January 25, 2008
Prospector Consolidated Resources Inc. (“Prospector”) is pleased to provide a corporate update regarding the Kalzas tungsten project in the Yukon and the Candamena gold-silver project in Mexico which the Company has entered into option agreements on. Please refer to Prospector’s August 10th 2007 and August 16th 2007 news releases, respectively, for details of those property options. Prospector has received conditional approval from the TSX Venture Exchange for each project. Final acceptance will be conditional upon the company satisfying certain filing requirements for each project, as they are considered major transactions.
For the Kalzas agreement, the TSX Venture Exchange has required that Prospector provide 1) a technical report on the property in National Instrument 43-101 (NI 43-101) format and, 2) provide shareholder approval per Section 7.4 of Policy 5.3. Al Doherty, P.Eng., has been commissioned by Prospector to author the NI 43-101 report. Site visits have been completed by the engineer and Prospector has been told the report is in its final editing stage for submission to the Exchange. Shareholder approval of the Kalzas agreement was granted at Prospector’s AGM, held on November 28th, 2007, satisfying the other Exchange requirement. Under terms of the agreement, Prospector may earn a 100% interest in the Kalzas project by incurring $4,080,000 in exploration expenditures over a four year period and issuing an aggregate of six million shares over a seven year period (500,000 shares in year one), as well as one million warrants upon regulatory approval exerciseable for two years at $0.25 in year one and $0.50 in year two and one million warrants in year three excerciseable for two years at an exercise price to be determined in accordance with the policies of the exchange. There is a 2% NSR on the property.
For the Candamena Mining District agreement, the TSX Venture Exchange has required that Prospector provide 1) a technical report in NI 43-101 format and, 2) evidence of Title for the property per Section 7.1 of Policy 5.3. Taiga Consultants Ltd. of Alberta and Coffey Mining Consultants of Australia, have been commissioned by Prospector to co-author the NI 43-101 report. Site visits have been completed by the engineers and Prospector has been told the report is also in its final editing stage for submission to the Exchange. A Title opinion has been completed on the property for the NI 43-101 and it will be included in the report. Prospector understands the report will have an inferred resource calculation. Prospector is looking forward to the recommendations in the report for its 2008 work program. Under terms of the agreement, Prospector will earn a 100% interest in the Candamena gold-silver deposit by issuing 2,000,000 shares in the Company upon regulatory approval, in addition to the $50,000 already paid to First Majestic. On exercise of the option, Prospector will assume all of First Majestic’s obligations, under two purchase agreements totalling $5,550,000 US in staged payments concluding in November, 2008. The purchase agreements are for 5,215 hectares that make up the Candamena Mining District, including the Nuevo Dolores deposit, La Blanca, La Verde, the La Prieta mine and all the assets and the flotation mill located on the property. The Company plans to explore and develop the Candamena Mining District with its initial focus in the Nuevo Dolores zone, a volcanogenic-hosted epithermal gold-silver zone; La Blanca, a similar highly prospective area, and two old high grade silver-lead-zinc mines called La Verde and La Prieta.
The qualified person responsible for review of the technical aspects of this release is Henry Neugebauer, P. Eng., President and CEO of the Company.
For further information on the Company, please call our office at (604) 687-8863 or visit our web site at www.prospectorresources.com
On behalf of the Board,
Henry Neugebauer P.Eng.
President
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This press release has been prepared by management; the TSX Venture Exchange has not reviewed
and does not accept responsibility for the adequacy or accuracy of this release. |
