Source Exploration Corp. (the "Company" or "Source") is pleased to announce that, further to its news release dated September 7, 2016, it has entered into a definitive agreement (the "Extension Agreement") to extend the option agreement to acquire the Pepe, Pepe Tres and San Jose concessions located at its Las Minas property. These concessions are part of the six concessions held under option or wholly owned by Source at Las Minas, Veracruz State, Mexico.
The Extension Agreement provides for an extension to the term of the option agreement by an additional one year to December 5, 2017 for consideration equal to US$180,000, payable in equal monthly installments over a six month period and commencing no later than December 7, 2016. All payments are subject to VAT (Value Added Tax). All other terms of the original agreement of November 30, 2010 and prior extension agreements remain unchanged.
"I wish to thank the owners of the concessions for granting the extension of the option agreement and continuing strong support" said Brian Robertson, President and CEO of Source. "The extension, in conjunction with our previously announced proposed private placement and planned drilling program, will provide additional time for us to advance the property and complete a mineral resource estimate."
About Pepe, Pepe Tres and San Jose Concessions
The Pepe, Pepe Tres and San Jose concessions host near-surface gold, copper and silver mineralization. The concessions cover approximately 1,118 hectares (2,763 acres), with several small scale past-producing mines and a number of untested targets. Source has been exploring the area with modern exploration methods, including extensive sampling, geological mapping, ground magnetic survey and diamond drilling.
Diamond drilling completed in the first half of 2015 on the Pepe Tres concession extended the high-grade mineralization at the Santa Cruz and Eldorado - Juan Bran targets. Diamond drill hole LM-15-SC-15, which was drilled at the Santa Cruz target, intersected 6.07 g/t Au Eq(1) over 14.0 metres contained within 113.0 metres grading 2.03 g/t. Au Eq - see press release of April 29, 2015. Drilling at the El Dorado - Juan Bran zone consistently interesected high-grade mineralization, including 4.67 g/t Au Eq in hole LM-15-ED-20, 5.89 g/t Eq over 8.0 metres in hole LM-15-ED-21, and 4.14 g/t Au Eq over 12.3 metres in LM-15-ED-22 - see press release of May 7, 2015. The in-fill and step-out drilling intersected the zone over 650 metres down dip.
Earlier drilling at the nearby Santa Cruz zone resulted in high-grade discoveries, including diamond drill hole LM-11-SC-45, grading 37.26 g/t Au, 25.4 g/t Ag and 4.05% Cu over 4.0 metres, within 10.0 metres grading 15.89 g/t Au, 12.98 g/t Ag, and 2.25% Cu - see press release of January 26, 2012.
All reported intervals referred to in this news release are core lengths and additional information is required to determine true widths. Assays are uncut, length - weighted average values.
- Gold equivalent (Au Eq) calculations use metal prices of US $1,200/oz. for gold, US $19.00/oz. for silver and US $3.00/lb. for copper. No adjustments have been made for potential relative differences in metal recoveries. Au Eq g/t equals Au g/t + (Ag g/t x 0.016) + (Cu% x 1.71)
Samples containing free metallic gold were assayed by SGS Mineral Services at Durango, Mexico, an accredited and independent laboratory, using the FAS30K-Au metallic screen fire assay method.
About Las Minas
The Las Minas Project hosts near-surface gold-silver and copper skarn mineralization and high-grade gold-silver epithermal vein deposits. The project is comprised of six mineral concessions covering approximately 1,616 hectares (3,995 acres), with several small high-grade, past-producing mines and numerous untested targets.
The district is host to one of the largest under explored gold-silver and copper skarn systems known in Mexico, and has a production history that extends back to the Aztec era. The Las Minas granodiorite intrusive measures approximately 10 kilometres in diameter and underlies the Las Minas concessions. The mineralization controls and association with magnetite appear to be similar to parts of the Guerrero Gold belt, which is the site of the Los Filos and Morelos gold deposits.
Las Minas is an early-stage exploration project and does not contain any mineral resource estimates as defined by National Instrument 43-101 Standards of Disclosure for Mineral Projects ("NI 43-101"). The potential quantities and grades disclosed herein are conceptual in nature and there has been insufficient exploration to define a mineral resource for the targets discussed herein. It is uncertain if further exploration will result in these targets being delineated as a mineral resource.
Quality Assurance/Quality Control
The technical information in this news release has been reviewed and approved by Sonny Bernales, P. Geo, a registered Professional Geoscientist in the Province of British Columbia and a qualified person as defined by NI 43-101. Mr. Bernales is responsible for logistics and supervision of all exploration activity conducted by Source on the property.
The Company has implemented and adheres to a strict Quality Assurance/Quality Control program which includes inserting mineralized standards and blanks into the sample stream, about 1 for every 10 samples. The standards and blanks were obtained from CDN Resource Laboratories Ltd. of Langley, BC, Canada. Each sample bag is properly sealed and kept in a secured, restricted storage place prior to shipping to the lab. Samples are shipped directly by Source or picked-up by the lab vehicle with chain of custody/sample submittal signed and dated. The Company sends its samples to SGS Mineral Services (ISO/IEC 17025) at Durango, Mexico, an accredited and independent laboratory.