Cabia Goldhills Inc.
TSX VENTURE : CGH

Cabia Goldhills Inc.

September 11, 2012 09:36 ET

Cabia Goldhills Inc. Announces the Acquisition of the Mejia Mines

MONTRÉAL, QUÉBEC--(Marketwire - Sept. 11, 2012) - Cabia Goldhills Inc. ("Cabia") (TSX VENTURE:CGH) is pleased to announce that it has entered into binding agreements to acquire four artisanal mines which are adjacent to its 100% owned Mejia Project, in the San Lucas gold belt of the Bolivar Department, Colombia.

The Mejia Project is located within the under explored San Lucas gold district where intense artisanal mining is present, including four artisanal mines adjacent to the Mejia Project, namely La Gloria Mine, El Fogaje Mine, Los Romanes Mine and El Turco Mine (the "Mejía Mines").

The La Gloria Mine is exploiting an underground mine exploiting one of the main veins in the area. Reconnaissance work done by Cabia suggest the presence of a base metal-carbonate type auriferous system with gold mineralization characterized by the presence of massive sulphide mineralization containing sphalerite, galena, pyrite, minor chalcopyrite and quartz. This high-grade vein was sampled by Cabia and returned grades as high as 171.5 g/t Au. El Fogaje, Los Romanes and El Turco are exploiting additional high grade veins with similar geology. Samples taken by Pierre O'Dowd, returned grades as high as 155.5g/t Au, as reported in Cabia's NI-43-101 report on the Mejia Project available on the company's SEDAR profile at http://www.sedar.com.

Pursuant to the agreements, Cabia will realize the exploration of the mineralized zones for a period of two years, renewable at the option of Cabia. Upon the registration of the final transfer of title to the properties and the completion of a NI 43-101 compliant report, Cabia will pay to the owners an amount of US$10 for each ounce of reserves encountered on the property. In addition, Cabia will pay a royalty corresponding to 15 % of the net profits and will reimburse the owners for the cost of their equipment and capital assets. Cabia can return the properties to the current owners at all times and without further obligations if it does not discover sufficient reserves which can be exploited economically.

"We are please to have concluded these agreements which will enable Cabia to expand significantly the advancement and development of our Mejia Project." states Michel Delisle, President and CEO of CABIA Goldhills. "Having access to the workings of these artisanal mines will enable our geological team to gain a better understanding of the area and could enable Cabia to become a precious metal producer earlier than anticipated" he added.

About Cabia Goldhills Inc.

www.cabiagoldhills.com

Cabia Goldhills is a TSX-V listed junior exploration company focused upon the exploration and development of gold projects in Colombia. Cabia currently has 35 million shares outstanding. Cabia's Mejia Project is a 6,946 ha mineral concession located close to sea level and outside any environmentally restricted areas in the Sur de Bolivar region of the Department of Bolivar, Colombia.

Quality Control and Assurance:

Pierre O'Dowd P. Geo., is the "Qualified Person", as defined by National Instrument 43-101, who has read and approved the technical and scientific information in this news release.

Statements in this press release contain forward-looking information within the meaning of applicable securities law. Forward-looking information is frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may" or "will" occur. Readers are cautioned that assumptions used in the preparation of forward-looking information may prove to be incorrect. Although we believe that the expectations reflected in the forward-looking information are reasonable, there can be no assurance that such expectations will prove to be correct. We cannot guarantee future results, level of activity, performance or achievements. Consequently, there is no representation that the actual results achieved will be the same, in whole or in part, as those set out in the forward-looking information. There is no guarantee that the acquisition of the Mejia Mines will be completed.

Forward-looking information is based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors (many of which are beyond the control of Cabia) that could cause actual events or results to differ materially from those anticipated in the forward-looking information. Some of the risks and other factors could cause results to differ materially from those expressed in the forward-looking information include, but are not limited to: general economic conditions, the risks associated with the mining exploration, commodity prices and exchange rate changes. Industry related risks could include, but are not limited to: operational risks in exploration, development and production; delays or changes in plans; competition for and/or inability to retain other services; competition for, among other things, capital, acquisitions of reserves, undeveloped lands, skilled personnel and supplies; risks associated to the uncertainty of reserve estimates; governmental regulation, including environmental regulation; geological, technical, drilling and processing problems and other difficulties in producing reserves; the uncertainty of estimates and projections of production, costs and expenses; unanticipated operating events or performance which can reduce production or cause production to be shut in or delayed; incorrect assessments of the value of acquisitions; the need to obtain required approvals from regulatory authorities; stock market volatility; access to capital; and other factors. Readers are cautioned that this list of risk factors should not be construed as exhaustive. The forward-looking information contained in this news release is expressly qualified by this cautionary statement. Cabia does not undertake any obligation to update or revise any forward-looking statements to conform such information to actual results or to changes in our expectations except as otherwise required by applicable securities legislation. Readers are cautioned not to place undue reliance on forward-looking information.

Neither the 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

  • Cabia Goldhills Inc.
    Mr. Maurice Montpetit
    Vice President, Business Development
    (514) 237-0645

    First Canadian Capital Corp.
    Jason Monaco
    416-742-5600 ext 238
    Toll Free: 1-866-580-8891