VANCOUVER, BC / ACCESSWIRE / April 24, 2017 / Acapulco Gold Corp. (the "Company" or "Acapulco Gold") is pleased to announce that it has entered into a mineral exploration earn-in agreement (the "Option Agreement") with OZ Exploration Pty Ltd. ("OZ Minerals") and Minera Zalamera S.A. de C.V. ("Zalamera"), pursuant to which Zalamera has granted an exclusive option to the Company and OZ Minerals, together as optionees, to acquire the Zaachila, Riqueza Marina, and Zapotitlan projects (collectively, the "Projects") in Oaxaca, southern Mexico.
The sites exhibit positive geological indicators, and the Company believes the Projects have the potential for shallow, high-value-per-tonne volcanic-hosted massive sulphide ("VHMS") deposits. No modern mineral exploration has yet been undertaken on the Projects, all of which are located near developed road and port infrastructure.
Under the terms of the Option Agreement, OZ Minerals has agreed to make first-year in-ground expenditures in the aggregate amount of US$450,000 on the Projects. Under the Option Agreement, OZ Minerals can earn up to a 78 percent stake in the properties by spending US$6.8 million over six years, with the remaining 22 percent owned by the Company. The Company anticipates that exploration activities will begin immediately, and it expects drilling to start in the second half of 2017.
Exploration efforts are being guided by David M. Jones (BA, M.Sc.), a founding director of Acapulco Gold, a geologist and an expert in gold-copper porphyry and skarn systems. Most notably, he discovered the Los Filos deposit, in the Guerrero Gold Belt in southern Mexico, and he has identified several new gold systems in Oaxaca. He has consulted for Teck Corp., BHP Billiton, Gold Resource Corp., Wheaton River, Penoles, Torex Gold and Grupo Mexico. Mr. Jones also serves as a director and senior consulting geologist for Minaurum Gold Inc.
The Zaachila project contains outcrops of extensive silica-iron exhalite and pillowed basalt, typical of many VHMS deposits. Historical sampling work indicated highly anomalous geochemical values for copper, gold, silver, barium, and iron.
The Riqueza Marina project comprises a suite of bimodal volcanic rocks, including an interpreted felsic dome that contains outcropping silica-iron exhalite. Limited historical surface geochemistry returned anomalous copper, zinc, gold, barium, manganese, and iron.
The Zapotitlan project is an early-stage exploration target where reconnaissance mapping has outlined a magnetite and copper-bearing alteration zone of approximately 700 metres by 300 metres.
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About OZ Minerals
OZ Minerals is a copper-focused mining company based in South Australia and listed on the Australian Securities Exchange (ASX200). The company owns and operates the copper-gold-silver mine at Prominent Hill, and it is developing one of Australia's largest copper-gold resources at Carrapateena.
Over the past 18 months, OZ Minerals has put in place eight separate exploration earn-in agreements with highly regarded explorers. These provide the company with exploration expertise in specific geologies and locations. Its earn-in partners, in turn, access capital to undertake drilling programs. OZ Minerals typically works to oversee projects with its earn-in partners, who manage on-the-ground activities. Its growth strategy involves building a pipeline of opportunities and rigorously advancing them. In line with its capital discipline strategy, if at any time OZ Minerals determines that a project lacks the potential to generate substantial value, the company will cease expenditure and withdraw from the arrangement.