American Cordillera Mining Corporation Announces the Execution of a
Letter of Agreement With Kent Exploration, Inc.
SPOKANE, WA--(Marketwired - Nov 12, 2013) - American Cordillera
Mining Corporation ("AMCOR") (OTCQB: AUAG) today announced the
signing of a Letter of Agreement (the "Agreement") with Kent
Exploration, Inc. ("KENT") (TSX-VENTURE: KEX), a Canadian mineral
exploration company, whereby KENT can acquire an Option, subject to
the approval of the TSX Venture Exchange, ("TSX-V"), (the "Option")
to earn an 80% interest in the historic Bayhorse Silver Mine
("Bayhorse") in east-central Oregon State.
The Bayhorse property consists
of 3 patented claims and 10 lode claims totaling approximately 250
acres. The property is readily accessible, being approximately
7 miles by County road from Huntington, Oregon, on the BN rail
line, with road access and power at the property boundary,
approximately 500 feet from the main adit entrance.
Mining has been conducted
intermittently at Bayhorse since the early 1920s and the mine last
closed after the price of silver dropped to under US$6/oz in late
1984. The property has remained dormant since. The Bayhorse mine
has two existing accessible adits, the upper extending about 800
feet westward into the hill and the lower extending about 500 feet
into the hill. A middle level is reached only by raises from
the lower level and winzes from the upper level. Three areas
have been stoped in the ground between the upper and middle
level.
The terms of the Agreement
call for the payment of US$5,000 on execution of the Agreement
(paid) and a further US$20,000 on execution of the Option
Agreement. To earn the 80% interest, KENT is required to conduct a
minimum of US$100,000 per year on exploration expenditures on the
property on or before each of the first two anniversaries of the
Agreement, US$300,000 on or before the third anniversary of the
Agreement and expend US$500,000 on or before the fourth and fifth
anniversaries respectively of the Agreement. In addition, KENT will
issue 500,000 shares on execution of the Option Agreement, 500,000
shares on the third anniversary of the Agreement and 500,000 shares
on the fifth anniversary of the Agreement. KENT will assume
the obligations of the underlying lease agreement.
AMCOR's interest shall be a
Carried Interest until such time as a Definitive Feasibility Study
has been produced or a Decision to mine has been made. A
Definitive Feasibility Study ("DFS") is defined as a detailed
report prepared by, or prepared under the supervision of, an
Independent Qualified Person in accordance with the Canadian
National Instrument 43-101 Standards of Disclosure for evaluating
the feasibility of placing any part of a Property into commercial
production as an operating mine and shall include a reasonable
assessment of the various categories of ore reserves and resources
and their amenability to metallurgical treatment, a detailed
description of the work, personnel, equipment and supplies required
to bring such part of the Property into commercial production and
the estimated cost thereof, a description of the mining and
processing methods to be employed and a financial appraisal of the
proposed operations. At such time as a DFS is generated or a
decision to mine has been made, of which there is no assurance, a
joint venture shall automatically be formed between the AMCOR and
KENT, whereby AMCOR shall hold 20% of the joint venture interest
and KENT shall hold 80% of the joint venture interest, in and to
the Lease. All expenditures from the date of the formation of
the joint venture shall be apportioned between the parties as to
their percentage of ownership interest.
Historic
Information:
The Company advises that
information of a historic nature is presented in this news release
and historic production, estimates, drill information and grades
reported have not been verified; A qualified person has not done
sufficient work to verify the historical estimates nor classify the
historical estimates as current mineral resources or mineral
reserves and the Company is not treating the historical estimates
as current mineral resources or mineral reserves. (ounces/grams
conversion is one ounce/short ton = 34.2857 grams/metric
ton)
As stated in the "Minerals
Production Yearbook" (Jacobsen, 1959), total reported historic
production from the Bayhorse Mine through 1959 was 286,000 ounces
of silver from 8,300 tons of ore for an average of approximately
35.5 tr oz/ton Ag (1,217 g/t Ag) while Herdrick (1981) estimated
remaining shipping ore at a 7.5 tr oz/ton Ag cutoff to be 166,208
tons, and on-site mill ore at a 3 tr oz/ton Ag cutoff to be 473,350
tons. Historic records do not identify whether any of this ore was
produced between 1981 and 1984.
