Inomin Acquires La Gitana and Pena Blanca Gold-Silver Projects Properties prospective for near-surface, bulk-tonnage, gold-silver deposits
Inomin Mines Inc. 400 Burrard Street, Suite 1130, Vancouver, BC Canada V6C 3A6
www.inominmines.com
NEWS RELEASE
Inomin Acquires La Gitana and Pena Blanca Gold-Silver Projects
Properties prospective for near-surface, bulk-tonnage, gold-silver deposits
Vancouver, British Columbia, August 4, 2020 – Inomin Mines Inc. (TSX.V: MINE) is pleased to announce the
execution of an agreement to acquire the La Gitana and Pena Blanca gold-silver projects in Mexico. The properties
are located approximately 100 kilomet ers east of Oaxaca City in the prolific Oaxaca Gol d-Silver Belt that hosts
several epithermal gold-silver mines and prospects.
Highlights
La Gitana hosts a significant gold and silver epithermal system defined by 38 drill holes
Discovery drill hole of 133.5 meters (438 feet) of 1.78 g/t gold and 100.7 g/t silver
Pena Blanca has extensive gold and silver mineralization within 9 sq. km alteration system
La Gitana is an advanced gold-silver project where initial core drilling has outlined a significant, near -surface, gold-
silver epithermal system. Pena Bl anca, approximately 15 kilometres northwest of La Gitana, is a large-tonnage,
epithermal gold -silver prospect , discovered during a regional -scale stream sediment sampling program.
The properties are being acquired from Gunpoint Exploration Ltd., (“Gunpoint”). (TSXV: GUN).
Figure 1 – Oaxaca Gold-Silver Belt, Mexico
Inomin Mines Inc. 400 Burrard Street, Suite 1130, Vancouver, BC Canada V6C 3A6
www.inominmines.com
The Oaxaca Gold -Silver Belt is a major northwest trending regional structure hosting several operating precious
metals mines and prospects including Gold Resource’s (NYSE: GORO) Arista and Mirador gold -silver mines, and
Fortuna Silver’s (TSX: FVI) San Jose gold-silver mine (Figure 1).
La Gitana Property
La Gitana is a large , low-sulphidation epithermal system hosting gold-silver mineralization. Gold and silver
mineralization at La Gitana is found in high -grade shoots in northwest trendi ng, sub-vertical structures, and as low -
grade disseminations within broad zones of quartz stockworks and breccias.
During 2004-2006, Chesapeake Gold Corp. (“Chesapeake”) conducted exploration a t La Gi tana including surface
mapping, sampling, IP-resistivity geophysics, as well as core drilling, primarily at the Cerro Di Oro zone. The Cerro Di
Oro zone is one of two subparallel northwest trending mineralized alteration corridors delineated over a distance of
1 kilometer. Drilling of 38 holes at Cerro Di Or o has defined an epithermal, gold-silver mineralized zone measuring
500 metres long, 300 metres wide and 50 to 300 metres deep. A step-out drill-hole (DH-30) also disco vered gold-
silver mineralization approximately 300 metres south along strike (see Figure 2). The 2004-2006 exploration program
is described in Chesapeake’s published NI 43-101 technical report available on SEDAR (www.sedar.com).
Disclosure Note: All technical results on the La Gitana and Pena Blanca prop erties reported herein is information
completed and disclosed publically by Chesapeake Gold Corp. and/or Gunpoint Exploration Ltd. The reliability of
historical results is uncertain but considered to be relevant by Company management, however, there is a r isk that
any future confirmation work and exploration may produce results that substantially differ from the historical results.
In total, 40 drill holes – 8,462 metres of diamond drilling – have been completed at La Gitana. Most of the drilling
has been in the Cerro Di Oro gold-silver zone that is open along strike and at depth. Mineralization also appears open
laterally: to the East surface veins have not been drilled; to the West is an untested overburden covered area (see
Figure 2).
