Rio Cristal Resources Corporation

Rio Cristal Resources Corporation

April 07, 2011 09:30 ET

Rio Cristal Updates Status of Its Projects

VANCOUVER, BRITISH COLUMBIA and LIMA, PERU--(Marketwire - April 7, 2011) - Rio Cristal Resources Corporation (TSX VENTURE:RCZ)(BVLAC:RCZ) ("Rio Cristal" or the "Company") today provided a corporate progress report including activities at its three exploration projects: Bongará, La Cumbre and Condor.

Bongará Zinc Project

Thomas Findley, President & CEO said, "I am pleased to report that we have started a new drilling campaign at our flagship Bongará project in northern Peru. The campaign will have two parts: in-fill drilling to establish a resource of zinc oxides at our Cristal project and initial drilling at our Florida project to discover deeper zinc sulfides."

At Cristal the Company is building on 4,200 meters of drilling completed in 2008 which produced excellent results (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

The Company has contracted Energold Drilling Corporation to undertake a 4,000 meter program at Cristal and drilling is now underway. The average depth of each hole is expected to approximately 120 meters. The 4,000 meter number is a minimum and Rio Cristal will drill more if the weather cooperates later in the year. As soon as a resource is established, the Company will begin studies to determine the best way to process the oxides.

The second part of our program for 2011 is initial drilling at the Company's Florida project located in the southern part of the Rio Cristal's 18,000 hectares of concessions. Surface exploration results were very encouraging in 2008 but to-date no drilling has taken place. The Florida project boarders on an advanced zinc exploration project managed by Votorantim Metais which has reported outstanding results to-date (see Solitario Exploration & Royalty Corp. news release dated 12/21/10). The Company believes that the zinc sulfide deposits discovered by Votorantim trend directly beneath Rio Cristal's unexplored concessions at Florida.

Findley said, "We have hired BISA (Buenaventura Ingenieros S.A.) to undertake a rigorous two-month field exploration program to identify the most prospective drill targets at Florida. While the field work is taking place, we will begin the permitting process for adrilling program. Our plan is to start a 2,000 meter drilling program in the third quarter of this year and, similar to the Cristal program, we will continue drilling if the weather permits."

La Cumbre Copper Project

Rio Cristal's preliminary review of its La Cumbre copper project indicates potential for bulk-mineable copper oxide mineralization grading in excess of 2% copper. Additionally, there is potential for copper sulfide mineralization as La Cumbre is located within a very prospective belt hosting significant iron oxide copper deposits. Extensive recent underground workings indicate a possible resource located at surface which could be rapidly quantified with potential for extending mineralization laterally and at depth. 

Tom Findley stated, "The Company has begun the necessary exploration permitting process and has solicited bids from several drilling contractors. We expect to begin a 2,000 meter drilling program at La Cumbre in the second quarter of this year. If high-grade oxides are present as we expect, we will immediately begin studies to process those oxides in order to generate cash flow to finance deeper, more extensive drilling at La Cumbre."

Condor Gold Project

The Company now has completed a 1,796 meter drilling program at its Condor gold project near Nazca, Peru. Despite excellent surface indications of gold mineralization and encouraging results from the first holes drilled into the main geochemical anomaly, further drilling indicates that the size and grade of the intersected mineralization do not meet the Company's investment requirements. Relatively small, dispersed lens of gold were discovered with limited continuity. No additional drilling is warranted and Rio Cristal will cancel its option agreement on the Condor project. 

Financial Status

The Company currently has approximately US$5.0 million dollars in cash available for its exploration programs. Drilling and other exploration activities at the Bongará and La Cumbre projects are expected to cost an estimated US$3.5 million which will leave the Company with a cash balance to begin next year's exploration.

About Rio Cristal Resources Corporation

Rio Cristal Resources is a Canadian corporation focused on the discovery and further development of zinc, copper and gold 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).

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

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.

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