4th Dec 2008 15:32
For immediate release 4 December 2008
Templar Minerals Ltd
("Templar" or the "Company")
Brazilian Iron Ore Exploration Project
Templar Minerals announces that its 100% subsidiary Paranaiba Minerals Ltd. ("Paranaiba") has been granted for nil consideration an option to earn-in up to a 77% interest in the Rio Paranaiba Iron Ore Project, which comprises some 14,000 hectares of mining claims and applications in the Minas Gerais State of Brazil ("The Project"). The Project is situated within 350 km of a major iron and steel producing area. Templar has up to 45 days during which to conduct due diligence before making any financial commitment.
The Company's consultant, Mr L.D.S. Winter ,P.Geo. reported in October 2008 that,
" The Rio Paranaíba iron ore Project is a new iron ore discovery in the western part of the State of Minas Gerais. Exposures of the iron formation occur over an east-west (strike) distance of 18 kilometres and the mining claims and applications cover the area of the iron ore deposit. Initial exploration indicates an iron formation in the order of 50 metres thick and with a grade of 45% iron as soft hematite and less than 0.05% phosphorous from 15 samples. These characteristics appear to make the material amenable to concentration into pellets with low impurities. Preliminary work indicates the potential for about 60 million tonnes of mineable material with a stripping ratio in the 2 to 3:1 range per kilometre of strike length. Initial assessments to date has identified in the order of >100 million tonnes with our initial target being to outline in the order of between 200 to >400 million tonnes of mineable material."
It should be noted that the Project does not have any form of resource compiled in accordance with an internationally recognised geological standard. The intention is, if Templar proceeds following the conclusion of its due diligence period, to establish an inferred resource in accordance with such a standard by the end of 2010.
Paranaiba has the sole and exclusive right and option to earn up to a 77% undivided interest in the Project in consideration for expenditures of up to C$800,000 over a two year period as follows:
The Company has a period of 45 days from the 4th December (the "Review Period"), to exclusively review all available data concerning the Project, including title, environmental, geology, geochemistry, sampling, assay and drilling data and the right to physically inspect the Project during the Review Period and to conduct such sampling and other investigative activities as its deems appropriate;
The Company then has the right to earn an initial 50% interest in the Project, by incurring a minimum expenditures of C$200,000 before the date that is one hundred and eighty (180) days after the completion of the Review Period;
The Company has the right to increase its interest in the Project by a further 27% interest (i.e. Paranaiba's interest going from 50% to 77%), by incurring a further minimum expenditures of C$600,000 before date that is two (2) years from the end of the Review Period.
David Lenigas, Templar's Chairman commented:
"The option agreement over this potentially large iron ore project is considered to be in line with the Company's stated objectives of acquiring high potential mineral deposits at low entry costs. The Paranaiba Iron Ore project has the potential to be a significant asset for the Company. Additional exploration work will be undertaken over the coming months to further confirm the likely grade and tonnage of any resource. If deemed economic, the deposit is ideally position to provide iron ore feedstock to one of the most important steel producing centers in Brazil. "
The technical information contained in this announcement has been reviewed by Mr. Stewart Winter, Consulting Geologist, B.A.Sc., M.Sc., P.Geo. He is the Qualified Person who has reviewed the field data. Mr. Winter has worked for over 50 years as a geologist and has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking, to qualify as a Qualified Person for the purposes of this announcement.
For further information, please contact:
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Templar Minerals Ltd |
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David Lenigas |
Tel: +44 (0)20 7016 5100 |
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Beaumont Cornish |
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Roland Cornish/ Rosalind Hill Abrahams |
Tel: +44 (0)20 7628 3396 |
ENDS
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