Vancouver, British Columbia (July 9, 2020) – Marifil Mines Limited (TSXV: MFM) (OTC: MFMLF) (FRA: MMRB) (“Marifil” or the “Company”) is pleased to provide an update on the sale of assets, its Gold focused portfolio and its business development plans.
Sale of Battery Metals Assets
Further to the Company’s news release dated April 6, 2020, Marifil entered into a definitive agreement to sell its non-core Lithium and Nickel-Copper assets in Argentina to Global Elsimate Capital Corp (“GECC”) for $2,000,0001. The sale of the assets will allow the Company to focus its resources on building its Gold portfolio in Argentina and internationally. The closing of the sale requires the shareholder approval of GECC, which the Company expects to occur in the next 30 days.
Gold Focused Business Development
Focus on Gold
The Company’s initiative to sell its non-core assets has shifted its focus to Gold. The Company continues to develop its flagship Gold asset, which is the majority owned San Roque property (“San Roque”), located in the Rio Negro Province of Argentina, while actively looking to grow its portfolio of Gold assets globally.
“Due to increased global uncertainty and instability, the Company anticipates a strong demand for Gold as investors seek a safe haven for their investments,” stated Robert Abenante, President and CEO of Marifil Mines.
“Historically this has led to a period of strong performance for Gold companies and we have begun to see this as Gold bullion has now reached its highest price in nearly a decade,” continued Mr. Abenante. “In fact, over the past two weeks our trading volumes and share price have grown significantly without any material developments communicated from the Company. We attribute this growth in share price and volume to the increased bullish sentiment for Gold companies. We will continue to source and develop Gold assets worldwide to be well positioned to take advantage of this trend for our shareholders in the coming years.”
Further to the Company’s news release dated September 12, 2019, the Company engaged Tetra Tech Canada Inc., a prominent, global geologic and engineering consulting firm, to complete a National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”) technical report for the Company’s San Roque property.
The N1 43-101, effective July 22, 2019 and released September 10, 2019, has the following highlights:
- Low-sulphidation epithermal polymetallic mineralization
- Gold, Silver, Indium Zinc, and Lead
- Estimated Gold content in 32,891,400 tonnes of Inferred Mineral Resource
- 42 grams per tonne gold equivalent (“g/t AuEq”).
- Metal grades comprising the Au Eq calculation are: 0.46 g/t Au, 12.1 g/t Ag, 11.9 g/t In, 0.78% Zn and 0.39%Pb.
- 1,499,900 ounces of AuEq
- 486,600 troy ounces
- 42 grams per tonne gold equivalent (“g/t AuEq”).
The Gold Equivalent (“AuEq”) resource grade is based on the following metal value ratios to Gold: 1 (Au), 75 (Ag), 19,565 (Pb), 15,716 (Zn), and 117 (In) as calculated using three year trailing average metal prices as of March, 2019 of US$1,267.00/oz Gold, US$17.00/oz Silver, US$1.00/lb Lead, US$1.20/lb Zinc, and US$10.80/oz Indium.
- The following inferred resources:
The N1-43-101 also contains the following statements:
“It’s recommended that the San Roque project merits further work and continued focus to develop it into an advanced stage project rather than an exploration target.”
“The San Roque Project covers a large area of high exploration potential.”
“The deposit model for the Inferred Mineral Resource estimate remains open for expansion by continued drilling in all directions and at depth.”
“Expansional drilling should also be undertaken with the aim of connecting mineralized zones together which are currently modeled as separate bodies.”
“If possible, drilling should also focus on extending existing drill holes to greater depths, as many of these holes bottomed in mineralization.”
The Company plans to advance the development of San Roque with continued drilling and metallurgical recovery work once it secures the necessary financing. It has become an even more attractive property considering the price of Gold is now more than 40% higher than when the NI 43-101 assessed its Gold equivalent inferred resources.
Richard Walters, Executive V.P. of Marifil commented: “As addressed in the NI-43-101, I trust bench scale extractive metallurgical testing is reasonably expected to upgrade the majority of the Inferred Mineral Resources to Indicated Mineral Resources as drill hole spacing is sufficiently tight enough to generate that.”
The Company continues to source and develop new prospective Gold assets in Argentina utilizing the Company’s proprietary database, which it has built over the last 20 years. The experience, network and skillset of Marifil’s team in Argentina have led to numerous prospective projects and various subsequent joint ventures with mining majors (like BHP Billiton), mid-tiers (like IAMGOLD) and juniors (like ATW Gold) alike throughout Argentina including the Company’s flagship San Roque project, which shares ownership with NovaGold.