According to other more recent
reports in 1984, 90 underground drill holes totaling approximately
15,000 feet reportedly delineated approximately 26,000 tons of
silver bearing mineralization of which 5,718 tons were reported
being produced at an average grade of 16.7 tr oz/ton Ag (572.5 g/t
Ag) while approximately 20,000 tons at an average of 15 tr oz/ton
Ag reportedly remained unmined. The historic records also indicate
that of the 5,718 tons produced, approximately 23% reportedly
graded between 21 - 100 tr oz/ton Ag, 71% reportedly graded between
6 tr oz/ton - 20 tr oz/ton Ag and 6% reportedly graded less than 6
tr oz/ton Ag. Ancillary copper produced reportedly averaged 1% Cu.
The highest reported grade from the 1984 drilling, sampling and
mining program was a round that reportedly assayed 691 tr oz/ton Ag
(23,691 g/t Ag) and 15.72% Cu from a tetrahedrite-tennantite rich
vein.
Both adits on the property are
open, but the workings are not entirely accessible at present due
to safety issues. Historic reports indicate that the
mineralization, consisting mainly of tetrahedrite/tennantite,
occurs in a 60-80 ft. wide in a zone along an andesite and rhyolite
contact. Minor copper, arsenic, and vanadium are associated with
the silver. Azurite and malachite coatings are common in oxidized
parts of mineralized ground on the walls of the excavated
stopes. Additional minerals include enargite, dufrenoysite and
cuprodescloizite. Gold values of up to 0.30 tr oz/ton Au have also
been reported in the mineralization.
Frank H. Blair, CPG, AMCOR's
CEO stated that, "AMCOR is very positive about reaching an
agreement with KENT. Predicated on reviewing many historical
professional papers, prior drilling results and old smelter reports
related to the Bayhorse silver mine, combined with the current
price of precious metals, we are hopeful that the future work to be
undertaken by KENT will confirm the existence of commercial
mineralization in the Bayhorse silver mine." Blair further
stated that, "AMCOR's arrangement with KENT is a prime example and
consistent with AMCOR's original business strategy to acquire high
quality mining properties or abandoned producers, undertake its own
early exploration and then seek competent companies who will earn a
working interest in AMCOR's properties and leases by contributing
cash and participating as a joint venture partner." Blair also
stated that, "AMCOR has 6 additional projects under its control and
will attempt to use the same business model as accomplished with
KENT."
This press release is neither
an offer to sell nor a solicitation of an offer to buy shares of
common stock or any other securities of AMERICAN CORDILLERA MINING
CORPORATION and shall not constitute an offer, solicitation or sale
in any jurisdiction in which such an offer, solicitation or sale
would be unlawful.
SAFE HARBOR
This press release contains
forward-looking statements regarding future events and our future
results that are subject to the safe harbors created under the
Securities Act of 1933 (the "Securities Act") and the Securities
Exchange Act of 1934 (the "Exchange Act"). All statements other
than statements of historical facts included in this report
regarding our financial position, business strategy, plans and
objectives of management for future operations, industry
conditions, and indebtedness covenant compliance are
forward-looking statements. When used in this report,
forward-looking statements are generally accompanied by terms or
phrases such as "estimate," "project," "predict," "believe,"
"expect," "anticipate," "target," "plan," "intend," "seek," "goal,"
"will," "should," "may" or other words and similar expressions that
convey the uncertainty of future events or outcomes. Items
contemplating or making assumptions about actual or potential
future sales, capital expenditures, market size, collaborations,
and trends or operating results also constitute such
forward-looking statements.
Forward-looking statements
involve inherent risks and uncertainties, and important factors
(many of which are beyond our Company's control) that could cause
actual results to differ materially from those set forth in the
forward-looking statements, including the following: oil and gas
prices, our ability to raise capital, general economic or industry
conditions nationally and/or in the communities in which our
Company conducts business, changes in the interest rate
environment, legislation or regulatory requirements, conditions of
the securities markets, our ability to raise capital, changes in
accounting principles, policies or guidelines, financial or
political instability, acts of war or terrorism, other economic,
competitive, governmental, regulatory and technical factors
affecting our Company's operations, products, services and
prices.
We have based these
forward-looking statements on our current expectations and
assumptions about future events. While our management considers
these expectations and assumptions to be reasonable, they are
inherently subject to significant business, economic, competitive,
regulatory and other risks, contingencies and uncertainties, most
of which are difficult to predict and many of which are beyond our
control.
More information about AMERICAN CORDILLERA MINING CORPORATION
contact investor relations: Frank Blair CEO (509) 744-8590 Tim Kuh
(509) 744-8590
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