Plexmar Resources Inc.

Plexmar Resources Inc.

August 03, 2006 13:24 ET

Plexmar Resources Inc.: Border Permit Award and Acquisition

SAINTE-FOY, QUEBEC--(CCNMatthews - Aug. 3, 2006) - Plexmar Resources Inc.(TSX VENTURE:PLE), is pleased to announce that it has received the final documented government approval, a Supreme Decree from the President of the Republic of Peru allowing its subsidiary Minera ChanChan SAC to legally operate within 50 kilometres of the border with Ecuador. This award is a major step towards obtaining the drilling permit.

The decree covers the first 8 concessions that were originally staked and optioned, which constitute the core of the Bolsa del Diablo project. The application process has already started to obtain a second Decree for the remaining 17 concessions. The process is expected to be a lot shorter this second time around

According to the constitution of Peru, within 50 kilometers of the border, foreigners cannot acquire any mining titles, land, water rights and oil & gas rights directly or indirectly when backed by foreign capital unless they are awarded a Supreme Decree by the Council of Ministers. The process is a lengthy one and requires approval by the Ministry of Mines, the Army, the Council of Ministers and then by the President of the Republic himself.

Guy Bedard, president says: "We are delighted to have been awarded the Decree in record time. This is another milestone for the project; Plexmar is now the only foreign Company in the Bolsa del Diablo sector to have full legal rights to operate. The process was started in February 2005 and was recently completed. Only a few similar Decrees have ever been awarded to foreign Companies in the past ten years."

Ground geophysics is progressing well and should be completed along with the airborne geophysics near the end of this month. Assay results are pending from the lab and are expected shortly, patience is needed as labs are extremely busy this time of the year.

In Ecuador, the due diligence is progressing well on the 900km(2) property. Geologists have visited key areas of the property and a legal team is revising the titles status. Shareholders will be informed of the results as soon as they become available.

Also, the Company has signed a contract with a local prospector to purchase 100% of the mining rights of 3 different concession blocks covering over 7,000 hectares (70 km2) located near the Bolsa del Diablo project. On block No.1, local miners who are mining high grade zinc, silver and gold ores, which is being shipped directly to Asia for process. On block No.2, the concessions surround properties already owned by our subsidiary near Sapillica. Approximately 100 informal miners are pulling out gold on a daily basis. Block No.3 is directly in line with the structural corridor of Bolsa del Diablo and is adjacent to 2 small underground mines being developed by local mining companies. Plexmar will issue a total of 2,000,000 shares to the owner and a cash payment of $50,000US.

103M shares outstanding

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Plexmar Resources Inc.
    Guy Bedard
    (418) 658-6776
    Paradox Public Relations
    1 (866) 460-0408
    1 (514) 341-0408