Nov 1 2010
Coastal Pacific Mining Corp. (OTCBB: CPMCF), announced today the signing of a definitive option agreement in respect to earning a 50% interest in a group of two claims, encompassing 1200 Hectares, known as Santa Rita.
“We are extremely pleased that we were able to reach a mutually beneficial agreement with Mr. Hans Peter Flueck, the owner of the Claims. The potential on the Santa Rita property, combined with the merits of our Hotstone property, leave our Company in an enviable position of incredible growth potential.”
The Property is situated in the District of Acobambilla, Province of Huancavelica, Department of Huancavelica, in the Republic of Peru; approximately 200 km southeast of Lima.
An October 2009 NI43-101 Technical Report ("Report") on the refers to several vein mineralizations characterized by elevated silver, lead and zinc content with averages of 290 g/t, 65% and 7% respectively. Based on the Report, the Property has open pit potential with an excess of 1,300,000 tons of mineralization identified with a current potential value of over $350,000,000, based on approximately $500 per ton head grade. It has wide veins and a surface manto which are attractive features of the Property. There is potential of a much larger manto underlying the one at surface, which could be immense in size.
The Report identifies an initial exploration program on the Property, which the Company intends to undertake as soon as the requisite funds have been raised. Coastal Pacific has already received expressions of interest in the financing of Company's two current projects, and is actively seeking to close these financings.
The Company will be releasing additional details on the Santa Rita option agreement shortly. Mr. Bucci, President of Coastal Pacific, adds "We are extremely pleased that we were able to reach a mutually beneficial agreement with Mr. Hans Peter Flueck, the owner of the Claims. The potential on the Santa Rita property, combined with the merits of our Hotstone property, leave our Company in an enviable position of incredible growth potential." Mr. Bucci indicates further "We'll be releasing additional details over the next couple of days on the specifics of the structure of this new opportunity, further details on the Property and our plans for it, and progress on our financing initiatives."
Source: Coastal Pacific Mining Corp.