Bowmore Exploration Ltd.

July 12, 2010 08:00 ET

BOWMORE Signs an Option to Acquire 50% of NUEVA ESCONDIDA Gold Property in Sonora State, Mexico

MONTREAL, QUEBEC--(Marketwire - July 12, 2010) - BOWMORE Exploration Ltd. (TSX VENTURE:BOW)("The Company") is pleased to announce that it has signed an Option Agreement to acquire 50% of the Nueva Escondida gold property (the "Property") in the State of Sonora, Mexico from Amex Exploration Inc. subsidiary, "Minerales X-Ore de S.A. de C.V.", a Mexican mining corporation.

The Property is composed of 8 claims covering over 6,100 hectares and is located in the foothills of the Sierra Madre Occidental gold belt ("SMO"). The SMO is host to reserves of more than 40 Million ounces of gold and 2 Billion ounces of silver. The Nueva Escondida project is situated within the Basin and Range Province located at the western edge of the Sierra Madre Occidental. The property has been the object of sampling and geological mapping that returned significant gold & polymetallic values over an area of 8 X 5 kilometers (40 Km2).


Pursuant to the Option Agreement (the "Agreement") between Amex Exploration Inc. ("Amex") and Bowmore Exploration Ltd., whereas the Company may acquire from Minerales X-Ore de S.A. de C.V a 50% interest in the Property and will keep the exclusive rights to explore and develop the Property over the next two years in consideration of:

  1. The issuance of 150,000 common shares of the Company as follows:
    1. 25,000 common shares of the Company upon execution of the agreement;
    2. 50,000 common shares of the Company 12 months following the date of the Agreement;
    3. 75,000 common shares of the Company 24 months following the date of the Agreement and
  2. Total cash payments of $200,000 payable as follows:
    1. $25,000 payable upon execution of the agreement;
    2. $50,000 payable on the first anniversary date of the Agreement;
    3. $125,000 payable on the second anniversary date of the Agreement and;
  3. Incur expenditures in the aggregate amount of at least $800,000 on or before the second anniversary date of the agreement.

At the end of this period, if Bowmore elects to continue to explore the property it will form a Joint Venture with Amex. The property is not subject to any NSR.

Mr. Paul Dumas, President of Bowmore, stated "The optioning of the Nueva Escondida property continues to strengthen our exploration programs in Mexico. The property is located 100 kilometres west of our Chivas property situated in the SMO, which is highly recognized for its gold rich deposits. This transaction complements our continued efforts in increasing our asset base and becoming an important gold exploration company in Mexico".


The NUEVA ESCONDIDA property is located in the north-western part of Mexico, at the Foothills of the Sierra Madre Occidental in the central part of the Sonora State, 110 km East of Hermosillo. The property is easily accessible by paved road from Hermosillo and then from dirt roads directly to the property. Between 2005 and 2008, Minerales X-Ores conducted regional rock, soil and stream sediments geochemical surveys totaling 551 samples. Out of 356 rock samples some returned values of up to 13.65 g/t Au, 931 g/t Ag, 23.3% Zn and 6.24% Pb. In 2006, a detailed rock geochemical survey was carried out and outlined an area of 1,000 meters by 300 meters with a strong Au-Ag-Zn-Pb geochemical signature found mainly within the sediments with individual values of up to 2.51 g/t Au and 767 g/t Ag. Bowmore conducted a 45 rock samples to corroborate these values and effectively returned similar values of up to 3.18 g/t Au and 226 g/t Ag also with high contents of Zinc and lead. The best intersection was obtained from a silicified sandstone, giving 2.14 g/t Au over 3.8 meters. With the adding of the historical data from X-Ore, the gold zone appears on surface and covers a minimum area of 710 x 960 meters. In June 2010 Minerales X-Ore acquired from the Mexican Ministry of Mines over 2000 hectares of unexplored property with direct extensions to the North and North West of the existing claims. These claims are now all part of the 6,100 hectare land package. Bowmore also conducted an airborne magnetic and radiometric survey on the property to detect any major structures or underlying intrusions known to be associated with the gold mineralisation in the district.

The property is underlain by Paleozoic limestones, dolomites and calcareous sandstones in contact with a Tertiary porphyritic rhyolite shallow intrusion. Andesitic tuffs cover the area in the southern part. The sedimentary rocks have been locally indurated and silicified along the contact with the porphyry. Two main structural NE and NW mineralized trends are present, mainly within the sedimentary package at the western edge of the porphyritic rhyolite. Sphalerite, galena and pyrite are the main ore minerals associated to strongly brecciated and oxidized structures in the dolomitized limestones. These characteristics are similar to the recently discovered new world-class polymetalic deposits, such as the Penasquito and Camino Rojo mines of Goldcorp.

The ASTER high-resolution satellite imagery with alteration mapping shows a strong argillic alteration zone within the porphyry and confirms the silica alteration of the sediments at the contact with the porphyry.

All of Bowmore's assays were obtained by standard 30 g fire assaying-AA finish at ALS Chemex laboratories. The technical information reported in this news release has been approved by Jean-Marie Pronovost P. Geo. and is the Qualified Person as defined by Canadian NI 43-101.


BOWMORE is a Canadian exploration mining company focused on precious metal exploration in Canada and Mexico.

The Company trades on the TSX Venture Exchange under the symbol "BOW".

For further information on BOWMORE, visit

Forward-looking statements:

Except for statements of historical facts, all statements in this news release regarding, without limitation, new project acquisitions, future plans and objectives are forward-looking statements which involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate; Actual results and future events could differ materially from those anticipated in such statements.

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.

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