Mazorro Resources Inc.
TSX VENTURE : MZO
FRANKFURT : JAM

Mazorro Resources Inc.

June 23, 2011 08:30 ET

Mazorro Announces Option Agreement With Adventure Gold for a 100% Interest in the Dalquier Property, Abitibi, Qc

OTTAWA, ONTARIO--(Marketwire - June 23, 2011) -Mazorro Resources Inc.(TSX VENTURE:MZO)(FRANKFURT:JAM) ("Mazorro" or the "Company") and Adventure GoldInc. (TSX VENTURE:AGE) ("Age") are pleased to announce that they have entered into an option agreement relating to the Dalquier property (the "Property"). The Property is located in the south-central segment of the prolific Archean Abitibi Greenstone Belt of Quebec less than 4 kilometres north of the town of Amos in the township of Dalquier, Quebec. The Property comprises a total of 85 claims covering an area of 3,500 hectares. The Company's initial work plan on the Property will include a high definition magnetic airborne survey to commence as soon as possible. Results of this survey will be reported when available this summer.

Under the terms of the agreement, Mazorro may acquire up to 100% of Adventure Gold's right, title and interest in the Dalquier Property (the "Option Agreement"). Mazorro is required to provide total cash payments of $300,000, a total of 2,000,000 common shares and has committed to conduct exploration of $2,000,000 over a period of five years from the date of the option agreement.

The Dalquier Property

The geology of the Property appears very favorable for the identification of a new polymetallic (Cu-Zn-Au-Ag) deposit. Past exploration work identified Megatem geophysical anomalies along the extensions of the Jay Copper polymetallic (Cu-Zn-Au-Ag) deposit (historical resources, non-compliant with NI 43-101, in the Main West Cu Zone of 1,950,000 short tons at 1.0% Cu and 0.7 g/t Ag and in the Lower Ag-Zn-Cu Zone of 815,000 short tons at 1.3% Cu, 3.2 % Zn, 122.8 g/t Ag; sources: SIGEOM MNRF) located south of the Property (see Figure 1:http://file.marketwire.com/release/maz0623.pdf). The Property also encompasses the southeastern extension of the Raymor gold-zinc deposit (historical resources, non-compliant with NI 43-101, of 500,000 tonnes at 5.5 g/t Au in Zone A; source: SIGEOM MNRF). Historically, very little drilling has been completed along the extensions of those deposits on the Property. Historical drilling intersections on the Property returned 2.7 % Zn over 7.6 metres and 5.2% Zn over 1.2 metres. At the regional scale, Osisko Mining, Aurizon Mines and Bowmore Exploration are active with exploration to the north east of the Property.

"Mazorro is very pleased to initiate a second partnership with Adventure Gold to explore and develop this polymetallic property. Addition of the Dalquier Property expands our focus on exciting Abitibi based projects. We look forward to all the benefits of working in this established Québec mining area", stated Mr. André Audet, President and CEO of Mazorro.

Details of the Option Agreement

In order to earn a 100% interest in the Property, Mazorro must provide total consideration as follows:


Date

Cash Payment
($)

Common Shares
(#)
Cumulative
Work Expenditures
($)
Initial consideration25,000(1,4)500,000(2,4)100,000(3,4)
On or before June 30, 201225,000(4)500,000(4)250,000(4)
On or before June 30, 2016250,0001,000,0002,000,000
Total300,0002,000,0002,000,000

(1) Initial cash payment due upon signing of the Option Agreement.

(2) Initial shares to be issued within 5 business days from receipt of TSX Venture Exchange acceptance.

(3) To be incurred by July 31, 2011.

(4) Firm commitments.

Following the exercise of the Option, Mazorro will grant Adventure Gold a royalty (the "Royalty") equal to two and one-half percent (2.5%) in aggregate of the net smelter returns on all mineral claims of the Property. Mazorro retains the right, at any time to purchase 1 of the 2.5 percentage points of the Royalty by paying AGE the sum of $1,500,000.

This transaction is subject to the receipt of any required regulatory approvals including acceptance of the TSX Venture Exchange. A director of the Company, Mr. Marc L'Heureux, is also a director of Adventure Gold.

Jules Riopel, P.Geo., Vice-President Exploration and Acquisitions of Adventure Gold Inc. is acting as the "Qualified Person" as defined by NI 43-101 and has reviewed this press release. Historical resource estimates presented in this press release relating to adjacent properties were not reviewed by the Company or by AGE's technical team.

Some statements in this release may contain forward-looking information. All statements, other than of historical fact, that address activities, events or developments that the Company believes, expects or anticipates will or may occur in the future (including, without limitation, statements regarding potential mineralization) are forward-looking statements. Forward-looking statements are generally identifiable by use of the words "may", "will", "should", "continue", "expect", "anticipate", "estimate", "believe", "intend", "plan" or "project" or the negative of these words or other variations on these words or comparable terminology. Forward-looking statements are subject to a number of risks and uncertainties, many of which are beyond the Company's ability to control or predict, that may cause the actual results of the Company to differ materially from those discussed in the forward-looking statements. Factors that could cause actual results or events to differ materially from current expectations include, among other things, without limitation, failure to establish estimated mineral resources, the possibility that future exploration results will not be consistent with the Company's expectations, changes in world gold markets or markets for other commodities, and other risks disclosed in the Company's public disclosure record on file with the relevant securities regulatory authorities. Any forward-looking statement speaks only as of the date on which it is made and except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement.

Neither the TSX Venture Exchange or 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

  • Andre Audet
    President & Chief Executive Officer
    613-241-2332

    Launch IR Inc.
    613-751-4448