Colibri Provides Terms of Its Acquisition of the 4,260 Ha Plomo Gold Project in Caborca Gold Belt
Colibri Provides Terms of Its Acquisition of
the 4,260 Ha Plomo Gold Project in Caborca
Gold Belt
Dieppe, New Brunswick--(Newsfile Corp. - March 21, 2023) -
Colibri Resource Corporation (TSXV:
CBI) (OTC Pink: CRUCF) ("Colibri" or the "Company"), provides additional details of terms to acquire
the Plomo Gold Project and further background as a follow up to its release of March 16, 2023.
Overview of Plomo Gold Project
The Plomo property covers an area of approximately 4,260 hectares ("Ha") and is contiguous with the
Company's Evelyn Property. The additional land increases Colibri's area footprint by 842% to a total of
4,766 hectares.
The current database includes 1,853 surface rock samples of which 132 samples are greater than 1.0
g/t Au, 15 high grade samples are greater than 10 g/t Au and 524 samples are greater than 0.1 grams
per tonne ("g/t") Au. Surface exploration included prospecting, a 14.1 line Km 3D induced polarization
study, mapping, and rock sampling. To date, 9 target areas have been identified on the Plomo property.
(See: Figure 2 below).
Underground sampling completed in the adit at the Banco de Oro prospect in 2008 is reported to have
included 298.0 g/t Au over a chip length of 2.4 metres
The Plomo property has been subject to only very limited exploration drilling, which was very early on in
its exploration, with a total of 1,570 meters completed in 10 holes.
A highlight of the drilling is the
intercept of 0.66 g/t Au over an intersection length of 11.65 metres ("m") completed in the San Perfecto
target area.
The Evelyn and Plomo properties are located in the 500 km long, northwest trending Caborca Gold belt
which includes the > 15 million ounce Au La Herradura Mine (located 30 km west of Plomo) and the > 2
million ounce Au Noche Buena Mine (located approximately 8 km southwest of Plomo). Both mines are
owned by Fresnillo Plc who is the largest gold producer in Mexico. The Plomo and Evelyn claims are
surrounded by claims held by Fresnillo Plc.
(See: Figure 1 below)
Figure 1: Evelyn-Plomo Area - Regional Claims Map
To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/4269/159262_9243d8355432381f_001full.jpg
Terms
Colibri paid $100,000 CAD cash to acquire the Plomo project by way of buying 100% of the shares
outstanding in Great Panther Mining's ("Great Panther") wholly owned subsidiaries, which hold the
Plomo. The deal was successfully concluded with Great Panther's Trustees in Bankruptcy.
Plomo History & Background
Plomo was originally acquired by Cangold Ltd. in 2006 for $100,000 in cash payments, issuance of
700,000 shares of Cangold stock (shares were trading at approximately $0.50 at the time) and issuing
the vendor an additional 500,000 share purchase warrants at $0.50 per share.
The project was the target of intense exploration activity in 2006, 2007, and 2008 when Cangold
completed a significant amount of mapping, geochemical sampling (1100 samples), and a 1,570m
diamond drill program. The company returned to its field exploration at Plomo in 2012, sending several
hundred more samples for assay and completing increasingly detailed mapping.
In 2015, Cangold was acquired by Great Panther Mining. The Plomo continued to be retained as an
exploration asset with all property taxes paid semi annually.
Encouraged by its discoveries at Evelyn, Colibri signed a mutual non-disclosure agreement with Great
Panther to share data mid year 2021. Based on its due diligence, Colibri forwarded an offer to purchase
the Plomo Gold project for $1 million CAD in December of that year. The offer was rejected, and it was
understood that Great Panther management had instead decided to complete further exploration of the
Plomo in an effort to grow the company's resources organically.
The following year, from April to November 2021, Great Panther completed exploration activities at
Plomo to better understand the structures and lithologies associated with previously identified gold
mineralization to determine targets for future drilling. To support this work, they retained TMC Geofisica
to perform a 14.1 line kilometre 3D IP study covering the area bordering Colibri's Evelyn project over to
Plomo's San Perfecto target. We now know that the results generated from these studies were very
encouraging, however Great Panther had been experiencing significant cashflow problems due to its
mining operations (as illustrated by its financial statements in published early 2022). As a result, no
further exploration was funded at Plomo in 2022.
In September 2022, Great Panther filed for CCAA protection from its creditors. Colibri management
reached out GPR to determine if there may now be an opportunity to buy the Plomo project and received
a positive response.
Colibri geologists reviewed the updated Plomo database and in December 2022 submitted an offer to
buy the Plomo Gold project, however, was subsequently informed that Great Panther had already
formally filed for bankruptcy with the courts and its management were no longer the custodians of its
assets. Colibri in turn submitted a modified offer of $100,000 CAD to the trustees of the GPR bankruptcy
and the offer was accepted.
Ian McGavney COO of Colibri states
"I am extremely happy that we were able to acquire this large
piece of ground in this prime district, along with its significant geological database.
Great
Panther/Cangold did excellent exploration work at Plomo and unveiled a great deal of potential.
The fact that we offered $1 million CAD for the project two years ago and that it was rejected by
Great Panther would seem to indicate that their management also saw its upside potential.
Review of their 2021 field work has only added more reasons for us to want to own this project.
We were in the right place at the right time and seized the opportunity.
"
Figure 2 - Target Areas and Samples Map - Evelyn Plomo
To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/4269/159262_9243d8355432381f_002full.jpg
ABOUT COLIBRI RESOURCE CORPORATION:
Colibri is a Canadian-based mineral exploration company listed on the TSX-V (CBI) and is focused on
acquiring and exploring prospective gold & silver properties in Mexico. The Company holds seven high
potential precious metal projects of which six have planned exploration programs for calendar 2023.
For more information about all Company projects please visit:
www.colibriresource.com
.
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
release.
Notice Regarding Forward-Looking Statements:
This news release contains "forward-looking statements". Statements in this press release which are not
purely historical are forward-looking statements and include any statements regarding beliefs, plans,
expectations, or intentions regarding the future. Actual results could differ from those projected in any
forward-looking statements due to numerous factors. These forward-looking statements are made as of
the date of this news release, and the Company assumes no obligation to update the forward-looking
statements, or to update the reasons why actual results could differ from those projected in the forward-
looking statements. Although the Company believes that the plans, expectations and intentions
contained in this press release are reasonable, there can be no assurance that they will prove to be
accurate.
For information contact: Ronald J. Goguen, President, Chairperson and Director, Tel: (506) 383-4274,
To view the source version of this press release, please visit
https://www.newsfilecorp.com/release/159262