Nov 15 2010
Rio Cristal Resources Corporation (TSX VENTURE:RCZ)(BVLAC:RCZ) announces that it has signed an Option Agreement on a highly prospective copper oxide project located in southern Peru.
Rio Cristal's preliminary review of La Cumbre indicates evidence of potential zones of bulk-mineable copper oxide mineralization grading in excess of 2% copper. Additionally there is potential for copper sulfide mineralization in a very prospective belt hosting iron oxide copper-gold deposits. Extensive recent underground workings indicate a possible resource which could be rapidly quantified with potential for mineralization extensions.
Thomas Findley, President and CEO of Rio Cristal, said "We are pleased to have finalized an option agreement on La Cumbre. We believe that the project offers the possibility of mining surface copper oxides which may provide cash flow to fund exploration for deeper copper and gold sulfide ores. Mining of oxides will require environmental and mining permits and we expect to begin the process immediately. La Cumbre is a project that fits very well into the Company's strategy of adding quality gold and copper projects to our exploration portfolio."
The La Cumbre project consists of concessions covering 4,695 hectares located near Chala, in southern Peru at an altitude averaging 1,000 meters with excellent access and infrastructure.
The terms of the Agreement allow the Company to acquire up to a 70% interest in the La Cumbre project through a series of cash and share payments over a six year period totaling US$3,235,000 (US$55,000 upon signing the Option Agreement) and 3,000,000 Rio Cristal common shares (300,000 shares upon signing the option agreement). In addition the Company must spend US$6,500,000 in exploration and other expenses on the property over the same six year period (US$150,000 in the first year) and complete a prefeasibility study. The Agreement is subject to approval by the TSX-Venture Exchange.
Source: Rio Cristal Resources Corporation