Recently, the Company’s agents in Argentina have successfully obtained the exclusive exploration rights to 2,166 hectares (~21.7 km2) in the historically productive El Indio Gold Belt, a mineral rich region of the Andes Mountains spanning the border between Chile and Argentina that contains large gold, silver and copper mines. Specifically, the Company lodged a cateo, or mining exploration claim (“Cateo”), on land open for claims staking, located roughly 12 km north-northeast of Barrick Gold Corporation’s Veladero gold mine on the Pascua-Lama to Veladero epithermal gold deposits trend within the Province of San Juan, Argentina. This Cateo is named Ortiquita and shares a 250 square kilometer crowded field of mine claims which belong to competitors in the area.
Elsewhere in the Province of San Juan and located on the east front of the Andes Mountains, the Company has also applied for 3,946 hectares of contiguous mine claims (the “Castaño Mine Claims”). This parcel includes two exploration Cateos totalling 3,838 hectares, covering land that was open for minerals staking, in addition to four existing separate, perfected mine rights (“Minas” or “Mine Rights”). These Minas amount to 108 hectares. Marifil’s experienced geological staff has performed reconnaissance field examination and confirmed this prospective zone to be part of a northeast trending complex of hydrothermally altered intrusives (quartz-monzonite porphyries) and associated hydrothermal breccias containing geochemically anomalous gold and copper.
Finally, the Company has commenced vetting potential Gold acquisitions outside of Argentina to build its Gold portfolio internationally. Specifically, the Company has been looking at advanced stage Gold projects, which can be further developed or built into mines in the coming years. Any material developments will be disclosed as they may unfold.
ON BEHALF OF MARIFIL MINES LIMITED
Robert Abenante, President & CEO
For further information regarding Marifil Mines Limited, please refer to the Company’s filings available on SEDAR (http://www.sedar.com) or at Marifil’s Website (http://www.marifilmines.com). Telephone: 604 365-0425.
1 – Per the terms of the Agreement, Marifil will be receiving an aggregate of 26,666,667 common shares (the “Consideration Shares”) of GECC at a deemed issue price of $0.075 per share, for total deemed aggregate consideration of $2,000,000. In accordance with securities laws and the terms of the Agreement, the Consideration Shares will be subject to a pooling agreement providing for release in five tranches over 48 months.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Completion of the transaction with GECC is subject to a number of conditions, including but not limited to, TSXV acceptance. There can be no assurance that the transaction will be completed as proposed or at all.
Disclaimer for Forward-Looking Information
Certain statements in this release are forward-looking statements, which reflect the expectations of management regarding the sale of assets including the proposed transaction with GECC, its Gold focused portfolio and its business development plans.
Forward-looking statements consist of statements that are not purely historical, including any statements regarding beliefs, plans, expectations or intentions regarding the future. Forward looking statements in this news release include statements relating to completion of the GECC transaction and terms of the transaction, including the timeline to obtain shareholder approval of GECC and close the transaction; that the sale of the assets will allow the Company to focus its resources on building its Gold portfolio in Argentina and internationally; that due to increased global uncertainty and instability, the Company anticipates a strong demand for Gold as investors seek a safe haven for their investments; that the Company will continue to source and develop Gold assets worldwide to be well positioned to take advantage of the trend of increased bullish sentiment for Gold companies for its shareholders in the coming years; and that the Company plans to advance the development of San Roque with continued drilling and metallurgical recovery work once it secures the necessary financing.
Such statements are subject to risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in the statements, including the risk that the shareholders of GECC, the CSE and the TSXV may not approve the transaction or that the transaction may not be completed for any other reason; the inability to add additional Gold properties to the Company’s property portfolio; changes to global uncertainty and instability; changes to a continued strong demand for Gold as a safe haven for investors’ investments; commodity price fluctuations; the inability to obtain necessary financing and on favourable terms to the Company; the state of the capital markets; and other risks and uncertainties identified under the heading “Risk Factors” in the Company’s continuous disclosure documents filed on SEDAR. No assurance can be given that any of the events anticipated by the forward-looking statements will occur or that results will be consistent with these forward-looking statements, and management’s assumptions may prove to be incorrect. Readers are urged to consider these factors carefully in evaluating the forward-looking statements contained in this news release and are cautioned not to place undue reliance on such forward-looking statements, which are qualified in their entirety by these cautionary statements. These forward-looking statements are made as of the date hereof and Marifil disclaims any intent or obligation to update publicly any forward-looking statements, whether as a result of new information, future events or results or otherwise, except as required by applicable securities laws.