Mazorro Resources Inc.
TSX VENTURE : MZO
FRANKFURT : JAM

Mazorro Resources Inc.

April 18, 2011 08:30 ET

Mazorro Resources and Adventure Gold Begin Phase I Drill Program on Lapaska Property, Val D'or East Area, Quebec

OTTAWA, ONTARIO--(Marketwire - April 18, 2011) - Mazorro Resources Inc. (TSX VENTURE:MZO)(Frankfurt:JAM) ("MZO" or "Mazorro") and Adventure Gold (TSX VENTURE:AGE) ("AGE"), are pleased to announce the start of a first phase surface diamond drilling program on the Lapaska Gold Property (the "Property") located in the prolific Abitibi Greenstone Belt, 20 km east of Val-d'Or, Quebec. The Property, totalling 352 hectares, is wholly-owned by AGE and under option to MZO. The first phase drill program, totalling approximately 3,000 metres in six (6) holes, is designed to test the extensions of the Lapaska Central Zone ("LC Zone") laterally and at depth. A surface map detailing the proposed drilling is attached as Figure 1(http://media3.marketwire.com/docs/figure1M.pdf). Additional drilling is already budgeted in order to test the best gold zones identified by the phase I drill program. A longitudinal section (Figure 2: http://media3.marketwire.com/docs/figure2M.pdf) shows the location of the current resources and the potential to extend these resources by exploration. The LC Zone plunging to the south-east is still open laterally and at depth. Additional sub parallel ore shoots and veins that could be repeated in the south-western extension at depth and laterally (east and west) near the surface are still not tested by drilling. Three (3) holes totaling approximately 1,500 metres will test the continuity of the gold envelope (proposed drill holes A, B and C, see Figure 2. Three (3) other drill holes (D, E and F, see Figure 2 will explore the LC Zone at depth.

"Mazorro is excited to start this drill program with Adventure Gold. The Lapaska Property has strong exploration potential and allows us to immediately participate in advanced stage exploration to add to the existing defined mineral resources. We look forward to all the benefits of working in the established Val d'Or gold mining camp and in the mining friendly jurisdiction of Quebec", stated Mr. André Audet, CEO of Mazorro.

The Lapaska Property

The Property is favourably located between the past producing gold deposit Sigma II to the east (150,000 ounces at 2.5 g/t Au: Placer Dome, 1997) which was operated by open pit method and the Simkar gold deposit to the west (NI 43-101 inferred resource of 105,000 oz at 5.3 g/t Au: Megastar, September 2008). The Property contains three significant gold-bearing zones: the Lapaska Central, West and Lourmet zones and is also strategically located along the prolific Cadillac Larder Lake Gold Break, a regionally extensive structure that is spatially related to numerous gold mines.

An NI 43-101 compliant resource estimate has been completed by Innovexplo, (February 9, 2010 and updated for MZO on March 22, 2011 and is available under MZO's profile at www.sedar.com) on the Lapaska Central Zone. The table below shows the variations with respect to metric tonnes, ounces and grades for various cut-off grades with respect to the Inferred Resources of the Lapaska deposit (Central Zone).

Table 1: Inferred Mineral Resource of Lapaska Central Zone

Cut-off Grade g/t AuTonnesAvg. Grade g/t AuOunces of Gold
0.52,143,7021.1579,324
1.0864,5631.8150,396
2.0219,5903.1422,197

Note: Mineral Resources which are not Mineral Reserves do not have demonstrated economic viability.

Option Agreement

MZO and AGE are in the first year of an option agreement for which the definitive agreement was executed January 31, 2011 and received final TSX Venture Exchange (the "Exchange") approval on April 1, 2011. MZO has an exclusive option to earn up to a 70% interest in the Property by spending a total of $7.7M in exploration expenditures, issuing 3,000,000 shares of MZO, paying $250,000 in a cash payment and by paying $2,000,000 (in cash and shares) to AGE over the next 6 years. AGE will be the operator until MZO earns the 70% interest.

Under the terms of the option agreement, in order to acquire an initial 50% undivided interest in the Property (the "First Option"), MZO is required to provide total cash payments of $250,000, a total of 3,000,000 common shares and has committed to conduct exploration on the property of $1,700,000 over a period of three years. Consideration payable and exploration expenditures required under the First Option are summarized as follows: 

DateCash Payment
($)
Common Shares
(#)
Work Expenditures
($)
Following final TSX Venture Exchange acceptance25,0001,000,000-
By no later than December 31, 201125,000500,000500,000 (1)
By no later than December 31, 201250,000500,000500,000
By no later than December 31, 2013150,0001,000,000700,000
Total250,0003,000,0001,700,000
(1) Firm commitment from MZO.

Following the exercise of the First Option, MZO shall have the option to acquire an additional 20% undivided interest in the Lapaska property (the "Second Option"), thereby acquiring a total undivided interest of 70%, by making additional payments of $2,000,000 and by conducting additional exploration of $6,000,000 over another three year period. MZO shall have the option of paying up to 75% of the required cash payments for the Second Option in common shares at a price equal to the market price of the Company's shares on the Exchange on the date such payment is payable less the maximum applicable discount allowed by the policies of the Exchange, subject to the required regulatory and corporate approvals, including disinterested shareholder approval, as applicable. After the Second Option period and MZO fulfilling its contractual obligations under the agreement, MZO shall be entitled to become the operator of the Property.

Mr. Jules Riopel, Vice-President Exploration and Acquisitions of Adventure Gold, is acting as qualified person (as defined by NI 43-101) and has reviewed and approved the scientific and technical information in this press release.

Democratic Republic of Congo Properties

Mazorro also announces that it has provided notice of termination to Congo Mining Company sprl ("CMC") of Kinshasa, Democratic Republic of Congo ("DRC") that it will not continue with its prior agreement for the acquisition of a 100% interest in two mineral exploration permits located in the eastern DRC. The termination of the DRC property agreement allows Mazorro to focus its resources on the newly optioned Lapaska and Figuery, Quebec properties.

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

  • Mazorro Resources Inc.
    Andre Audet
    President & Chief Executive Officer
    613-241-2332