March 11, 2008
Prospector Consolidated Resources Inc. (“Prospector”) is pleased to provide more information regarding the Candamena gold-silver project in Mexico, which the Company has entered into an option agreement to earn a 100% interest on the property from First Majestic Silver Corp. (“First Majestic”). Please refer to Prospector’s August 16th 2007 news release for more details of the property option agreement.
Candamena is located in a very prolific belt of gold – silver mineralization (see figure 1) which locally includes deposits being mined or developed by Gammon Lake at Ocampo, Exmin Resources at Moris Mine, Agnico Eagle at Pinos Altos among others (see Table 1). These more advanced projects are mentioned together with Candamena because they are all related to geologic structures in a large collapsed caldera. Collapsed calderas are volcanic features which tap deep into the earth’s crust and thus bring hydrothermal fluids to the surface along with mineral deposits of gold, silver, copper, lead and zinc.Table 1 shows their relative sizes.
Figure 1
Table 1
|
|
Deposit |
Tonnes |
Au (g/t) |
Ag (g/t) |
Au Equivalent Oz. |
|
Goldcorp |
El Sauzal Deposit |
|
|
|
1,700,000 |
|
Alamos Gold |
Mulatos Deposit |
33,000,000 |
2.27 |
|
2,100,000 |
|
Gammon Gold |
Ocampo Deposit |
61,700,000 |
1.19 |
55 |
5,000,000 |
|
Minefinders Corp. |
Dolores Deposit |
116,500,000 |
0.74 |
43 |
1,490,000 |
|
Exmin Resources |
MorrisMine |
4,300,000 |
1.86 |
|
|
|
Prospector Consolidated |
Candamena Deposit |
Inferred |
Resource |
Calculation |
Underway |
|
Agnico-Eagle |
Pinos Altos Mine |
18,608,000 |
3.07 |
92.77 |
1,800,000 |
All of the above mentioned elements have historically been located at Candamena due to the exploration work carried out by Manhattan Minerals in 1996-97. Over 11,000 meters were drilled in over 50 drill holes. Precise knowledge of the total meterage is only approximate due to incomplete historical information, but Manhattan reported resources on Candamena in their 1997 annual report.
The author of Prospector’s 43-101 report on Candamena, David Reid,P.Geo., visited the property in Dec,2007 and re-sampled sections of the original Manhattan drill core. The outcrops from which the drill core had been derived, was sampled as well. Please refer to the complete list of resampling in Reid’s 43-101, of the Manhattan drill holes, on SEDAR (dated March 5) on page 31, Table 2.
Three Manhattan Minerals drill holes from 1996-97, were re-sampled on two separate occasions. The average of the 52 historic samples from 1997 was 1.63 g/t gold, over 72 m. PRR requested that Chris Cherrywell of Orequest to resample some drill core in 2004. He was not instructed to focus on specific intervals and, due to stacking of boxes on top of each other without spacers, he collected samples from drill holes which were most accessible. He collected 52 samples and the results correlated very well with the historic Manhattan results, the average of the re-sampling was 1.49 g/t gold, over a length of 72 m. David Reid, P.Geo., re-sampled only 10 intervals from the same intervals as was done by Cherrywell and Manhattan. The gold values were somewhat higher and, the average of all of Reid’s samples was 2.28 g/t gold over a composite length of 15.5 m
PRR and David Reid, P.Geo., do not attribute Reid’s higher values to better analytical techniques or better QA/QC but rather the randomness of the mineralization. Also, it is not intended to convey that the samples chosen, represent an average over a potential orebody since the average will depend on the cut-off grade used to determine the volume of mineable material.
It is Prospector’s intent to bring the historical resources to a current 43-101 compliant resource. This will entail the twinning of several drill holes to confirm the grades established by Manhattan Minerals, to survey the drill hole locations, to establish density of the rock and use proper QA/QC protocol to assure that the resource is compliant. A pro-forma resource calculation has already been carried out by a third party, but cannot be relied upon since it is non-compliant. PRR expects to spend about $750,000 on the Phase I portion of the recommendations of the 43-101 report.
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
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. |
