July 12, 2007 13:20 ET

Karmin Discovers New Babacu Massive Sulphide at Aripuana, Brazil Incl. 3 Metres Grading 11.7% Zinc, 3.8% Lead and 147 g/t Silver

AMEC Scoping Study Due Shortly

TORONTO, ONTARIO--(Marketwire - July 12, 2007) - Karmin Exploration Inc. (TSX VENTURE:KAR) is pleased to announce the discovery of a new massive sulphide body on their 30% owned, free-carried, Aripuana zinc/copper/lead/gold/silver massive sulphide district in Mato Grosso, Brazil. The highest grade intersection was 3 metres grading 11.7% zinc, 3.8% lead and 147.4 g/t silver and the widest was 22.1 metres grading 5.0% zinc, 1.6% lead and 46.3g/t silver (see Table 1 below). Babacu is the third significant base metal mineralization discovery in the emerging Aripuana massive sulphide district which lies within Karmin's joint venture area (see map in Fig.1 below).

"Discovery of a third, zinc rich, massive sulphide body adjacent to two known deposits has demonstrated that persistence has been rewarded, and that the district potential at Aripuana is significant", commented Bill Fisher, Karmin's CEO, "Karmin has contracted independent engineer AMEC to prepare the first formal National Instrument 43-101 compliant report on the adjacent Arex and Ambrex deposits. A new discovery at Babacu may prove to be integrated into further development of this emerging base metal district."

The Babacu discovery program consisted of 20 holes totalling 11,074.75 metres, of which 9 holes encountered significant sulphide mineralization and three holes have not been released. The reported holes are awaiting the gold assays. The newly discovered zone at Babacu reported today is a previously unidentified massive sulphide mineralization below an outcropping gossan discovered by Karmin geologists (formerly Ambrex). It is located 900 metres south east of the Ambrex mineralization between a depth of 250 metres and 400 metres. The drilling to date is summarized in the attached chart.

Independent Scoping study by AMEC The independent engineers, AMEC, have prepared a scoping study on the Arex and Ambrex deposits which has been received by the project operators, Votorantim Metais, for review, and will form the basis of the NI 43-101 report. This is the first scoping study ever carried out independently on the property. Previous drilling at Ambrex included 42.4 metres grading 13.2% zinc, 5.5% lead and 100 g/t silver (release of Sept 28th 2005) and at Arex included 7.1 metres grading 9.9% zinc, 5.4% lead and 214 g/t silver (release of February 9th 2006).

Budget for 2007 Votorantim are responsible for all expenditures up to a completed bankable feasibility study, and are ahead of schedule on the US$3.5 million budget for 2007.

Table 1. Babacu Discovery Program

From To Cu Pb Zn Au Ag
Hole Number m m Meters % % % g/t g/t

FPAR039 303 305.6 2.6 0.05 1.6 5.1 0.032 41.8
FPAR075 416.5 422 5.5 0.30 1.0 2.8 N.D 9.3
FPAR077 280.5 283.5 3 0.03 4.3 7.8 N.D 181.7
319.6 322.7 3.1 0.02 0.0 3.9 N.D 8.3
FPAR087 405.5 432 27 0.11 1.4 3.4 N.D 16.8
442.6 445.6 3 2.3 N.D
FPAR088 394 416.1 22.1 0.08 1.6 5.0 N.D 46.3
FPAR094 579.9 583 3.1 0.10 3.8 11.7 N.D 147.4
599.9 604.5 4.6 0.04 0.3 4.5 N.D 11.08
FPAR095 370.3 374.9 4.6 0.47 0.6 3.7 N.D 33.18
390.4 393.8 3.4 0.16 1.0 5.9 N.D 16.61
FPAR096 516 518.9 2.9 0.02 0.0 5.5 N.D 1.45
558.4 562.8 4.4 0.01 0.9 3.9 N.D 30.74
FPAR100 446.9 449.1 2.2 0.01 0.7 11.2 N.D 16.65

FPAR078 No significant mineralization
FPAR073 No significant mineralization
FPAR086 No significant mineralization
FPAR079 No significant mineralization
FPAR038 No significant mineralization
FPAR074 No significant mineralization
FPAR097 Results pending
FPAR102 No significant mineralization
FPAR104 Results pending
FPAR105 No significant mineralization
FPAR103 Results pending

Karmin, Anglo-American & Votorantim

Karmin Exploration is a mineral exploration company focused on exploration and development in Brazil. Karmin through its subsidiary Mineracao Rio Aripuana Ltda. holds 30% of the Aripuana project. Karmin is free carried to the completion of a fully independent bankable feasibility study. The remaining 70% is owned by Anglo American Corporation who is optioning their interest to Votorantim Metais (a division of the privately-held Votorantim Group) who is the project operator. Votorantim, the world's 6th largest zinc producer, have three zinc smelters, and are currently purchasing between 55% and 60% of their concentrate needs. Their stated objective is to find more zinc and lead resources from their own mines to feed concentrates to their smelters, rather than rely on external supplies of feed stock.

Karmin is publicly traded on the TSX-Venture Exchange under the symbol KAR. The company has 38,453,591 shares outstanding and 40,053,591 fully diluted. William Fisher, P.Geo. President of Karmin, is the designated Qualified Person under NI 43-101. He has reviewed this release for accuracy.

FORWARD-LOOKING STATEMENTS: Except for statements of historical fact, all statements in this news release -- including, without limitation, statements regarding production estimates and future plans and objectives of Karmin are forward-looking statements that involve various 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.

NOTE: To view "Figure 1. Location of Babacu discovery", please click the following link: http://www.ccnmatthews.com/docs/kar0712.pdf

The TSX Venture Exchange neither approves nor disapproves of the information contained in this news release.

Contact Information

  • Karmin Exploration Inc.
    William (Bill) Fisher P.Geo
    President & CEO
    (416) 367-0369
    (416) 868-6467 (FAX)
    Email: wfisher@karmin.com
    Karmin Exploration Inc.
    Robert Ciccarelli
    (416) 367-0369
    (416) 868-6467 (FAX)
    Email: rcicc@karmin.com
    Website: www.karmin.com