Notable Gold Mineralized Drillhole Intersections – Cerro Di Oro Zone
Hole From
(metres)
To
(metres)
Interval
(metres)
Gold
(g/t)
Silver
(g/t)
High-Grading Gold Interval
DH-01 21.0 154.5 133.5 1.78 100.7 27.8 g/t Au over 1.5 m
DH-03 39.0 72.0 33.0 0.64 39.2 3.27 g/t Au over 1.5 m
DH-04 0.0 33.0 33.0 0.65 1.6 2.4 g/t Au over 1.5 m
DH-06 0.0 124.5 124.5 0.75 24.0 6.76 g/t Au over 1.5 m
DH-07 0.0 64.5 64.5 0.72 22.2 5.65 g/t Au over 1.5 m
DH-08 67.5 213.0 145.5 0.40 32.8 3.59 Au over 1.5 m
DH-09 12.0 105.0 93.0 0.99 19.4 8.53 g/t Au over 1.5 m
DH-10 1.5 64.5 63.0 1.27 70.0 8.61 g/t Au over 1.5 m
DH-11 0.0 90.0 90.0 0.51 15.7 2.15 g/t Au over 1.5 m
DH-12 1.5 94.5 93.0 0.56 20.0 4.06 g/t Au over 1.5 m
DH-13 150.0 163.5 13.5 1.30 60.2 8.94 g/t Au over 1.5 m
DH-14 3.0 63.0 60.0 1.20 31.2 16.77 g/t Au over 3.0 m
DH-15 0.0 10.5 10.5 0.62 41.3 0.97 g/t over 1.5 m
DH-18 30.0 102 72.0 0.75 34.7 8.19 g/t Au over 3.0 m
DH-20 36.0 43.5 7.5 6.00 281.6 13.28 g/t Au over 3.0 m
DH-22 6.0 87.0 81.0 0.31 19.8 1.19 g/t Au over 1.5 m
DH-24 103.5 132.0 28.5 1.55 83.8 10.15 g/t Au over 1.5 m
DH-38 126.0 177.0 51.0 0.81 19.9 13.35 g/t Au over 1.5 m
Note all grade intersections reported in above table are core interval lengths and not true thicknesses. All drill core
was HQ and N Q sized. Core sampling was completed on half core segments over 1.5 to 3.0 metre (m) intervals.
All drill core samples were sent for preparation to ALS Chemex la boratory in Guadalajara, Mexico; prepared samples
sent to ALS Chemex laboratory in Vancouv er, Canada for analyses for gold by fire assay and for multi-element by 4-
acid digestion ICP.
Inomin Mines Inc. 400 Burrard Street, Suite 1130, Vancouver, BC Canada V6C 3A6
www.inominmines.com
Figure 2 – Plan View
Figure 3 – Cross Section
Cross Section
Inomin Mines Inc. 400 Burrard Street, Suite 1130, Vancouver, BC Canada V6C 3A6
www.inominmines.com
Pena Blanca Property
Pena Blanca, located 15 kilometers northwest of the La Gitana gold -silver project, is a large tonnage, epithermal
gold-silver prospect that was discovered in 2005 by Chesapeake during a regional -scale stream sediment sampling
program. As reported by Chesapeake, s ediment anomalies ranging between 276 ppb to 2, 200 ppb gold have been
discovered from a 2.5 kilometre by 3.5 kilometre area surrounding the Pena Blanca ridge (Figure 4).
Geochemical assay results obtained by Chesapeake from a 300 met re by 1 ,000 met re soil sample grid at Pena
Blanca show a broad, N-NW trending gold anomaly with values above 0.2 g/t gold extending across the entire length
of the grid. A stronger anomaly, greater than 0.5 g/t gold, is also observed across a core area of 200 metr es by 400
metres to the northwest of the grid. The soil geoc hemistry data indicates that the mineralization has a strong
northwest component and extends for more than 1 kilometer along strike.
