Ironwood Gold Corp. ("Ironwood" or the "Company") in the execution of its business plan to develop a high quality portfolio of exploration properties containing known deposits of gold is pleased to announce that it has signed a definitive Option Agreement (the "Agreement") with Canadian Mining Company Inc. ("CMC") to acquire 100% of CMC's Raquel 3 and 3B mining concessions in the Alamos Mining district of Sonora, Mexico (the "San Bernardo Project"). The Option was granted by Canadian Mining through its wholly-owned Mexican subsidiary Canmin Mexico S.A. de C.V.
The Sonora region offers a wide range of mineral resources, both metallic and nonmetallic, highlighting their large deposits of copper and molybdenite, gold, silver, graphite, barite, tungsten, etc., which exploitation has placed Sonora as the number one mining state in Mexico.
Historically, Industrias Peñoles, S.A.B. de C.V ("Peñoles") operated a portion of this site as the El Gochico mine. The reserves in late 1981 were listed as 500,000 proven with 185 g/t Ag, 9.81% Zn, 0.51% Pb and .73% Cu. Another 301,000 tonnes of probable reserve @ 120 g/t Ag, 8.2% Zn, 0.36% Pb and 0.59% Cu. A Possible Resource of 1,412,000 tonnes was also reported. Mining production ended in mid-1985 when metal prices dropped and the mine closed. Mill production was recorded at 12,000 tonnes per month with a total production of 540,000 tonnes. The infrastructure includes roads, transmission line, drilling reports and mine development which cost Peñoles $17,000,000.00. This cost was recovered in the first 2.5 years of production.
The terms of the Agreement allow Ironwood Gold Corp. to acquire an undivided 50% interest in CMC's San Bernardo Project through cash and share agreements including exploration expenses as a part of a "First Option Period." Ironwood will earn an additional 25% undivided interest in the assets by incurring "Second Option" exploration expenditures and Ironwood may acquire the remaining 25% ("Third Option Payment") within two years of the second option through a cash payment or equivalent in Ironwood Gold Corp. shares to Canadian Mining Company Inc. subject to a 2% NSR in favor of Canadian Mining Company Inc.
Additional details regarding the Company and its agreements are filed as part of the Company's continuous public disclosure as a reporting issuer under the Securities Exchange Act of 1934 filed with the Securities and Exchange Commission's ("SEC") EDGAR database. For more information visit our website.