Portofino Executes LOI Pursuant to Two Lithium Brine Projects in Catamarca, Argentina; Centurion Minerals Ltd. to Acquire Interest, Act as Operator
Vancouver, British Columbia--(Newsfile Corp. - March 29, 2017) - Centurion Minerals Ltd. (TSXV: CTN) ("Centurion"), reports that PORTOFINO RESOURCES INC. (TSXV: POR) ("Portofino" or the "Company") has executed a letter of intent agreement with a private Argentine concession owner to acquire up to an 85% interest in two lithium brine salar projects in Catamarca, Argentina. Each project is approximately 3,000 hectares in size. Catamarca, located within the "Lithium Triangle" produces more lithium than any other province in Argentina.
Project 1 is located directly southwest of the Salar del Hombre Muerto where FMC Lithium is producing lithium carbonate and Galaxy Resources is developing its Sal de Vida project, and is southeast of Albemarle's Antofalla project.
Project 2 is located approximately 10 kilometres ("km") from the Chile border and north of Neo Lithium Corp's 3Q project.
Historical (2012) exploration work commissioned by the vendor of both projects included geological mapping, sampling of surface waters, auger sampling of brines, and compilation of the distribution of Lithium and Potassium grades within the basins. Eight surface water and 51 auger brine samples were analyzed and results averaged: 257 mg/l of Lithium and 8,710 mg/l of Potassium for Project 1; 274 mg/l of Lithium and 7,521 mg/l Potassium for Project 2.
The Company and its Qualified Professionals have been unable to verify the historical sample collection methodology or analytical results, but believe the historical results are relevant. Future work by Portofino, including a surface water and auger brine sampling program is required to verify the historical results.
Portofino has been introduced to the project owner by Centurion Minerals Ltd. (TSXV: CTN). Centurion has established a mining and exploration presence in Argentina by way of its interest in the Ana Sofia agri-gypsum fertilizer operation in Santiago del Estero province. Centurion will act as the operator of the Catamarca lithium-brine projects. In exchange, Centurion is to be initially compensated up to $75,000 by Portofino, issued 500,000 shares of Portofino and be granted 10% of Portofino's interest (carried to PEA) in both projects.
Portofino has agreed to pay the Lithium project vendor a combination of cash, shares and expenditures over a 4-year period as follows:
a) | An initial US$10,000 deposit, |
b) | By the first anniversary of TSX-V Exchange approval, issue 500,000 shares and pay US$50,000, |
c) | By the 2nd anniversary of approval, issue 500,000 shares, pay US$100,000 and complete a cumulative $500,000 of property expenditures, |
d) | By the 3rd anniversary, issue 500,000 shares, pay US$200,000, complete a cumulative minimum of $2million expenditures, |
e) | By the 4th anniversary, issue 500,000 shares, pay US$400,000, complete a cumulative minimum of $4million or a Preliminary Economic Assessment (PEA) |
Subject to completion of the 4th year requirements, Portofino has the right to convert the Vendor's remaining 15% interest to a 2% NSR with an option to buy out 1% for $1 million.
The transaction is subject to completion of due diligence, execution of definitive agreements and TSX-V exchange approval.
Qualified Person
The technical content of this news release has been reviewed and approved by Andrew J. Turner, B.Sc., P.Geol. of APEX Geoscience Ltd., who is the Company's Geological Consultant and is a Qualified Person as defined by National Instrument 43-101, Standards of Disclosure for Mineral Projects.
About Centurion
Centurion Minerals Ltd. is a Canadian-based company with an international focus on the exploration and development of gold and agri-mineral projects
On Behalf of the Board,
"David G. Tafel"
President and CEO
For Further Information Contact:
David Tafel
604-683-1991
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
The Ana Sofia project has not been the subject of a feasibility study and as such there is no certainty that a potential mine will be realized or that the processing facility will be able to produce a commercially marketable product.There is a significant risk that any production from the project will not be profitable with these risks elevated by the absence of a compliant NI 43?EUR'101 feasibility study.A mine production decision that is not based on a feasibility study demonstrating economic and technical viability does not provide adequate disclosure of the increased uncertainty and specific risks of failure associated with such a production decision. The Company has undertaken market research and studies to try to mitigate these risks. The work carried out to date is of a preliminary nature to assist in the determination as to whether the mineral product is suitable for sale and if there are markets for the mineral product. General risks inherent in the Project include the reliance on available data and assumptions and judgments used in the interpretation of such data, the speculative and uncertain nature of exploration and development costs, capital requirements and the ability to obtain financing, volatility of global and local economic climates, share price volatility, estimated price volatility, changes in equity markets, exchange rate fluctuations and other risks involved in the mineral exploration and development industry.There can be no assurance that a forward?EUR'looking statement or information referenced herein will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements or information.Accordingly, readers should not place undue reliance on forward?EUR'looking statements or information.We undertake no obligation to reissue or update any forward?EUR'looking statements or information except as required by law.
The Ana Sofia mineral resource estimate is reported in accordance with the Canadian Securities Administrators National Instrument 43-101 and has been estimated using the CIM "Estimation of Mineral Resources and Mineral Reserves Best Practice Guidelines" dated November 23rd, 2003 and CIM "Definition Standards for Mineral Resources and Mineral Reserves" dated May 10th, 2014. Due to the relatively wide spacing of the historical quarries and the 2016 test pits, which varies between 40 m and 300 m, the Ana Sofia 2 resource described herein is categorized entirely as an inferred mineral resource. Inferred Mineral Resources are not Mineral Reserves. Mineral resources which are not mineral reserves do not have demonstrated economic viability. There has been insufficient exploration to define the inferred resources as an indicated or measured mineral resource, however, it is reasonably expected that the majority of the Inferred Mineral Resources could be upgraded to Indicated Mineral Resources with continued exploration. There is no guarantee that any part of the mineral resources will be converted into a mineral reserve in the future. The estimate of mineral resources may be materially affected by geology, environment, permitting, legal, title, taxation, socio-political, marketing or other relevant issues.
This news release contains forward looking statements concerning future operations of Centurion Minerals Ltd. (the "Company"). All forward-looking statements concerning the Company's future plans and operations, including management's assessment of the Company's project expectations or beliefs may be subject to certain assumptions, risks and uncertainties beyond the Company's control. Investors are cautioned that any such statements are not guarantees of future performance and that actual performance and exploration and financial results may differ materially from any estimates or projections.Such statements include, among others: possible variations in mineralization, grade or recovery rates; actual results of current exploration activities; actual results of reclamation activities; conclusions of future economic evaluations; changes in project parameters as plans continue to be refined; failure of equipment or processes to operate as anticipated; accidents and other risks of the mining industry; delays and other risks related to construction activities and operations; timing and receipt of regulatory approvals of operations; the ability of the Company and other relevant parties to satisfy regulatory requirements; the availability of financing for proposed transactions, programs and working capital requirements on reasonable terms; the ability of third?EUR'party service providers to deliver services on reasonable terms and in a timely manner; market conditions and general business, economic, competitive, political and social conditions.