Latin American Minerals Inc.

Latin American Minerals Inc.

September 18, 2007 15:11 ET

Latin American Minerals Mobilizes for a 5000m Diamond Drilling Program at its Paso Yobai Gold Project in Paraguay

TORONTO, ONTARIO--(Marketwire - Sept. 18, 2007) - Latin American Minerals Inc. (TSX VENTURE:LAT) announces that it has signed a drill contract for the Phase I Diamond Drilling Program totaling 5,000m on its Paso Yobai Gold Project in Paraguay. The contract was awarded to Patagonia Drill S.A., who recently completed the successful Phase I drilling program at the Company's La Carolina Gold Project in Argentina. Patagonia Drill recently opened an office in Paraguay to service the drill contract. The drill is being mobilized from Argentina this week and the Company expects to commence drilling the first week of October.

The Paso Yobai Project is an emerging gold camp with artisanal workings and small scale gold production located in southeastern Paraguay, approximately 150km east of Asuncion, the capital of Paraguay. The Company has the right to earn 70% interest in the project which covers 32,250 hectares, comprising two mining concessions totaling 7,200 hectares and exploration concessions totaling 25,050 hectares of which 4,950 hectares are yet to be approved.

The focal point on the Paso Yobai Gold Project is a 3.7km long trend identified by a series of pits and workings on a NW trending mafic dyke hosted in Permian sandstones. Visible gold occurs in quartz manganese and quartz pyrite veins, parallel veins and stockwork. The gold bearing zone occurs preferentially at the contact between the dyke and the sandstone, in the dyke and in the silicified sandstone adjacent to the contact. The mineralized envelope pinches and swells along strike and ranges from 1 to 20m wide. The mafic dykes range from 2 to 50m wide.

The Company collected 113 samples of the mineralized material exposed in various pits excavated by the local miners along the trend. The assays ranged from trace to 32 gpt gold and average 1.2 gpt gold. Over ninety per cent of the samples contained visible gold.

During Q-2, 2007, Geotech Airborne Ltd. completed a helicopter-borne VTEM and Magnetic survey comprising 3,546.2 line kilometers over the entire property. The initial results were released on July 5th. Supplemental processing and evaluation of the data has established targeting parameters which can be used to prioritize other similar anomalies. For example the magnetic data indicates the potential existence of several additional and untested NW trending dykes on the Property. Furthermore, the 3.7km continuous northwesterly trend of pits and artisanal workings containing visible gold has a unique magnetic high signature surrounded by a magnetic low. This signature typically reflects the result of alteration around the mineralized system. This geophysical signature continues for a further 2.7km along strike on the Property, but has not been explored by local miners. To the southeast the trend has been displaced by a northeasterly trending magnetic high. This disruption is interpreted to be caused by a conjugate fault which offsets the main gold bearing system. The mineralized trend continues southeasterly along strike for a further 2.7km bringing the total length of this magnetic anomaly to almost 9km of which 3.7km has gold mineralization at surface. The remaining 5.3km remains to be tested.

The new apparent conductivity maps show equally impressive results. The shallow conductors show a sub-parallel chargeable trend to the known mineralization trend that extends for 4km immediately south of the known trend. The deeper conductors confirm that this conductive feature continues to depth.

Please check our website at to review the geophysical maps on Paso Yobai.

"The mafic dykes have been used as a preexisting structure or piping conduit to guide pregnant gold-bearing brines upwards along a NW normal fault. The extension of mineralization and the presence of visible gold and the grades associated with it make Paso Yobai a unique new discovery. More importantly, it is likely that the system is intact at depth, since it has not eroded to any significant extent. These types of alkalic low sulfidation systems typically extend between 150 and 500 m at depth. The incoming drilling program will test the continuity of the system at depth, since the length is already proven by existing workings and can extend significantly, according to the geophysical results", reports Dr. Waldo A. Perez, Sr. P.Geo, Vice President of Exploration.

Currently, the Company is carrying out a detailed geochemical soil sampling program to constrain the limits and extension of the gold bearing corridor. A total of 3,000 samples have been collected and 1,000 samples are currently in the laboratory in Mendoza, Argentina for analysis. Soil sample preparation is being done on site by Alex Stewart Laboratories Argentina (ASAA) to facilitate transport of pulps, rather than entire sample, from Paraguay to Argentina. The preparation facility is processing approximately 120 samples a day.

"The commencement of drilling at Paso Yobai is a major milestone for the Project. The drilling will consist of shallow holes to test the known gold bearing vein-zone, exposed by the artisanal miners and below the open pit which has exposed a thickening of the gold bearing vein-zone on the mineralized structure", reports David G. Wahl, P.Eng., P.Geo, President and CEO.

Latin American Minerals Inc. is a mineral exploration company focused on the acquisition and development of base and precious metals projects in under-explored but highly prospective countries of Latin America.

Dr. Waldo Perez, P.Geo. and Sr. Vice-President of LAT, is the designated Qualified Person for the project and is responsible for the contents of this news release.


Sampling and Analytical Protocols: The soil samples were collected between 50cm and 1m depth, at the limit between the A and B horizon. The samples were tagged with a pre-numbered tag and bagged in micropore bags to allow humidity to evaporate. The samples were sent to the preparation facility of Lat in Paso Yobai that is operated by ASAA. The samples were dried in stainless steal containers at 80 degrees C and sieved at -140# mesh. In those cases that small pellets were formed during drying due to high clay content of the sample the pellets were crushed by hand using a stainless steal ball. After drying and sieving the sample was split as many times as needed to obtain a 200 gr pulp that is shipped by a company truck from Paso Yobai to Asuncion and by an international courier from Paraguay to Argentina to the laboratories of ASAA in Mendoza. ASAA is an ISO 9001-certified laboratory with headquarters in England. All samples were assayed for gold and multi-elements by ICP. Gold was analyzed by Fire Assay with AA finish using 50 gram sample. For the multi-elements the samples were dissolved in Aqua Regia at 120 degrees C and read in ICP-OES. Accuracy of results is tested through the systematic inclusion of blanks and certified reference standards.

This news release contains forward-looking statements, which can be identified by the use of statements that include words such as "could", "potential", "believe", "expect", "anticipate", "intend", "plan", "likely", "will" or other similar words or phrases. These forward-looking statements, including statements regarding the Corporation's beliefs in potential mineralization, are based on current expectations, assumptions and projections about future events and entail various risks and uncertainties that are beyond the Corporation's ability to control or predict. Actual results may materially differ from expectations as more information regarding a property is gathered or if the Corporation's estimates or assumptions prove inaccurate. Factors that may materially affect actual results include, but are not limited to, political, business and economic conditions in Argentina and in jurisdictions where the Corporation conducts business, and risks associated with mineral exploration and production. The Corporation does not intend, and does not assume any obligations, to update forward-looking statements, whether as a result of new information, future events or otherwise. Readers should not place undue reliance on forward-looking statements. The results described herein are exploratory in nature and there can be no assurance that they are indicative of Mineral Resources as defined in accordance with National Instrument 43-101.

The TSXV has not reviewed and does not accept responsibility for the adequacy or the accuracy of this release.

Contact Information