|March 02, 2011|
Tosca Mining to acquire the Red Hills Molybdenum-Copper project in Texas
|Tosca Mining Corporation, (TSQ.V) (TQ4.FSE) reported today it has signed a letter of intent to acquire 100% interest in an advanced stage moly-copper project located in Presidio County, Texas. The 2880 acre Red Hills project lies along a seven kilometer mineral district characterized by significant occurrences of precious and base metals, including the Shafter-Presidio silver deposit. |
Ron Shenton, President and CEO of Tosca commented," This is great opportunity for Tosca to be able to secure such a promising project. With the current high commodity prices, and an experienced technical team already in place we are confident the Red Hills project can be quickly evaluated and advanced".
Red Hills is located 18 kilometers north and west of the border town of Presidio which is served by US highway 67 and the South Orient Railroad. Water is available from adjoining properties. A major power line serves the Shafter silver property located seven kilometers east of Red Hills.
Porphyry style molybdenum mineralization occurs within a circular latite porphyry stock of Laramide age and to a lesser extent with slabs of intruded sediments. A chalcocite blanket, developed below the oxide-sulphide transition zone, coexists with the molybdenum mineralization. In addition, high grade copper was intersected by Duval in three holes located northeast of the porphyry system.
The property was worked by several major companies (ASARCO, Phelps Dodge, Amax and Duval) between 1955 and1972. Most of the drilling (88 holes in total) took place in 1971-72 under the operatorship of Duval Corporation. In 1997, the Rio Grande Mining Company conducted Pre-Feasibility studies aimed at determining the viability of extracting the shallow historic copper resources previously identified at Red Hills.
Note that in this news release all reference to previous studies, drill results and resource estimates is based on historic information. Since a qualified person has not done sufficient work to verify the historical data and estimates, the historical data and estimates should not be relied upon.
Based on historic drilling, the following targets have been identified
The three holes, which lie along a northeast linear trend, are located 300 feet (91 metres) northeast of the porphyry stock. The distance between hole 36 and 59 is 120 feet (36.6 metres). Hole 55 is located 75 feet (22.9 metres) southwest of hole 59. Further drilling, including angle drilling is required to assess the nature and size of this high grade copper zone.
The agreement allows Tosca Mining to purchase the 100% ownership of all mineral and surface rights for the Red Hills mineral property. The agreement involves cash payments to the sellers in the amount of $ 10,900,000 US, and the issuance of 2.1 million common shares over a five year period, while earning an equity interest. The first year commitment is $575,000 and 400,000 shares until May 01, 2012. The Sellers will retain a 2% net smelter return over the Red Hills property. The letter of intent provides for a due diligence period to May 01, 2011 for Tosca to complete its review of the property and is subject to the finalization of definitive transaction documentation and applicable regulatory exchange approvals.
Dr. Luca Riccio Ph.D. P.Geo is the Qualified Person responsible for reviewing the technical results reported in this release.
On Behalf of the board of directors,
Ron Shenton, President
For further information, please visit the company's website at www.toscamining.com or call 604-687-6562. Email firstname.lastname@example.org
This News Release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements. Tosca Mining Corp. relies upon litigation protection for forward looking statements.
The TSX Venture Exchange (TSX Venture) has not reviewed and does not accept responsibility for the adequacy or accuracy of the contents of this news release, which has been prepared by management.
You can view the Next News Releases item: Thu Mar 3, 2011, Tosca appoints new Chairman & CEO
You can view the Previous News Releases item: Thu Jan 13, 2011, Tosca reports on historical data from Secret Pass
You can return to the main News Releases page, or press the Back button on your browser.