Canadian Mining (TSX.V: CNG), (“the Company”) is pleased to report Ironwood Gold Corp. (OTCQB: IROG) is accelerating plans for evaluation of the Company’s San Bernardo Project. Canadian Mining entered into an agreement with Ironwood Gold Corp. (“Ironwood”) which grants Ironwood an option to acquire up to 100% of the Raquel 3 and 3B mining concessions owned by the Company’s wholly-owned Mexican subsidiary Canmin Mexico S.A. de C.V., located in the Alamos Mining district of Sonora, Mexico (the “San Bernardo Project”).
Ironwood Gold Accelerates Plans for Evaluation of Project in Sonora February 19, 2013:
Ironwood Gold Corp. (OTCQB: IROG) (“Ironwood” or the “Company”) in the execution of its business plan to develop a high quality portfolio of exploration properties containing known deposits of gold is pleased to advise it has received a comprehensive plan outlining activities towards the development of an extended N.I. 43-101 compliant evaluation of the Raquel 3 and 3B mining concessions located in the Alamos Mining district of Sonora, Mexico.
The proponent, SRK Consulting (www.srk.com) (“SRK”), is an independent, international consulting practice offering mining project services from exploration through feasibility, mine planning and production operations. Formed in 1974, SRK employs over 1500 professionals in more than 45 offices on 6 continents. Among SRK’s 1500 clients are most of the world’s major and medium-sized metal and industrial mineral mining houses, exploration companies, banks, petroleum exploration companies, construction firms and government departments.
SRK has presented a detailed exploration plan outlining an estimated eight month program commencing with a due diligence site visit and development of a GIS data platform to integrate and maintain adequate controls for evaluation. The work plan further details a comprehensive target review followed by a program of geological mapping and sampling, alteration mapping and surface geophysics with the results combined as GIS data culminating in the definition of specific drill targets. The plan identifies that the extent of the mineralization offers the potential for up to 10 drill holes in order to develop an evaluation consistent with best practices and international standards.
Mr. Luis Manuel Arroyo Dominguez, Principal Mining Engineer at SRK Mexico, states, “We welcome this opportunity to work with Ironwood at this promising concession. Modern exploration techniques and higher commodity prices makes an up-to-date evaluation of this location a logical progression towards a production scenario which currently appears to offer a reasonably high degree of probability for a favorable outcome.”
With offices in Zacatecas, Mexico, SRK proposes the fielding of a team of professionals led by Mr. Arroyo including staff with previous work experience at the El Gochico mine located within the Raquel concession. El Gochico was historically mined by Industrias Peñoles, S.A.B. de C.V (“Peñoles”) which documented 1981 reserves at 500,000 tonnes proven with 185 g/t Ag, 9.81% Zn, 0.51% Pb and .73% Cu as well as 301,000 tonnes of probable reserves @ 120 g/t Ag, 8.2% Zn, 0.36% Pb and 0.59% Cu and a Possible Resource of 1,412,000 tonnes. Mill production was recorded at 12,000 tonnes per month with a total production of 540,000 tonnes until production ended in mid-1985 when metal prices dropped and the mine closed. The site is still considered active and the property includes roads and an electrical transmission line. It is reported that Peñoles invested US$17M in mine development which was recovered in the first 2.5 years of production.
Ironwood CEO Behzad Shayanfar states: “We are very pleased with the proposal from SRK. The quality of their work is recognized globally and given the regional location of their office and experienced personnel, we have received what we feel is a very cost effective estimate. Additionally, the program is quite aggressive with a rapid timeline which suits our needs thoroughly. We are working diligently to finalize matters in order to get underway as soon as commercially practicable.”
Canadian Mining benefits by Ironwood Gold Corp. investing into further exploration at its San Bernardo Project while still retaining an interest in the property. Furthermore, it will allow Canadian Mining’s team to focus on the development of the Sun Group Zeolite Project which is garnering International attention.
On behalf of the Board
Ray Paquette CEO
For further information contact Mr. Ray Paquette 604.684.3301
Neither 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.