Pershimco Resources Inc.

Pershimco Resources Inc.

June 18, 2013 07:30 ET

Exploration Results Support Deeper Geological Potential at Pershimco's Cerro Quema Project

ROUYN-NORANDA, QUÉBEC--(Marketwired - June 18, 2013) - Pershimco Resources Inc. (the "Company" or "Pershimco") (TSX VENTURE:PRO)(FRANKFURT:BIZ) is pleased to report that recent geophysical and petrographic results from its ongoing exploration programs both support the significant deeper geologic potential already envisioned to be found below the known oxide gold deposit at its 100% owned Cerro Quema Project in Panama.

The Company has received both the initial results of the Induced Polarization (IP) ground geophysics programs in progress at several of its target areas on the property, as well as petrographic results from the initial batch of thirty-eight (38) select samples that were sent out for detailed analysis. Results of this latest IP survey have highlighted large chargeability bodies located beneath the oxide gold caps at the Quema and La Pava targets, validating Pershimco's exploration model. The petrology results provide further evidence to support the three-dimensional (3D) interpretation generated from the earlier deep IP survey program.


  • Deep IP Survey shows large chargeability bodies, open at depth, under the Quema and La Pava oxide gold deposits;

  • Large Footprint of chargeability body at Quema covers an area of approximately 1.72km by 0.920km;

  • Initial Results of IP Survey at Idaida target area (1.5km southeast of the Quema deposit) highlight an additional large and shallower chargeability system (See Pershimco news release dated February 19, 2013); and

  • Petrology results shows presence of common minerals associated with the typical High Sulphidation- Mineralization Model.

IP Survey

Following successful IP surveys initiated late 2012, additional geophysics surveys and detailed petrology analysis have been budgeted and are being completed. Pershimco has also further expanded the geological team by employing three additional geologists with porphyry experience to work on the preparation of a deep copper-gold drilling campaign scheduled to commence in Q4 2013.

Interpretation of IP surveys on the first three target areas - Quema, La Pava and Idaida - have just been received and, in each case have identified the presence of large chargeable bodies at depth. These bodies, located under the gold oxide deposits, remain open at depth and show a generally inversed cone geometry. These three large chargeable bodies are located along a more than 6km section of the known mineralized Cerro Quema Mineralized Corridor, which has been identified to extend for approximately 17km within Pershimco's concessions.

The Company is currently completing an IP survey at its fourth and largest regional target, Pelona, located further east along the mineralized corridor. To date, these early results bode well for validating the Company's geological model that the high sulphidation systems located at surface appear to be proximal to a porphyry system.


The first batch of samples sent for petrology have returned a positive sequence of mineralogy and have helped to identify numerous key minerals commonly found in this type of mineralization model of a coupled high sulphidation/porphyry system. Some of the minerals identified include bornite, covellite, chalcopyrite, enargite, tennantite and molybdenite.

Pershimco has been working extensively with a consultant petrologist from Australia in preparation for the deep drilling that will be initiated once the studies are completed and analyzed in conjunction with other available exploration data.

Financial update

Pershimco also wishes to provide a financial and operational update to its shareholders. The Company's management team, together with its Board of Directors, has decided to reduce the general exploration and construction budgets in view of the continued volatility in the junior exploration sector market. Budgets will be amended with the intent to preserve Pershimco's cash position while ensuring that steady progress is made in the development of the Company's flagship Cerro Quema Project in Panama. The monthly burn rate has been reduced to USD $1.1 million, permitting the Company to maintain a strong exploration program at the same time it husbands its strong treasury, currently at over C$10.5 million.

General Exploration: Pershimco's ongoing exploration program will focus on the regional targets identified by the previous airborne geophysics survey in addition to systematically advancing its development of the deep copper-gold exploration program currently underway. Pershimco has reduced the number of drill rigs on site from four to one as all geology personnel working on three of the original four drill rigs have been transferred to the regional exploration group to focus on advancing multiple exploration targets. The drill rig onsite is a dual purpose rig having both reverse circulation and diamond core drilling capability with the latter having a depth capacity of approximately 600m. As previously noted, upon completion and evaluation of the current exploration activities in progress, the newly discovered IP chargeability anomalies will be tested by core drilling.

Construction: Much of the initial milestones under the construction of Cerro Quema's pilot plant and leach pads are close to completion, including engineering studies, earthwork and camp expansion. The purchase of major equipment and construction of the pilot plant will be delayed in line with the Company's revised cash preservation strategy.

"Our core objective is to protect the best interests of our shareholder by striving to avert dilution while we continue to generate value at our Cerro Quema Project and retaining a solid treasury will help us to achieve these goals," said Alain Bureau, President and CEO of Pershimco. "With the recent exploration advances we are making, we remain confident that the market will recover and when it does, we believe our current strategy will pay off by placing Pershimco in a contending position to gain a better valuation through the ensuing uptrend."

The information contained in this press release has been reviewed and approved by Mr. John Kapetas, B.Sc. Hons, MAusIMM, MAIG, a Qualified Person under NI 43-101 rules and standards.


Pershimco Resources Inc. is a Canadian-based resources and exploration company listed on the TSX Venture Exchange and the Frankfurt Exchange. The Company holds several mining properties in Canada and South America, including the extraction permitted Cerro Quema advanced project in Panama and the Courville Gold Project in the Val-d'Or Gold Mining Camp, being explored in partnership with Osisko Mining Corporation. The Company is managed by skilled and reputable people with extensive mining, exploration and development experience. The Pershimco Team and its investors are the keys to its success.

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