Goldmark Minerals Ltd.
TSX VENTURE : GMK

Goldmark Minerals Ltd.

February 02, 2007 07:00 ET

Goldmark Announces the Acquisition of the Abigail Property, a 1,745 Hectare Gold Prospect in Southern Ecuador

CALGARY, ALBERTA--(CCNMatthews - Feb. 2, 2007) - Goldmark Minerals Ltd. (TSX VENTURE:GMK) today announced the acquisition of the Abigail Property in Ecuador and the completion of Canadian National Instrument 43-101 report (the "NI 43-101 Report") associated with this property. The acquisition is an arms-length transaction. The property is to be considered as a fundamental acquisition and as such is subject to the approval of the TSX Venture Exchange. As previously announced on November 23, 2006, this is the first step in the refocus of the company to acquire precious metal properties in strategic parts of South and North America.

Acquisition of the Property

Goldmark has now completed the acquisition of the Abigail concession in Ecuador. Goldmark has paid $45,000 US for the first two years of the 30-year concession. If Goldmark elects to retain the concession for the full 30-year period, the Company will be required to pay an additional $200,000 US on November 14, 2008. In addition, the vendor of the property has retained a royalty of 1.5% on the Net Smelter Return on any production from the property. The property will be owned by Goldmark's wholly owned Ecuadorian subsidiary, Goldminerals Ecuador SA. Independent Ecuadorian legal counsel has confirmed that the Abigail concession is in full force and in good standing with no encumbrances whatsoever and no claims or legal actions have been initiated against the mining rights.

Abigail Property

The Abigail property occupies an area of 1,745 hectares of which the eastern part of the property belongs to the Zamora-Chinchipe Province (70%), and the western part is located in the Azuay Province (30%). The concession is 60 km south of Cuenca (population 420,000) in southern Ecuador. It is in the heart of the Cordillera Real Metamorphic Belt, which is an active exploration area. Geologically, the Abigail property is located on the western flank of the Cordillera Real, a north-northeast-trending mountain range east of the Central Andean graben. The deposit type investigated is epithermal (high-sulphidation).

The NI 43-101 Report

The exploration information that follows is based on the NI 43-101 Technical Report that has been filed on SEDAR in conjunction with this News Release. The NI 43-101 Report was completed for the Company on January 12, 2007, by Dr. Kurgen Kraus, P.Geol., President, Mortal Energy Oil Ltd. Dr. Kraus is the Independent Qualified Person as defined in the NI 43-101 Report and has prepared, reviewed and approved the technical content of the NI 43-101 Report. The NI 43-101 Report recommends an initial exploration program of two phases. Phase one shall consist of grab sampling at a cost US $48,000. Phase two shall consist of trenching to identify potential drilling targets at a cost of US $ 116,000. Phase two will be contingent on positive results from the first phase of exploration.

Geologically, the Abigail property is located on the western flank of the Cordillera Real, a north-northeast-trending mountain range east of the Central Andean graben. The Cordillera Real forms the culmination of a continental magmatic arc, i.e. pre-Cretaceous metamorphic rocks intruded by S- and I-type granitoids and topped by calc-alkaline volcanic sequences. Exposure of country rock is poor. In the low areas, granite is exposed. The top of the plateau appears to be occupied by porphyritic rhyolite of the Saguro Group. The felsic composition of the rocks is manifested by the vegetation. Quartz veins, spatially associated with the rhyolite and believed to be of epithermal origin, form prominent northwest and northeast trending ridges several tens of metres long and several metres wide. The ridges contain ubiquitous outcrops of quartz, up to 1.5 by 15 m in size. The quartz is vuggy and zoned.

The deposit type investigated is epithermal (high-sulphidation). Epithermal deposits are considered common in the continental Andean terrains, particularly in the local Saraguro Group, and in locations related to north-northeast-trending fault systems, all of which apply to the Abigail property.

According to the author of the NI 43-101 Report, the Abigail property has all the components of an epithermal system: a granite engine at the base, and a rhyolite lithocap and fracture-related quartz veins on the top. Colluvial and vein quartz is generally vuggy, which is a typical but no determining characteristic for an epithermal origin.

The author has hypothesized that the ubiquitous quartz veins are gold bearing. The hypothesis is based on, firstly, his observation of visible, free gold in both a hand specimen of zoned epithermal, colluvial quartz and in a gold pan, at a gold milling operation 260 m north of the property. The operation is topographically below the Abigail property so that the gold is derived from the latter. Secondly, gold has been reportedly found by Cochapata locals on the Abigail property in a river that originates on the property. Hence the gold originated on the property, too. Thirdly, quartz, as observed on the Abigail property, is ubiquitous as veins and colluvium along the way to the El Mozo property 5.5 km to the north.
The 1,776 ha El Mozo epithermal-gold property is located ca. 5.5 km north of the Abigail property in a similar geological setting. According to a filed report prepared in compliance with NI 43-101 by Champigny (2005), the El Mozo property contains inferred resources (as of 10 June 2004) estimated at 3.5 million tonnes at an average grade of 2.3 g/t gold, i.e. 256,000 ounces of inferred resources of contained metal gold. The applied cut-off grade is 0.5 g/t. The gold mineralization is believed to be associated with high-level acetate sulphide systems. It is contained in vuggy, fracture-controlled quartz hosted in leached, intermediate volcaniclastic rocks above a shallow quartz porphyry/dacite intrusion. The reader should take note that the geology of the El Mozo property is not necessarily indicative of the mineralization of the Abigail property.

The technical information contained in this news release has been reviewed and approved by Jurgen Kraus, a qualified person for purposes or NI 43-101

Disposition

On approval of this acquisition, Goldmark intends to close the previously agreed to sale of mining equipment and farm out of the Company's mineral interests in the Walker Fork prospect for $250,000 and a 10 percent overriding royalty interest as outlined in the press release of November 23, 2006.

Goldmark is a Canadian public company with offices located in Calgary and Quito, Ecuador. Shares are listed on the Venture Exchange under the symbol GMK.

The TSX Venture Exchange has in no way passed upon the merits of the proposed transaction and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • GOLDMARK MINERALS LTD.
    Peter Barker
    Chief Executive Officer
    (403) 299-0357
    or
    GOLDMARK MINERALS LTD.
    Robert W. Lamond
    Chairman of the Board
    (403) 269-9889
    (403) 269-9890 (FAX)