Ginguro Exploration Inc.
TSX VENTURE : GEG

Ginguro Exploration Inc.

February 28, 2008 09:00 ET

Ginguro Options an IOCG-Type Cu-Au-Ag Prospect in Chile

SUDBURY, ONTARIO--(Marketwire - Feb. 28, 2008) - Ginguro Exploration Inc. (TSX VENTURE:GEG) ("Ginguro" or the "Company"), is pleased to announce that it has entered into an agreement with Olympus Explorations Inc. ("Olympus"), a private Ontario corporation, and Juan Bedmar Rivera (collectively, the Optionors) whereby it can acquire a 100% interest in the Optionors' El Alto copper-gold-silver property located in Chile, South America.

Under the terms of the agreement, Ginguro has a 2 year earn-in option to purchase 100% of the property by making staged payments totaling $100,000 and 100,000 common shares. The Optionors will retain a 2% Net Smelter Return with the Company holding the option to purchase 1% for $1.0 million.

Lionel D.S. Winter, the non-executive Chairman of the board of the Company, is the Secretary/Treasurer and a director of Olympus and Mr. Winter and members of his immediate family own or control, directly or indirectly, approximately 29% of the outstanding shares of Olympus. Mr. Winter declared his interest in the transaction and the transaction was unanimously approved by the independent directors of Ginguro.

The El Alto project lies at the southern end of the Chilean Mesozoic Iron Belt, one of the most prospective Iron-Oxide Copper Gold ("IOCG") provinces in the world, spanning over 1,200 km along the Coastal Cordillera of Chile, from just north of Santiago in the south to the city of Antofagasta in the north. This belt hosts several world class copper deposits including, based on publicly available information, Candelaria (470 Mt @ 0.95 % Cu, 0.22 g/t Au, & 3.1 g/t Ag), Mantos Blancos (400 Mt @ 1% Cu), Manto Verde (350 Mt @ 0.75% Cu), and El Soldado (200 Mt @ 1.5% Cu).

Results of the Company's recently completed due diligence sampling confirm the polymetallic nature of the El Alto breccia body. Highlights include a length weighted average grade chip sample of 1.68% Cu and 0.59 g/t Au over 14.6 metres, including 2.81% Cu and 1.21 g/t Au over 6 metres, and composite chip samples and grab samples from individual breccia seams ranging from 1.39% - 11.55% Cu, 0.96 g/t - 4.0 g/t Au, and 23.9 ppm - 70.3 ppm Ag.

"Ginguro's Vice President, Exploration, Yves Clement, identified the property in 1999 while consulting in the area," stated Ginguro's President and CEO, Dr. Michael Byron. "Based on his understanding of Andean mineral deposits, in particular his field experience while managing an exploration office in Copiapo, Yves recognized that the El Alto-style Cu-Au-Ag-Co mineralization is best characterized by a IOCG ore deposit model, and that the property may have the potential for hosting a composite-type IOCG deposit similar to the Candelaria deposit located 550 kilometres to the north of El Alto.". "We consider this acquisition to be a significant addition to our portfolio of properties, one that will provide a platform from which Ginguro will continue to expand its activities in Chile".

The El Alto property lies 1500 m above sea level and is located approximately 100 kilometres north-northwest of the city of Santiago within the San Felipe - Putaendo district; a 30 km x 20 km mining district characterized by widespread occurrences of vein - breccia - manto style IOCG mineralization hosting several active small scale polymetallic Cu-Au-Ag mines. The property which consists of three contiguous mining claims (800 hectares), has been subject to small scale mining activity since colonial times. The Main Workings area was the focus of limited mining activity during the 1930's as evidenced by numerous workings excavated over an area approximately 250 m x 75 m. Since this early mining activity, the property has experienced limited exploration, and to the best of the Company's knowledge, no diamond drilling or modern geophysical surveys have been conducted.

A total of 26 characterization samples were collected from the property, with the majority taken from the Main Workings area and other adits, as well as from waste dumps from other workings, within an area 200 m south and 500 m north of the Main Workings. Of the 26 samples, 8 were linear chip samples, 6 were composite chip samples, and 12 were grab samples. Sample results are presented in the table below. Sampling of the historic workings was limited to composite chip and grab samples due to unstable ground conditions.

Mineralization on the El Alto property is characterized by linear bodies of multiphase hydrothermal/tectonic breccias cross-cutting a thick sequence of skarnified Lower Cretaceous volcaniclastic sequence intruded by a basin - parallel belt of granitoids of Lower - Middle Cretaceous age. The chalcopyrite - pyrite bearing specularite - magnetite - amphibole rich breccia mineralization is characterized by a Cu - Au - Ag (+/- Co, Bi, Ni, W, Zn) geochemical signature typical of IOCG deposits.

The El Alto polymetallic breccia body is exposed over a minimum 35 m long x 10 m - 15 m wide x 25 m high area within the Main Workings. El Alto-style mineralization, in the form of isolated to sporadic iron oxide-rich breccia seams cross-cutting calc - silicate altered volcaniclastic rocks, was identified over a 700 m distance within smaller workings along the margin of the El Alto dioritic intrusion.

