, a requirement of the joint venture agreement.
Karl Boltz, President and CEO of EXMIN, stated, "The drilling at Maguarichic focused on two different geologic models for mineralization. The phase III drill program was focused on a widespread, disseminated target for gold and silver mineralization that our joint venture partner developed based on extensive mapping and sampling completed in the JV concessions. This concept did not yield significant intercepts."
"EXMIN developed the original geologic model for high grade gold and silver mineralization in epithermal veins that is based on the existing mineralization found in the center of the district, at the Patria mine as well as at several other mines and prospects," continued, Boltz. "Previous exploration on this model was successful in identifying veins with high grade precious metal mineralization, and EXMIN plans to continue exploration of this concept."
The company’s address is 1066 West Hastings Street, Suite 2000, Vancouver, BC V6E 3X2, fax: (604) 806-6112, email: [email protected].