QRS Capital Corp.

QRS Capital Corp.

February 14, 2012 14:12 ET

QRS Capital Corp. Signs Letter of Intent for Option to Acquire Vista Hermosa Copper Project in Chile

THUNDER BAY, ONTARIO--(Marketwire - Feb. 14, 2012) - QRS Capital Corp. (TSX VENTURE:QRS) ("QRS" or the "Company") is pleased to announce that it has entered into a letter of Intent (LOI) to acquire the Vista Hermosa copper project in La Serena, Chile.

Project Description

The Vista Hermosa property contains a near surface, structurally controlled copper deposit with the presence of multiple thick mineralized porphyritic andesites and limestone in close contact to dioritic intrusives and dykes hosting copper oxide rich mantos. Sulfide enrichment levels are evident at depth but this has not been fully tested. The property has been previously explored by the concession owners under the supervision of Senior Geologist Hernan Valenzuela during 2002 to 2004. Geologic mapping and rock geochemical analysis from trenching and surface sampling programs was carried out prior to drilling. During 2002 to 2004, a total of 2,447 meters (1,473m Diamond and 974m Reverse Circulation (RC)) in 13 shallow inclined holes were drilled. This preliminary exploration encountered mineralization containing copper and silver grades. Copper oxides such as atacamite, chrysocolla, copper wad and brochantite are present at surface and shallow depths, and primary copper sulfides such as chalcocite, bornite and chalcopyrite have been noted at depth. The geologic setting corresponds to a volcano-sedimentary suite of rocks, Jurassic-Cretaceous in age belonging to the "Arqueros" Formation.

All drilling samples were assayed in one meter lengths by CIMM (Centro de Investigación Minero Metalurgico-Chile) and ALS-Chemex "La Serena" laboratory and grades ranging from 0.12 to 3.55% Cu and from 2 to 12 g/t Ag were identified. The best intercepts from the historical drilling were from SVH-3, where results indicate 37m of 0.6% Cu including 5m of 2.2% Cu and 5m of 1.4% Cu, and from DDSVH-16 where results indicate 15m at 1.0% Cu, including 6m at 2.2% Cu. The true widths are not known. The majority of the drilling was planned perpendicular to the dip of sedimentary strata and the deposit model was created using the GEMCOM software. A complete summary of the historical drill results will be available on the Company's website at www.qrscapital.com.

Location and Access to Infrastructure

The Vista Hermosa Project, covering 334 hectares is located in the Elqui Province, Estancia El Arrayan, only 27km NE from La Serena and 37km NE of the major Port of Coquimbo. The property is accessible year round by paved and gravel roads and is located between 800 and 1,200 meters above sea level on the Coastal Cordillera of Chile. It is in close proximity to both water and the National electricity grid which provides energy to a local mineral processing plant located 5km away.

The Lambert District where Vista Hermosa is located is within one of the oldest copper, iron and manganese mining districts in Chile. Currently some medium and large mining operations are active in the area.

Historic Resource

Only a minor portion of the Vista Hermosa Project has been studied and less than 5% of the mineralized footprint has been explored through drilling. Professional Geologist Hernán Valenzuela ran the initial exploration and the preliminary results of the prior drilling identified a historic resource estimate of 12M tons at a grade of 1% Cu in a report prepared by him and dated December 15, 2005. The work received the support of Victor Alcalde, who is a recognized Chilean geological system analyst. A qualified person has not done sufficient work to classify the historical estimate as current mineral resources and QRS is not treating the historical estimate as current mineral resources. The historical estimate is relevant for exploration of the project which QRS intends to undertake and is indicative of mineralization.

QRS's CEO, John Seaman, stated, "We are very excited to move ahead with Vista Hermosa, the historic work provides an excellent foundation to build on and this underexplored property has tremendous exploration potential. We think that a systematic exploration program will be able to verify and expand on the historic resource and demonstrate the full potential of the property. "

Objective and Generation of the Mineralization

GEMCOM software was used to establish a localized mineralization in the project area. All sampling included in the original CIMM report for reverse circulation and in ALS for diamond drilling has not been validated.

Based on the information from the sampling, longitudinal and transversal sections were created and used to generate a mineral body model.

Average Grade

The average anticipated mineral grade was found by drilling and surface sampling. Management is of the opinion that based on a review of the historical data and exploration program and knowledge of recent exploration activities in the area, there is potential for positive exploration results.

Terms of Agreement

Pursuant to the LOI, QRS will have the right to acquire a 100% interest in the project by the making cash payments to the vendor over approximately 30 months as follows:

  • US$50,000 on signing of the LOI
  • US$250,000 upon signing of the definitive option agreement (the "Definitive Option Agreement"), which agreement must be signed no later than 60 days from the date of LOI
  • US$500,000 upon QRS starting its drilling program on the project, which program must commence no later than 60 days from the date of the Definitive Option Agreement
  • US$200,000 within 6 months of the date of the Definitive Option Agreement
  • US$ 1,000,000 within one year of the date of the Definitive Option Agreement
  • US$32,000,000 within 6 months after 730 days from the date of the Options Agreement

In the event that an additional 6 months are required for exploration of the Vista Hermosa Project after two years from the date of the Definitive Option Agreement, QRS will pay to the vendor an additional US$ 500,000.

In connection with the agreement, QRS will pay to an arm's length third party a finder's fee of up-to the maximum allowed under the policies of the TSX Venture Exchange in connection with the acquisition.

The completion of the transaction and QRS obtaining the option to acquire the Vista Hermosa property is subject to QRS completing its due diligence in respect of the property, the entering into of a definitive option agreement and all necessary related documentation and the standard conditions for a transaction of this nature, including receipt all necessary regulatory and third party approvals (including the approval of the TSX Venture Exchange). The parties expect to execute the definitive option agreement by Mach 2012. QRS has retained a Qualified Person to review and validate all information associated with the Vista Hermosa property and to prepare a NI 43-101 technical report.

The above information has been prepared under the supervision of geologist Mr. Allen Maynard, MAIG, MAusIMM, who is designated as a "Qualified Person", and who has reviewed the information and has verified the authenticity and validity of the data.

About QRS Capital Corp.

QRS is a mineral exploration company actively seeking exploration stage copper and gold targets in South America, particularly in Chile, Colombia, Brazil, and Ecuador. The company currently holds an 80% beneficial interest in the Judith Property which consists of six mining lots and concessions that cover a combined area of approximately 597.5 hectares located in the City of Aldama, Chihuahua State, Mexico and is entitled to 70% of any net profits from the Judith Property. QRS also holds an option to purchase the remaining 20% beneficial and legal interest in the Judith Property.


"John Seaman" John Seaman Chairman & CEO

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION: This news release includes certain information that may constitute "forward-looking information" under applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, statements about future acquisitions and objectives, exploration results relating to the Vista Hermosa property, expected time of completion of the definitive option agreement, exploration plans for the Vista Hermosa property and the completion of the acquisition of the Vista Hermosa property by QRS. Forward-looking information is necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking information, including the risks identified in the Company's disclosure documents. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. All forward-looking information contained in this press release is given as of the date hereof and is based upon the opinions and estimates of management and information available to management as at the date hereof. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.

Neither TSX Venture Exchange nor 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