Reese Corp. Acquires 100% Interest in Minera Jeronimo with Their 14,300 Hectares, El Tiliche Gold Project
Tuesday July 25, 4:05 pm ET
OTTAWA--(BUSINESS WIRE)--July 25, 2006--Reese Corp. (OTCBB:RESE - News; FWB:R5E) is pleased to announce the acquisition of 100% of Minera Jeronimo S.A. de C.V. The key asset in Minera Jeronimo is the El Tiliche project, located in NW Sonora, Mexico, approximately 50 kilometers NE of the Penoles-Newmont Herradura Gold Mine (4 million ounces), within the gold belt that stretches from southern California to central Sonora. The Mesquite mine (5 million ounces) and the Picacho mine (500,000 ounces) are among other large gold producers in this belt. Minera Jeronimo controls a very strategically located and large 14,300 hectares of mineral rights in 8 contiguous mining concessions. El Tiliche has been advanced over the past 2 years with a number of exploration programs and now boasts at least 6 drill-ready targets. Numerous surface samples have yielded over 5 grams gold per ton and over 100 grams silver per ton, which compares very well with early results at other producing mines in this belt.
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Chris Crupi, President & CFO, commented, "This acquisition is the first step in our commitment to acquire advanced-stage projects in proven resource districts. There are numerous operating mines and recent discoveries in the area surrounding El Tiliche, and we are very excited to be adding such a promising property to our portfolio. El Tiliche is very strategically located in the belt, just 20 kilometers east of Hecla's La Choya mine, but the property only became available recently as previously the owners did not provide any access, so there has been no modern exploration until now."
The El Tiliche concessions are located at the intersection of a series of NE-SW high angle structures that pass through the Herradura gold deposit, and NW trending transform faults that makeup part of the Sonora-Mojave Megashear. Gold and silver mineralization associated with low angle faulting, as well as with higher angle structures, has been recognized in a number of areas within the concession block. Numerous small mine workings and prospects were mapped and sampled during a recently completed detailed reconnaissance of the property.
Intrusive and volcanic rocks of Jurassic age outcrop over a wide area in numerous low hills that are separated by areas of thin alluvial cover, and mineralized zones often project under this alluvial cover. During the recently completed detailed reconnaissance of the area, 584 rock chip samples were collected and sent to ALSChemex Laboratories for analysis.
The results are summarized below:
Summary of Results
--------------------------------- ----------------------------------
Gold in grams/ton Silver in grams/ton
------------------ Total # of ------------------- Total # of
From To Samples From To Samples
--------- -------- ------------- --------- --------- -------------
greater than 5.00 32 greater than 100 12
------------------ ------------- ------------------- -------------
1.00 4.99 77 50 99 19
--------- -------- ------------- --------- --------- -------------
0.50 0.99 33 30 49 23
--------- -------- ------------- --------- --------- -------------
0.20 0.49 65 20 29 30
--------- -------- ------------- --------- --------- -------------
0.10 0.19 58 10 19 69
--------- -------- ------------- --------- --------- -------------
less than 0.10 319 less than 10 431
------------------ ------------- ------------------- -------------
Total number of samples collected 584
While the results of the recently completed program are still being studied, at least 6 areas have been identified for drill testing. A 4,000-plus meter drill program is scheduled to begin in mid to late September, 2006, while a second follow-up program has already been planned.
Mr. Reed, VP Exploration, North America, commented, "I have been working in this gold belt since 1980, and have visited numerous properties and prospects in California, Arizona and Sonora. The key reason for my joining Reese was my familiarity with this property and my confidence in its potential. I was pleasantly surprised when I first gained access to the area and found numerous areas with wide spread gold-silver mineralization. It has taken almost 2 years to put the property position together, and during the initial reconnaissance study we collected rock chip samples with excellent grades. I am very excited to start drilling the multiple targets we have identified. The presence of silver in the gold deposits in this belt is a little unusual, and Herradura is the only deposit that I am aware of that contains appreciable silver. The team we have working on this property are very talented and have extensive experience working in mines in the area, and they all share my enthusiasm. This is elephant county and we believe we have an opportunity to discover multiple economic deposits at El Tilcihe."
Reese Corp. acquired Minera Jeronimo by paying US$16,000, issuing 455,000 restricted shares, assuming the work commitment and paying any taxes to maintain the concessions in good standing. In turn, Reese Corp.'s 100% owned Mexican subsidiary (Minera Jeronimo) can earn a 65% interest in the El Tiliche project by spending US$400,000 on exploration during the next 12 to 24 months, and can acquire an additional 15% interest in the project once the exploration commitment has been satisfied.
About Reese Corp.
Reese Corp. is a precious metals exploration and development company. It is management's objective for Reese to become a gold and precious metals producer by developing the El Tiliche project in Mexico, and by acquiring other advanced-stage projects and/or producing mines in proven precious metal districts throughout the world. The Company trades on the OTC market under the symbol "RESE" and on the Frankfurt Exchange under the symbol "R5E". For more information, please visit the Company's web site at: www.ammexgoldmining.com (now available in the following languages: English, German, Mandarin, Spanish and French).
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: The statements contained herein which are not historical are forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements, including, but not limited to, certain delays beyond the company's control with respect to market acceptance of new technologies or products, delays in testing and evaluation of products, and other risks detailed from time to time in the Company's filings with the Securities and Exchange Commission.
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Source: Reese Corp.
