Solvista Gold Corporation ("Solvista" or the
"Company") (TSX-V:SVV) (OTCQX:SVVZF) announces it has received
notification that IAMGOLD Corporation ("IAMGOLD") has recently
completed their 2014 budgeted exploration activities on Solvista's
Caramanta project in Colombia.
In addition, Solvista announces that IAMGOLD has delivered to
the Company the first option renewal payment of US$250,000 pursuant
to the option agreement with IAMGOLD announced by the Company on
March 17, 2014. IAMGOLD also informed the Company that it met the
2014 required expenditure level under the option agreement. The
primary terms of the option agreement between the Company and
IAMGOLD were described in the Company's press release dated March
17, 2014. Expansion of, and changes to that agreement now involving
the Company, IAMGOLD and Tolima Gold Inc. were announced in the
Company's press release dated September 15, 2014.
In order for IAMGOLD to earn a 51% interest in the Caramanta
project pursuant to the expanded option agreement IAMGOLD must,
among other things, spend a minimum of US$20,000,000 and make
certain option payments to the Company. IAMGOLD may increase its
ownership in the project to 70% under the agreement by spending a
total of US$40,000,000. A more complete summary of the terms is
available on SEDAR and on the Company's website.
Commenting on the option renewal for 2015 and the work completed
by IAMGOLD, Solvista's President and CEO, Bruce Durham, stated "We
have had the pleasure of working with IAMGOLD for almost a year now
and we continue to be impressed with the professionalism and hard
work completed by their personnel in both Toronto and Colombia.
Given the current state of the capital markets we are very pleased
that IAMGOLD has elected to continue with the option
agreement".
Diamond drilling completed by IAMGOLD tested targets initially
discovered and drill tested by Solvista and also newly developed
target areas in search of gold and copper mineralization within the
Company's Caramanta Porphyry Cluster (the "CPC").
Highlights
- IAMGOLD has been working on the Caramanta project since
entering into an agreement with Solvista in December 2013 (Press
Release December 18, 2013).
- Initial work beyond compilation of data included expanded
stream sediment, soil, and rock chip sampling over a variety of
areas on the Caramanta property both inside of and outside of the
CPC.
- Geophysical surveys comprised of magnetic surveying and induced
polarization ("IP") surveying were carried out to fill in gaps in
Solvista's coverage of the CPC.
- Using Solvista's data, and the new data, drill targets were
selected within the northern half of the CPC where drill permit
could be acquired rapidly.
- Diamond drilling in this first diamond drill program consisted
of 3,840 meters in 14 drill holes. The holes were drilled primarily
at the Ajiaco Sur, Casa Verde and Malabrigo targets.
- The Company will report on the results of the diamond drilling
program once it has received all of the assay data from
IAMGOLD.
- Prior to IAMGOLD's involvement Solvista made discoveries on the
El Reten and Ajiaco Sur targets. Only 2 holes were completed by
IAMGOLD on the Ajiaco Sur target and no drilling was carried out on
El Reten (see information on DMI below).
IAMGOLD Exploration Plans
Due to the previously announced restrictions within the area
referred to as a district of integrated management ("DMI") (see
information below), which restricts activity in southern half of
the CPC (El Reten and Ajiaco Sur), no drilling was carried out by
IAMGOLD on these key target areas during 2014. Prior to entering
the option agreement with IAMGOLD in March 2014, diamond drilling
by Solvista in some of these key target areas returned long drill
intervals of copper gold porphyry style mineralization This
included El Reten where drill hole CAD-12-18 assayed 1.01
g/t gold and 0.21% copper over a core length of 456.7
meters.
IAMGOLD is working to secure a permit to resume drilling within
the DMI. Timing of receipt of the permit will dictate the location
and sequence of drill holes in the upcoming 2015 program budgeted
at US$1,500,000.
The scientific and technical information contained in this press
release has been reviewed by the Company's President and CEO, Mr.
Bruce Durham, P.Geo., who is a "Qualified Person" as such term is
defined under National Instrument 43-101 – Standards of Disclosure
for Mineral Projects ("NI 43-101").
