Jan 17 2013
Cabia Goldhills Inc. ("Cabia") is pleased to announce that the first drill hole of its current exploration program has been initiated on the Mejia Property. The drilling program will be testing different recognized mineralized trends as well as geophysical and geochemical anomalies. In addition, certain areas will be tested to better understand de porphyry style mineralization model.
In addition, Cabia announces that it has entered into a binding agreement to acquire an additional mining concession of more than 3,975 hectares located immediately to the south of its 100% owned Mejía Property, in the San Lucas gold belt of the Bolivar Department, Colombia. The concession, to be known as the Mejía South Property is situated in the municipalities of Barranco de Loba and San Martín de Loba and Río Viejo.
This new property increases the flexibility of our exploration and development activities within the immediate area of our Mejia Project. A series of veins have been encountered on the Mejia South Property, having similar strike directions than those encountered at the four artisanal mines adjacent to the Mejía Property, namely La Gloria Mine, El Fogaje Mine, Los Romanes Mine and El Turco Mine (the "Mejía Mines").
"We are delighted to have been able to add to our already sizable land position in this highly sought after gold district. Cabia now controls about 11,000 hectare of mining concessions, including several artisanal mines, which gives us one of the largest position in the San Lucas Gold Belt" stated Michel Delisle, President and CEO of CABIA.
Pursuant to the agreement, Cabia will conduct a 2,000 meter drilling program on the Mejia South Property over a period of two years. Upon the registration of the final transfer of title to the properties and the completion of a NI 43-101 compliant report, Cabia will pay to the owners an amount of US$15 for each ounce of gold reserves encountered on the Mejia South Property. In addition, Cabia will pay a royalty corresponding to 15 % of the net profits or, at the choice of the owner, a 2% NSR. Cabia can return the property to the current owner at all times and without further obligations if it does not discover sufficient reserves which can be exploited economically.
Cabia's Mejía Project is a 6,946 ha mineral concession located close to sea level and outside any environmentally restricted areas in the San Lucas gold district in the Sur de Bolivar region of the Department of Bolivar, Colombia. The San Lucas gold district is an under explored area where intense artisanal mining is present, including the Mejía Mines, as described in Cabia's NI-43-101 report on the Mejía Project available on the company's SEDAR profile at http://www.sedar.com.
Source: http://www.cabiagoldhills.com/