Animas Resources Ltd.
TSX VENTURE : ANI

Animas Resources Ltd.

May 08, 2008 09:00 ET

Animas Resources Update on Project Development

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 8, 2008) - Animas Resources (TSX VENTURE:ANI) (the "Company") is pleased to provide an update on project development activities in the Santa Teresa mining district relevant to our past producing Santa Gertrudis and Amelia gold projects.

Animas Resources has completed the phase one targeting work leading to the first phase of drilling. A phase one 10,000 meter drilling program will begin in June with a drill that has the capability of reverse circulation drilling and core drilling. The QA / QC program is in place and we are in the process of making our own local assay standards derived from Santa Gertrudis materials. The detailed drill target locations will be announced shortly along with recent geochemical sampling.

Project Update

Animas Resources is completing phase one of our geophysical programs to collect new induced polarization (IP) and reconnaissance IP (RIP) data and extensively reprocess the historic airborne and ground geophysical information. We are confirming and better defining many of our known targets and identifying new ones that will warrant additional investigation after phase 1 drilling begins.

A review of the recently completed IP and RIP geophysics and the sophisticated reprocessing of existing geophysical data (magnetic, radiometric, electromagnetic, and IP) has confirmed and sharpened the targets that are currently the focus of our program, In addition Animas has identified new areas of interest under post-mineral cover and has expanded the permissive area surrounding the current six project areas. Detailed geologic remapping assists in defining the size of the systems, and analyses of rock samples, with assays pending, give both direct indications of gold as well as the trace element zoning indicators. Selected sampling of the outcropping feeder zones may reveal regional and local zoning toward hydrothermal centers of the district, once all the assay results are received.

- Craig Beasley of Wave Geophysics completed the initial data integration and processing of airborne magnetic data in a sophisticated 3-D modeling program. In addition to being able for the first time to visualize 3-D magnetic susceptibility distributions in the district, Beasley's efforts provide a valuable framework for interpretations by integrating the geology and mineral controls on several scales. A logical interpretation of the broad magnetic high features is that the entire district and area of known gold mineralization are underlain by a large irregular intrusive complex. Also, large areas of receptive host sedimentary rocks are seen to extend to depth in several areas while in other areas the intrusion appears to closely underlie known gold deposits.

- Condor Geophysics, under the direction of Ken Weitherly, is completing an extensive review of the electromagnetic data. Their synthesis is confirming locations of the known feeder zones mapped at the surface and potentially indicating others that are not exposed in surface outcrops or are under shallow cover.

- Phase one of the Quantec Geoscience IP survey and Durango Geophysical Operations' RIP surveys have sharpened definition of drill targets in areas of known mineralized extensions and within the six larger target areas. To date, the Quantec surveys confirm the potential extensions of the Dora, Maribel, and Mirador deposits and show that the Viviana target may well be much larger than previously believed. Quantec is making exceptional progress and daily checks of their data confirm they are acquiring very high quality data. The phase one IP surveys have further refined Animas Resources' phase one drill program. Highlights of the IP survey to date include, but are not limited to, the following:

1) "Cora-Dora", a +3 square-kilometer zone anchored by the non-43-101 compliant 88,553-ounce historical gold resource at the Dora deposit, is defined by a discreet reconnaissance IP chargeability anomaly to the west and southwest under post-mineral gravel cover and by the existence of possible feeder zones along north-south trends that are cut by several mineralized structures with NW trends. The western extensions of the Dora deposit were not drilled in the past as the operating companies never were able to acquire the mineral rights to the west which Animas Resources recently acquired. The apparent verification of the permissive target area extending at least 500 meters to the west under gravel cover and over 1 km along the feeder zones to the south suggests both sizable near-surface potential as well as opportunities for much larger deposits.

2) The Mirador deposit, with a historical resource of 45,075 ounces of gold that is non-43-101 compliant, and the adjacent Melisa, Hilario, and Sofia deposits, with non-43-101 compliant historical resources of nearly 20,000 ounces of gold, form a 1.5 km by 1 km zone along the main northwest trend. Broad and distinct IP chargeability anomalies indicate the mineralized system extends to depth and becomes potentially broader with depth.

3) The Berta and Berta NW trend have known mineralization, which was drilled by previous owners below the old mine office and truck shop pads extending to the south and southwest. The size of the target area defined by surface geologic mapping and sparse drilling and several new IP lines is 4 square kilometers.

4) Historic drilling at Viviana and new IP chargability anomalies extending to the west form a one square-kilometer zone that mostly does not crop out. High-grade intercepts of gold in the + 10 gpt range are found in a small area at the surface of Viviana indicating the potential for adjacent larger areas of mineralization.

Durango Geophysical Operations completed the initial phase of a three-phase RIP program to the west and northwest of the mineralization at Santa Gertrudis. In addition to exploring for extensions of mineralization under post-mineral cover, a positive RIP conductor appears centered over a well pronounced magnetic feature thought to be an intrusive center under gravel cover to the west on our concessions. In addition, several other positive RIP conductors were shown to be both on Animas Resources' property package and beyond the property boundary; this resulted in the recently announced staking of 10,770 hectares. The RIP anomalies will be further detailed by the Quantec pole-dipole IP survey to further define the nature and size of these chargeability anomalies.