About the Project
The Project is located at the centre of the Middle Cauca Belt,
one of the most prolific gold districts in Colombia, with
production dating back to pre-Colonial times. The Middle Cauca Belt
has been the focus of intense exploration over the past five years
with a number of new discoveries including La Colosa (Anglogold
Ashanti), a porphyry-gold deposit with a JORC-compliant Inferred
Resource of 24.15 Moz Au at 0.94 g/t Au. Directly south of the
Project is Gran Colombia Gold's Marmato Project with NI 43-101
compliant Measured and Indicated Resources of 11.8 Moz Au at 0.9
g/t Au and 80 Moz Ag at 6.1 g/t Ag and Inferred Resources of 2.6
Moz Au at 1.02 g/t Au and 9 Moz Ag at 3.7 g/t Ag. To the north of
the Project is Sunward Resources' TitiribĂ deposit where a NI
43-101 compliant Measured and Indicated Resource of 6.2 Moz AuEq
and Inferred Resource of 6.5 Moz AuEq have been announced (based on
information from public sources).
District of Integrated Management (DMI)
Three of the Caramanta project's multiple targets (El Reten, El
Corral and Ajiaco Sur) are located within a regional environmental
designation referred to as a district of integrated management
("DMI"). Under the terms of the DMI there is currently a
prohibition against open pit mining within the DMI. IAMGOLD has
filed an application with the regional environmental authority,
Corantioquia, requesting permission to carry out drilling within
the DMI. It is uncertain when permission will be granted or whether
Corantioquia will request further environmental studies prior to
considering further the application. At this time the original
effort by Solvista to remove the DMI designation has been stopped.
That effort will not be restarted until more is known about the
ultimate potential footprint of a development in the CPC.
Under the Option Agreement IAMGOLD had the right to declare
force majeur on the first anniversary date should it not have
received permission to drill within the DMI. The parties agreed to
terms for an amendment now in preparation that allows IAMGOLD to
continue exploration activities on the project and delay a decision
to declare force majeur. The principal terms halve the year 2
minimum work expenditure to US$1,500,000 and extend the term of the
First Option by a year to 6 years.
About Solvista
Solvista is a gold exploration company with two projects,
Caramanta and Guadalupe located in Colombia, South America. These
two projects cover approximately 44,000 hectares in the Antioquia
province of Colombia, a region rich in historic gold mining
tradition and where several new gold discoveries have recently been
made. Solvista is well funded and has completed initial drill
programs at both its projects, with the discovery of significant
mineralization at both. Solvista's head office is located in
Toronto, Canada. For further details on Solvista, its management
team and its projects, please refer to Solvista's website
(www.solvistagold.com).
Neither the TSX-V nor its Regulation Services Provider (as that
term is defined in the policies of the TSX-V) accepts
responsibility for the adequacy of this release. No stock exchange,
securities commission or other regulatory authority has approved or
disapproved the information contained herein.
CAUTIONARY STATEMENT: This news release contains forward-looking
information which is not comprised of historical facts.
Forward-looking information involves risks, uncertainties and other
factors that could cause actual events, results, performance,
prospects and opportunities to differ materially from those
expressed or implied by such forward-looking information. Forward
looking information in this news release includes, but is not
limited to, Solvista's objectives, goals or future plans,
statements regarding the estimation of mineral resources,
exploration results, potential mineralization, exploration and mine
development plans, timing of the commencement of operations and
estimates of market conditions. Factors that could cause actual
results to differ materially from such forward-looking information
include, but are not limited to, failure to convert estimated
mineral resources to reserves, capital and operating costs varying
significantly from estimates, the preliminary nature of
metallurgical test results, delays in obtaining or failures to
obtain required governmental, environmental or other project
approvals, including those related to the DMI at the Caramanta
project, political risks, uncertainties relating to the
availability and costs of financing needed in the future, changes
in equity markets, inflation, changes in exchange rates,
fluctuations in commodity prices, delays in the development of
projects and the other risks involved in the mineral exploration
and development industry, and those risks set out in Solvista's
public documents filed on SEDAR. Although Solvista believes that
the assumptions and factors used in preparing the forward-looking
information in this news release are reasonable, undue reliance
should not be placed on such information, which only applies as of
the date of this news release, and no assurance can be given that
such events will occur in the disclosed time frames or at all.
Solvista disclaims any intention or obligation to update or revise
any forward-looking information, whether as a result of new
information, future events or otherwise, other than as required by
law.
CONTACT: Bruce Durham, P.Geo
Chief Executive Officer
Solvista Gold Corporation
416 504 8821
bdurham@solvistagold.com
Don Christie, CPA
Chief Financial Officer
Solvista Gold Corporation
+1 416 504 4171
dchristie@solvistagold.com
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