Rio Cristal Resources Corporation
TSX VENTURE : RCZ
BVLAC : RCZ

Rio Cristal Resources Corporation

November 12, 2010 09:30 ET

Rio Cristal Signs Option Agreement on the La Cumbre Copper Project in Southern Peru

VANCOUVER, BRITISH COLUMBIA and LIMA, PERU--(Marketwire - Nov. 12, 2010) - Rio Cristal Resources Corporation (TSX VENTURE:RCZ)(BVLAC:RCZ) ("Rio Cristal" or the "Company") announces that it has signed an Option Agreement ("the Agreement") on a highly prospective copper oxide project located in southern Peru.

Rio Cristal's preliminary review of La Cumbre indicates evidence of potential zones of bulk-mineable copper oxide mineralization grading in excess of 2% copper. Additionally there is potential for copper sulfide mineralization in a very prospective belt hosting iron oxide copper-gold deposits. Extensive recent underground workings indicate a possible resource which could be rapidly quantified with potential for mineralization extensions.

Thomas Findley, President and CEO of Rio Cristal, said "We are pleased to have finalized an option agreement on La Cumbre. We believe that the project offers the possibility of mining surface copper oxides which may provide cash flow to fund exploration for deeper copper and gold sulfide ores. Mining of oxides will require environmental and mining permits and we expect to begin the process immediately. La Cumbre is a project that fits very well into the Company's strategy of adding quality gold and copper projects to our exploration portfolio."

The La Cumbre project consists of concessions covering 4,695 hectares located near Chala, in southern Peru at an altitude averaging 1,000 meters with excellent access and infrastructure.

The terms of the Agreement allow the Company to acquire up to a 70% interest in the La Cumbre project through a series of cash and share payments over a six year period totaling US$3,235,000 (US$55,000 upon signing the Option Agreement) and 3,000,000 Rio Cristal common shares (300,000 shares upon signing the option agreement). In addition the Company must spend US$6,500,000 in exploration and other expenses on the property over the same six year period (US$150,000 in the first year) and complete a prefeasibility study. The Agreement is subject to approval by the TSX-Venture Exchange.

About Rio Cristal Resources Corporation

Rio Cristal Resources is a Canadian corporation focused on the discovery and further development of gold, copper and zinc deposits in Peru. The Company's most advanced exploration project is the 18,000 hectare Bongara zinc claim block located in northern Peru. Outstanding initial drilling results confirm that the project is within an important emerging Mississippi Valley-type zinc district. The Company expects to begin a second drill campaign in early 2011 when permits are received.

The Company has also begun drilling at its 2,500 hectare Condor gold project near Nazca, Peru. The principal economic targets at Condor are gold-mineralized, potentially bulk-mineable zones hosted in sandstone and volcaniclastic sequences of Cretaceous to Lower Tertiary age. The 1,000 meter drilling program is expected to be completed by year-end 2010.

Information about Rio Cristal Resources Corporation can be found on the Company's website, www.riocristalresources.com.

This news release includes certain "forward-looking statements" under applicable Canadian securities legislation. All statements other than statements of historical fact included in this release, including, without limitation, statements regarding potential exploration results, future plans and objectives of the Company are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future results, events and objectives could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from Rio Cristal's expectations include exploration and other risks detailed from time to time in the filings made by the Company with securities regulators.

This news release does not constitute an offer to sell or solicitation of an offer to sell any securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

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

  • Rio Cristal Resources Corporation
    Lucia Ferrero
    (778) 588-6880 or Toll Free: (866) 609-9644
    or
    Rio Cristal Resources Corporation
    Thomas Findley
    (778) 588-6880 or Toll Free: (866) 609-9644
    (604) 609-9946 (FAX)
    www.riocristalresources.com