De Beira Announces that it has Signed an Agreement over the Condoroma and Suyckutambo Project Areas in the Cuzco Region of South Peru
PERTH, WESTERN AUSTRALIA, Aug 23, 2006 (CCNMatthews via COMTEX) -- DE BEIRA GOLDFIELDS INC. ("DE BEIRA" or the "Company") (OTCBB:DBGFE.OB)(FWB:D1Q)(WKN:A0JDS0) is pleased to announce that it has signed an agreement with the privately owned, Goldplata Group of companies over the Condoroma and Suyckutambo project areas in the Cuzco region of South Peru. Recent sampling of the project areas by De Beira provided the following results.
Surface grab samples from the historical mine area at the Condoroma Project produced the following results:
CN1 - 1,476g/t Silver, 4.02% Lead and 1.34% Zinc
CN2 - 1,325g/t Silver, 5.48% Lead and 1.37% Zinc
CN3 - 1,325g/t Silver, 1.33% Lead and 1.14% Zinc
CN6 - 5.14g/t Gold, 146g/t Silver, 8.06% Lead and 3.48% Zinc
CN10 - 22.4g/t Silver, 5.82% Lead and 1.36% Zinc
Grab samples from the vein systems at the Suyckutambo Project produced
the following results:
ST1 - 1.25g/t Gold and 78.2g/t Silver
ST2 - 8.44g/t Gold and 366g/t Silver
ST3 - 0.98g/t Gold and 84.7g/t Silver
ST4 - 4.71g/t Gold and 225g/t Silver
ST6 - 9.78g/t Gold and 470g/t Silver
ST8 - 6.85g/t Gold and 312g/t Silver
ST9 - 3.11g/t gold and greater than 100g/t Silver
The Condoroma silver district, containing the historical Condoroma mine and located in the general vicinity of Tintaya at an altitude of 4,600m has been mined for silver since the Spanish colonial days. Several veins are visible within the Condoroma property though the historical mining focus was on 3 main vein systems, the Bonanza Vein, Ramil Vein and Santa Rita-Mercedes. The principal elements are silver with associated minor gold, and lead and zinc. The veins strike approximately N35-45 degrees west with a 60 to 90 degree southerly dip. The NE striking Santa Rita Vein intersects the Mercedes vein in an area, which the Company believes has the potential to host significant mineralisation. The numerous stock work veinlets within the system were tested with limited sampling by previous workers and show the veinlets to also be mineralised.
The highly encouraging results from the grab samples suggest the system may be host to a polymetallic deposit.
Mineralisation is hosted in volcanic intrusives of the Tacaza Group. Mineralisation style is epithermal veins of quartz-calcite-siderite-rhodochrosite gangue and pyrite-galena-sphalerite sulphides with manganese oxides and minor gold and electrum.
De Beira believes that the Condoroma property has the potential to be a large tonnage polymetallic deposit.
The Suyckutambo deposit also has had a history of mining dating back to colonial times. Recent activity saw mining of the area by Cia De Minas del Peru (MHC) between 1945 and 1965 with a 150 Tpd plant through which 1M tonnes was treated for 9.03M ounces of silver and 125,400 ounces of gold. The grades vary during the mine life of this time and eventually water inflow stopped the mine. De Beira believes that significant ore remains below the level of previous workings.
The commercial arrangements for Condoroma and Suyckutambo project areas are identical. De Beira can earn a 65% interest in each project area by sole funding exploration expenditure of US$4 million over a three year period. $500,000 expenditure is required before De Beira can withdraw from the arrangement. After earning a 65% interest, De Beira can elect to increase its interest to 70% by funding expenditure to bankable feasibility study stage or a further US$6 million in expenditure, whichever occurs first over a three year period. De Beira would be required to pay a 2% NSR royalty on any production in the future.
DE BEIRA GOLDFIELDS INC
Reg Gillard, President
