Source Exploration Corp.
TSX VENTURE : SOP

Source Exploration Corp.

October 13, 2010 08:30 ET

Source to Acquire Las Minas Gold-Copper Project in Mexico

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 13, 2010) - Source Exploration Corp. (TSX VENTURE:SOP) ("Source" or "the Company") today announced that its 100% owned Mexican subsidiary Roca Verde Exploracion de Mexico has entered into exclusive Letters of Intent to acquire the Las Minas and La Miqueta Projects, collectively named the Las Minas Project, comprised of five privately held mineral concessions covering approximately 1,271 hectares in the core of the Las Minas district in the State of Veracruz, Mexico. The district is host to one of the largest underexplored gold-copper skarn systems known in Mexico, with a strong production history that dates back to the Aztec era. The Project is located approximately 270 kilometres east of Mexico City and is accessible by road. The district is highly prospective for both bulk tonnage gold-silver-copper skarn deposits and high-grade gold-silver epithermal vein deposits.

"The acquisition of the Las Minas Project will provide Source with ownership of the core area of a historic mining district that is host to potential bulk tonnage deposits and multiple higher grade mineralized vein systems that are completely untested by diamond drilling", said Brian Robertson, President and CEO of Source. "In an article published in The Engineering and Mining Journal (Martin Fishback, November 19, 1910) it was reported that high grade ore grading 15 to 30 % copper and 20 to 40 grams per tonne gold was shipped from this area in the early 1900's. It is important to note that minimal modern exploration work has been carried out in the area despite a long history of mining activity."

Las Minas Skarn Area

The Las Minas Area consists of three concessions covering a core part of the district where "endo" and "exoskarn" development is exposed along an irregular 2.0 kilometer zone. Gold and copper mineralization is developed along an approximately 30 metre thick zone at the contact between the granitic to dioritic batholith that intrudes the massive limestone. Mineralization is remarkably consistent within the exposed exoskarn and consists of gold, silver, chalcopyrite, pyrrohotite, pyrite, magnetite and hematite. In 1997, a previous operator carried out a mapping and sampling program along much of the exposed skarn, the results of which suggest that large areas of exposed skarn commonly contain 1 to 5 g/t gold and 0.5% to 2.0 % copper, with local zones containing much higher values. (Source's Qualified Person has not verified these historical results).

Highlights of due diligence sampling completed by Source are detailed below:
 
Prospect   Description   Width (m)   Rock Chip Channel Samples
Los Boquillos Mine            
    Endoskarn at portal of adit   10.0   3.55 g/t Au; 4.8 g/t Ag; 0.40% Cu
    Endoskarn along stope wall   12.0   2.38 g/t Au; 3.3 g/t Ag; 0.45% Cu
    Endoskarn stope pillar   3.0   4.20 g/t Au; 2.50 g/t Ag; 0.08% Cu
             
Cinco Senores   Endoskarn adit #2 wall rock   2.5   2.58 g/t Au; 20.4 g/t Ag; 0.18% Cu
    Endoskarn adit #2 wall rock   2.5   2.65 g/t Au; 20.8 g/t Ag; 0.58 % Cu
    Endoskarn adit #2 wall rock   2.5   0.33 g/t Au; 3.0 g/t Ag; 0.13% Cu
    Endoskarn adit #2 wall rock   2.5   1.07 g/t Au; 8.8 g/t Ag; 0.18% Cu
    Endoskarn adit #2 wall rock   2.5   2.23 g/t Au; 26.7 g/t Ag; 0.19% Cu
    Mineralized granite intrusive   15.0   0.49 g/t Au; 6.5 g/t Ag; 0.42 % Cu

Under the terms of the agreement the company has been granted the right to enter into an exclusive purchase and sale agreement to earn a 100% interest in three concessions by making staged cash payments totaling US$190,000 plus Value Added Tax (VAT) over the next 24 months and a final payment of US$1.0 million plus VAT upon exercising the option on the third anniversary. The Vendors will retain a 1.5% Net Smelter Return (NSR) subject to an exclusive buy-back provision allowing the company to purchase one-third or a 0.5% NSR for US$500,000. The company will retain a Right of First Refusal to buy the remaining 1.0 % NSR. The Company has also agreed to complete a work program with required expenditures to maintain the concessions in good standing during the three year term of the agreement.

La Miqueta Vein Area (Epithermal Gold and Silver)

The La Miqueta Vein Area covers an area of gold and silver mineralization related to an epithermal environment consisting of narrow quartz veins and silicified structures hosted in a volcanic package. The veins have indicated strike lengths of 100 to 300 metres and widths varying from 0.50 to 2.20 metres. The La Miqueta Vein Project hosts seven known vein zones and deposits that are host to gold, silver and copper mineralization. Historical mining operations located within the concessions include La Miqueta, La Miqueta Alta, Marangola, Murcielagos, Dos Rios, Banco de Cobre and La Luz. It is reported that the historical La Miqueta deposit was mined on 22 levels.

The company has been granted the right to acquire a 100% interest in the two concessions by making staged cash payments totaling US$95,000 plus VAT over the next 24 months and a final payment of US$500,000 plus VAT upon exercising the option on the third anniversary. The Company has also agreed to complete a work program with required expenditures to maintain the concessions in good standing during the three year term of the agreement. The Vendors will retain a 1.5 % NSR subject to an exclusive buy-back provision allowing the company to purchase 0.5% NSR for US$500,000. The company will retain a Right of First Refusal to buy the remaining 1.0 % NSR.

Source's management believes that these properties offer an excellent opportunity to discover multiple high-grade precious metal and/or polymetallic deposits in this district-scale and largely unexplored area that shares similarities to several other mining districts in Southern Mexico including Goldcorp's Los Filos gold project and Torex Gold's Morelos gold project located in the state of Guerrero. The company has identified several prospective targets on these projects and intends to initiate an aggressive exploration program, including drilling, in the near future.

Mr. Brian Robertson, P.Eng. is the Qualified Person for the information contained in this press release and is a Qualified Person within the meaning of National Instrument 43-101. Assay results are from rock chip channel samples that were sent to SGS Mineral Services (ISO/IEC 17025), an accredited mineral analysis laboratory located at Durango, Mexico for preparation and analysis.

About Source Exploration

Source Exploration is a Canadian based mineral exploration company focused on the evaluation, acquisition and development 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.

Shares Issued: 29,331,248

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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