Latin American Minerals Inc.
TSX VENTURE : LAT

Latin American Minerals Inc.

November 05, 2009 07:30 ET

Latin American Minerals Discovers Important New Gold Zone at Its Paso Yobai Gold Project, Paraguay

TORONTO, ONTARIO--(Marketwire - Nov. 5, 2009) - Latin American Minerals Inc. (the "Company" or "LAT") (TSX VENTURE:LAT) reports that it has found a new gold soil anomaly at the Paso Yobai project, Paraguay. The new anomaly covers an area 10km long by 3 km wide. The new anomaly trends NW-SE and is located 3 km NE of the currently known 8 km long gold zone. The new anomaly is located in a 5,777ha area staked by the Company.

The new trend consists of three distinct clusters running up to 200ppb gold covering an area of 8 km2 (see the accompanying map and maps at www.latinamericanminerals.com). Typically, such high intensity geochemical values in the Paso Yobai area are a direct indicator of underlying gold bearing host rocks. The geochemical signature of these new clusters is different from those previously encountered. The clusters are circular in nature and are not related to mafic dykes as is the case with the 8 km long southern gold trend where the Company has focused previous exploration (the "Existing Gold Trend", see the accompanying map and maps at www.latinamericanminerals.com). The circularity of the new clusters has not yet been explained but could be related to diatreme structures. Through-out the new anomaly area there occur widespread chalcedonic quartz float boulders which is considered to be very positive and are being assayed.

LAT is proceeding to carry on large scale trenching work (10 to 15 m deep) to expose the mineralization found in the soils and to prepare a drilling campaign on the new targets. LAT has found that soil sampling, large scale trenching and drilling has been the best method to discover near surface gold mineralization at Paso Yobai.

Waldo Perez, President and CEO of the LAT states that "every exploration campaign at Paso Yobai yields new gold mineralization and additional targets. The technical results continue to indicate that the LAT properties cover a very large, high grade gold system".

The Company also reports that it has successfully renegotiated the payment terms of the two property option agreements that make up part of the Paso Yobai gold project.

- Minas Guaira Agreement amended payment terms: US$250,000 to be paid on October 17, 2009 (payment has been made), the dollar equivalent of 240 ounces of gold (approximately US$260,000 at the current market price) on or before April 17, 2010, and a final payment of the dollar equivalent of 959 ounces of gold (approximately US$1,040,000 at the current market price) on or before October 17th, 2010. The dollar equivalent for the gold in each instance will be calculated to be the greater of US$1,043 per ounce and the market price for gold on the date the payment is due.

- Minas Paraguay amended payment terms: The October 18th, 2009 payment of US$ 350,000 will be satisfied by a cash payment of US$100,000 to be paid on November 5, 2009 and the issuance of 1,287,976 common shares of the Company (subject to TSX Venture Exchange approval). The remaining terms of the property option agreements remain the same.

Ray Mitchell, CFO of the Company stated that "the restructuring of these property option payments along with the recently completed $1.5 million financing lays the foundation for the Company to advance the property development well into 2010."

Dr. Waldo Perez, P.Geo., is the Company's internal Qualified Person under the requirements of National Instrument 43-101 and is responsible for this press release.

Latin American Minerals Inc. is a mineral exploration company focused on the acquisition and development of gold and other mineral projects in Latin America. LAT's currently contemplated 2010 exploration programs at Paso Yobai are fully funded.

Sampling and Analytical Protocols: The sampling and analytical protocols were established, implemented and supervised by or under the direction of Dr. Waldo Perez, the Company's internal Qualified Person as defined by National Instrument 43-101. The soil samples were collected on northeasterly trending grid lines established at 250 metre intervals perpendicular to the known mineralized trend. Individual samples were collected at 50 metre intervals on all grid lines. The sample was collected below the level of organic matter, between 0.8 and 1.2 metre deep. A total of 5 kilogram sample was collected and sieved to -150#. Several tests have been done at different depth and grain size in known mineralized zones to maximize reproducibility and minimize nugget effects. All of the samples were collected by qualified technician and/or qualified technicians under the direct supervision of the project geologist. The samples were tagged with a pre-numbered tag and bagged in micropore bags to allow humidity to evaporate. The samples were sent to the preparation facility of Lat in Paso Yobai that is supervised by Alex Stewart Assayers Argentina S.A. ("ASAA"). The samples were dried in stainless steal containers at 80 degrees and sieved at -140# mesh. In those cases that small pellets were formed during drying due to high clay content of the sample the pellets were crushed by hand using a stainless steal ball. After drying and sieving the sample was split as many times as needed to obtain a 200 gram pulp that is shipped by a company truck from Paso Yobai to Asuncion and by an international courier from Paraguay to Mendoza Argentina to the laboratories ASAA in Mendoza (Argentina). ASAA is an ISO 9001-certified laboratory with headquarters in England. All samples were assayed for gold and multi-elements by ICP. Gold was analyzed by Fire Assay with AA finish using 50 gram sample. For the multi-elements the samples were dissolved in Aqua Regia at 120 degrees and read in ICP-OES. Accuracy of results is tested through the systematic inclusion of blanks and certified reference standards.

Notes: This news release contains forward-looking statements, which can be identified by the use of statements that include words such as "could", "potential", "believe", "expect", "anticipate", "intend", "plan", "likely", "will" or other similar words or phrases. These forward-looking statements, including statements regarding the Corporation's beliefs in potential mineralization, are based on current expectations, assumptions and projections about future events and entail various risks and uncertainties that are beyond the Corporation's ability to control or predict. Actual results may materially differ from expectations as more information regarding a property is gathered or if the Corporation's estimates or assumptions prove inaccurate. Factors that may materially affect actual results include, but are not limited to, political, business and economic conditions in jurisdictions where the Corporation conducts business, and risks associated with mineral exploration and production. The Corporation does not intend, and does not assume any obligations, to update forward-looking statements, whether as a result of new information, future events or otherwise, unless otherwise required by applicable securities laws. Readers should not place undue reliance on forward-looking statements. The results described herein are exploratory in nature and there can be no assurance that they are indicative of Mineral Resources as defined in accordance with National Instrument 43-101.

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