MONTREAL, QUEBEC–(Marketwired – March 25, 2014) – Freyja Resources Inc. (“Freyja” or the “Company“) (TSX VENTURE:FRA) announced today that it has received a drilling permit (the “Permit“) from the Secretary of the Ministry of Environmental and Natural Resources of Mexico (“SEMARNAT“). The Permit covers areas of the Las Cristinas Property (the “Property“) where drilling operations will not impact vegetation. The first phase of the drilling program, which is expected to start in April 2014, will consist of approximately 1,000 meters, with more drilling targets to be identified in the coming weeks.
The drilling program’s main objective will be to delineate the initial open pit production area within the 550 meter mineralized sections comprised of the North Mount and South Mounts and to test the Southern Extension. The work will focus on the oxide copper mineralized surface section and the sulfide copper/silver ore at depth. Assay results from the sampling program were announced by the Company on February 13, 2014 and delivered up to 17.95% copper and 429 g/t silver, including 64 samples from the Southern Mount that averaged 1.697% copper and 10 g/t silver. From those 64 samples, the 41 samples that were taken within the estimated 30 meter of true width of the mineralized section averaged 2.454% copper and 11 g/t silver. Results from the recently announced sampling program also included a number of higher grade assays from the mineralized surface and underground workings, including a six meter section on surface of the South Mount with 5.089% copper and 20 g/t silver and a contiguous underground channel sample of nine meters in the North Mount.
The Company’s news release dated February 13, 2014 can be found at:
The initial phase of the drilling program will focus on the southern end of the Property (the “Las Cristinas Area“) where small scale copper production took place in the early 70s. This area of the Property has the benefit of hosting old underground workings and includes several drifts and adits. All current access roads are located at the south end of the Property. The Las Cristinas Area is approximately 1.45 kilometers long by a width of up to 120 meters.
Commenting on the drilling program, Freyja’s President and CEO Andre St-Michel stated: “The results from our extensive sampling program of the Las Cristinas Area released in February gave us a clear indication of how we needed to plan the next phase of our exploration program, which consists of about 3,000 meters of drilling. With the drilling permit we have now obtained we can proceed right away with the first phase of our drilling program.” Mr. St-Michel concluded: “We will continue to focus on the Southern section of the property with a view of better delineating our production targets. We hope to complete this drilling program by the end of June.”
The current approved drilling sites and infrastructure cover areas subject to removal of vegetation and include the construction of an access road with a length of up to 2,404 meters by approximately 5 meters wide and a total of 84 drilling pads with dimensions of six meters by five meters. Further environmental studies are currently being completed and are expected to be filed with SEMARNAT before the end of April 2014 in order to extend the area of the Property in which drilling is allowed.
In addition, the Company supplements metallurgic tests to determine the recovery rates of copper – silver and lixiviation tests are concurrently being conducted. This will provide an indication of costs. Following the drilling campaign and subject to results, the Company intends to build on site a heap leach pad. Investors should note that Freyja does not have a defined NI 43-101 resource and that a feasibility study has not been completed. There is no certainty that the proposed operation will be economically viable.
About the Las Cristinas Project
The Las Cristinas Project includes four adjacent exploration concessions, which cover an area of 683 hectares in Northeastern Mexico in the east center part of the Chihuahua State. The permits for the concessions are granted under the authority and administrated by the “Secretaria de Economía, Dirección General de Minas, Subdirección de Minería”.
The Las Cristinas Project is located in the Basin and Range Belt of north Mexico, at 150 km northeast of the town of Chihuahua. The Project is in the center of the Chorreras mineralized region, an area that contains numerous concentrations of iron, gold, silver, copper and zinc in epithermal/mesothermal vein deposits and in a skarn deposits. The area is known by the presence of the copper hydrothermal veins in the Las Cristinas and El Caballo area. Within the Las Cristinas Project permit area, the copper system is seen spasmodically over a seven kilometer by 300 meters area. The mineralization is characterized by copper carbonate (azurite, malachite, crisocole) with patches of iron sulphide (pyrite) and copper sulphide (chalcopyrite, bornite) in centimetric veins within a calcite/barite/hematite veins environment, oriented 130 degrees and dipping 80 degrees southwest, intruding the Jurassic calcareous siltstone.
About Freyja Resources Inc.
Freyja Resources Inc. is a mining exploration company listed on the TSX Venture Exchange under the symbol “FRA”. Freyja Resources’ main operations are conducted through its wholly owned subsidiary Cyprium Mining Corporation (“Cyprium”). Cyprium is a mineral exploration company which targets the acquisition and generation of mining projects located solely in Northern Mexico that have a potential for profitable precious and base metal open pit production. Cyprium is committed to maximizing shareholder value by strategically ensuring efficient and profitable production and focusing on a hybrid exploration/production business model. Cyprium prioritizes projects accessible by well-maintained roads and/or railroad systems. Upon completion of a conclusive exploration campaign, Cyprium’s focus is to rapidly establish an economical production and maximize the project potential by funding further exploration through cash generated by production, thus limiting shareholder dilution.
The Company’s main project is the Las Cristinas copper/silver project located in Chihuahua State, Mexico. Cyprium owns 51% of Coyame Copper SA de CV (“Coyame Copper“), a Chihuahua, Mexico based mining exploration company and has an option to increase its stake in Coyame Copper to 70% for a consideration of US $1.2 million payable over a period of eighteen months following the exercise of the option. Coyame Copper’s Las Cristinas Project consist of four adjacent exploration concessions (Las Cristinas, La Parita, La Verde and La Lagrimosa) covering 684 hectares. Coyame Copper also owns production assets located outside the town of Coyame, Mexico.
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.
The geological information of this release have been verified by Jacques Marchand, P.Eng. P.Geo, and an independent Qualified Person.
This news release contains “forward-looking information” (within the meaning of applicable Canadian securities laws) and “forward -looking statements” (within the meaning of the U.S. Private Securities Litigation Reform Act of 1995). Such statements or information are identified with words such as “anticipate”, “believe”, “expect”, “plan”, “intend”, “potential”, “estimate”, “propose”, “project”, “outlook”, “foresee” or similar words suggesting future outcomes or statements regarding an outlook. Such statements include, among others, those concerning the Company’s anticipated plans for developments of the Company and its mining projects”.
Such forward-looking information or statements are based on a number of risks, uncertainties and assumptions which may cause actual results or other expectations to differ materially from those anticipated and which may prove to be incorrect. Assumptions have been made regarding, among other things, management’s expectations regarding future growth, plans for and completion of projects by Company’s third party relationships, availability of capital, and the necessity to incur capital and other expenditures. Actual results could differ materially due to a number of factors, including, without limitation, operational risks in the completion of Company’s anticipated projects, delays or changes in plans with respect to the development of Company’s anticipated projects by Company’s third party relationships, risks affecting the ability to develop projects, risks inherent in operating in foreign jurisdictions, the ability to attract key personnel, and the inability to raise additional capital. No assurances can be given that the efforts by Company will be successful. Additional assumptions and risks are set out in detail in the Company’s MD&A, available on SEDAR at www.sedar.com.
Although the Company believes that the expectations reflected in the forward-looking information or statements are reasonable, prospective investors in the Company’s securities should not place undue reliance on forward-looking statements because the Company can provide no assurance that such expectations will prove to be correct. Forward-looking information and statements contained in this news release are as of the date of this news release and the Company assumes no obligation to update or revise this forward-looking information and statements except as required by law.