Absolut Resources Corp.
TSX VENTURE : ABS

Absolut Resources Corp.

September 07, 2005 12:47 ET

Absolut to Acquire Charparra High Grade Gold Project

TORONTO, ONTARIO--(CCNMatthews - Sept. 7, 2005) - Absolut Resources Corp. (TSX VENTURE:ABS) is pleased to announce it has entered into an exclusive, arms length, option agreement to acquire a 100% stake in Compania Minera Colorado S.A.C. ("CMC"). CMC is a privately held Peruvian company that has an option to purchase 100% of the Chaparra high grade gold mesothermal vein system located 45km east of the coastal town of Chala, in the department of Arequipa, Peru.

The Chaparra Project consists of 4,520 hectares of exploration concessions within the Chaparra district of the Nazca - Ocona gold belt. At least eight principal gold-quartz veins have been identified in the project area and are hosted by Cretaceous granitic rocks. The veins have a minimum aggregate strike length of 8.8 km and occur over a vertical distance of 1,200 meters.

To view a map of the Chaparra project , please click on the following link:

http://www.absolutresources.com/news/2005/pr_image090705.htm

Small-scale underground mining on the main El Cambio vein by CMC returned head grades averaging 16.43 g/t of gold. The CMC workings are located directly beneath the historic Consorcio Minero mine which was operational from 1935 until 1950. Consorcio Minero mined the oxide portion of the vein to a maximum depth of 100m beneath the top of the vein.

Absolut has completed panel sampling at 2 meter intervals along Level 5 and Level 7 of the CMC workings in the El Cambio vein. On Level 5, 26 samples over 52 meters of the El Cambio vein returned an average grade of 13.32 g/t of gold over an average vein width of 1.5 meters. On Level 7, 18 meters down-dip of Level 5, 16 samples over a strike length of 32 meters returned an average grade of 7.3 g/t gold over an average vein width of 1 meter.

Absolut's proposed work program for the fourth quarter includes surface mapping and sampling of the eight veins exposed at surface. During this period Absolut will complete the required environmental studies to obtain permits for a surface drilling program and to expand the underground drifting program.

Upon exercise of the option, and subject to TSX Venture Exchange approval of the transaction, Absolut will issue 100,000 shares of ABS stock to CMC directors and pay US$600,000 over a four-year period.

CMC has an exclusive option with a third party to purchase 100% stake in the Chaparra project by paying US$1,450,000 over a four-year period, and a 1% NSR that is capped at US$1,000,000.

Absolut has implemented a quality control program to ensure best practice in chemical sampling and analysis of surface and underground rock samples. Analytical services are provided for by ALS Chemex Laboratories in Lima and North Vancouver.

Absolut Resources Corp. is a precious metals exploration and development company based in Toronto, Canada. Absolut believes in an international best practices approach, and implements this on all its social and environmental decisions. The required qualified person for the Chaparra Gold Project is Mr. Dan Noone, who is a member of the Australian Institute of Geoscientists.

This press release contains forward looking statements.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Absolut Resources Corp.
    Dan Noone
    President & CEO
    (416) 214-4654
    (416) 599-4959 (FAX)
    Or visit our website at www.absolutresources.com