TSX VENTURE EXCHANGE
SYMBOL: CNY
SHARES OUTSTANDING: 12,527,492
TORONTO, April 11 /CNW/ - Coniagas Resources Limited ("Coniagas" or the "Company") (TSXV: CNY) announces that it has entered into an option agreement dated effective March 29, 2008, with five arm's length parties, including La Societe De Development De La Baie James (the "Optionors") to acquire a 100% interest in the Cyr Lithium Prospect located in Northwestern Quebec. Under the agreement, in order for Coniagas to earn a 100% interest in the property it paid $60,000 and 500,000 common shares have been transferred to the Optionors from significant shareholders of the Company. In addition, Coniagas must issue 1,000,000 common shares to the Optionors on the first and second anniversaries of the option agreement. In the event that the value of the 2,500,000 does not equal or exceed $5,000,000 on the third anniversary of the option agreement (based on the 20 day weighted average price of the shares prior to such date) then Coniagas shall pay the Optionors the difference between the market value of the shares and $5,000,000. Coniagas must also issue 500,000 shares to significant shareholders to replace the initial 500,000 shares transferred to the Optionors.
Mr. Maurice Colson, President of the Company has stated, "We are very excited to have optioned the Cyr Lithium Prospect and pleased to have the James Bay Development Corporation become a shareholder of the Company".
The Cyr Lithium Prospect is located roughly 100 km due east of James Bay and 383 km north of Matagami, Quebec. The property covers an area of roughly 19 square kilometers. Previous work on the property conducted in the 1970s defined an area of 45,000 square metres of outcropping spodumene pegmatite dykes. Approximately 75% of the pegmatite outcrops were sampled through percussion drilling and trenching with the dust material of 277 vertical short holes returning an average grade of 1.7% Lithium. Mapping conducted implies outcrop defined lithium reserves at 121,500 tonnes per vertical metre grading at 1.7% Lithium. Based on these figures, a hypothetical deposit with a depth of 100 metres would contain in excess of 12 million tonnes of Lithium ore.
All resource estimates quoted herein are based on data and reports obtained and prepared by previous operators. This historic resource estimate is considered to be relevant, and is believed to be reliable based on the amount and quality of historic work completed. The Company has not completed the work necessary to independently verify the classification of the mineral resource estimates. The Company is not treating the mineral resource estimates as National Instrument 43-101 defined resources verified by a qualified person. The historical estimates should not be relied upon. The properties will require considerable further evaluation which the Company's management and consultants intend to carry out in due course. This news release has been reviewed by Geoffrey S. Carter, a Qualified Person as defined by National Instrument 43-101.
The TSX Venture Exchange has not reviewed or does not accept responsibility for the adequacy or accuracy of this release. This news release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc. Forward-looking statements address future events and conditions and therefore, involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements.