Azteca Gold Corp.
TSX VENTURE : AZG

Azteca Gold Corp.

April 15, 2011 21:07 ET

Azteca Gold Corp. Announces Option Agreement on Marietta Project Property in Nevada

SPOKANE, WASHINGTON--(Marketwire - April 15, 2011) -

NOT FOR DISSEMINATION OR CIRCULATION IN THE UNITED STATES.

Matt Russell, President and CEO of Azteca Gold Corp. (TSX VENTURE:AZG) (the "Company") announces that the Company has optioned its 100 percent-owned Marietta Copper/Gold/Silver Project in west-central Nevada ("Marietta Project" or the "Property") to CMX Gold & Silver Corp. ("CMX") of Calgary, Alberta. CMX will make an option payment to the Company for the right to earn up to a 50 percent ownership in the Marietta Project by conducting an exploration program on the Property over two years, as described below.

The Marietta Project has a large land package that encompasses an entire historical silver district centrally located in the Walker Lane Mineral Belt, and consists of 13 patented claims and 143 unpatented claims. The Property contains at least four minor historical silver mines dating back to the 1870s as outlined in a National Instrument 43-101 technical report that is presently being prepared. During the 1980s and early 1990s, before the ownership of the Property was consolidated, different areas of the Property were explored by companies such as American Gold Resources, Phelps Dodge, Battle Mountain Gold and ASARCO.

Nevada is home to several rich gold belts, including the Carlin trend, the Cortez trend, and the Walker Lane Mineral Belt. The Walker Lane hosts both epithermal precious metals deposits such as the famous Comstock Lode, the high-grade Eureka Mine, Aurora and others as well as porphyry copper deposits such as Yerington. According to the U.S. Geological Survey, the Walker Lane has produced nearly 50 million ounces of gold and 435 million ounces of silver. Recent discoveries in west Arizona, such as Copperstone, may considerably extend the length of the belt.

The Marietta Project contains multiple drill targets of both deposit types associated with the Walker Lane Mineral Belt, which includes the potential for discovery of one or more porphyries on the Property. Exploration activities conducted by the Company in 2007 and 2008 included geological mapping, rock chip and soil sampling, a ground magnetic survey, and induced polarization (IP) and resistivity surveys. A review of this data by CMX suggests "a possible source for the hydrothermal fluids that produced the veins (in the area of interest on the Property) may be a hidden porphyry system with an associated intrusive at depth." CMX will conduct further work regarding this interpretation.

CMX is developing an exploration program to test a number of interpreted magnetic and IP anomalies, which will include further data analysis, additional magnetic surveys, and a drilling program. CMX is preparing an updated National Instrument 43-101 compliant technical report for the Marietta Project prepared by CMX's Qualified Person, Dr. Jennifer Thomson.

Marietta Project Option Agreement

CMX has agreed to issue to the Company 2,500,000 common shares of CMX at a deemed price of US$0.10 per share as an option payment on the Marietta Project. Pursuant to the option agreement, CMX has agreed to incur an aggregate of US$2,000,000 in exploration expenses on the Property over a period of two years from the date CMX's common shares commence trading on a recognized stock exchange. If the listing does not occur prior to December 18, 2011, then each party has the right to terminate the option agreement and, in such event, the Company will return the 2,500,000 common shares of CMX for cancellation.

CMX will earn a 30 percent interest in the Property by spending at least US$1,000,000 in exploration expenses on the Marietta Project. Further exploration expenditures of a least US$1,000,000 will earn CMX an additional 20 percent interest in the Property. After earning a 50 percent interest, CMX will have the option of obtaining operatorship under the joint venture by spending another US$500,000 within six months of exercising such option. CMX and the Company have agreed to an area of interest consisting of all mineral claims, mining leases or other mineral interests lying within a distance of two (2) kilometers from the external perimeter of the Property.

As announced in a press release issued February 18, 2011, in consideration of the Company providing CMX with technical information and assisting in the identification and acquisition of the Clayton Silver Property, the Company received a finder's fee comprised of 897,280 common shares of CMX and 3,000,000 share purchase warrants. The warrants are exercisable at $0.10 for each CMX common share for a period of two years from the date the shares of CMX start trading on a recognized stock exchange. The Company anticipates that after a financing proposed by CMX, the Company will hold approximately ten percent of the issued shares of CMX.

The technical and scientific information contained in this news release has been reviewed by Dick Nanna, a Company director and the Company's Qualified Person for this press release as defined in National Instrument 43-101.

WARNING: the Company relies upon litigation protection for "forward looking" statements. The information in this release may contain forward-looking information under applicable securities laws. This forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those implied by the forward-looking information. Factors that may cause actual results to vary material include, but are not limited to, inaccurate assumptions concerning the exploration for and development of mineral deposits, currency fluctuations, unanticipated operational or technical difficulties, changes in laws or regulations, the risks of obtaining necessary licenses and permits, changes in general economic conditions or conditions in the financial markets and the inability to raise additional financing. Readers are cautioned not to place undue reliance on this forward-looking information. The Company does not assume the obligation to revise or update this forward-looking information after the date of this release or to revise such information to reflect the occurrence of future unanticipated events, except as may be required under applicable securities laws.

Shares issued: 358,113,432

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

Contact Information

  • Azteca Gold Corp.
    Jon Slizza
    VP of Finance and Investor Relations
    Cell: 1-509-981-2020
    info@azteca-au.com