Bolero secures large, undeveloped molybdenum property in Colorado
Monday October 15, 2:28 pm ET
VANCOUVER, Oct. 15 /CNW Telbec/ - Bolero Resources Corp. (the "Company" or "Bolero"), (TSX-V: BRU - News) is pleased to announce that it has entered into a Letter Agreement (the "Rico Letter Agreement") with Rico Renaissance LLC, Rico Land and Cattle Company, Rico High Altitude Investments LLC, Rico Properties LLC and Rico Mountain Life LLC to acquire certain private surface and mineral rights (including patented claims) that host the Silver Creek molybdenum project and other copper-gold occurrences located in the Pioneer Mining District, Dolores County, Colorado approximately 20 miles southwest of Telluride and just east of Rico.
The Silver Creek molybdenum project was explored by The Anaconda Company ("Anaconda"), from surface and underground during the period 1979 through 1983 with 63,000 feet of drilling completed. In May of 1984, Anaconda reported a historic inferred resource based on four drill holes of 44 million short tons (39.9 million tonnes) at a molybdenum ("Mo") grade of 0.31% Mo, or 0.527% MoS2, within a 0.20% molybdenum cut-off, containing 273 million pounds of molybdenum.
§ All resource estimates quoted herein are based on data and reports
§ obtained and prepared by previous operators. This historic resource
§ estimate is considered to be relevant, and is believed to be reliable
§ based on the amount and quality of historic work completed. The Company
§ has not completed the work necessary to independently verify the
§ classification of the mineral resource estimates. The Company is not
§ treating the mineral resource estimates as National Instrument 43-101
§ defined resources verified by a qualified person. The historical
§ estimates should not be relied upon. The properties will require
§ considerable further evaluation which the Company's management and
§ consultants intend to carry out in due course.
Anaconda estimated the potential of the mineral deposit to be up to 198 million tons (179.6 million tonnes) (at) greater than 0.30% Mo (greater than 0.51% MoS2) at a cut-off of 0.20% Mo. This could represent up to 1.2 billion pounds of contained molybdenum. This estimate of target potential was based on the inferred mineralization halo greater than 0.20% Mo, structural controls projected from surface and observed in core, fluorine/tungsten geochemical signatures and an isopach of Mo mineralization compared with typical Climax style deposits in Colorado. Anaconda geologists were of the opinion that less than 20% of the potential Silver Creek resource has been drilled.
§ The potential quantity and grade is conceptual in nature and there has
§ been insufficient exploration to define a mineral resource and it is
§ uncertain if further exploration will result in the target being
§ delineated as a mineral resource.
Historic drill holes with significant intersections of greater than or equal to 0.20% Mo cut-off include:
§ SC-81-1 245 ft (at) 0.242% Mo or 0.411% MoS2
§ SC-81-5 635 ft (at) 0.334% Mo or 0.568% MoS2(1,2)
§ SC-81-6 191 ft (at) 0.231% Mo or 0.393% MoS2
§ SC-82-7A 285 ft (at) 0.286% Mo or 0.486% MoS2
§ 1. Includes 130 ft (at) 0.505% Mo or 0.859% MoS2
§ 2. At a greater than or equal to 0.30% cut off comprises of
§ 378 ft (at) 0.415% Mo or 0.706% MoS2
§
In terms of the Rico Letter Agreement, Bolero has paid a non-refundable cash deposit of US$100,000. A further non-refundable cash payment of US$500,000 as a down payment on the total purchase price of US$10,000,000 will be due when Bolero is satisfied that it can receive free and clear title at Closing. A final payment of the balance US$9,400,000 is due on the Closing Date expected to be on or about November 16th, 2007.
In addition, the Company is pleased to announce the appointment of Dr. Roger C. Steininger in the capacity of Project Geologist for the Rico Project. Dr. Steininger spent 15 years with the Climax Molybdenum Co. in exploration, development and mine geology at their operations in Colorado and Western Canada. Since leaving Climax, Dr. Steininger was Exploration Manager for Amselco Minerals and for the last 20 years has maintained a consulting practice. During the time since leaving Climax, Dr. Steininger has been involved in several molybdenum projects in western North America.
"We are extremely excited about the potential of this project", said Bolero's President and CEO R. Bruce Duncan. "We believe that it may represent a significant molybdenum project in Colorado, and while it is early days for Bolero, we have been able to recover much of the historic exploration data which confirms the exploration model used by Anaconda. Moreover, we are also excited about the potential of the district; consequently, we have been actively staking the region."
The Company has retained Associated Geosciences Ltd. (AGL) of Calgary to assist with the due diligence process and to prepare a technical report on the property compliant with National Instrument 43-101 of the Canadian Securities Administrators. Mr. McCandlish, Vice President & General Manager of AGL, has worked on many polymetallic porphyry deposits, worldwide, with experience with both block caving and sub-level caving in copper porphyries.
§ Background on Pioneer Mining District:
§ -------------------------------------
The district is a historic producer of silver, lead zinc, copper gold and pyrite (during 1879 to 1971) from veins and carbonate replacement deposits. In 1936, control of the Pioneer Mining District was consolidated under the Rico Argentine Mining Company (RAMCO). Production continued through 1970 and RAMCO was acquired by the Crystal Oil Company in 1974. In 1977, the site was visited by Jim Garmoe, Chief Geologist of The Anaconda Company. Anaconda concluded a lease/purchase option in June of 1978 with the intention of expanding the resource base of the copper replacement deposit discovered by RAMCO on NB Hill. Anaconda also believed that a deeply buried undiscovered porphyry was the source of the copper mineralization.
The 1979 exploration program conducted by Anaconda was not successful in delineating additional base metal replacement deposits, but drill hole C-25 intersected quartz veins containing molybdenite and tungsten and fluorine geochemical gradients suggesting proximity to a molybdenum bearing porphyry stock. The property then was explored by Anaconda from surface and underground via the Blaine Tunnel from 1979 through 1983 with 63,000 feet of drilling completed. A total of 26 exploration holes were drilled as part of the Anaconda program.
While the known mineralization is deep it appears that grades are above average for a Climax-type deposit and that a reasonable geological interpretation indicates the size could be on a par with other known deposits of this type in Colorado. While it is premature to discuss mineability of such a deposit the potential grade and tonnage suggest that several mining options could be available. Exploration of the property was terminated in February 1983 with the collapse of molybdenum prices.
A secondary molybdenum target is north of Silver Creek at CHC Hill. Quartz-eye porphyry dikes and anomalous fluorine, tungsten, and molybdenum indicate that buried molybdenum bearing porphyry stock may exist beneath CHC Hill. Only limited shallow drilling exists at CHC Hill, none which tested the molybdenum target.
Both Keith McCandlish, P.Geol. (Alberta) and P.Geo. (BC), Vice President & General Manager of AGL as an independent "qualified person" (as such term is defined by NI 43-101) and Dr. Roger C. Steininger, Certified Professional Geologist (AIPG) as the Company's "qualified person" have reviewed, and are responsible for, the preparation of the technical information in this release.
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