Centenera Mining Corporation (TSXV:CT; OTC:CTMIF) (“Centenera” or the “Company”) – announces that it has signed a binding letter agreement (the “Letter Agreement”), whereby it will be granted the right to acquire up to a 100% interest in six precious metals properties (the “Properties”) from an arm’s length party, Tres Cerros Exploraciones S.R.L (“Tres Cerros”) through three separate option agreements (the “Option Agreements”), as to two Properties per agreement. The Properties are all located within the highly prospective Deseado Massif in Santa Cruz Province, Argentina, and together comprise approximately 32,900 hectares. Under the terms of the Option Agreements, Centenera will be granted an exclusive option (the “Option”) to acquire a 100% interest in the Properties by way of staged cash and common share payments, subject to a net smelter returns (“NSR”) royalty in favour of Tres Cerros.
“This acquisition gives Centenera a meaningful foothold in this important mining and exploration district,” stated Keith Henderson, Centenera’s President & CEO. “This package of properties was carefully targeted by Tres Cerros, which has patiently acquired the properties through staking over the last two to three years. Tres Cerros is an Argentinean company founded by a group of exploration geologists with extensive experience in the Deseado Massif and who have been involved in several discoveries over the last few years including Cerro Moro, Mina Martha, Joaquin and Virginia deposits. Tres Cerros’ geologists have been featured various times on the front cover of The Northern Miner for making gold and silver discoveries in this mining district.”
Mr. Henderson continued, “Santa Cruz is a leading jurisdiction for discovery of low and intermediate sulphidation epithermal gold and silver deposits with approximately 19 million ounces of gold and 580 million ounces of silver discovered since 1990. For precious metals it is possibly the highest-ranked exploration destination in South America and, with a relatively short history of mineral exploration, the discovery potential is expected to be extremely high. The Santa Cruz Province is a favourable destination for mineral exploration and mining investment, with multiple precious metals mines in production and senior mining companies such as AngloGold Ashanti Limited, Panamerican Silver Corp., Yamana Gold Inc. (“Yamana Gold”) and Goldcorp Inc. (“Goldcorp”) continuing to explore in the region.”
The Properties
The Properties are all located within the prospective Deseado Massif (Figure 1). The Deseado Massif is a Jurassic age volcanic plateau covering 60,000km2 and hosting valuable epithermal precious metals deposits. A short summary of each of the Properties is provided below. Additional information will be presented via the Company’s web site in the coming weeks.
The Cerro Bayo Property is situated between the contiguous Verde project (Yamana Gold) located approximately 2km to 3km to the west, and the San Agustin project (Goldcorp) located to the east. The Cerro Bayo Property contains areas of exposed vein and/or breccia as extensions to mineralized systems identified in adjacent properties. Due diligence rock grab sampling (4 rock samples) conducted by the Company, returned grades ranging from 0.05g/t to 0.48g/t gold and from 7.94g/t to 572g/t silver. Centenera’s due diligence sampling results are consistent with historical sampling results reported by previous operators (15 rock samples) which returned grades ranging from below detection to 1.07g/t gold and from below detection to 3,300g/t silver. There is strong geological evidence suggesting that the prospective rocks exposed at the Cerro Bayo Property are high in the mineralizing system with considerable potential below surface.
Figure 1: Location of Santa Cruz Properties relative to mining and exploration projects in Santa Cruz Province
A figure accompanying this announcement is available at http://www.globenewswire.com/NewsRoom/AttachmentNg/67884852-7f81-45b6-98b9-e1ce2fb5b69f
The principle targets in the La Flora Property are the Flora Vein and Flora West. The Flora Vein is an extension of mineralization at the San Agustin Este project, contiguous to the south and controlled by Hochschild Mining plc (“Hochschild”).
The Aylen Property is located immediately west of the Martha Mine, owned and operated by Hunt Mining Corp. (“Hunt Mining”). The ground has potential to host an extension of the mineralizing Martha structural zone over a potential strike length of more than 4km. A single due diligence rock sample taken by Centenera on the Aylen Property, returned 0.38g/t gold and 104g/t silver, which is on-trend from the Martha Mine. As geology is similar to that found at neighbouring operations and with mineralization confirmed by initial due diligence, the Company believes that there may be potential to build drill targets on the Aylen Property.
The Pedro Property is adjacent to Mirasol Resources Ltd.’s (“Mirasol”) Nico Project. In particular, Mirasol’s Resolution Prospect, within the greater Nico Project, is located less than 200m west of the Pedro Property. Due diligence grab sampling by Centenera (3 rock samples), conducted by the Company, returned grades ranging from 0.37g/t to 44.9g/t silver and indicate that the mineralization extends onto the Pedro Property.
The Fiorentina Property is contiguous with the Los Cisnes Project, formerly held by Mariana Resources Ltd. (“Mariana”) and recently acquired by New Dimension Resources Ltd. (“New Dimension”). In particular, New Dimension’s El Brio prospect is located just a few kilometres west of the Fiorentina Property. Recent drill results from New Dimension’s El Brio prospect (August 2018) include 4.4m grading 566g/t silver and 4.4m grading 123.2g/t silver, while previous drilling by Mariana in 2015 returned 2.9m grading 755g/t silver. Due diligence samples taken by Centenera on the Fiorentina Property (9 rock grab samples), returned gold grades ranging from below detection to 1.45g/t gold, confirming that mineralization at El Brio may extend onto the Fiorentina Property.
Finally, the Aguila Mora Property was formerly held by Mariana, who reported mapping of 12.5km of veins at surface.
Planned Exploration
Centenera is currently in negotiations with a highly experienced consultant who is recognized as a global expert in these types of deposits, and who has specific experience in the Deseado Massif, having completed review work for many …read more
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