Guerrero Exploration Inc.
TSX VENTURE : GEX

Guerrero Exploration Inc.

March 07, 2011 04:00 ET

Guerrero Acquires Chapalota Gold Property in Sinaloa, Mexico

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 7, 2011) - Guerrero Exploration Inc. (TSX VENTURE:GEX) ("Guerrero" or the "Corporation") is pleased to announce that Guerrero and Riverside Resources Inc. ("Riverside") (TSX VENTURE:RRI) have entered into a Letter Agreement whereby Guerrero can acquire a 70% interest in Riverside's Chapalota Property (the "Property"). Guerrero must issue Riverside an aggregate 1,250,000 Common shares, make total cash payments of $200,000 to Riverside, and incur $2,250,000 in exploration expenditures on the Property within 36 months of the agreement. A finder's fee may be paid on the property.

Property Details:

The Chapalota property is located approximately 50 km northeast of the city of Mazatlan in south-central Sinaloa, Mexico, immediately north of Geoinformatics' Azulitas polymetallic sulphide deposit (5.6 million tonnes of 0.9% Cu-Eq.). The Chapalota property covers an area of 8,073 hectares and is located on the western margin of the Sierra Madre Occidental Belt with good road access, water, power and related infrastructure.

As part of Guerrero's standard due diligence process, the Company received compiled extensive geo-scientific information on the Western Gold Belt from Riverside to better understand the regional geologic structures and mining history. This belt has long been known for its major epithermal gold-silver deposits of the Sierra Madre Occidental Province, such as the San Dimas District – Tayoltita Mine, which lies directly to the east of the Chapalota Project. The application of modern exploration techniques in central Sinaloa has identified numerous new metal rich zones. The Chapalota Project is located approximately 50 kms north of Silvermex's Rosario Mine, and is approximately 150 kms south of US Gold's Majistral Mine, Oro Gold's La Trinidad Mine, and Scorpio's Nuestra Senora Mine. The geology on the Chapalota property fits in the middle of this cluster and is geologically comparable with many of the nearby deposits.

Rock chip channel samples returned values up to 32 g/t gold from the summer exploration program on the 100% Riverside owned project. Results from the program identified rock chip channel samples ranging from <0.5 ppb to 32 g/t Au over 0.5-3 metre rock sample widths.

Riverside's 2010 exploration program discovered six distinct high-grade gold zones using rock chip channel samples, guided in part by previous soil and stream sediment sampling results. Assay results from rock samples received include higher grades associated with shear zones and through-going fault structures, as well as shear and brittle-ductile fault intersections. Some of the gold highlights from the rock chip channel sampling include 32.1 g/t Au over 0.5m, 5.68 g/t Au over 1.5m, 3.13 g/t Au over 1m, and 2.3 g/t Au over 0.9m. These targets require very little follow up work before drill testing.

The previous stream sediment program on the Chapalota Project returned results from <5 ppb up to 1.0 g/t Au along with lower grades of copper and molybdenum. The follow up detailed soil geochemical sampling program carried out by Riverside returned encouraging gold values (<5 ppb up to 3.98 g/t), confirming the presence of a broad north-west trending corridor of anomalous gold, arsenic and molybdenum values. Highlights from the soil sampling program include 70 samples returning gold values in excess of 0.1 g/t Au (100 ppb) with 14 samples returning gold values in excess of 0.5 g/t Au, including 3.9 g/t, 2.86 g/t and 2.68 g/t Au.

This mineralized trend corresponds to an interpreted north-west trending structural corridor that is approximately 10 km long and 2.5 km wide. This structural corridor has been interpreted by Riverside geologists as a possible broad shear zone with the potential to host a significant orogenic gold system. Prospect scale mapping has identified zones of stockwork quartz veining associated with 10m to 100m wide shear zones, with 100m to 1 km strike extents, within the main north-west trending structural corridor on the property. These other anomalous zones show potential to become drill targets upon further investigation.

David Stadnyk, President & CEO of Guerrero Exploration Inc., stated, "Guerrero's technical team has been actively assessing the Chapalota Gold property with the assistance of Riverside's Mexican Mineral Database and local knowledge. We are excited to advance this high potential, drill ready gold project which is in a great fairway surrounded by active drilling by majors in the area. Chapalota will complement our Cerro Azul property and will add value to Guerrero."

Assaying and Qualified Person:

Samples were taken to Hermosillo, Mexico where ALS Laboratory Group's mineral division ALS Chemex crushed and pulverized each sample. The rejects remained with ALS Chemex while the pulps were transported to ALS Chemex's ISO 9001-2008 certified laboratory in North Vancouver, BC, Canada for analysis. A QA/QC program was implemented as part of the sampling procedures for the exploration program. Duplicate, standard and blank samples were randomly inserted into the sample stream prior to being sent to the laboratory.

The scientific and technical data contained in this press release was prepared under the supervision of Troy Gill, BSc (Geol.), a member of the Australian Institute of Geoscientists, who acts as a "qualified person" under National Instrument 43-101 Standards of Disclosure for Mineral Projects.

About Guerrero Exploration Inc.

Guerrero Exploration Inc. is committed to a long term business strategy designed to achieve optimal levels of profitability and shareholder value. Guerrero Exploration Inc. is a Canadian based exploration mining company with a focus on the high yielding Mexican copper, gold and silver mining area known as the Guerrero Gold Belt and the Sierra Madre Occidental Belt. The Corporation's common shares trade on the TSX Venture Exchange under the symbol "GEX".

Advisory

Certain statements and information contained in this press release, including but not limited to management's assessment of Guerrero's future plans and operations, production, reserves, revenue, commodity prices, operating and administrative expenditures, funds from operations, capital expenditure programs and debt levels contain forward-looking statements. In particular, this press release contains statements concerning the anticipated review of seismic data and identification of drilling prospects and establishing a portfolio base and the anticipated closing date of the Offering and the anticipated amount and use of gross proceeds of the Offering. All statements other than statements of historical fact may be forward looking statements. These statements, by their nature, are subject to numerous risks and uncertainties, some of which are beyond Guerrero's control including the effect of general economic conditions, industry conditions, changes in regulatory and taxation regimes, volatility of commodity prices, escalation of operating and capital costs, currency fluctuations, the availability of services, imprecision of reserve estimates, geological, technical, drilling and processing problems, environmental risks, weather, the lack of availability of qualified personnel or management, stock market volatility, the ability to access sufficient capital from internal and external sources and competition from other industry participants for, among other things, capital, services, acquisitions of reserves, undeveloped lands and skilled personnel that may cause actual results or events to differ materially from those anticipated in the forward looking statements. Such forward-looking statements, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated in the statements made and should not unduly be relied on. These statements speak only as of the date of this press release. Guerrero does not intend and does not assume any obligation to update these forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law. Guerrero's business is subject to various risks that are discussed in its filings on the System for Electronic Document Analysis and Retrieval (SEDAR).

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

  • Guerrero Exploration Inc.
    David Stadnyk
    President and Chief Executive Officer
    604.685.0088 Ext. 229
    or
    Guerrero Exploration Inc.
    Investor Relations
    604.685.0088 Ext. 228
    info@grxpl.com