El Alto breccia-style IOCG mineralization exhibits excellent potential to form a, moderate sized, relatively high grade Cu - Au - Ag - Co deposit. Based on the widespread occurrence of iron oxide-rich polymetallic mineralization, its favorable structural setting, and the permeable nature of the coarse volcaniclastic rock package, the El Alto property also exhibits the potential for hosting a large composite type IOCG deposit (i.e. Candelaria deposit).

Initial exploration activities are scheduled to commence in March 2008 and will include establishing an exploration grid and conducting Induced Polarization (IP) and Magnetometer ground geophysical surveys. The geophysical data, in association with detailed geological and structural mapping and additional lithogeochemical sampling planned for the second Quarter, will lead into a diamond drill program planned for later in the year.



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Sample # Sample Type Length / Historical Cu Au Ag Co
Area (m) Working (%) (g/t) (ppm) (ppm)
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162001 Composite Chip 5 x 5 Outcrop 0.03 0.013 0.2 40
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162002 Composite Chip 0.3 x 0.7 Adit 0.01 0.033 3 105
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162003 Grab Adit Dump 3.69 0.052 4.4 79
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162004 Composite Adit Dump 0.49 0.019 6.4 445
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162005 Linear Chip 1.4 1.42 0.128 11.1 602
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162006 Composite Decline Shaft 0.02 0.028 0.7 236
Dump
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162007 Linear Chip 1.9 Main Portal Face 0.28 0.01 1.3 26
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162008 Linear Chip 0.7 Main Portal Face 1.71 0.029 3.9 169
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162009 Linear Chip 4.5 Main Portal Face 0.93 0.199 2.7 68
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162010 Linear Chip 0.4 Main Portal Face 0.91 0.095 1.5 48
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162011 Linear Chip 3.0 Main Portal Face 3.19 1.24 26.7 23
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162012 Linear Chip 3.0 Main Portal Face 2.44 1.19 14 51
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162013 Linear Chip 3.0 Main Portal Face 0.63 0.106 3.3 35
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162014 Composite Chip 0.4 x 1.0 Main Workings 2.88 0.965 23.9 127
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162015 Grab Main Workings 1.39 2.33 34.8 15
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162016 Composite Chip 0.6 x 1.5 Main Workings 2.44 4 70.3 17
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162017 Composite Chip 0.7 x 1.0 Main Workings 3.57 0.028 2.3 95
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162018 Grab Lower Main 11.55 2.13 59.3 124
Workings
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162019 Composite Chip 0.4 x 1.0 Lower Main 1.9 1.71 25.4 15
Workings
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162020 Grab South Adit 0.08 0.009 0.5 77
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162021 Grab South Adit 0.01 0.007 0.2 24
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162022 Grab South Adit 0.06 0.014 0.2 15
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162023 Grab Dump Adit 0.52 0.023 0.8 73
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162024 Grab Camp Adit 0.27 0.026 0.8 188
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162025 Grab Camp Adit 0.22 0.275 7.4 18
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162026 Grab Camp Adit 0.24 0.557 33.7 36
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Quality Control

Ginguro has implemented a quality control program to ensure best practices in sampling and analysis. A field sample duplicate, blank, and analytical standard, is submitted within every 40 sample batch. Samples are transported in security sealed bags for preparation at ALS Chemex analytical facility in Coquimbo, Chile, an ISO 9001:2000 registered laboratory. All samples were analyzed for gold by Fire Assay with an AA Finish, as well as an exploration suite of elements by ICP-MS. Ginguro's Vice President, Exploration, Yves Clement, P.Geo., is the Qualified Person, according to National Instrument 43-101, for the El Alto Project and has prepared or supervised the preparation of the technical data included in this news release.

About Ginguro

Ginguro is a mineral exploration company focused on the acquisition, exploration and development of mineral properties in Canada and South America. The Company holds interests in three properties in Ontario, and one property in Chile. Ginguro's focus is on the acquisition of quality properties that lend themselves to the development of highly prospective regional exploration plays. Additional information about the Company can be found in Ginguro's final prospectus dated August 21, 2007 which has been filed and is available on SEDAR at www.sedar.com. To learn more about Ginguro Exploration Inc., please visit: www.ginguro.com.

Forward-looking Statements

Statements in this release that are forward-looking statements are subject to various risks and uncertainties concerning the specific factors disclosed under the heading "Risk Factors" in the Company's filings with Canadian securities regulators. Such information contained herein represents management's best judgment as of the date hereof based on information currently available. The Company does not assume any obligation to update any forward-looking statements, save and except as may be required by applicable securities laws.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Ginguro Exploration Inc.
    Michael J. Byron, Ph.D., P.Geo.,
    President and CEO
    (705) 560-2382
    Email: info@ginguro.com
    or
    Ginguro Exploration Inc.
    Yves Clement, P.Geo.
    Vice President, Exploration
    (705) 560-2382
    Email: info@ginguro.com
    Website: www.ginguro.com