Goldplay enters into LOI to acquire district- scale concession package in the Rosario Mining District, Mexico
Goldplay enters into LOI to acquire district-
scale concession package in the Rosario
Mining District, Mexico
VANCOUVER
,
Dec. 17, 2019
/CNW/ -
Goldplay Exploration Ltd. (TSXV: GPLY,
FRANKFURT
:
GPE, OTCQB: GLYXF) ("Goldplay" or the "Company")
, is pleased to announce that it has
entered into a Letter of Intent ("LOI") with Mako Mining Corp. ("Mako"), the sole shareholder of
Marlin Gold Mining Ltd. ("Marlin"), pursuant to which it was granted the right to acquire 100% of the
shares of Marlin (the "Marlin Shares"). Marlin is a private
British Columbia
company, 100%
controlled by Mako. Marlin owns, amongst other assets, Oro Gold de
Mexico
, S.A. de C.V. ("Oro
Gold"), a Mexican company that owns the
La Trinidad
mine facilities ("La Trinidad"), currently being
decommissioned (Figure 1).
Oro Gold
also controls 100% of nine concessions (the "Concessions")
totaling 104,094.5 ha located adjacent to Goldplay's existing portfolio in the historic
Rosario
gold-
silver Mining District,
Sinaloa, Mexico
(Figure 2).
Under the LOI, Goldplay was granted the exclusive right to acquire 100% of the Marlin Shares until
December 31, 2020
. Goldplay is now moving forward with its legal, financial and technical due
diligence review of Marlin,
Oro Gold
,
La Trinidad
and other assets owned by Marlin. Upon
completion of due diligence, if Goldplay is satisfied with same, the parties expect to then negotiate
the terms of a definitive agreement in relation to this acquisition. The Company will provide
shareholders with updates on the status of this transaction when material information becomes
available.
The terms of the transaction are subject to negotiation and will include a nominal cash payment to
Mako and the issuance of a small NSR royalty to Mako on the Concessions currently owned by
Oro
Gold
. Goldplay will assume all remaining tax liabilities of
Oro Gold
. Mako will be responsible for
reclamation activities at
La Trinidad
and associated costs until it receives approval from the Mexican
government that reclamation is complete. All proceeds from the lawsuit Mako and
Oro Gold
have
filed against their insurers and reinsurers related to damages from Hurricane Willa will be for the
benefit of Mako, and Mako will be responsible for the costs of this litigation.
Goldplay President and CEO
Marcio Fonseca
commented
, "We are pleased to enter into the
Letter of Intent with Mako, as it opens up the opportunity to fully review and potentially acquire
highly prospective gold and silver assets adjacent to the San Marcial Project, including on-site
infrastructure. If successful, the transaction would prove to be an important advancement toward
our goal of becoming a leading company in control of key assets in this district. Goldplay's team
has extensive experience in the
Rosario
gold-silver Mining District. With over 10 years of on-the-
ground exploration, the team has acquired fundamental knowledge of the geological setting of the
district. This proprietary intelligence contributes to maximizing value from this proposed acquisition
and supports our goal of delivering significant shareholder value through new discoveries."
Oro Gold
acquired the Nueva Trinidad property from Minera Camargo S.A. de C.V. in 2005 and
subsequently commenced drilling and regional exploration. The property had been previously owned
and operated by a subsidiary of Eldorado Gold Corp ("Eldorado"). Based on
Eldorado's
annual
reports, production from the Taunus Pit commenced in 1996 and ended in the fall of 1998.
A second zone, below what was mined by
Eldorado
, was discovered by Marlin in 2009 and is
located approximately
30 m
below the
Eldorado
zone or approximately
150 m
below surface. The
discovery of this deeper zone was the basis for the NI 43-101 preliminary economic assessment that
Marlin filed on SEDAR on
June 11, 2012
.
In 2014, Marlin achieved commercial production of a heap leach open pit operation at Nueva
Trinidad, one of the highest-grade open pit heap leach gold mines in
Mexico
. While Marlin focused
primarily on advancing production at the Taunus Pit, today the remainder of the Nueva Trinidad land
package and surrounding area remains under-explored.
Figure 1: General View of the La Trinidad Mine and Surroundings (CNW Group/Goldplay Exploration
Ltd)
Figure 2: Location of Marlin (Mako Mining), shown in yellow, and Goldplay concessions, shown in
red, in the Rosario Mining District (CNW Group/Goldplay Exploration Ltd)
About Goldplay Exploration Ltd
.
