TORONTO, Feb. 11, 2020 (GLOBE NEWSWIRE) -- Monterey Minerals Inc. (the “Company” or “Monterey”) (CSE: MREY and FSE: 2DK) is pleased to announce that it has signed a non-binding Letter of Intent (“LOI”) with Greater Arc Resources Limited to purchase its wholly owned subsidiary Greater Arc Pty Ltd (“Greater Arc”), which owns the Alicia high-grade gold and base metals project in Alicia Municipality, Philippines (“Alicia Project”).
- Greater Arc has identified a system of twelve veins hosting high grade gold and base metal mineralization.
- The mineralized veins are up to 3.8 m wide and up to 1.7 km in length, with a combined strike length in excess of 11 km.
- Previous fieldwork at the Alicia Project included detailed geological mapping, geochemical sampling and limited drilling.
- The twelve veins generally trend northwest-southeast and are grouped into three main vein structures:
° Sandi Vein in the east
° Baloy Vein in the central portion of the tenement
° Pamaraw-Sumihig Vein to the west
- Several semi-parallel subsidiary veins also occur.
- Veins host native gold, silver, galena, sphalerite, and pyrite minerals.
- High grade samples from shallow drilling into the Baloy Vein include:
° 1.2m of 116 g/t Au, 1,263 g/t Ag, 6.3% Cu, 6.5% Zn, and 47.9% Pb
° 1.5m of 40.9 g/t Au, 437 g/t Ag, 1.1% Cu, 3.6% Zn, and 62.9% Pb
- Field Work on the Pamaraw-Sumihig Vein yielded:
° a drill intersection of 1.5 m of 13.86 g/t Au, 181g/t Ag and 4.8% Cu
° a grab sample returning 7.51 g/t Au, 55.2 g/t Ag and 1.76% Cu
Alicia Project is situated within a Declared Mineral Reservation
determined by the Mines and Geosciences Bureau (MGB) in 1995 and is on a
granted Exploration Permit.
- The Project is accessible by sealed
roads, is proximal to power and towns, is 10 km away from a port
facility at Malangas, and 60 km from an airport at Pagadian City.
Figure 1 is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/bc44fd95-03da-4db4-8d94-381f23d3139b
outlined in the LOI, the Company is proposing to acquire Greater Arc
for 54 million common shares of Monterey. The Company will look to
complete the definitive purchase and sale agreement (“PSA”) later in the
first quarter of 2020, following due diligence.
President and CEO, James Macintosh stated:
Alicia Project is a transformative addition to our property portfolio.
The project is attractive for several reasons: it has near-surface,
high-grade gold, silver and base metal mineralization; and, the
potential for a much larger, deeper porphyry system that could have been
the fluid source for high-grade near-surface veins. Furthermore, it is
within a Designated Mineral Field, a major advantage for any future
development; and it contains excellent infrastructure with a supportive
local labour force.”
Chairman, Guy Le Page added:
Alicia Project brings an experienced Philippines-based management team
with a history of adding shareholder value. The team was previously
responsible for the development of Medusa Mining Ltd’s (ASX: MML)
Philippines Co-O Mine, which has produced over 800,000 ounces of gold
and generated a peak market capitalization of over $1.5 billion dollars
for shareholders. We look forward to completing our due diligence on
the Alicia Project and completing the PSA.”
Figure 2 is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/a7382a1c-15ce-43d8-8c41-fcc0528cdd08
Alicia Project Summary
Location, Infrastructure, and Permitting
Alicia Project is located in the eastern part of the Zamboanga
peninsula on the southern Philippines island of Mindanao within the
province of Zamboanga Sibugay. The Alicia Project is about 5 km from
the town of Alicia, population 37,000, and 10 km from the port of
Malangas. Access by air is via Pagadian City airport approximately 60
km away. The Alicia Municipality has a stable governance supportive of
the project’s development. The project is also situated on a relatively
flat area with low lying, undulating topography.
Alicia Project is a known gold occurrence recognized by the Philippine
Mines and Geosciences Bureau as a Declared Mineral Reservation, a region
set aside and prioritized for future mining. The Exploration Permit
EP-009-2016-IX was granted in June 2016 covering 932 hectares. It is
important to note that the right to explore also includes the right to
mine, for a period of up to 10 years, providing that resource and
environmental compliances are met.
Alicia Project History
scale mining commenced in the 1970’s to the south of the tenement where
several workings are situated. During the 1980’s small scale artisanal
mining moved north onto the project tenement area and focused on the
- Philippine National Oil Company, PNOC-DEC, explored
the area for coal during the 1980’s. During exploration, observations
and mineral analysis identified hydrothermal alteration and
mineralization occurring within volcanic rocks with massive silica and
hydrothermal breccias indicating epithermal gold mineralization.
PNOC-DEC also carried out IP surveying identifying anomalies related to
gold mineralization. This was followed up with intensive field work and
- Mining and Geosciences Bureau (MGB) also recognised
potential and declared a Mineral Reservation in 1992, a region with land
use set aside for future mining.
- Greater Arc acquired the
tenement application in 2013 and carried out due diligence work
confirming the auriferous nature of quartz and calc-silicate veins.
