Vancouver, B.C. - May 14, 2014: San Marco Resources Inc. (SMN: TSX-V) (“San Marco” or “the Company”) has signed an agreement (the “Agreement”) granting the Company an option to acquire a 100% interest in the Cuatro de Mayo Project in eastern Sonora State, Mexico, subject to regulatory approval including the approval of the TSX Venture Exchange.
The Cuatro de Mayo project comprises roughly 18,500 hectares in nine exploration concessions located 160 km east of Hermosillo, Mexico. The property hosts numerous styles of mineralization including: CRD-type (mantos, skarns) silver-lead-zinc showings; high-sulfidation epithermal volcanoclastic-hosted gold showings; and, mesothermal silver showings. Old mineral workings have been noted throughout the property. Surface channel sampling by San Marco at the entrance to one such historic working returned 124 g/t silver, 0.86 g/t gold and 4.7% lead over 9.5 m in one sample, and 197 g/t silver, 0.89 g/t gold, 7.1% lead and 0.22% zinc over 2.0 metres in a second sample. San Marco is in the process of prioritizing targets at the Cuatro de Mayo property and formulating an exploration plan in anticipation of drill target definition.
Robert Willis, CEO of San Marco states “The Cuatro de Mayo property provides San Marco with another prospective, low-opportunity cost exploration project with multiple known mineralization styles, and further enhances the Company’s existing portfolio of exploration properties in Mexico. Although Cuatro de Mayo is an early stage exploration opportunity, it has many of the hallmarks of other deposits in Mexico currently in operation and we look forward to thoroughly testing its potential.”
To acquire a 100% interest in the Cuatro de Mayo Project, San Marco must pay the property owners an aggregate of USD $2.0 million and issue them 50,000 common shares over five years (as per the schedule below), and pay all annual taxes on the concessions. The Agreement also grants the property owners a 3% net smelter returns royalty of which San Marco can purchase 1% for USD $1.5 million at any time and maintain a right of refusal for a third party sale on the entire royalty. A USD $500,000 bonus will be paid to the property owners if 1.0 million or more gold-equivalent ounces are defined in the Proven and Probable Reserve categories according to a NI 43-101 technical report.
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About San Marco
San Marco Resources Inc. is a Canadian mineral exploration company with a current portfolio of four promising properties in mining-friendly Mexico and an aggressive project generation program focused on high-calibre, low-opportunity cost projects. San Marco has a committed management team with extensive experience in Mexico and a proven track record of building shareholder value.
For further information, contact:
Robert D. Willis
Investor Relations Officer
National Instrument 43-101 Disclosure
The technical information contained in this document has been verified, and this news release has been approved, by San Marco’s CEO, Robert D. Willis, P. Eng. a “Qualified Person” as defined in National Instrument 43-101, Standards of Disclosure for Mineral Projects of the Canadian Securities Administrators.
Samples discussed in this document were prepared for assay at ALS Chemex Lab in Mexico and assayed at their facility in Vancouver, BC. Assay methodology is as follows. A 30 gram split is analyzed for gold, using the Au-AA23 method. Sample results greater than 10 ppm are re-assayed, using AA23 fire assay and gravimetric finish. For silver, copper, lead and zinc, a multi-element, four acid digestion (ME - ICP 61) method is used. For initial assays of silver > 100 ppm, copper, lead and zinc > 10,000 ppm (over limits), the OG62 method is used for re-analysis. Blanks and certified standards are inserted into the sample stream as part of San Marco’s quality assurance and control program, which complies with National Instrument 43-101 requirements.
Forward Looking Information
Information set forth in this document includes forward-looking statements, such as: potential exploration plans and programs for the Cuatro de Mayo project; and, the possibility of acquiring additional exploration projects. While these statements reflect management’s current plans, projections and intents, by their nature, forward-looking statements are subject to numerous risks and uncertainties, some of which are beyond the control of San Marco Resources Inc. For instance, the execution of any exploration programs planned by the Company will be dependent upon the availability of both human and financial resources, both of which are presently limited. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on these forward-looking statements. San Marco’s actual results, programs and financial position could differ materially from those expressed in or implied by these forward-looking statements.
Neither the TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy of this release.