(Official press release)
Canadian Shield Resources Inc. ("Canadian Shield" or the "Company") is pleased to announce that it has entered into an earn-in agreement with Southern Peru Copper Corporation, Sucursal del Peru ("Southern Peru") (LSE Investment Shares: SPCCPI1 – SPCCPI2) for Canadian Shield’s Cerro Cori Property ("Cerro Cori") located in Peru.
Southern Peru has the right to earn a 65% interest in the Cerro Cori mining concessions by making payments of US$1.5 million to the Company’s 90%-owned subsidiary, Gallant Minerals Peru Ltd. S.A. ("Canadian Shield Subco"), over a 30-month period and exploration expenditures of US$3.5 million over a five-year period commencing on the earlier of the date on which a drill permit is received (the "Effective Date") or by July 30, 2007.
Payments of US150,000 and exploration expenditures of US$350,000 over the first 12 months from the Effective Date are mandatory. The subsequent payments and exploration expenditures increase incrementally and are at the option of Southern Peru.
Southern Peru has the right to earn an additional 10% interest by completing a bankable feasibility study to acquire a total interest of 75% with Canadian Shield Subco retaining a 25% interest in Cerro Cori. Southern Peru will become the operator of the project as of the Effective Date.
The Cerro Cori Property covers 3,994 hectares and is located east of Puquio, south of the paved highway from Nazca to Cuzco. The property lies within a mineralized district and is localized in the center of a 35 kilometer diameter caldera. Over 100 gold and polymetallic mineral occurrences (silver-copper-lead-gold) lie peripheral to Cerro Cori within the caldera margin. The past producing Monica Lourdes copper mine is located 10 kilometers west northwest of the property. Cerro Cori was explored in the late 1990s by North Mining Ltd., which led to drill target selection and road construction. No drilling was completed after North Mining Ltd. was purchased by Rio Tinto Zinc. The hydrothermal alteration on the property is of major scale and could be associated with an underlying copper gold porphyry system. These geologic features combined with the easy access to the property makes Cerro Cori an excellent exploration opportunity.
About Southern Peru Copper Corporation, Sucursal del Peru (LSE Investment Shares: SPCCPI1 – SPCCPI2):
Southern Peru Copper Corporation, Sucursal del Peru is the Peruvian Branch of Southern Copper Corporation, one of largest integrated copper producers worldwide that holds the second largest copper reserves of any listed company in the world. Southern Copper Corporation is a New York Stock Exchange (NYSE) and Lima Stock Exchange (LSE) listed company that is 75.1% owned by Grupo Mexico, a Mexican company listed on the Mexican Stock Exchange. The remaining 24.9% ownership interest is held by the international investment community. Southern Copper Corporation operates mining units and metallurgical facilities in Mexico and Peru and conducts exploration activities in Mexico, Peru and Chile. Southern Copper Corporation’s copper production amounted to 1.4 billion pounds and 26 million pounds of molybdenum during 2006, with net sales of US$5.5 billion. As at December 31, 2006, Southern Copper Corporation’s cash and cash equivalents amounted to US$1.3 billion.
About Canadian Shield Resources Inc. (TSX VENTURE:CSP):
Canadian Shield is focused on the acquisition and exploration of strategically located precious metal and base metal properties in South America. The Company has advanced a portfolio of Peruvian properties under the Gallant Minerals acquisition in September 2004, the Humajala Property, the Cerro Cori Property, the Ccello Ccello Property and the Pucarana Property. Through the APMX acquisition in April 2007, Canadian Shield has added three properties including La Estrella Property and Pampa Poroma Property in Peru and the Trol Property in southern Chile. Canadian Shield will focus on project generation and joint venture opportunities to provide shareholders with interests in a broad portfolio of South American mineral properties. The Company’s shares are listed on the TSX Venture Exchange (Trading Symbol TSX VENTURE:CSP).
DISCLAIMER: The content of each press release is the responsibility of the publishing organization and is not vetted or approved by LivinginPeru.com prior to publication. LivinginPeru.com is not liable directly or indirectly for any direct or consequential loss, damage or expense resulting from the material disseminated and
published on the site. Readers are advised to check the accuracy of all press releases and to obtain their own professional advice in relation to such information.