Source Exploration Corp.
TSX VENTURE : SOP

Source Exploration Corp.

June 15, 2016 09:40 ET

Source Receives Notification of an Appeal Regarding Overlapping Area at Las Minas and Files Response

THUNDER BAY, ONTARIO--(Marketwired - June 15, 2016) - SOURCE EXPLORATION CORP. (the "Company" or "Source") (TSX VENTURE:SOP) The Company has filed a response as a third party of interest after receiving notification of an appeal by a neighbouring concession owner to an earlier decision by the General Bureau of Mining located in Mexico City regarding an overlapping area of its Las Minas property. The overlapping area comprises approximately 11% of the Las Minas project.

The Corporation's interest in the Las Minas Project is held through its Mexican Subsidiary Roca Verde, S.A. de C.V. (Roca Verde) which owns one concession and has options to earn and acquire five additional concessions, including the Pepe and Pepe Tres mining concessions ( Collectively the "Pepe Concessions") pursuant to two option agreements.

The Company received notice from the Regional Court of Tlaxcala of the Federal Tribunal of Tax and Administrative Justice advising that one of the co-owners of a neighbouring concession has appealed against the General Bureau of Mining's February 28, 2014 decision to nullify a portion of the area of the concession that overlaps a portion of the Pepe Concessions.

The Company after consulting its Mexican legal counsel is of the view that the appeal is without merit and that the February 28, 2014 decision by the General Bureau of Mining was correct in all material respects based on the review of the title documents relating to the Pepe Concessions and the neighbouring concessions, and the owners of the Pepe Concessions (with whom the Company has an option agreement to acquire the Pepe Concessions) have valid ownership to the overlapping area under applicable Mexican law. The Company has filed a response as a third party with interest to the appeal in the Regional Court of Tlaxcala of the Tribunal of Tax and Administrative Justice in Mexico and believes that the appeal will be denied in due course.

About Las Minas

The Las Minas Project hosts near-surface gold-silver and copper skarn mineralization and high-grade gold-silver epithermal vein deposits. The project is comprised of six mineral concessions covering approximately 1,616 hectares (3,995 acres), with several small high-grade, past-producing mines and numerous untested targets.

The district is host to one of the largest under explored gold-silver and copper skarn systems known in Mexico, and has a production history that extends back to the Aztec era. The Las Minas granodiorite intrusive measures approximately 10 kilometres in diameter and underlies the Las Minas concessions. The mineralization controls and association with magnetite appear to be similar to parts of the Guerrero Gold belt, which is the site of the Los Filos and Morelos gold deposits.

Las Minas is an early-stage exploration project and does not contain any mineral resource estimates as defined by National Instrument 43-101 Standards of Disclosure for Mineral Projects ("NI 43-101"). The potential quantities and grades disclosed herein are conceptual in nature and there has been insufficient exploration to define a mineral resource for the targets discussed herein. It is uncertain if further exploration will result in these targets being delineated as a mineral resource.

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 and the completion and timing of mineral resource estimates. 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 Company's disclosure documents available at www.sedar.com. 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 on the opinions and estimates of management and information available to management as at the date hereof. The Company 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.

Neither the 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

  • Source Exploration Corp.
    Camille Turner
    Investor Relations
    604-669-7840 or 604-970-8052

    Source Exploration Corp.
    David Baker
    Executive Chairman
    604-817-4211 or 604-970-8052

    Source Exploration Corp.
    Brian Robertson
    President & CEO
    807-474-4270 or 807-251-1816
    807-474-4272 (FAX)
    info@sourceexploration.com
    www.sourceexploration.com