VANCOUVER, BRITISH COLUMBIA, Aug 30, 2012 (MARKETWIRE via COMTEX) — Citation Resources Inc. (the “Company”) /quotes/zigman/4510152CA:CTT+58.82% is pleased to announce that further to its May 23, 2012 news release updating exploration activity in Mexico’s Guerrero State, Geotech Ltd. (“Geotech”) has now commenced flying an airborne versatile time-domain electromagnetic (“VTEM”) survey over the Biricu Gold Project. In addition, the Company has reached agreement with the Mezcala ejido granting the Company access to high-priority areas to conduct early-stage exploration activities.
Geotech has been contracted to conduct a 1,400 line-kilometre VTEM survey that will employ 150 metre spacing over three specific high-priority areas of the Biricu concession within a broader survey coverage at 200 metre spacing. The survey is expected to be completed in early September 2012 following which the Company will analyse and integrate the survey data with the mapping and sampling data models based on its recent and ongoing ground exploration activities.
Preliminary field work, consisting of reconnaissance mapping and geochemical sampling is completed in most of the highest priority areas of the property. The prospective areas in which work was conducted are located in the northern region of the Biricu Project approximately 10 kms east and northeast of Goldcorp’s Los Filos Mine Project and show strong similarities in geologic setting, alteration, and geochemical patterns to those of the numerous gold skarn deposits of the Guerrero Gold Belt (GGB).
Five prospective areas for drill targeting are identified to date based on geologic mapping and assays from geochemical sampling. These areas center on exposures of diorite and granodiorite porphyry with associated hornfels, skarn, and jasperoid alterations which are characteristic of known GGB deposits. Four of the five areas show moderate to highly anomalous values in gold with associated GGB-style pathfinder elements such as copper, arsenic and bismuth (Press release May 23, 2012). Detailed results from these field studies will be integrated with geophysical results and presented in a future news release.
The Company is also engaged in discussions with a second ejido regarding access to another high-priority exploration area in the western portion of the concession immediately adjacent to Goldcorp’s property holdings. The Company is hopeful of an agreement being reached with the ejido in the near future, pending which completion of field work would require a further 30 days.
Drill targeting, drilling bids, and requests for environmental permits will be submitted after receipt and analysis of pending geophysical, geological, and assay data for the purpose of initiating a drill program during the first quarter of 2013.
The exploration program is being carried out under the direction of David M. Jones, technical consultant to the Company. David M. Jones is credited with discovering the Los Filos property currently being mined by Goldcorp which is 10 km from the Biricu Project.
The technical content of this news release has been reviewed by and is the responsibility of Richard Graham, P. Geol., who is a Qualified Person as defined in NI 43-101.
About Citation Resources
Citation Resources Inc. is a growth-oriented, Canadian mining company dedicated to the exploration and development of precious and base metal resources. Citation is based in Vancouver, British Columbia and aims to create shareholder value through the acquisition, exploration, and development of profitable mineral properties, in a manner that is consistent with best practice in environmental stewardship, safety and stakeholder engagement. The Company has an option agreement with Esperanza Resources Corp. to acquire a 100% interest in the Biricu Project mineral exploration concession located in Guerrero State, Mexico. The Biricu Project comprises more than 41,000 hectares of highly prospectable ground and management believes that the Biricu Project is the direct on-strike extension of five skarn deposits in the Guerrero Gold Belt (El Limon-Los Guajes – Torex Gold Resources Inc.; Bermejal, Los Filos, and Nukay – Goldcorp Inc.; Ana Paula – Newstrike Capital Inc.).
Some statements in this report contain forward-looking information. These statements include, but are not limited to, statements with respect to future exploration, expenditures, transactions and financings. These statements address future events and conditions and, as such, involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of to be materially different from any future results, performance or achievements expressed or implied by the statements. Such factors include, among others, risks related to actual results of exploration activities, the timing and amount of expenditures and the completion of transactions and financings.
ON BEHALF OF THE BOARD OF DIRECTORS
CITATION RESOURCES INC.
Nigel Kirkwood, CFO
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Citation Resources Inc.