Excalibur Resources to acquire 100% of Pinos claims

2013-10-02 10:44 ET - News Release

Mr. Tim Gallagher reports

EXCALIBUR: MINERA CATANAVA TO ACQUIRE 100% OF PINOS DISTRICT CLAIMS

Excalibur Resources Ltd. has signed an addendum to the Sept. 22, 2010, joint venture agreement whereby its 49-per-cent-owned subsidiary, Minera Catanava de CV, will acquire 100 per cent of the Pinos district mining claims held by its 51-per-cent partner, Minera Apolo de CV, in exchange for the forgiveness of the $2-million loan that Excalibur has provided to finance the construction and operations of the 150-tonne-per-day plant at Catanava. Apolo will receive two million shares of Excalibur upon the completion of the transfer of the mining claims, when signed, notarized and registered in the Public Mines Registry in Mexico City. Excalibur will also begin to pay rent of $8,000 (U.S.) per month on the old tailings pond area for which the surface land title is held by Apolo, after Catanava begins to generate $100,000 (U.S.) per month in positive cash flow. Finally, Catanava agrees to increase the production output in the existing plant to a target of 600 tonnes per day over the next three years.

Pinos gold and silver district highlights

• There are over 3,300 hectares in 29 mining claims in the Pinos district, of which seven mining claims representing 143 hectares were already transferred to Catanava in January, 2012.
• In 1981, Bethlehem Steel in a joint venture with Penoles completed a preliminary economic assessment estimating 5.7 million tonness of 3.4 grams per tonne gold and 23 g/t Ag for an estimated resource of 600,000 ounces of gold and six million ounces of silver (non-National Instrument 43-101 compliant) down to a depth of 250 metres.
• In the PEA, the mine dumps were estimated at 300,000 tonnes, of which Candelaria, the deepest historical Cornish mine, was estimated at 103,000 tonnes of 1.48 g/t Au and 105.4 g/t Ag (non-NI 43-101 compliant).

Although these numbers are useful in demonstrating the general potential of the Pinos property, these estimates were based on data that do not include all currently available drilling, and assumed considerably different gold prices and operating costs than might be expected at present, and are therefore not considered relevant. Excalibur cautions that a qualified person has not done sufficient work to classify the previous estimates as current mineral resources or mineral reserves; Excalibur is not treating the previous estimates as relevant or as current mineral resources or mineral reserves, and the previous estimates should not be relied upon.

Charles Beaudry, PGeo, qualified person for the purpose of National Instrument 43-101, has reviewed and verified the technical contents of this news release.