Argentina Mining Play

[Ed Monton]

Marifil Mines to buy Suerte II from MIM Exploraciones


2006-02-06 09:18 ET - News Release

Mr. John Hite reports

MARIFIL EXPANDS TORUEL PROPERTY HOLDINGS

Marifil Mines Ltd. has signed a definitive agreement with MIM Exploraciones SA, a wholly owned subsidiary of XStrata, to acquire the 3,000-hectare Suerte II property, which adjoins the company's wholly owned Toruel project in Rio Negro province, Argentina. Two previous drill programs by the company have intercepted several significant silver-copper and other base metals values in ore shoots hosted by fault-controlled breccia veins at Toruel (see news in Stockwatch Jan. 9, 2006). This latest property agreement brings Marifil's propertyholdings at Toruel up to 34,921 hectares.

The agreement calls for the company to spend $178,000 (U.S.) in exploration on the property over the next five years and provides it with an option to purchase 100 per cent of the property for $375,000 (U.S.).

The Suerte II property contains the East Fluorite, Seba, Ancha and Canyon veins. The Ancha vein is up to eight metres wide and traced for more than 700 metres. The Canyon vein is up to 10 metres wide and traced for more than 1,500 metres.

Dick Walters, executive vice-president of Marifil, and several of Marifil's geologists discovered the Canyon and Ancha veins a short distance south of the east fluorite vein while examining the local geology. Mr. Walters says: "We have found many veins on our original Toruel property that display strong characteristics of high-level epithermal mineralization, including being distinctly geochemically anomalous in gold mineralization, that are of substantial width and exceed a kilometre in length. I am highly confident our geologists will find more of the same on this new ground once we begin a systematic exploration program."

The company has already started detailed mapping and sampling of these veins. A ground magnetometer study will begin shortly and sampling already reveals several areas containing anomalous gold.

The company is now planning a phase 3 drilling program which will test continuity and grade of several high-grade ore shoots in the main Toruel vein as well as exploration drilling of other veins on this important silver-copper prospect.

This press release has been reviewed and approved by John Hite, president of Marifil, and by Richard Walters, vice-president, under whose directions the exploration program is being carried out. Mr. Hite and Mr. Walters are qualified persons as defined by National Instrument 43-101.