Camino Options Villa Hermosa GOLD Project IN LA Libertad, PERU
Suite 500, 666 Burrard Street, Vancouver, BC V6C 3P6
Phone: 604-566-8778 | Fax: 604-558-4784 | Email: [email protected]
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NEWS RELEASE
#11-2018
May 2, 2018 TSX Venture Symbol: COR
OTCQB Symbol: CAMZF
Frankfurt Symbol: XC01
CAMINO OPTIONS VILLA HERMOSA GOLD PROJECT IN LA LIBERTAD, PERU
Vancouver, BC - Camino Minerals Corp . ("Camino" or the "Company") (COR: TSX -V) is
pleased to announce it has signed an option agreement with Compania Minera Villa Hermosa
JV RR S.A.C. (the “Vendor”) pursuant to which it can acquire through a wholly- owned
subsidiary, Minquest Peru S.A.C., a 100% interest in the Villa Hermosa project. The property
consists of two claims totaling 400 hectares and is located 150 kilometre s east of the city of
Trujillo, Department of La Libertad in central Peru.
Villa Hermosa is located in a region of Precambrian age rocks which hosts several large gold
mines, including the nearby Parcoy Mine, owned by Consorcio Minera Horizonte, and the
Retamas Mine , owned by Minera Aurifera Retamas. These mines were first brought into
production on a small scale in the 1980’s. Production has steadily increased at both mines;
• the Parcoy Mine now mills 2,000 tonnes per day and produces over 250,000 ounces of
gold annually.
• the Retamas Mine has a capacity of 1,800 tonnes per day and is producing over 180,000
ounces of gold annually.
Production for both mines has been developed on narrow veins. At the Parcoy Mine, these
veins have been defined to a depth of over one kilometre below surface, and in 2015, a capital
project was begun to install a 1,075 metre-deep shaft which would make the operation more
efficient and extend the life of the mine well into the future.
At Villa Hermosa, the vendors have been shipping up to 20 tonnes per month of hand sorted
ore which grades between 40 and 125 grams per tonne gold. This material is being mined
from four veins which average 0.6 metres wide and are hosted within a 40 metre-wide quartz
stockwork zone.
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Due diligence sampling of the veins averaged 28.9 grams per tonne gold. The stockwork on
the margins of the veins assayed up to 4.2 grams per tonne gold over 1.29 metre s. To date,
there has been no modern exploration activities completed on the property and no systematic
sampling of the stockwork.
The primary exploration target at Villa Hermosa is definition of high -grade gold resources
contained within quartz veins. There is also potential that these veins could be nested within
a bulk tonnage zone of stockwork mineralization if economic gold values are spread across a
significant portion of the 40-metre width of the zone.
The Company will initially focus on sampling and trenching the extensions of the known
veins and stockwork as well as prospecting for additional veins. The Vendor holds a valid
small scale extraction permit which allows it to carry out road building, tren ching,
underground development, and drilling.
Kenneth McNaughton, President and CEO, said, “ We first visited Villa Hermosa in December
2013, and began discussions with the vendors shortly thereafter. I’m very excited that after almost five
years of discussions that we have reached an agreement and can begin exploration.
“While our focus remains the advancement of our Chapitos copper oxide deposit in southern Peru, we
believe Villa Hermosa compliments our portfolio of gold projects which include Plata Dorada in Peru
and Lost Cabin in southern Oregon, USA. With the grade of mineralization that we’ve found on site
and its close proximity to the world class Parcoy and Retamas gold mines, we believe Villa Hermosa
has excellent potential to host a multi-million ounce gold deposit.”
Under the terms of the option agreement, Camino has the right to earn 100% interest in the
Project by making staged payments as follows:
Date for Option Payment Amount USD
On execution of the option agreement (the “Effective Date”) $50,000
12 months after Effective Date $50,000
24 months after Effective Date $100,000
36 months after Effective Date $150,000
48 months after Effective Date $200,000
60 months after Effective Date $4,500,000
Total $5,050,000
The Vendor also retains the right to continue mining on the project during the option period.
The completion of the option remains subject to receipt of all necessary regulatory approvals,
including the approval of the TSX Venture Exchange.
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A presentation for the Villa Hermosa Project is on the Company website at
www.caminominerals.com.
Kenneth C. McNaughton, M.A.Sc., P.Eng., the President and Chief Executive Officer of the
Company, is a Qualified Person (QP) an d is responsible for the Villa Hermosa Project
exploration program.
About Camino Minerals Corporation
Camino is a discovery -oriented mineral exploration company . The Company is focused on
the acquisition and development of high grade copper and precious metal projects. For more
information, please refer to Camino’s website at www.caminominerals.com
For further information and investor inquiries, contact:
Ken McNaughton
President and Chief Executive Officer
Phone (604) 566-8778
http://www.caminominerals.com
Cautionary Note Regarding Forward-Looking Statements and Information
This News Release contains “forward-looking information” and “forward looking statements” within
the meaning of applicable Canadian and United States securities legislation. Statements contained
herein that are not based on historical or current fact, incl uding without limitation statements
containing the words “anticipates,” “believes,” “may,” “continues,” “estimates,” “expects,” and “will”
and words of similar import, constitute “forward-looking statements” within the meaning of the U.S.
Private Securities Litigation Reform Act of 1995.
Forward-looking information may include, but is not limited to, information with respect to our
planned exploration activities, the adequacy of our financial resources, the estimation of mineral
reserves and resources, the results of future exploration and drilling. Wherever possible, words such
as “plans”, “expects”, “projects”, “assumes”, “budget”, “strategy”, “scheduled”, “estimates”,
“forecasts”, “anticipates”, “believes”, “intends”, “targets” and similar expressions o r statements that
certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be
achieved, or the negative forms of any of these terms and similar expressions, have been used to
identify forward-looking statements and information.
Forward-looking information is subject to a variety of known and unknown risks, uncertainties and
other factors that could cause actual events or results to differ from those expressed or implied by the
forward-looking information, including, w ithout limitation, those risks identified in the Company’s
annual disclosure materials, filed with the securities regulatory authorities in Canada and available at
www.sedar.com. Readers are encouraged to read these materials. Prospective investors should not
place undue reliance on forward-looking information.