SOURCE: Amalgamated Gold and Silver Inc.

January 21, 2014 08:00 ET

Amalgamated Gold and Silver Inc. (BCHS) Signs Letter of Intent (LOI)

MIAMI, FL--(Marketwired - January 21, 2014) - Amalgamated Gold and Silver Inc. (AGS), Trading Symbol: (PINKSHEETS: BCHS), today announced it has signed a LOI with Shrewton Investments Ltd., a South African company, to acquire a 70% interest in the St. Anthony (San Antonio de Turiri) antimony mine and concessions located in Potosi, Bolivia. The price of antimony is now approximately $10,000 USD per metric ton (http://www.metal-pages.com/metalprices/antimony/), which makes this mine viable and has the potential to become a world-class producer of high-grade antimony.

Under the terms of the Agreement, AGS will have the exclusive right to conduct independent due-diligence for a period of 60 days. Upon obtaining satisfactory results over the due-diligence period AGS will formalize a Purchase and Sale Agreement to acquire the mining, exploration, and production rights held by Shrewton Investment Ltd. AGS is currently reviewing the existing historical geological studies and correlating the mining results from the prior mining operations.

Bolivia's San Antonio de Turiri antimony mine is located approximately 100 km from the town of Potosi (approximately 35 km from the nearest processing plant), and San Antonio de Turiri is historically one of Bolivia's most consistently productive, small antimony mining operations. The San Antonio de Turiri mine is situated on part of Bolivia's primary antimony belts and has three known ore zones, which were previously mined. Historical production records and laboratory analysis reports confirm steady monthly outputs of high-grade antimony ore. The three parallel antimony vein structures are approximately 1.4 Kilometers in length and 3 meters in width. The main ore body ranges 60% to 67% pure antimony and according to geological studies, less than 5% of the San Antonio de Turiri reserves have been mined.

Full descriptions of the mine and concessions will be posted on the company website www.ags-inc.co under Projects in January 2014. Documentation/maps of the San Antonio de Turiri mine have been carefully preserved, with the focus on retaining the original vein mapping and exact resource determination as well as manual geological surveys done on an on-going basis. The company will be deploying geologists to the mine to reconfirm the proven ore deposits and prepare an NI43-101.

"I am excited about the potential of San Antonio de Turiri mine and concessions. Historical mining and geological surveys have shown Antimony tailings, proven tonnage and extensive reserves. We are anxious to begin our independent testing of the mine and concessions," said the President, Abraham Villagran. Preliminary works to reopen San Antonio de Turiri mine have been completed. With the infrastructure in place, a new mining plan for an open pit mining operation is being prepared.

Amalgamated Gold and Silver Inc. (PINKSHEETS: BCHS) is a Miami based, junior resource company focused on the exploration, development and production of mineral resources in Mexico and South America. The Company is actively engaged in the exploration and production of its mineral concession. The Company is focused on creating shareholder value with the company's growth strategy to acquire, explore and develop high-quality properties throughout Mexico and South America. Management's corporate philosophy is to be a project generator, explorer and operator with the objective of option/joint venturing projects with junior mining companies through to production.

The information in this press release constitutes "forward-looking information." Other than statements of historical fact, all statements are "Forward-Looking Statements" that involve such various known and unknown risks, uncertainties and other factors. There can be no assurance that such statements will prove accurate. Results and future events could differ materially from those anticipated in such statements. Readers of this press release are cautioned not to place undue reliance on these "Forward-Looking Statements." Except as otherwise required by applicable securities statutes or regulation, the Company expressly disclaims any intent or obligation to update publicly forward-looking information, whether as a result of new information, future events or otherwise.

Contact Information

  • Amalgamated Gold and Silver Inc.
    80 SW 8 Street, Suite 2000
    Miami, Florida 31330
    USA
    Email: info@ags-inc.co