Cream Minerals Announces Signing of Joint Venture Agreement With Roca Mines for the Nuevo Milenio Project
7/27/2009 8:30:14 AM - Market Wire
VANCOUVER, BRITISH COLUMBIA, Jul 27, 2009 (Marketwire via COMTEX News Network) --
Cream Minerals Ltd. (TSX VENTURE:CMA)(OTCBB:CRMXF)(FRANKFURT:DFL)("Cream" or the "Company) is pleased to announce that it has entered into an option agreement with Roca Mines Inc. ("Roca") that will allow Roca to earn up to a 70% interest in Cream's Nuevo Milenio Project ("Nuevo Milenio") contingent upon a US$12 million exploration expenditure by the fourth year of the option agreement date and the completion of a positive feasibility study by the seventh year of the option agreement date.
Cream is very pleased that Roca, after assessing several advanced stage project opportunities, has chosen to partner with Cream on Nuevo Milenio. The Nuevo Milenio meets Roca's criteria of revenue growth through the potential near-term development of new mining operations, exposure to additional mining friendly jurisdictions and diversification of metals production that could generate a natural hedge to global economic and financial conditions.
Cream's 100% owned Nuevo Milenio silver-gold Project encompasses 2,560 Hectares (Ha) and is located in Nayarit State, Mexico. Nuevo Milenio is 27 kilometres (kms) driving distance (24 kms of which are by highway and paved roads, 3 kms are by gravel road) from Tepic, the capital of Nayarit State. Tepic is an important commercial centre with a population of over 300,000 people located 150 kms northeast of Puerto Vallarta. Access to railway, airport, power lines and water are within reasonable distance of the Nuevo Milenio providing cost effective access to infrastructure.
The property contains low sulphidation, epithermal gold-silver resources comprised of mineralization in quartz veins and stockwork zones in Miocene volcanics within a collapsed caldera structure. Exploration work by Cream has outlined four mineralized zones consisting of sub-parallel vein-stockwork systems: the Veta Tomas, Dos Hornos 1, Dos Hornos 2, ("Dos Hornos Zone") Once Bocas and Chacuaco Zones. A resource estimate includes the Veta Tomas, Dos Hornos Zone and Once Bocas Zones which represent multiple mineralized systems and includes Spanish-era workings highlighting excellent ground conditions. The workings were clearly exploratory only and had limited production.
A revised National Instrument 43-101 Inferred Mineral Resources report was prepared by Mr. Fred Holcapek, P.Eng and was filed on December 24, 2008, based on exploration and drilling programs conducted between 2000 and 2007. The report estimated an Inferred Mineral Resource of 54.6 million ounces silver equivalent contained within 5.09 million tonnes. The average grade was estimated at 1.6 g/t Gold and 251 g/t Silver. Particular attention was given to defining mineable widths of the veins and continuity of grade. It is important to note however that the estimate is based on low recoveries of core observed in the mineralized zones and is therefore likely to represent the low end of the range of actual tonnes and grade. This may be particularly true of many of the gold values in the assays as the loss of free-gold during the drilling process may have negatively impacted the assay results.
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