Victory Resources Corporation - El Boleo Property Acquisition
VANCOUVER, June 19, 2012 /PRNewswire/ - Victory Resources Corp. (the "Company") is pleased to announce that it has reached an agreement with Minera Copper Canyon S.A. de C.V. ("Minera"), a private Mexican corporation, which will allow the Company to acquire up to a 100% interest in a property known as 'el Boleo'. El Boleo is located adjacent to the historic Reforma Mine, the Santo Tomas Copper-Gold deposit, and in close proximity to the Bahuerachi Copper Deposit.
The Company has paid $10,000 to Minera (which will be credited to any subsequent cash payments) and been granted a twenty (21) day due diligence (the "Due Diligence Period") period during which the Company will be free to review all pre-existing data in the possession of Minera, as well as conduct sight inspections and remove ground and rock samples.
If the Company determines that it wishes to proceed at the end of the Due Diligence Period, subject to the definitive agreement, it may acquire 80% of Boleo by paying cash of $200,000 in stages, issuing 15,000,000 shares (10,000,000 of the shares subject to pooling prior to a feasibility study), and by performing $2,000,000 in work programs over three years.
The Boleo property is situated on the western foothills of the Sierra Madre Occidental mountain range, at the common boundary of the northeastern Mexican States of Sinaloa and Chihuahua. This area is characterized by a northerly prolific mineralized belt hosting the multi-million-tonne porphyry copper and gold deposits of Santo Tomas and Bahuerachi. El Boleo, comprising a total of 13,234.65 hectares (spread over four mining concessions), is almost 25 km long in a northerly direction and up to 8.75 km wide. It is mainly underlain by granodiorite of Upper Cretaceous age intruding a sedimentary sequence of metasediments and limestone. Skarn development occurs near the area of contact between the granodiorite and the sediments where massive magnetite and lesser hematite and specularite and sometimes significant amounts of copper mineralization occur. Hydrothermal breccias occur at the central portion of the property where recent soil and rock chip sampling defined coincident geochemical anomalies of copper, silver and zinc covering an area 1000 m long and 600 m wide.
"The acquisition of el Boleo will significantly expand the resource potential of Victory and give us 20,460 hectares of contiguous property," said Wally Boguski, president and CEO. "We look forward to completing our due diligence and to close the transaction in the next 60 days."
About Victory Resources Corporation
The company's main focus is on the Reforma property located at the common boundary of Sinaloa and Chihuahua States in west central Mexico. The concessions cover a total area of 7,226 hectares. Victory Resources will earn a 70% undivided interest in the Reforma property as part of an option agreement. Formally owned by Penoles in Mexico, documentation showed that between the years 1968 to 1980, the Reforma mine processed 1.8 million tonnes grading an average of 91.62 grams per tonne Ag, 1.90 per cent Pb, 7.44 per cent Zn and 0.63 per cent Cu.
The company has also begun exploration work on the Au-Wen property in British Columbia, Canada. The Au-Wen property is 100 % owned by Victory Resources and is located 30 kilometers southeast of Merritt and 8 kilometers east of the historic Aspen Grove mining camp in south-central British Columbia, Canada. The property is comprised of 91 mineral claims covering an area of 34,200 hectares. The area covered is up to 39 kilometres long and up to 21 kilometres wide.
On behalf of The Board of Directors of Victory Resources Corporation.
Paul Lee, Director
This news release contains certain forward looking statements which involve known and unknown risks, delays, and uncertainties not under the control of Victory Resources Corp. which may cause actual results, performance or achievements of Victory Resources Corporation to be materially different from the results, performance or expectation implied by these forward looking statements. Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release, which has been prepared by management.
SOURCE Victory Resources CorporationBack to top