Chesapeake collected channel rock samples from outcrops and hand-dug trenches excavated in a 200 metre by 300
metre area located at the northwest end of the soil sample grid (see Figure 4 & 5). This portion of Pena Blanca, an
area affected by more intense silica-argillic alteration, also coincides with the soil grid’s 1.0 g/t plus gold anomaly. The
sample cuts were taken across several different zones 50 metres to 100 metres apart.
High grade structures and widespread low grade disseminated mineralization were encountered throughout the 200
meter by 300 meter core area with many of the section cuts ending in mineralization. One outcrop zone, located more
to the southwest, returned an intersection of 23.5 meters of 2.26 g/t gold and 178 g/t silver from a partially exposed
northeast trending quartz stockwork system, and a cut of 23 meters of a 0.61 g/t gold from a set of northwest trending
fractures, 50 meters further to the south. Other significant interse ctions included 46 meters of 0.61 g/t gold 200
meters to the southeast, and 25 meters of 0.47 g/t gold 150 meters more to the northeast (see Figure 5).
The trenching and outcrop channel sampling results reported by Chesapeake are as follows:
The Pen a Blanca prospect covers 9 square kilometer s of hydrothermal alteration of which less than 1 square
kilometer has been systematically mapp ed and sampled. Another zone, located about 1 kilometer east -northeast of
the Pena Blanca zone, returned rock ship assay results of up to 4.8 g/t gold. The mineralization is associated with a
swarm of northwest trending, sub -parallel quartz veins, 1 meter to 5 meters in width, partially exposed for mor e than
500 meters along strike. Numerous other mineralized zones marked by stream sediment, soil and rock chip
anomalies have been found at Pena Blanca. The style of the alteration and mineralization, together with the
orientation and size of structures suggest that there are a widespread number of epithermal gold -silver mineralized
systems that remain untested that will require systematic follow-up exploration by Inomin.
Sample Type Interval (metres) Gold (g/t) Silver (g/t) Comments
Outcrop and Trench 23.5 2.26 178.0
Outcrop and Trench 23.0 0.61 11.5 Ended in mineralization.
Outcrop 46.0 0.61 7.1 Ended in mineralization.
Outcrop 10.0 0.54 2.4 Ended in mineralization.
Trench 9.0 0.42 1.9 Ended in mineralization.
Outcrop 25.0 0.47 7.7 Ended in mineralization.
Outcrop 7.0 0.82 2.7 Ended in mineralization.
Outcrop 10.0 0.45 1.5 Ended in mineralization.
Outcrop 3.0 5.9 16.0 Ended in mineralization.
Outcrop 3.0 2.15 6.5 Ended in mineralization.
Inomin Mines Inc. 400 Burrard Street, Suite 1130, Vancouver, BC Canada V6C 3A6
www.inominmines.com
Figure 4 – Plan Map
Inomin Mines Inc. 400 Burrard Street, Suite 1130, Vancouver, BC Canada V6C 3A6
www.inominmines.com
Figure 5 – Exploration Compilation
Inomin Mines Inc. 400 Burrard Street, Suite 1130, Vancouver, BC Canada V6C 3A6
www.inominmines.com
Acquisition Terms
Subject to acceptance by the TSX Venture Exchange (the “Exchange”), Inomin is acquiring a 100% interest in the
La Gitana and Pena Blanca properties for 1,000,000 common shares of Inomin, $25,000 cash, and the grant of a
1.5% NSR payable to Gunpoint on the Pena Blanca property (with an option for Inomin to purchase 0.5% of the NSR
at any time for $1,000,000). La Gitana is subject to an existing 3% NSR to a third -party which will be assumed by
Inomin.
John Gomez President & CEO of Inomin Mines, says “The acquisition of La Gitana and Pena Blanca provides us with
two gold and silver projects where initial exploration has discovered significant mineralization. At La Gitana we look
forward to exploring untested areas to expand the core disseminated and high -grade gold-silver zone already
delineated by drilling. Pena Blanca is geologically similar to La Gitana with a larger exposed alteration area, indicative
of a major gold-silver system.”
