Arco Resources Corp.

Arco Resources Corp.

February 01, 2010 09:30 ET

Arco Acquires Predilecta Gold Property in Oaxaca, Mexico From Fortuna Silver Mines

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 1, 2010) - Arco Resources Corp. (TSX VENTURE:ARR) ("Arco" or the "Company") is pleased to announce that it has entered into an agreement dated January 28, 2010 (the "Agreement") with a wholly-owned subsidiary of Fortuna Silver Mines Ltd. to purchase all of the issued and outstanding shares of Predilecta Exploration, S.A. de C.V. ("PredilectaCo"). PredilectaCo holds a 100% interest in the Predilecta property, located in Oaxaca, Mexico. As consideration for the shares of PredilectaCo, Arco has agreed to pay the sum of US$13,092.24 in cash on closing.

The Predilecta property consists of the La Predilecta II and La Crus claims, which are each 100% owned by PredilectaCo, and the mining rights to the La Predilecta and La Cascada claims, owned by Don Miguel Cormick. PredilectaCo holds the mining rights on the latter two claims (the "Cormick Claims") by way of an option agreement with Mr. Cormick. This agreement was amended on January 29, 2010, and grants PredilectaCo the right to earn a 100% interest in the Cormick Claims over a three year period for an immediate payment of US$2,000 cash and monthly payments of US$1,000 for the term of the agreement. Should Arco decide to exercise this option at the completion of the term, it will make a one-time payment of US$200,000 to take full ownership of the claims. PredilectaCo may exercise the option at any time during the term for a lump-sum payment equal to the total of all the remaining payments due under the option agreement.

Predilecta Property

The four claims which comprise the Predilecta property consist of a total area of approximately 3200 hectares, located some 68 kilometres south of the city of Oaxaca.

The Predilecta property contains a number of high-grade gold-bearing mesothermal quartz veins, hosted in shears within a Precambrian gneiss complex. The Predilecta Vein has been traced continuously for 95 metres underground and has been sampled by Continuum every 3 metres. The vein width varies between 0.20 m and 1.55 m but averages 0.56 m. Grades vary between 0.4 g/t Au and 180.9 g/t Au, but average 19.67 g/t Au. At La Crus, old workings occur along a strikelength of over a kilometre and roughly divided into the Pochotle, Hormiguero and Infernillo sectors. The vein or veins appear to pinch and swell considerably and be offset by faults. The Federal department Consejo de Recursos Minerales also examined this area, and on the basis of limited sampling found an average grade of 19.59 g/t Au and 63 g/t Ag in a vein averaging 0.82 m in width from the Infernillo sector. In addition, there are other underexplored gold-bearing quartz veins on the property that have returned values between 13.85 and 19.8 g/t Au from limited sampling. Only seven drill holes have been spread over the two main veins with limited success, however Arco geologists believe the veins have not been properly tested.

Paul Cowley, P.Geo. and Chief Geologist for Arco Resources Corp., is the Qualified Person, as defined in National Instrument 43-101, who has reviewed and approved the technical content of this news release.

About Arco Resources

Arco holds a 100% interest in six mineral claim blocks located in the State of Oaxaca, Mexico through its Mexican subsidiary. The Company has two 43-101 compliant projects, the Lachiguiri project (Ag,Pb,Zn) and the Tres Hermanas project (Ag,Pb,Zn). In addition the Company has begun to focus its efforts on its Cuatro Venados and Taviche claim blocks, each of which have had historical production of gold and silver. The Company currently has an agreement in principle to option a 100% interest in its Lachiguiri, Silacayoapan and Nino Perdido properties to Silex Ventures Ltd. For further information on the Company please go to

On behalf of the Board of Directors of Arco Resources Corp.

Warren McIntyre, President and Chief Executive Officer

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Arco Resources Corp.
    Warren McIntyre
    President and Chief Executive Officer
    604 639 2866
    604 662 3904 (FAX)