TORONTO, ONTARIO--(Marketwired - May 26, 2014) - Solvista Gold Corporation ("Solvista" or the "Company") (TSX VENTURE:SVV)(OTCQX:SVVZF) is pleased provide an update on the ongoing exploration activities recently completed and planned at its Caramanta Project (the "Project"), which is currently being explored by IAMGOLD Corporation ("IAMGOLD"). As previously announced on March 17, 2014 Solvista entered into a definitive option agreement (the "Agreement") with IAMGOLD and also received acceptance of the Agreement from the TSX Venture Exchange.
Over the past several months, IAMGOLD has assigned a dedicated exploration team to the Project and commenced a detailed exploration program with the aim of resuming drilling during Q3 2014. Work completed or currently underway includes:
- A Mobile Metal Ion ("MMI") soil sampling program (896 samples) focused on ridges and spurs across the property to complement previous programs completed by Solvista.
- A 27 line kilometre ground magnetic survey within the area of the Caramanta Porphyry Cluster ("CPC"), to complement the previous surveys completed by Solvista in the area, resulting in complete ground magnetic coverage over the entire CPC.
- Detailed geological mapping and sampling in the areas of the Malabrigo and Casa Verde targets within the CPC.
Results from the MMI soil sampling program have been integrated with the Solvista database across the southern portion of the Project. Existing anomalies for gold and copper were expanded and new anomalies were identified within the CPC from the El Retén discovery, located at the southern end of the CPC, to the Casa Verde anomaly, located some 2.5 kilometres to the north. Two other anomalies were confirmed/ extended in areas where Solvista had previously completed little or no soil sampling: El Cacao, located to the north of the CPC, represents a possible extension of the mineralizing system and one target, known as Don Carlos, located to the east of the CPC in what appears to be a second mineralized trend that includes the Yarumalito/ Obispo targets of Colombia Mines Corporation. It should be noted that MMI anomalies may be offset from the mineralized zones to which they are related. It will take further geologic mapping and rock chip sampling to better understand the potential relationship of these anomalies to gold-copper mineralization.
Under the terms of the Agreement, IAMGOLD has agreed to complete a minimum of US$2,500,000 in exploration expenditures and will have the right to earn up to a 70% interest in the Project, located in Colombia's Mid-Cauca Belt, by completing the following steps:
- IAMGOLD can earn an initial 51% interest in the Project by investing a total of US$18,000,000 (including the US$2,500,000 firm commitment described above) in qualifying expenditures, which will include US$900,000 of cash payments to Solvista, over a maximum five-year period commencing on December 16, 2013; and
- IAMGOLD can earn an additional 19% interest in the Project, for a total 70% interest, by investing a further US$18,000,000 in qualifying expenditures over a maximum three-year period following the completion of the initial 51% earn-in.
Subject to the satisfaction of the aforementioned conditions, and upon completion of IAMGOLD's 51% or 70% earn-in, as IAMGOLD may elect, Solvista and IAMGOLD would enter into a joint venture to hold and advance the Project.
The scientific and technical information contained in this press release has been reviewed by the Company's President and CEO, Mr. Miller O'Prey, P.Geo., who is a "Qualified Person" as such term is defined under National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43- 101").
About the Caramanta Project
The Project is located at the centre of the Middle Cauca Belt, one of the most prolific gold districts in Colombia, with production dating back to pre-colonial times. It has also been the focus of intense exploration over the past five years with a number of new discoveries including La Colosa (Anglogold Ashanti), a porphyry-gold deposit with a JORC-compliant Inferred Resource of 24.15 Moz Au at 0.94 g/t Au. Directly south of the Project is Gran Colombia Gold's Marmato Project with NI 43-101-compliant Measured and Indicated Resources of 11.8 Moz Au at 0.9 g/t Au and 80 Moz Ag at 6.1 g/t Ag, and Inferred Resources of 2.6 Moz Au at 1.02 g/t Au and 9 Moz Ag at 3.7 g/t Ag. To the north is Sunward Resources' Titiribí deposit where a NI 43-101-compliant Measured and Indicated Resource of 6.2 Moz AuEq at 0.50 g/t and Inferred Resource of 6.5 Moz AuEq at 0.53 g/t have been announced.
Three of the Project's multiple targets (El Retén, El Corral and Ajiaco Sur) are located within a regional environmental designation referred to as a District of Integrated Management ("DMI"). Under the terms of the DMI there is currently a prohibition against open pit mining within the DMI. The Company has made a written submission to the regional environmental authority responsible for the declaration and management of the DMI ("Corantioquia") requesting the immediate removal of the DMI designation over its mining titles. As disclosed in the Company's press release dated September 16, 2013, exploration within the DMI had been temporarily halted by Corantioquia until the Company's application for removal of the DMI designation has been considered. As further disclosed in the Company's press release dated December 18, 2013, Corantioquia informed the Company that during the period that the decision on the removal of the DMI designation was being considered, exploration within the DMI could resume upon the receipt of an acceptable environmental management plan ("EMP"). In March 2014 IAMGOLD and the Company presented an EMP to Corantioquia and are currently awaiting comments and approval.
Solvista is a gold exploration company with two projects, Caramanta and Guadalupe. These projects cover approximately 45,000 hectares in the Antioquia province of Colombia, a region rich in historic gold mining tradition and where several new gold discoveries have recently been made. Solvista is well funded and has completed initial drill programs at both its projects, with the discovery of significant mineralization at both. Solvista's head office is located in Toronto, Canada with its Colombian headquarters located in Medellín. For further details on Solvista, its management team and its projects, please refer to Solvista's website (www.solvistagold.com).
Neither the TSX-V nor its Regulation Services Provider (as that term is defined in the policies of the TSX-V) accepts responsibility for the adequacy of this news release. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.
CAUTIONARY STATEMENT: This news release contains forward-looking information which is not comprised of historical facts. Forward-looking information involves risks, uncertainties and other factors that could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information. Forward-looking information in this news release relates to, among other matters, IAMGOLD's interest in the Project under the Option Agreement. Factors that could cause actual results to differ materially from such forward-looking information include, but are not limited to, failure to convert any estimated mineral resources to reserves, capital and operating costs varying significantly from estimates, the preliminary nature of metallurgical test results, delays in obtaining of failures to obtain required governmental, environmental or other project approvals, including those related to the District of Integrated Management at the Project, political risks, uncertainties relating to the availability and costs of financing needed in the future, changes in equity markets, inflation, changes in exchange rates, Solvista's relationship with IAMGOLD, fluctuations in commodity prices, delays in the development of the Project, risks involved in the mineral exploration and development industry, and those other risks set out in Solvista's public documents filed on SEDAR. Solvista believes that the assumptions and factors used in preparing the forward-looking information in this news release are reasonable; for example, that the Option Agreement will not be terminated and IAMGOLD will exercise its option(s) thereunder. Nevertheless, undue reliance should not be placed on such information, which only applies as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. Solvista disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by applicable securities laws.