Feb. 22, 2011 (Canada NewsWire Group) --
VANCOUVER, Feb. 22 /CNW/ - Gitennes Exploration Inc. (TSXV-GIT) is pleased to advise shareholders that its earn-in partner on the Urumalqui Project, AndeanGold Ltd., is anticipating to begin drilling before the end of March 2011.
AndeanGold's Peruvian affiliate, PeruGold S.A. is in receipt of the
voucher from Peru's Ministry of Energy and Mines the approving its
Declaration of Environmental Impact Study ("DIA") application. The DIA
authorizes the Company to undertake a 3,000-metre drill programme on
the Project. Drilling will focus on infill drilling to a depth of 200
meters along the central and south eastern segments of the Urumalqui
Vein, which cover one-kilometre of the 1,500-metre long outcropping
Urumalqui Vein where the majority of Gitennes' three previous drilling
programs occurred. The programme is intended to achieve an overall
drill hole spacing of approximately 50 metres over the 1.0 kilometre
vein strike, to a depth of 200 metres. AndeanGold plans to commission a
resource estimate upon completion of this program.
PeruGold has also signed water assignment agreements with several
surface owners in the Project area and has applied for a water permit
with the Peruvian Local Water Authority ("ALA") for the utilization of
the assigned water rights. The granting of the water permit was
dependent on an approved DIA, so the water permit from ALA should be
issued by the end of February 2011. PeruGold has also signed
surface-use agreements with the key surface owners controlling lands
covering the Urumalqui Vein and has leased land and built a core
storage facility.
Gitennes granted an option to AndeanGold (Gitennes News Release dated
February 1, 2010) whereby its Peruvian affiliate, PeruGold. can earn a
60% interest by:
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a) Expending $3,000,000 of qualifying expenditures on the Project over a four - year term, | ||
| b) Completing 3,000 metres of drilling by the end of the second year of the Term and 7,000 metres of cumulative drilling by the end of the third year of the Term, and | |||
| c) AndeanGold issuing Gitennes 80,000 shares in four tranches of 20,000 shares. Gitennes may elect to receive cash in lieu of shares, with the amount not to exceed $25,000, $50,000 and $100,000 with respect to the first, second and third year anniversary date payments, respectively. If the market value of the shares on the respective payment dates exceeds the maximum cash payment amount on such date, the difference will be paid in equivalent shares. |
Urumalqui is an epithermal vein which is mineralized with potentially
economic silver and gold mineralization. Gitennes acquired the
properties by staking in 2002 and explored it jointly with Meridian
Gold Inc. until mid-2005, upon which Gitennes assumed 100% ownership.
Work on the property since January 1, 2003 includes grid-controlled
soil sampling, IP and magnetic geophysics surveying, three phases of
core drilling (approximately 7,336 metres in 47 holes) and preliminary
metallurgical testing. A technical report on the Project, dated March
30, 2009 is available under the Company's
disclosure filings at www.sedar.com.
The technical information in this release has been reviewed by J.
Blackwell (P.Geo.), a Qualified Person as defined by National
Instrument 43-101.
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.
Jerry Blackwell, President