Pachamama Resources Ltd.

August 17, 2010 17:05 ET

Pachamama Resources Ltd.: 2010 Work Program Initiated at Rio Grande Cu-Au Project, Argentina

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 17, 2010) - Pachamama Resources Ltd. (TSX VENTURE:PMA) ("Pachamama" or the "Company"), together with its joint venture partner, Antares Minerals Inc. ("Antares") (TSX VENTURE:ANM), announces the initiation of the 2010 work program at their 50-50 owned Rio Grande project. Rio Grande is a large copper-gold system with porphyry affinities located in Salta Province, northwestern Argentina. Drilling to date comprises a total of 33,015 metres in 78 diamond drill holes. The proposed program will include work to characterize the metallurgy over a range of mineralization types with varying degrees of oxidation. Pachamama and Antares believe that sufficient drilling has been completed to calculate an initial resource for the deposit once this metallurgical program has been completed. Mineralization at Rio Grande remains open to depth in several zones.

As operator, Antares plans to contract a geophysical consulting firm to complete a deep looking Titan IP/Resistivity survey with the objective of characterizing the entire system and defining additional drill targets. This geophysical survey is scheduled to commence upon crew availability with an estimated start date of September 2010.

In addition, the parties plan follow-up soil geochemical surveying and geological mapping on the Northeast Zone where previous work has partially defined copper-gold-zinc mineralization which has similarities to the weaker mineralized areas on the outer fringes of the Mansfield Minerals Inc.'s Lindero heap leachable gold deposit, located 7 kilometres to the southeast.

 Highlights from previous drilling are summarized below:

  • RGA-06-24 (Sofia Zone): 128 m with 0.47% Cu, 0.71 g/t Au and 4.4 g/t Ag
  • RGA-06-26 (Sofia Zone): 158 m with 0.46% Cu, 0.51 g/t Au and 4.2 g/t Ag
  • RGA-07-34 (Sofia North Zone): 189 m with 0.70% Cu and 0.67 g/t Au and 11.1 g/t Ag
    • Includes 27 m with 1.16% Cu and 1.59 g/t Au
    • Includes 12 m with 2.2% Cu and 1.85 g/t Au
  • RGA-07-40 (Discovery Zone): 102 m with 0.58% Cu, 0.75 g/t Au, and 13.1 g/t Ag
    • Includes 25 m with 1.37% Cu, 1.89 g/t Au, and 18.0 g/t Ag
  • RGA-07-43 (North Zone): 151 m with 0.40% Cu, 0.46 g/t Au, and 12.4 g/t Ag
  • RGA-07-48 (North Zone): 152 m with 0.44% Cu, 0.41 g/t Au and 5.32 g/t Ag
    • Includes 60 m with 0.54% Cu and 0.53 g/t Au
    • Within long intercept of lower grade – 428 m with 0.30% Cu, 0.29 g/t Au and 5.31 g/t Ag
  • RGA-07-56 (#7 Zone): 135 m with 0.53% Cu, 0.65 g/t Au, and 8.9 g/t Ag
    • Includes 48 m with 0.82% Cu, 1.28 g/t Au, and 8.7 g/t Ag

John M. Leask, President and CEO of Pachamama Resources Ltd. commented as follows:

"We are pleased to resume work at Rio Grande where drilling and trenching to date has established extensive copper-gold mineralization over a four sq. kilometer area. At least four higher grade feeder type areas have been partially delineated. The gross metal budget indicated to date is impressive, as are many of the stronger mineralized intercepts. Recently drilled molybdenum mineralization under the Sofia Zone also requires follow-up testing."

About the Rio Grande Project, Salta Province, Argentina

The Rio Grande project is very favourably located along the prominent northwest-trending Archibarca Lineament which also controls the location of the world-class giant Escondida porphyry copper deposit 150 km to the northwest in Chile. In addition, the Rio Grande project setting shares many similarities with that of the Bajo de Alumbrera porphyry copper-gold deposit which is located along a similar northwest-trending regional structural lineament approximately 300 km to the south. Copper-gold mineralization at Rio Grande occurs within a distinct two-km diameter ring fracture zone defined by IP chargeability as well as copper and gold soil geochemical anomalies. The mineralization is hosted by a complex sequence of intermediate sub-volcanic intrusive rocks with variable degrees of potassic, calcic, and propylitic alteration and local late- to post-mineral intermediate dikes. The mineralization originally consisted of chalcopyrite and magnetite as disseminations and fracture fillings. The chalcopyrite has subsequently been partially to completely oxidized to green and black copper oxides to depths of 300-400 metres or more. Oxidation is typically in situ with little to no remobilization of copper.

This news release has been reviewed by John M. Leask, P.Eng., President and CEO of the Company, and a Qualified Person ("QP") as defined by National Instrument 43-101 (Standards of Disclosure for Mineral Projects).

About Pachamama

Pachamama is a mining exploration company formed as a spin-out of Mansfield Minerals Inc. in November 2008. The mineral assets of Mansfield, with the exception of the Lindero gold deposit, were transferred to Pachamama together with certain cash and investments. The Company is currently focused on the Rio Grande copper-gold project in northwestern Argentina.

On behalf of the Board of Directors,

John M. Leask, P.Eng., President, Director and CEO

Cautionary and Forward-looking Statement Information

Certain disclosure in this release, including management's assessment of Pachamama's plans and projects, constitutes forward-looking statements that are subject to numerous risks, uncertainties and other factors relating to Pachamama's operation as a mineral exploration company that may cause future results to differ materially from those expressed or implied. Readers are cautioned not to place undue reliance on forward-looking statements.

All diamond drilling at Rio Grande has been performed using HQ and NQ diameter core with recoveries averaging greater than 95%. Core is logged and cut with a diamond saw on site under the supervision of Antares' geologists. Sampling is done on intervals varying from 1-3 metres. All samples are transported by Antares' vehicles or contract transport, accompanied by Antares' staff, to Salta, Argentina for direct shipping to ALS Chemex Laboratories in Mendoza, Argentina. The QC/QA program includes the insertion of control samples (known standards, blanks, and duplicates) comprising a minimum of 10% of each sample batch.

All of Antares' exploration programs and pertinent disclosure of a technical or scientific nature are prepared by or prepared under the direct supervision of John Black, Antares' President and CEO, who serves as the qualified person (QP) under the definitions of National Instrument 43-101. Antares' security, chain of custody and quality control is described on their website under the section on best practices – sampling methodologies.

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

Contact Information