- Geochemical sampling of the outcropping feeder zones is well advanced and while we await the assays, we should have sufficient data from these samples to understand the local and district-wide metal, trace element, and alteration zoning features. These are critical to determine the best large potential targets and speculate on the source areas and perhaps additional targets worthy of testing.

- The San Enrique/Greta acquisition recently closed, bringing with it a vast amount of additional data including non-43-101 compliant historical resources. These data have now been integrated into Animas Resources' new GIS database. The historical gold resources offer numerous exciting targets. These targets will be evaluated for future drilling after the phase one drill program on the company's existing targets has begun. In addition, Animas Resources' technical team is evaluating the San Enrique copper/molybdenum porphyry target to potentially be advanced with a partner.

Mine Development Associates is compiling a drill-hole database and will audit and verify it, assist Animas professionals in the task of interpreting cross sections needed for a revised resource estimate, and is assisting with the revised report co-authored by Animas staff and qualified consultants. The initial draft of the 43-101 report is expected in the third quarter.

Animas plans to continue the geophysical data acquisition and interpretations in support of the geologic mapping by Steve Reynolds and Geoff Grier, target mapping by Oden Christensen and the on-site technical team. Additional targets will be evaluated for the phase two drill program.

Gregory McKelvey, President & CEO, commented, "In such a large and well mineralized district it is important to maintain a clear focus on the best opportunities and, as appropriate, continue to build toward the identification of the best targets and projects in this productive mining district. While much of the current geophysical program is focused to assist in drill-target ranking, some is building toward the future as well. We are excited to begin drilling and validating many of our now better defined known targets.

In good projects there often is a special time when all the pieces come together at the unique time to move to discovery. This time is beginning now at Santa Gertrudis with the new geochemistry, modern processing of the historic and new geophysics, good old fashion boot-leather geology, and a complete drill hole database. We are now refining the ongoing selection of drill sites for testing targets starting in June and will announce detailed target locations shortly. The team's hard work is paying off. It is not often that the data and the ideas join at the same time, and we are fortunate to have these now as integrated data rather than separate pieces of a puzzle."

Project History

Animas Resources, over the past 8 months, consolidated much of the Santa Theresa mining district. This was accomplished through 4 separate acquisitions and the staking of over 15,000 hectares. These include the past producing Santa Gertrudis and Amelia gold deposits and prospects within our 214 square mile landholding. Santa Gertrudis ore deposits produced 564,000 ounces of gold at an average grade of 2.13 grams per ton from a mine commissioned to start with 1.2 million ounces. The Amelia mine reportedly produced more than 150,000 ounces at grades said to be higher than Santa Gertrudis. Known mineralization extends under post-mineral gravel cover and is open at depth. Past production and exploration were limited to oxide ores amenable to heap leaching near surface, despite the fact that gold mineralized sulfide material also exists at and near surface. Animas also has the water rights and the wells used for the past production from the properties. Animas Resources also purchased all of the outstanding royalties on their land holdings.

About Animas Resources Ltd.

Animas Resources Ltd., a North American mineral resource company focused on acquisition and discovery in Latin America, has re-consolidated the Santa Teresa District's Santa Gertrudis gold deposits and prospects within a 447.14 square kilometer (214.23 square miles) landholding. The Company also controls the 274 square kilometer (113.78 square miles) Shirley exploration concession in the Bacanuchi area of Northern Mexico.

Gregory E. McKelvey, M.S. (Geol.), President & Director

The historical estimates are based on internal reports prepared by prior owners and as such have not been prepared in accordance with NI 43 101, thus their reliability has not been verified. The estimates did not use resource or reserve categories accepted by the Canadian Institute of Mining, Metallurgy and Petroleum ("CIM").

This press release was reviewed by Dr. Roger C. Steininger, a Qualified Person as defined by National Instrument 43-101 of the Canadian Securities Administrators. This press release contains "forward-looking information" which may include, but is not limited to, statements with respect to drilling plans, timing of our planned NI 43-101 resource report, timing of assays, resource estimates, projections, our planned exploration and drilling programs, the availability of future financing for exploration, and other plans, projections, estimates, and expectations. Such forward-looking statements reflect our current views with respect to future events and are subject to certain risks, uncertainties, and assumptions, including the risks and uncertainties outlined in our most recent financial statements and reports and registration statement filed with Canadian securities administrators (available at www.sedar.com). Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, believed, estimated, or expected.

The TSX Venture Exchange has in no way passed upon the merits of the proposed transaction and has neither approved nor disapproved the contents of this press release.

Contact Information

  • Animas Resources Ltd.
    Gregory E. McKelvey
    President & Director
    (604) 687-6197
    (604) 688-3392 (FAX)
    Website: www.animasresources.com