| |
August 08 , 2007
Press Release 07-07
HuntMountain Finalizes Contract to Develop Argentine Gold Property
(Spokane, WA) HuntMountain Resources(OTCBB:HNTM) (Frankfurt:MPT) is delighted to
announce that the company’s Argentine subsidiary, Cerro Cazador S.A. (CCSA), has signed a
definitive agreement with Fomicruz S.E., the provincial government’s exploration entity, to explore
and develop the advanced La Josefina precious metal property in Santa Cruz, Argentina. On
July 24, 2007 in a public ceremony attended by government and private industry dignitaries
including the Governor of Santa Cruz, executives from Fomicruz, HuntMountain, Cerro Cazador,
and members of the press, the company agreed to invest a minimum of USD$6,000,000 in
exploration and development over a four-year period. This represents a significant investment in
the province where Cerro Cazador controls an additional six exploration concessions.
Mr. Tim Hunt, Chairman and CEO of HuntMountain, who attended the ceremony and met with
government officials, commented, “The addition of the La Josefina property brings our total land
position in Santa Cruz to 283,000 acres (114,000 hectares) and positions HuntMountain as one
of the largest and most prominent precious metal exploration companies in the region.” He
added, “This partnership, essentially with the government of Santa Cruz, should bring some
unique benefits to Cerro Cazador’s exploration and development efforts in the province. We are
committed to maintaining a close relationship with Fomicruz officials and geo-scientists, and to
providing training to young professionals as we work together to define and expand the highgrade
precious metal occurrences known to exist at La Josefina. We will also continue additional
exploration to identify new potential deposits. Our immediate goal is to upgrade and expand an
existing internally-calculated resource of 150,000 ounces of gold in order to define a larger 43-
101-compliant resource within the next two field seasons.”
The La Josefina project is located in the central-north portion of the Santa Cruz Province in the
Deseado Massif and comprises an area of over 130,000 acres (52,770 hectares). It
encompasses a 10 km long hydrothermal alteration belt that is 1 to 3 km wide, hosted within
pyroclastic rocks of the Chon Aike Formation (middle to upper Jurassic in age). Since 1994, a
number of exploration programs have been carried out in the area, including regional and detailed
(1:500) geological mapping; soil, regolith and rock sampling; trenching; geophysical surveys; and
drilling. Most of these programs were carried out by Fomicruz in collaboration with the Instituto de
Recursos Minerales (INREMI) of the La Plata University at a cost of more than USD$2,800,000.
As a result of this exploration, more than 8,000 samples were collected and assayed, 3,900
meters of trenches were opened and sampled, and a total of 4,100 meters of diamond core
drilling was completed and analyzed. Most of the exploration was carried out in three prospective
areas – Central, Veta Norte, and the Sinter sector. The first two areas consist mainly of gold and
silver bearing quartz veins, stockworks, and hydrothermal breccias. These are normally
associated with argillization and propilitization alteration halos. Mineralized veins and structures
generally trend NW-SE to NE-SW and exhibit compositions and textures that are distinctive of low
sulfidation epithermal deposits. In contrast, the Sinter sector is characterized by the presence of
deposits indicative of high level geothermal systems including superficial siliceous to carbonate
precipitates and replacements, hydrothermal eruption breccias, and steam-vent associated
alteration.
Trench samples in the Sinter sector have returned gold values that locally exceed 500 grams per
ton (g/t). In addition, 1,750 meters of shallow core drilling was completed in this area, with most
holes drilled to less than 80 meters depth. The best interval from this drilling was 12.2 meters of
22.94 g/t gold. In the Veta Norte area, trench samples locally reached 33 g/t gold and 479 g/t
silver. Thirty five trenches and 15 shallow core holes have been completed along a 900 meter
vein system crossing the Veta Norte area. The best drill intersection in the Central area was an
interval of 2.1 meters returning 164.3 g/t gold and over 100 g/t silver. In the Central area, 32
diamond drill holes were completed and 12 trenches crossing observed veins were cut. All drill
holes were shallow, with only four reaching beyond 50 meters in depth. The table below shows
highlights from each of these three areas.
| La Josefina Sample Results – Fomicruz S.E. |
| Area |
Sample Type |
Interval Length(m) |
Gold(g/t) |
Silver(g/t) |
| Sinter |
Drill Core |
12.20 |
22.94 |
|
| |
|
7.26 |
4.16 |
|
| |
|
3.00 |
7.48 |
|
| |
|
2.00 |
2.51 |
|
| |
|
1.90 |
2.96 |
|
| |
|
1.00 |
3.92 |
|
| |
Trench |
3.00 |
176.93 |
|
| |
|
7.00 |
114.07 |
|
| |
|
|
|
|
| Veta Norte |
Drill Core |
0.71 |
42.52 |
145.00 |
| |
|
0.52 |
23.84 |
52.50 |
| |
|
3.00 |
7.76 |
155.30 |
| |
|
2.45 |
4.65 |
17.50 |
| |
|
1.70 |
1.21 |
114.60 |
| |
|
0.90 |
5.65 |
429.00 |
| |
|
0.50 |
8.92 |
109.00 |
| |
|
1.40 |
4.07 |
156.00 |
| |
|
4.41 |
17.20 |
232.50 |
| |
|
2.80 |
3.48 |
7.00 |
| |
|
1.73 |
12.64 |
12.37 |
| |
|
0.98 |
1.75 |
107.50 |
| |
|
4.00 |
3.04 |
19.16 |
| |
Trench |
19.80 |
4.99 |
|
| |
|
1.00 |
6.94 |
|
| |
|
1.00 |
5.56 |
|
| |
|
1.00 |
5.21 |
|
| |
|
4.00 |
3.83 |
|
| |
|
3.00 |
4.14 |
|
| |
|
2.00 |
3.60 |
|
| |
|
|
|
|
| Central |
Drill Core |
2.10 |
164.30 |
101.10 |
| |
|
0.74 |
88.80 |
86.50 |
| |
|
5.01 |
1.31 |
5.55 |
| |
|
7.01 |
1.62 |
7.76 |
| |
|
0.47 |
20.00 |
75.60 |
| |
|
1.97 |
1.25 |
62.95 |
HuntMountain Resources is a U.S.-based junior exploration company engaged in acquiring,
exploring and developing precious and base metals properties throughout North and South
America. This news release may contain forward-looking statements within the meaning of
Section 27A of the Securities Act and Section 21E of the Exchange Act. Forward-looking
statements are inherently subject to risks and uncertainties, many of which cannot be predicted
with accuracy, and some of which might not even be anticipated. This news release is neither a
prospectus nor an offer to sell securities or stocks in the company. It is intended for
informational purposes only.
CONTACT:
Randal L. Hardy, President
HuntMountain Resources
(509) 892-5287
(509) 892-5318 Fax
rhardy@huntmountain.com
www.huntmountain.com
CONTACT:
Matt Hughes, Vice President of Exploration
HuntMountain Resources
(509) 892-5287
(509) 892-5318 Fax
mhughes@huntmountain.com
www.huntmountain.com |
