|November 3, 2010|
Alturas signs mining agreement on its iron-copper-gold Pampa Colorada project in northern Peru
Toronto, Canada & Lima, Peru – Alturas Minerals Corp (“the Company”) is pleased to announce that its 100% Peruvian subsidiary Alturas Minerals S.A. (“Alturas”) has entered into an agreement (“the Agreement”) with the Origen Group S.A.C (“Origen”), on its 100% owned 900 hectare Pampa Colorada claim (“the Claim”) located in northern Peru. Under the Agreement, Alturas assigns Origen the right to mine iron ore from the Claim for a period of ten years in consideration for royalty payments to Alturas based on the tonnes of iron ore extracted. The Agreement stipulates that a minimum royalty will be paid to Alturas for each year regardless of production.
The Minimum Advance Royalty payment is subject to a “Force Majeure” clause which includes among other non-controllable events any drop in the price of iron ore below US$130/tonne CIF. In such event Origen would have the right to suspend mining operations for up to 3 years whilst at the same time paying Alturas scaled penalty payments until such time that operations recommence or either party chooses to cancel the Agreement. Origen, after giving a 90 days written notification to Alturas S.A., will have the right to cancel this contract without any further payment obligations. Notwithstanding the latter, Origen will be fully liable for the payments of all licenses, permits, taxes and other holding costs. In addition Origen assumes full liability for all environmental matters including all remediation costs generated by the mining operation.
The Agreement also anticipates that a separate option agreement (“the Option”) may be negotiated in the future by both parties.
Among other terms to be negotiated as part of the Option, Alturas and Origen are interested in discussing the 100% acquisition of the Claim by Origen provided the deposit contains mainly an iron ore resource. In this case, Origen would pay Alturas a cash consideration equivalent to US$0.30 per tonne of iron ore defined in the qualified mineral reserve/resource estimate plus a royalty equivalent to US$0.60 for each additional tonne of iron ore mined from the property.
If the event that the deposit contains mainly a copper/gold resource, Origen would have the right to buy 40% of the Claim, in which case both parties would contribute proportionally towards the development of the project. If Origen elects not to contribute, it would have the right to receive a 1% NSR royalty.
About the Pampa Colorada Iron-Copper-Gold project
The 900 hectare Pampa Colorada project is located 730 kilometers northwest of Lima in the department of Cajamarca in northern Peru, next to a major highway that connects to the coastal city of Chiclayo. The project is 15km north of the copper-gold-molybdenum Cañariaco porphyry deposit, forming part of the same belt that hosts other major copper-gold-molybdenum porphyry deposits such as La Granja, Galeno, Minas Conga and Michiquillay. Alturas acquired 100% of the property through staking in 2005. At Pampa Colorada, Late Jurassic volcanic rocks have been intruded by andesitic, dioritic and dacitic stocks of probable Tertiary age. Strong hydrothermal alteration occurs over an area of approx. 2.5 x 1.0 kilometers and, within this broader area, a north-south corridor of more intense silicic, pyrrhotitic, magnetitic and hematitic alteration, brecciation and stockworking covers an area of at least 1.50 x 0.25 kilometers. Alteration and mineralization correlate with a distinct ferruginous colour anomaly. Strong copper (max. 0.12%), gold (max. 1.20 grams/tonne), silver (max. 22.3 grams/tonne) and zinc (max. 0.31%) anomalies have been confirmed in reconnaissance outcrop sampling by Alturas, corresponding to zones of massive hematite, magnetite and pyrrhotite alteration, and/ or quartz-sulfide stockworking. The Company believes that the features described are consistent with the upper levels of a mineralized Iron Oxide Copper-Gold (IOCG) system. No reportable resource or reserve has yet been defined on the property.
About Alturas Minerals Corp.
Alturas Minerals Corp (Canada) is the parent of Alturas Minerals S.A.(Peru) and Alturas Minerals Chile Ltda. The Company’s exploration strategy is focused on the discovery of large epithermal gold mineralized deposits and copper-gold porphyry/skarn deposits in Peru and Chile.
Alturas Peru has been actively exploring various mineral projects in Peru since January 2004. Alturas’ properties include four drill-ready mineral exploration projects located in central and southern Peru, which include the Chapi Chapi-Utupara Copper-Gold Project, the Sombrero Copper-Gold Project, the Ccaccapaqui Gold-Silver Project and the Huajoto Gold-Silver-Zinc Project. In addition, Alturas Peru has interests in four other exploration projects in Peru.
About Origen Group
Origen Group S.A.C. is a wholly-owned subsidiary of Beijing Limawei Metal Trade Co. Ltd. incorporated in Peru to acquire and develop high-quality mineral resources, thus ensuring to obtain high quality raw materials in the long-term and stable manner. The controlling shareholder of Beijing Limawei Metal Trade Co., Ltd. Is the company Jiaqi Steel and Iron Industry Co., Ltd. which is located in Beijing. And Jiaqi Steel and Iron Industry Co., Ltd. is the controlling shareholder. Jiaqi Steel and Iron Industry Co., Ltd. has two large iron and steel processing facilities in China: Tangshan Jiaqi Steel and Iron Industry Co., Ltd. and Chifeng Yuanlian Steel and Iron Industry Co. Ltd. with total assets valued at 4 billion RMB (0.6 billion CAD) and annual revenues amounting 10 billion RMB (1.5 billion CAD)
As required by the National Instrument 43-101, Alturas's designated Qualified Person for the supervision of exploration of the projects is Dr. Paul Pearson, F. AUSIMM, who has reviewed the technical information, reported in this News Release.
For further information, please visit the Company's website at www.alturasminerals.com or contact Alturas at:
Phone: + 51-1- 652 4691 (Peru)
The TSX Venture Exchange and the Bolsa de Valores de Lima do not accept responsibility for the adequacy or accuracy of this release.
Cautionary Language and Forward Looking Statements
This press release may contain “forward-looking statements”, which are subject to various risks and uncertainties that could cause actual results and future events to differ materially from those expressed or implied by such statements. Investors are cautioned that such statements are not guarantees of future performance and results. Risks and uncertainties about the Company’s business are more fully discussed in the Company’s disclosure documents filed from time to time with the Canadian securities authorities.