LeBoldus Capital Inc

September 14, 2010 09:19 ET

LeBoldus to Commence Phase II Exploration Program on Corongo Au-Ag Property

TORONTO, ONTARIO--(Marketwire - Sept. 14, 2010) - LeBoldus Capital Inc. ("LeBoldus" or the "Company") (TSX VENTURE:LEB) is pleased to announce the commencement of exploration on the Corongo Au-Ag Property. A Phase II exploration program focusing on the Descubridora and Santa Rosa East Zones consisting of high definition ortho-photos, detailed surface mapping and sampling, and geophysical surveys has been approved by a Joint Management Committee consisting of representatives of both LeBoldus and Duran Ventures Inc. ("Duran"). A component of the program will include the initiation of negotiations with local communities regarding a Category I Exploration Permit in preparation for a diamond drill program that will test priority targets identified by the Phase II exploration program.

As previously announced, LeBoldus entered into an option agreement (the "Option Agreement") with Duran, whereby LeBoldus can earn a fifty percent (50%) beneficial interest in the Corongo Property. LeBoldus has provided funding of US$250,000 for the Phase II exploration program, fulfilling the first exploration expenditure requirement of the Option Agreement.

The Corongo Property is located in the Department of Ancash in the Republic of Peru, approximately 400 km north of Lima. The property covers an area of 3,100 ha and is comprised of 11 contiguous claims. The Corongo Property is located in a portion of the Western Cordillera of Peru that hosts numerous precious and base metal deposits, including Barrick Gold Corporation's Pierina and Lagunas Norte gold mines and Compania Minera Antamina S.A.'s Antamina copper-zinc mine.

Phase I exploration work completed by Duran identified Au-Ag bearing veins and breccias, Au-Cu-Mo bearing mantos and breccias, disseminated porphyry Cu-Mo mineralization, and Cu-Mo vein systems. The Corongo Property experienced small scale, sporadic historical mining on two areas within the property boundaries from 1895 to the 1980s producing gold, silver and copper.

The Descubridora Zone is the most prospective zone of the Corongo Property. Both surface and underground samples returned significant grades. Initial underground sampling has outlined two mineralized zones characterized by elevated precious metal concentrations. The A mineralized zone is characterized by anomalous mineral contents that included a 3 m channel sample taken along the back of the adit that assayed 14.5 grams per tonne ("gpt") Au and 563.0 gpt Ag. The B zone is characterized by anomalous mineral contents that included a 3 m channel sample taken along the back of the adit that assayed 9.97 gpt Au and 34.8 gpt Ag. These zones possibly represent high-grade ore shoots which may continue at depth. Furthermore, surface sampling (89 samples) returned anomalous metal contents that reach up to 14.6 gpt Au, 483.0 gpt Ag, 0.63% Cu, 2.07% Pb and 1.81% Zn.

The Santa Rosa East mineralized zone comprises shallow to steeply dipping vein and breccia structures that are considered the continuation of the Descubridora vein system approximately 2.5 km to the south. Initial surface sampling is characterized by anomalous mineral contents. Individual surface sample results include a grab sample of float material that graded 6.35 gpt Au, 584.0 gpt Ag and 0.24% Cu and a 1 m channel sample that graded 0.72 gpt Au, 53.2 gpt Ag and 1.47% Cu. 

Paul Davis, President and CEO of LeBoldus, states: "I am excited about the exploration potential of the Corongo Property. The potential to acquire a significant interest in a quality gold project situated in such a prolific mining district in Peru was a major step for LeBoldus and provides a good foundation to build upon and grow the Company. There exists the potential to discover both bulk gold-silver mineralization and vein hosted gold-silver mineralization within the Corongo Property. LeBoldus is utilizing Duran's experienced exploration team located in Peru to complete the exploration programs which will result in savings related to familiarity with the property as well as synergies when sourcing equipment and utilizing contractors. Our plan is to grow LeBoldus through targeted exploration and an acquisition strategy to add quality gold projects to the Company's property portfolio." 

LeBoldus Capital Inc. is a Canadian junior exploration company focused on precious metals exploration in Peru. LeBoldus expects to hold its annual general and special meeting on October 14, 2010 where shareholders will be asked to approve a name change to "Viper Gold Ltd".

Paul Davis, P.Geo., a Qualified Person as defined in National Instruments Policy 43-101, is responsible for all technical information contained in this news release.

Statements in this press release may contain forward-looking information, including expectations of the results of future exploration and the ability to find suitable targets, the ability to negotiate land access agreements with local communities, the ability to obtain necessary government approvals for proposed exploration plans, future production, operating costs, commodity prices, administrative costs, commodity price risk management activity, acquisitions and dispositions, capital spending, access to capital and credit facilities, income taxes and regulatory changes. The reader is cautioned that assumptions used in the preparation of such information may prove to be incorrect. Events or circumstances may cause actual results to differ materially from those predicted, a result of numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of the Company. These risks include, but are not limited to, the risks associated with the mining industry, commodity prices and exchange rate changes. Industry related risks could include, but are not limited to, operational risks in exploration, development and production, delays or changes in plans, risks associated to the uncertainty of reserve estimates, health and safety risks and the uncertainty of estimates and projections of production, costs and expenses. The reader is cautioned not to place undue reliance on this forward-looking information.

Contact Information

  • LeBoldus Capital Inc.
    Paul Davis
    President, Chief Executive Officer and Director
    (905) 767-9177
    (416) 362-9050 (FAX)