Lumina Gold Announces the Signing of a Binding Earn-in Agreement on Ecuador Properties with First Quantum Minerals
VANCOUVER, British Columbia, June 21, 2018 (GLOBE NEWSWIRE) -- Lumina Gold Corp. (TSXV:LUM) (OTC:LUMAF) (the “Company” or “Lumina”) is pleased to announce the signing of a formal earn-in agreement (the “Earn-In Agreement”) with First Quantum Minerals Ltd. (“FQM”) relating to Lumina’s Orquideas and Cascas concessions (the “Properties”). The terms of the five-year agreement, which commits FQM to contributing US$1.5 million to the development of exploration work in the first year and grants FQM the option of contributing up to an additional US$37 million over the course of the subsequent four years of the Earn-In Agreement, were previously announced in the October 26, 2017 press release titled “Lumina Gold Announces Letter of Intent for Earn-in Agreement on Ecuador Properties”, and remain substantially unchanged from those described therein.
Pursuant to the terms of the Earn-In Agreement, Lumina will receive US$100,000 due upon signing, and will be reimbursed approximately US$840,000 (as part of the contribution commitment described above) for expenditures made on the Properties from September 2017 to mid-May 2018.
Work is ongoing at Orquideas and Cascas under the supervision of FQM, with Lumina acting as operator.
At Orquideas, phase one line-cutting is complete and an Induced Polarization (“IP”) geophysical survey is well advanced, with approximately 95% of the 34 kilometre survey now completed. An additional 12 kilometres of infill IP lines are planned as a follow-up. Concurrent soil auger sampling, with 100 metre spacing along the geophysical lines, is also an integral component of the exploration program. The IP chargeability results continue to show good correlation with known copper-molybdenum anomalies and mineralized structures at surface. Lumina submitted an application to change Orquideas to an Advanced Exploration concession in 2017, which will allow for drill testing. The submission is pending review and approval from Government authorities.
At Cascas, Lumina plans to investigate previously discovered porphyry copper mineralization in phases of the late Jurassic Zamora batholith. Based on 1,325 rock, soil and stream sediment samples, the coincident copper-molybdenum footprint is seen to extend over an area of 5.0 x 2.5 kilometres. Adjacent to this anomaly to the southeast is a distinctive gold anomaly spread over an area of 3.0 x 2.5 kilometres. A new geological map has been developed that will guide follow-up exploration efforts.
Qualified Person
Leo Hathaway, P.Geo, Senior Vice President of Lumina and a qualified person as defined by National Instrument 43-101 Standards of Disclosure for Mineral Projects has reviewed, verified and approved the contents of this news release.
About Lumina Gold
Lumina Gold Corp. (TSXV:LUM) is a Vancouver, Canada based precious and base metals exploration and development company focused on gold and copper projects in Ecuador. The Company’s Cangrejos Gold-Copper project is located in El Oro Province, southwest Ecuador, and its Condor Gold-Copper project is located in Zamora-Chinchipe Province, southeast Ecuador. The Company also holds a large and highly prospective land package in Ecuador consisting of 135 thousand hectares. The Company has an experienced management team with a successful track record of advancing and monetizing exploration projects.
Further details are available on the Company’s website at https://luminagold.com/.
| LUMINA GOLD CORP. | |
| For further information contact: | |
| Signed: “Marshall Koval” | Scott Hicks |
| shicks@luminagold.com | |
| Marshall Koval, President & CEO, Director | T: +1 604 646 1890 |
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Cautionary Note Regarding Forward-Looking Information
Certain statements and information herein, including all statements that are not historical facts, contain forward-looking statements and forward-looking information within the meaning of applicable securities laws. Such forward-looking statements or information include but are not limited to statements or information with respect to plans to continue IP work at Orquideas, that moving Orquideas to an Advanced Exploration concession would allow for drilling and that Lumina plans to investigate porphyry copper mineralization at Cascas. Often, but not always, forward-looking statements or information can be identified by the use of words such as “will”, “plans” or variations of that word and phrases or statements that certain actions, events or results “will”, “could” or are “intended to” be taken, occur or be achieved.
With respect to forward-looking statements and information contained herein, the Company has made numerous assumptions including among other things, assumptions about general business and economic conditions, the prices of gold and copper, and anticipated costs and expenditures. The foregoing list of assumptions is not exhaustive.
Although management of the Company believes that the assumptions made and the expectations represented by such statements or information are reasonable, there can be no assurance that a forward-looking statement or information herein will prove to be accurate. Forward-looking statements and information by their nature are based on assumptions and involve known and unknown risks, uncertainties and other factors which may cause the Company’s actual results, performance or achievements, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements or information. These factors include, but are not limited to: risks associated with the business of the Company; business and economic conditions in the mining industry generally; the supply and demand for labour and other project inputs; changes in commodity prices; changes in interest and currency exchange rates; risks relating to inaccurate geological and engineering assumptions (including with respect to the tonnage, grade and recoverability of reserves and resources); risks relating to unanticipated operational difficulties (including failure of equipment or processes to operate in accordance with specifications or expectations, cost escalation, unavailability of materials and equipment, government action or delays in the receipt of government approvals, industrial disturbances or other job action, and unanticipated events related to health, safety and environmental matters); risks relating to adverse weather conditions; political risk and social unrest; changes in general economic conditions or conditions in the financial markets; changes in laws (including regulations respecting mining concessions); and other risk factors as detailed from time to time in the Company’s continuous disclosure documents filed with Canadian securities administrators. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.