Rio Cristal Resources Corporation
TSX VENTURE : RCZ
BVLAC : RCZ

Rio Cristal Resources Corporation

January 10, 2011 10:23 ET

Rio Cristal Updates Status of Its Projects

VANCOUVER, CANADA and LIMA, PERU--(Marketwire - Jan. 10, 2011) - Rio Cristal Resources Corporation (TSX VENTURE:RCZ)(BVLAC:RCZ) ("Rio Cristal" or the "Company") is pleased to provide a corporate progress report including activities at its three exploration projects: Bongará (zinc), Condor (gold) and La Cumbre (copper).

Thomas Findley, President & CEO said, "2010 was a good year for the Company as we recovered from the effects of a world financial crisis in 2009 that made funding for early stage exploration companies extremely difficult. We made important progress by adding two new exploration projects to the Company, the Condor gold project and the La Cumbre copper project, and we continued valuable surface exploration work at our Bongará zinc project. In July 2010 we listed our shares on the Lima Stock Exchange (BVL) and shortly afterwards raised $3.2 million to fund work in 2011."

"Rio Cristal is beginning 2011 in excellent financial condition during a period of strengthening commodity prices and we are anxious to begin drilling and other exploration activities at our three projects. While our share price has recovered somewhat from its lows in 2009, I believe that we are still very much undervalued. We look forward to moving the Company forward in 2011 and to providing increased value to our shareholders."

Bongará Zinc Project

The Company's flagship project is the 18,000 hectare Bongará zinc project in Amazonas, Peru. With funding now available, Rio Cristal has programed a second drill campaign to begin when the heavy rain ends at Bongará in April. The Company expects to drill approximately 6,500 meters in 2011 with the objectives of expanding zinc oxides identified to-date and discovering zinc sulfides.

In 2008 the Company began drilling Bongará and results were outstanding.

Zinc Oxide Intercepts at Cristal (see news release dated October 15, 2008)

  • Drill hole CR07 - 58.7 meters of 10.0% zinc
  • Drill hole CR11 - 10.3 meters of 21.1% zinc
  • Drill hole CR13 - 14.5 meters of 14.7% zinc
  • Drill hole CR14 - 12.5 meters of 26.1% zinc
  • Drill hole CR18 - 21.7 meters of 22.0% zinc
  • Drill hole CR20 - 15.5 meters of 29.5% zinc

On Bongara's southern border, Votorantim Metais continues to aggressively develop its zinc sulfide deposits which trend directly beneath unexplored targets on the Company's concessions (see Solitario Exploration & Royalty Corp. news release dated 12/21/10).

Condor Gold Project

The Company completed a 987 meter initial drilling program at its Condor gold project in 2010. Four of the five holes drilled at Condor were in Zone 2 where gold mineralization appears to extend over an area approximately 300 meters by 100 meters and open to the north, south and east. One hole was drilled in Zone 3 to test the area after encouraging surface exploration results.

Gold Intercepts at Condor:
 Zone 2

  • Drill Hole C05 - 20 meters of .737 g/t gold including 2 meters of 3.605 g/t gold
  • Drill Hole C06 - 2 meters of .462 g/t gold and 2 meters of .562 g/t gold
  • Drill Hole C08 - 30 meters of .127 g/t gold
  • Drill Hole C09 - 38 meters of .717 g/t gold, including 4 meters of 3.421 g/t gold
  • Drill Hole C99 - 16 meters of .559 g/t gold, including 2 meters of 2.502 g/t gold
  • Drill Hole C09 - 20 meters of .737 g/t gold, including 2 meters of 3.605 g/t gold
  • Drill Hole C10 - 34 meters of .343 g/t gold

 Zone 3

  • Drill Hole C11 – 10 meters of .350 g/t gold, including 2 meters of 1.089 g/t gold

At least three other anomalous target zones remain untested. The Company is beginning a second drill campaign at Condor in January, 2011 to test the continuity of gold mineralization between the target areas defined thus far. Mineralization at the Condor project is hosted within highly fractured and quartz-veined sandstones interbedded with shales and intruded by argilically altered andesite dikes.

The intercepts are perpendicular to bedding and therefore are believed to approximate true thickness. A geological map identifying drill holes locations, and a table of results are available at www.riocristalresources.com. (1)

La Cumbre Copper Project

On November 12, 2010, the Company signed an option agreement on the La Cumbre copper exploration project. 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.

The Company is currently concluding a study to determine the feasibility of mining the copper oxides and exploring for additional oxides and underlying porphyry-style copper sulfide mineralization. Necessary exploration permits are in progress.

  1. The Company maintains a strict quality control program in preparing and shipping all samples from the Condor project. Standards, blanks and duplicates are inserted in the field. Final samples are bagged, codified, and sealed by Company geologists and transported to the BSE Inspectorate laboratory facilities in Lima, Peru. BSE Inspectorate is an ISO 9001:2008-certified laboratory (#39041). Samples are assayed using the FAAA method (Fire Assay and Atomic absorption). The QA/QC program for each sampling batch includes geochemical standards insertion every 10th sample, blank samples insertion every 20th sample and field duplicate insertion every 30th sample. High grade samples pulp duplicates and rejects will be re-assayed at ALS Chemex Laboratory facilities in Lima applying the same sample preparation procedure as that used by BSE Inspectorate.

    As required by the National Instrument 43-101, Rio Cristal Resource's designated Qualified Person is John Brophy, who has verified the technical information reported for the Condor project in this news release.

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 shares are listed on the Toronto Stock Exchange, Venture Segment and the Bolsa de Valores de Lima (Lima Stock Exchange).

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 Cestti
    (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