Trinity Mining Holding A.G.
FRANKFURT : TKX

Trinity Mining Holding A.G.

January 27, 2011 11:30 ET

Trinity Mining Holdings A.G. Closes 1.3 Million CHF Private Placement

ZURICH, SWITZERLAND--(Marketwire - Jan. 27, 2011) - TRINITY MINING HOLDING AG ("Trinity" or the "Company")(FRANKFURT:TKX) is very pleased to announce that it has closed a private placement totaling 1,312,751.4 CHF from Canadian and European accredited investors.

The use of the proceeds of this Private Placement is mostly for further exploration work on the Caupar project located in the Department of La Libertad of Northern Peru. This gold-silver project is held under the provisions of two option agreements signed with Iamgold Corporation. Trinity has already complied with the first agreement and has acquired a 51% interest in the Caupar property as per November 2009. Trinity has then informed Iamgold that it will exercise its second option agreement in order to earn an additional 19% interest for an aggregated interest of 70%in the property. To achieve so, Trinity will have to incur an additional US$400,000$ in working expenditures and make a US$500,000 cash payment on or before the end of November 2011. Once this second option is completed, a Joint -Venture (Trinity 70%-Iamgold 30%) will be created with Trinity as operator.

The Caupar property covers an area of 3,000 hectares and tying on to it are properties owned by Barrick and Goldfield. Originally owned by Cambior (now Iamgold), the property was initially staked as a copper-gold project. Cambior conducted geochemical, geophysical and geological surveys that established a favorable mineralized zone having an approximate length of 3.0 km and a width of up to 1.0 km. It lies on top of the 3,500 m high north-easterly oriented Cerro (Mount) Caupar. The mountain is almost flat on top with gentle slopes on the sides and of easy access all year round. All infrastructural facilities including roads, water and electrical power are available nearby. The mineralized area has been established, by surface work, to have an approximate length of at least 3.5 km and to be up to 1.0 km in width. Its mining potential is suggested by the presence of a gold-silver mineralized 75 to 150 meters thick oxidized zone, located directly at surface on a flatted mountain top, whose overall volume is at least of 120 million tonnes at targeted recovered grades between 0.35 to 0.75 g/t Au and about 15.0 g/t Ag, (see NI 43-101 technical report by Qualified person Alain Vachon, P.Eng, September 2009 available on the Company's web site at www.trinityminingholding.com), as demonstrated by limited trenching and diamond drilling.

The exploration work done so far on the property by Trinity, including, 26.2 kilometers of geophysical survey, 1900 meters of trenching and sampling and 2396 meters of diamond drilling, have led to a potentially important gold-silver discovery located in the well known Alto Chicama gold mining district (Lagunas Norte; Barrick), more precisely in the department of La Libertad, East of the coastal city of Trujillo in Northern Peru.

If confirmed, the project would be of the open-pit, run of mine and heap leaching operation type. Recoveries of gold and silver, as demonstrated by bottle roll tests conducted by Kappes, Cassiday & Associates, are high: more than than 80% for gold and in the range of 65% for silver (when above 10 g/t in content). There will be an almost zero ore to waste stripping ratio. Gold is in a free state, very fine, and well distributed as observed in thin sections studies from drill core samples from the mineralized zone.

The mining potential remains to be confirmed by a well oriented exploration program as recommended by A. Vachon, P.Eng.in his 43-101 technical report on the Caupar property. Therefore, the company is about to initiate the recommended work program that will consist of both trenching (about 7.5 km) followed by drilling totaling about 3,000 meters that will required a period of about 6 months to 9 months to execute with a budget of close to a million dollars. 

The management is very optimistic about the upcoming results of this work program that, if successful, will determine the amount and kind of resources needed to declare the presence of an important low grade high tonnage low cost gold and silver ore body.

About Trinity Mining Holding AG

Trinity is a mining exploration company incorporated pursuant to the laws of Switzerland, whose shares trade on the Frankfort Stock Exchange of the Deutsche Börse Group. Trinity, through wholly owned subsidiaries, is engaged in mining exploration in Peru, with a focus on the Caupar property. After giving effect to this private placement, Trinity has a total of 41'908'710 common shares outstanding (without taking into account the shares which may be issued pursuant to the Company's stock option plan and the 8'751'676 additional shares which can be issued at a price of CHF 0.35 to the subscribers in the private placement upon the exercise of their warrants).

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