- EP-009-2016-IX was granted in June 2016.
the exploration permit was granted, Greater Arc has carried out
detailed mapping and geochemical sampling programs with some limited
drilling. Further field work carried out by Greater Arc has also:
the Baloy Vein and confirmed high grade massive sulphides present
within the footwall and along over 400 m of strike.
extensive calc-silicate alteration zones containing chalcopyrite,
galena, and sphalerite confirming that base metal mineralization may
have a base metal carbonate porphyry system as it’s source.
a possible collapsed structure/caldera edge, which in combination with
the presence of internal sulphide breccias supports the potential of a
° Established local offices and locally based
exploration management team to plan and execute field programs to
further develop the Alicia Project.
Philippines is recognized as one of the most prospective nations in the
world for gold/silver and base metal resources. Having been exploited
for its resources by the early Spanish colonialists, the country became a
major world producer of gold and copper during the 1920’s and 1930’s.
The country is rich in mineral resources, formed by the collision
between the Pacific and Asian tectonic plates. This produced numerous
subduction and obduction zones that have, for the past 25 million years,
provided significant volcanic activity. The voluminous magmas
exploited zones of structural weakness and provided the heat source for
numerous porphyries and epithermal precious metal mineral vein systems.
Major copper/gold resources are common throughout the archipelago and
it is recognised that the amount of exploration carried out is
insignificant compared to the resource and mining potential.
Mineralization and Veining
exploration has identified 3 major parallel gold-bearing mineralized
quartz vein structures generally trending NW-SE and numerous
semi-parallel subsidiary vein systems, as shown below. The quartz veins
have an average thickness ranging from 0.5 m to 3.9 m wide and
generally exhibit drusy, chalcedonic quartz with massive textures. The
clay-silica alteration is right beside the vein and either in sharp or
gradational contact with propylitic alteration. Minerals present are
native gold, sphalerite, galena and pyrite.
| ||Vein structure||Thickness (m)||Strike Length (km)|| |
| ||Pamaraw Vein||3.42||1.7|| |
| ||Toto Vein||2.3||1|| |
| ||Baloy Vein||2.32||1.3|| |
| ||Sandi Vein||0.73||1.75|| |
| ||Galula Vein||3.87||1.1|| |
Table 1 - Alicia Project vein dimensions
focus of artisanal mining and modern exploration work is centered on
Baloy and Pamaraw Veins. Channel sampling along Baloy vein and shallow
diamond drilling at the Dacula locality (Baloy vein) returned high grade
gold and massive sulphides including:
- 1.2m of 116 g/t Au, 1,263 g/t Ag, 6.3% Cu, 6.5% Zn, and 47.9% Pb;
- 1.5m of 40.9 g/t Au, 437 g/t Ag, 1.1% Cu, 3.6% Zn, and 62.9% Pb; and
- a channel sample that returned 1,299.9 g/t Au and 332.6 g/t Ag.
the southern half of the Exploration Licence exploration work confirmed
the mineralization was open along strike over at least several
kilometres. Assays from rock-chip and grab samples returned anomalous
gold values, including: 77.7 g/t Au, 54.5 g/t Au and 46.4 g/t Au.
indicators highlight a well-developed epithermal system, with the
anomalous Cu grades having been introduced into the system post the
primary epithermal system. The presence of a mature epithermal system
provides a much bigger resource target within the known mineralization
of the Pamaraw Vein. Mineralization within the tenement is from both a
deep-seated epithermal source (and a near-surface, high-grade base metal
sulphide source. The overprint of two mineralized systems
significantly increases the resource potential.
technical information in this press release has been reviewed and
approved by Martin Dormer, a consultant to the Company, who is a
Qualified Person as defined by NI 43-101. Martin is a member of the
Australian Institute of Mining and Metallurgy (AusIMM), the Australian
Institute of Geoscientists (AIG). He is a West Australian geologist
with over 22 years’ experience and sufficient experience of relevance to
the styles of mineralization and types of deposits under consideration
to qualify as a Competent Person as defined by the 2012 Edition of the
Joint Ore Reserves Committee (JORC) Australian Code for Reporting of
Exploration Results, Mineral Resources, and Ore Reserves.
Figure 3 is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/ad2af3b1-f125-4ca3-adf9-8b240b352c95
About Monterey Minerals Inc.
Company owns 100% of the Cobalt Mountain Property (the “Property”) in
the Omineca Mining Division of British Columbia near the town of
Smithers. The Company’s NI 43-101, on SEDAR, notes historic sampling on
the Property that returned mineralized showings of gold, silver,
copper, zinc and cobalt. The Company also has 877 sq. km. of
prospective Pilbara Basin tenements on the eastern flank of the Pilbara
Basin in Western Australia, including a property that abuts Pacton
Gold’s tenement where gold-bearing conglomerates were identified.
For more information, contact investor relations at firstname.lastname@example.org
On Behalf of the Board of Directors,
President and CEO
the Canadian Securities Exchange nor its regulation services provider
has reviewed or accepted responsibility for the adequacy or accuracy of
this press release
This press release
may include forward-looking information within the meaning of Canadian
securities legislation, concerning the business of the Company.
Forward-looking information is based on certain key expectations and
assumptions made by the management of the Company. Although the Company
believes that the expectations and assumptions on which such
forward-looking information is based on are reasonable, undue reliance
should not be placed on the forward-looking information because the
Company can give no assurance that they will prove to be correct.
Forward-looking statements contained in this press release are made as
of the date of this press release. The Company disclaims any intent or
obligation to update publicly any forward-looking information, whether
as a result of new information, future events or results or otherwise,
other than as required by applicable securities laws.