Source Exploration Corp.

Source Exploration Corp.

May 31, 2011 08:30 ET

Source Intersects 55.4 Metres Grading 0.54 g/t Gold, 5.52 g/t Silver and 0.71% Copper (1.90 g/t Gold Equivalent) at Las Minas Project

TORONTO, ONTARIO--(Marketwire - May 31, 2011) - Source Exploration Corp. ("Source" or the "Company") (TSX VENTURE:SOP) is pleased to provide highlights from additional drilling in the area of the El Dorado skarn zone at the Company's Las Minas Project located in western Veracruz State, Mexico. The El Dorado mineralized zone is located on-strike and approximately 350 metres south of the drilling carried out at Las Boquillas – see press release of May 3, 2011. Drilling tested the zone over a strike length of approximately 150 metres and intersected up to 75.8 metres of mineralization with significant gold, silver and copper values. A plan map showing the drill site locations at Las Boquillas and El Doradocan can be viewed on Figure 1.

Significant intercepts from recent drill intersections at the El Dorado include:

  • 0.88 g/t gold, 5.05 g/t silver, 1.60% copper (3.79 g/t gold equivalent) over 21.1 metres.

  • 1.00 g/t gold, 5.86 g/t silver, 0.69% copper (2.32 g/t gold equivalent) over 14.80 metres.

  • 0.54 g/t gold, 5.52 g/t silver, 0.71% copper (1.90 g/t gold equivalent) over 55.4 metres.

  • 0.41 g/t gold, 2.19 g/t silver, 0.50% copper (1.34 g/t gold equivalent) over 31.5 metres.

"We continue to be very encouraged by the positive initial results from our drilling at El Dorado, stated Brian E. Robertson, Source Exploration's President and CEO "These early results confirm the on-strike continuation of the mineralized skarn zone and have begun to tie together the historic mines in the area. This information will provide valuable input into the design of our Phase 2 drill program, which will focus on expanding these high priority mineralized zones as well as test several new prospective targets."

To view "Figure 1: Plan Map of Las Boquillas and El Dorado Drill Sites," please visit the following link:

El Dorado Drilling

Drill holes LM-11-ED-9 and 15 were drilled to test the on - strike continuation of mineralization intersected in hole LM-11-ED-8 that graded 0.73 g/t Au, 2.85 g/t Ag and 0.68% copper (1.99 g/t Au Eq(2)) over 33.6 metres.

Hole LM-11-ED-9 was drilled at minus 5 degrees and intersected 0.33 g/t gold, 3.17 g/t silver and 0.78% copper (1.77 g/t Au Eq) from 0 to 13.4 metres, followed by a 21.1 metre interval from 29.9 metres to 51.0 metres grading 0.88 g/t gold, 5.05 g/t silver and 1.60% copper (3.79 g/t Au Eq), and a further 15.5 metres from 96.50 to 112.0 metres grading 0.62 g/t gold, 4.02 g/t silver and 1.03% copper (2.53 g/t Au Eq).

Drill hole LM-11-ED -15 was drilled at minus 3 degrees and intersected 55.4 metres of 0.54 g/t gold, 5.52 g/t silver and 0.71% copper (1.90 g/t Au Eq) within a larger intercept of 75.8 meters grading 0.46 g/t gold, 4.36 g/t silver and 0.60% copper (1.54 g/t Au Eq).

Drill holes LM-11-ED 10, and 11 were drilled as fan holes from the same location as drill hole LM -11-ED-9 to test the hanging and footwall contacts of the mineralized zone. Similarly, holes LM-11-ED-13, 14 were drilled from the same location as hole LM-11-ED-15 and also were designed to test the hanging and footwall contacts of the mineralization.

Diamond drilling at Eldorado extended the skarn mineralization outlined at Las Boquillas by approximately 500 metres to the south. The zone remains open on-strike and down dip. Copper assays at the El Dorado zone graded up to 3.05% copper, with a 21.10 metre interval averaging 1.60% copper in hole LM-11-ED-9. Drilling is continuing at the Cinco Senores Mayate adit, which is located approximately 700 metres to the northwest, and thought to be the on-strike continuation of the mineralization at Las Boquillas. Earlier rock chip channel sampling at the Mayate adit yielded 1.24 g/t Au, 7.6 g/t Ag and 0.43 & copper (2.14 g/t Au Eq) over 20 metres.

Table 1: A summary of the drilling results to-date is listed below.

LM-11-ED-9(1)El Dorado013.413.40.333.170.781.77
LM-11-ED-10El Dorado66.7072.706.000.380.900.751.72
LM-11-ED-11El Dorado0.4014.8014.401.005.860.692.32
LM-11-ED-12El DoradoIntersected old workings
LM-11-ED-13El Dorado10.041.5031.500.412.190.501.34
LM-11-ED-14El Dorado2.109.507.400.574.921.323.00
LM-11-ED-15El Dorado65.10140.9075.800.464.360.601.54
Widths reported are drill widths; Assays are uncut, length-weighted average values.
(1)Previously reported in press release dated May 3, 2011.
(2)Gold equivalent (Au Eq) calculations use metal prices of US$ 1300/oz. for gold, US$ 25.00/ oz. for silver and US$3.50/lb. for copper. No adjustments have been made for potential relative differences in metal recoveries.

Au EQ g/t equals Au g/t + (Ag g/t x 0.019) + (Cu% x1.77)

Quality Assurance/Quality Control

The Source exploration program has been conducted under the supervision of Mr. Sonny Bernales, P. Geo. The Company has implemented and adheres to a strict Quality Assurance/Quality Control program which includes mineralized standards and blanks for each batch of samples. Samples were shipped to SGS Mineral Services (ISO/IEC 17025) at Durango, Mexico, an accredited laboratory.

The technical information in this news release has been reviewed and approved by Sonny Bernales, P. Geo., Source's, Project Manager, a certified professional geologist and a qualified person as defined by National Instrument 43-101.

About Source Exploration

Source Exploration is a well-financed Canadian based mineral exploration company committed to building long term value through ongoing discoveries and strategic acquisitions of economic gold and silver deposits in Mexico.

Certain terms or statements made that are not historical facts, such as anticipated advancement of mineral properties or programs, productions, sales of assets, exploration plans or results, costs, prices, performance are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, and involve a number of risks and uncertainties that could cause actual results to differ materially from those projected, anticipated, expected or implied. These risks and uncertainties include, but are not limited to; metals price volatility, volatility of metals production, project development risks and ability to raise financing. Certain statements included in this news release constitute "forward-looking information" within the meaning of applicable securities legislation. All statements, other than statements of historical fact, included herein 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 events could differ materially from those anticipated in such statements.

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