Goldplay has successfully consolidated a district-sized portfolio, owning >250 sq. km of mineral
concessions in the historic
Rosario
gold-silver Mining District in the state of
Sinaloa, Mexico
. Its
flagship project, San Marcial, consists of a 1,250-ha land package located south of the
La Rastra
and Plomosas historic mines. San Marcial is a near-surface, high-grade silver, lead, and zinc open
pit amenable project for which a NI 43-101 resource estimate was completed by Goldplay in early
2019. Additionally, high-grade gold was drilled in
July 2019
at San Marcial, opening up the potential
for further gold success. Goldplay's 100% owned
El Habal
precious metals project is located 20 km
west of the San Marcial Project. It comprises 3,700 hectares and is located 75 km southeast of the
modern coastal port of Mazatlán, and 10 km on a paved road from the historic mining town of
Rosario, Sinaloa, Mexico
.
Goldplay's current focus includes expanding its NI 43-101 resource estimate at the San Marcial
project, which contains 36Moz Ag Eq (indicated) + 11Moz Ag Eq (Inferred), by defining new high-
grade gold and silver targets along the project's 6 km mineralized trend. Goldplay is the first
company to perform exploration work at San Marcial in over 10 years. It is a low-risk development
stage project, fully exploration permitted and supported by the local communities to carry out all
proposed exploration activities. Only
500 m
of the 6 km trend has been drilled to date, highlighting
the significant potential for further discoveries. The Company has identified 8 high-priority targets
along the 6 km trend and is currently drilling two high-priority targets at Faisanes and
Nava
. Some of
these exploration targets consist of old shallow pits, caved shafts and historic shallow underground
workings in areas with extensive hydrothermal alteration, hosted by major regional structures in a
felsic volcanic environment. Mapping and sampling by Goldplay have revealed evidence of dacite-
rhyolite dome structures in a highly prospective geological environment for additional high-grade gold
and silver discoveries.
The El Habal Project is a drill-stage project. Its oxidized gold mineralized zone outcrops along a
series of rolling hills with evidence of historic shallow underground mining along a 6 km-long
prospective corridor. The El Habal Project is located near the historic gold-silver Rosario Mine which
operated for over 250 years.
Goldplay's team has over 30 years of experience with senior roles in exploration, financing, and
development in the mining industry, including over ten years of extensive exploration experience in
the Rosario Mining District, leading to previous successful discoveries.
The NI 43-101 reports for each of the San Marcial and El Habal Projects are available on SEDAR.
Disclaimer for Forward-Looking Information
This press release contains forward-looking statements and information that are based on the
beliefs of management and reflect the Company's current expectations. When used in this press
release, the words "estimate", "project", "belief", "anticipate", "intend", "expect", "plan", "predict",
"may" or "should" and the negative of these words or such variations thereon or comparable
terminology are intended to identify forward-looking statements and information. Such statements
and information reflect the current view of the Company. Risks and uncertainties may cause actual
results to differ materially from those contemplated in those forward-looking statements and
information. By their nature, forward-looking statements involve known and unknown risks,
uncertainties and other factors which may cause our actual results, performance or
achievements,
or other future events, to be materially different from any future results, performance or
achievements expressed or implied by such forward-looking statements.
READERS SHOULD
NOT PLACE UNDUE IMPORTANCE ON FORWARD-LOOKING INFORMATION AND SHOULD
NOT RELY UPON THIS INFORMATION AS OF ANY OTHER DATE. WHILE THE COMPANY
MAY ELECT TO, IT DOES NOT UNDERTAKE TO UPDATE THIS INFORMATION AT ANY
PARTICULAR TIME EXCEPT AS REQUIRED IN ACCORDANCE WITH APPLICABLE LAWS.
Mr.
Marcio Fonseca
P. Geo, President & CEO
Goldplay Exploration Ltd.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in
the policies of the TSX Venture Exchange) accept responsibility for the adequacy or accuracy of
this press release.
SOURCE
Goldplay Exploration Ltd
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For further information:
+1 (604) 202 3155, Email: [email protected]
CO: Goldplay Exploration Ltd
CNW 08:00e 17-DEC-19