Guatemala

[Tackler]

Tiomin acquires option on Guatemalan titanium deposit

2004-08-10 10:07 ET - News Release

Mr. Jean-Charles Potvin reports

TIOMIN ACQUIRES OPTION ON TITANIUM DEPOSIT IN GUATEMALA

Tiomin Resources Inc. has signed an option agreement with Motagua Resources S.A. to earn up to 80-per-cent interest in a titanium-bearing hardrock deposit located in western Guatemala. Both ilmenite and rutile have been found in a dike-related formation varying in width up to 12 metres. The 400-hectare property covers approximately six kilometres of this dike formation.

The mineralogical characteristics of the deposit were analyzed from two samples. The mineralogy of these samples was performed by SGS Lakefield Research Limited while assaying was performed by SGS Mineral Services of Toronto.

 
  
                    Sample A  Sample B 
 Mineral assemblage 
  
 Ilmenite             62.1%     70.4% 
 Rutile                9.3%     20.0% 
  
 Assays 
  
 TiO2                 51.4%     56.1% 
 Fe2O3                47.5%     41.3% 
 

More sampling will be required to fully define the economic potential of this deposit. Tiomin intends to initiate a comprehensive exploration program including mapping, geophysics and trenching. Samples collected by trenching will be used to design a metallurgical process to optimize the recovery of the ilmenite and rutile. Subject to favourable metallurgical results, Tiomin will proceed with drilling to fully define the resource.

"The strong presence of rutile in these initial samples suggests very encouraging potential for this grassroots project to evolve into a promising asset with further exploration," commented J.C. Potvin, Tiomin's president and chief executive officer. "We intend to grow our global portfolio of mineral assets by applying our expertise in the early identification of properties that represent excellent value and growth for our shareholders." Tiomin can earn a 60-per-cent interest in the property by paying $10,000 (U.S.) upon signing of the agreement, as well as $15,000 (U.S.) semi-annually over the next five years until a total of $1.0-million (U.S.) has been expended on the property inclusive of exploration expenditures. A further 20-per-cent interest in the property can be acquired with the completion of a feasibility study. Tiomin maintains a right of first refusal on Motagua's remaining interest. Dr. Natalie Ross, PhD, Geo, a consulting geologist for Tiomin Resources, is the qualified person as defined by National Instrument 43-101 who supervised the analysis by Lakefield and has read and approved this news release.