Source Exploration Corp.

Source Exploration Corp.

June 26, 2012 08:00 ET

Source Expands Las Minas Land Position to Include On-Strike Continuation of Gold-Silver-Copper Skarn Discovery

THUNDER BAY, ONTARIO--(Marketwire - June 26, 2012) - SOURCE EXPLORATION CORP. (the "Corporation" or "Source") (TSX VENTURE:SOP) is pleased to announce that its wholly-owned Mexican subsidiary Roca Verde Exploration de Mexico has acquired through staking the San Valentin concession. The concession, which is located approximately 2.0 kilometers south of the Las Minas property, contains 345.18 hectares and hosts a skarn system with high-grade magnetite as well as gold, silver and copper mineralization. Surface exploration shows the gold - silver - copper bearing skarn discovery at Las Minas trends onto the new property.

The new project area will be field tested in conjunction with the pending Phase 3 drill program at Las Minas. Highlights of the Phase 2 drill program at the Las Minas property (reported in a press release dated January 26, 2012) include:

  • LM-11-LL-40 grading 14.94 grams per tonne gold (g/t Au), 4.02 g/t silver (Ag) and 0.52% copper (Cu) over 3.65 meters (m); including 27.05 g/t Au, 6.80 g/t Ag and 0.91% Cu over 2.0 m

  • LM-11-SC-44 grading 1.27 g/t Au, 4.23 g/t Ag, 0.38% Cu over 24.0 m

  • LM-11-SC-45 grading 15.89 g/t Au, 12.98 g/t Ag and 2.25% Cu over 10.0 m; including 37.26 g/t Au, 25.4 g/t Ag and 4.05% Cu over 4.0 m

  • LM-11-SC-49 grading 1.08 g/t Au, 3.05 g/t Ag and 0.42% Cu over 42.0 m

  • LM-11-SC-50 grading 0.75 g/t Au, 3.31 g/t Ag and 0.40% Cu over 90.6 m; including 2.06 g/t Au, 8.62 g/t Ag and 1.04% Cu over 24.0 m

According to historical reports(1), small-scale mining was carried out on the property in 1919 from the La Providencia and San Valentin underground mines producing high-grade iron ore. The results of a preliminary sampling program carried out at the site to determine the iron content of mineralized areas are listed below.

Sampling Results San Valentin Concession

Location Description
Sample ID
Width (m) Magnetic
Iron Fe %
San Valentin 3572 2.0 17.2 23.7
3573 2.0 17.1 23.6
3574 2.0 19.6 27.0
3575 2.0 52.1 71.9
3575 2.0 58.3 80.5
3577 2.0 53.7 74.2
3578 2.0 45.4 62.7

All samples are chip samples.

Brian E. Robertson, President and CEO, stated, "We are pleased to acquire this concession, which is the on-strike continuation of the skarn system at Las Minas. Our initial sampling results indicate that the iron mineralization is high-grade, assaying up to 58.3% iron. The presence of a historical past- producing iron mine on the concession gives us a great starting point. We plan to explore the property for gold, silver and copper skarn mineralization as well as evaluate the potential for Direct Shipping Ore at the property."

(1) Secretaria de Gobierno, Fomenta, Mineria. Expedienta 247 (Canton de Xalapa) ano 1919. Archivo General del estado, Xalapa - Eqez., Veracruz.

Quality Assurance/Quality Control

The technical information in this news release has been reviewed and approved by Sonny Bernales, P. Geo., Source's, Exploration Director, a registered Professional Geoscientist in the Province of British Columbia and a qualified person as defined by National Instrument 43-101. Mr. Bernales is responsible for logistics and supervision of all exploration activity conducted analyses on the property. All analysis for iron content was carried out by SGS Canada accredited Lakefield Ontario laboratory. SGS Canada is independent of the Corporation.

About Source Exploration

Source Exploration is a Canadian based mineral exploration company committed to building long-term value through ongoing discoveries and strategic acquisitions of prospective precious metals deposits in Mexico. Source is exploring the Las Minas project, which is located in the core of the Las Minas district in the Veracruz State, Mexico. The district is host to one of the largest under explored skarn systems known in Mexico and has a strong production history that dates back to the Aztec era.

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 the magnitude or quality of mineral deposits, anticipated advancement of mineral properties or programs, future operations, results of exploration, prospects, commodity and precious metals prices, future work programs, anticipated financial and operational results, capital expenditures and objectives. 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 Corporation'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 Corporation 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.

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