Stealth Minerals Limited

Stealth Minerals Limited

May 31, 2006 09:00 ET

Stealth Minerals Completes Due Diligence on Incamayo

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - May 31, 2006) - Stealth Minerals Limited ("Stealth") (TSX VENTURE:SML) has completed due diligence of the Incamayo copper-gold-silver prospect in north western Argentina. The property is 100% owned by Salta Exploraciones S.A. (SESA), which is a 100% owned subsidiary of Argentine Frontier Resources Inc (AFRI), which is a private BC corporation. Stealth, AFRI and SESA are related parties.

Due diligence included property visits, a review of alteration assemblages, geological setting, style of mineralization and size of the alteration system. New work included examination, location and plotting of trenches and historic drill holes, sampling and PIMA.

Stealth has agreed to enter into an option agreement whereby it can earn an initial 51% interest in the Incamayo property by spending C$2 million on exploration, paying C$200,000 in cash (C$25,000 on signing) and issuing 5.0 million shares over four years. The option agreement is subject to a title opinion and regulatory approval.

Incamayo is sediment hosted, structurally controlled high-sulphidation alteration system that has a strike length of at least 4,500 metres north south and is up to 1,000 metres wide east west. An extensive excavator style trenching program was conducted in 1996-97, which consisted of 19 trenches aggregating over 4,500 metres. This revealed several zones of erratic and low-grade gold and silver mineralization within the alteration system. Only gold and silver values were reported from trench samples.

This was followed by a 2,400 metre drill program in late 1997 consisting of nine widely spaced reverse circulation holes over 1,100 metres of strike length. Two of the nine holes were reported to contain mineralization. The best interval reported was from drill hole seven, which returned 1.11 g/tn gold and 1.12% copper over 57 metres from 109 to 166 metres. For reference purposes, the relative metal value at current market prices from drillhole seven is 21% from gold and 79% from copper.

The style of mineralization in drillhole seven was noted as different from the mineralization in surface trenches as the 57-metre interval displayed significantly higher sulphide content and was dominantly copper and gold. Silver was not reported in this drill hole. This drill hole was under a trench that contained several narrow mineralized zones over a width greater than 200 metres. The best interval assayed 0.98 g/tn gold and 48.7 g/tn silver over 16 metres.

Further work including a phase II drill program was planned but was not carried out and the property lapsed. SESA acquired the property by staking and holds a 100% interest with no underlying agreements. Subsequent to its initial staking, SESA has recently acquired more claims in the area.

Stealth intends to conduct a program consisting of grid-based soil and rock geochemistry, Induced Polarization geophysics, mapping and, subject to target identification, a core drilling program.


Contact Information

  • Stealth Minerals Limited
    Bill McWilliam
    Chief Executive Officer
    Cell: (604) 999-0391, Office: (604) 924-5504