Private Placement
Inomin also announces a non -brokered private placement of up to 5,333,333 shares priced at $0.075 per share, for
gross proceeds of up to $400,000 (the “ Private Placement”). The Private Placement is not subject to any minimum
aggregate subscription, however a minimum raise of $210,000 is required as a condition precedent to completing the
acquisition of Canada Metals Ltd., details of which were previously announced by Inomin in its May 4, 2020 news
release.
Peak Asset Management Pty Ltd. ( “Peak”), a Melbourne-based investment management firm, has been engaged as
corporate advisor and lead manager to provide capital raising activities, financial advice, and marketing strategy to
Inomin. In consideration for its services, Inomin has agreed to compensate Peak with the following (i) a management
fee equal to 1% of the funds raised under the Private Placement; (ii) a capital raising fee of 7% of funds raised or
introduced by Peak under the Private Placement; and (iii) 8% of any shares issued to s ubscribers introduced by Peak
in warrants with an exercise price of $0.08 per share expiring December 31, 2022. Finders’ fees may also be paid to
third party finders.
The terms of the Private Placement are subject to the approval of the Exchange. All securities issued in connection
with the Private Placement will be subject to a statutory hold period expiring on the date that is four months and one
day after closing of the Private Placement.
In addition for working capital, Inomin intends to use the proce eds of the Private Placement to establish operations in
Mexico to move forward with the La Gitana and Pena Blanca projects, as well as assess other potential gold and
silver acquisition opportunities. Inomin is also reviewing options to advance its Beaver -Lynx class 1 (sulphide) nickel
project in south -central British Columbia. A N.I. 43 -101 Technical Report on the Beaver and Lynx properties has
recently been completed, as well as applications to the B.C. Ministry of Mines, Energy and Petroleum Resources for
multi-year exploration work permits.
About Inomin Mines
Inomin Mines is engaged in the identification, acquisition and exploration of mineral properties with a 100% interest in
the Beaver-Lynx sulphide nickel project in south -central British Columbia, and the Fleetwood zinc-copper-gold-silver
VMS project in south-west British Columbia. Inomin also owns 100% of the King’s Point gold -copper-zinc project in
Newfoundland under option to Maritime Resources Corp. (TSX.V MAE). Inomin trades on the TSX Venture Exchange
under the symbol MINE. For more information visit www.inominmines.com and follow us on Twitter @InominMines.
Inomin advisor Victor Jaramillo P .Geo, a qualified person as d efined by NI 43 -101, has reviewed and approved the
technical information in this news release.
On behalf of the board of Inomin Mines:
Inomin Mines Inc.
Per: “John Gomez”
President and CEO
Inomin Mines Inc. 400 Burrard Street, Suite 1130, Vancouver, BC Canada V6C 3A6
www.inominmines.com
For more information please contact:
John Gomez
Tel. 604.566.8703
This news release contains certain statements that may be deemed “for ward-looking statements”. Forward-looking statements
address future events and conditions and therefore involve inherent risks and uncertainties. All statements, other than statements of
historical fact, that address activities, events or developments the Company believes, expects or anticipates will or may occ ur in the
future, including, without limitation, statemen ts about the Company's plans for its mineral properties; the Company's business
strategy, plans and outlooks; and future exploration and operating plans are forward -looking statements. Although the Company
believes the expectations expressed in such forwar d-looking statements are based on reasonable assumptions, such statements
are not guarantees of future performance and actual results or realities may differ materially from those in forward looking
statements. Forward looking statements are based on the b eliefs, estimates and opinions of the Company’s management on the
date the statements are made. Except as required by law, the Company undertakes no obligation to update these forward -looking
statements in the event that management’s beliefs, estimates or opinions, or other factors, should change.
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.