|July 17, 2012|
Rokmaster Options Pinaya Property, Peru
(Vancouver, July 17, 2012) -- Rokmaster Resources Corp. ("Rokmaster" or the "Company") has entered into an Option and Joint Venture Agreement ("Agreement") with AM Gold Inc. ("AM Gold") and AM Gold's Peruvian subsidiary, Canper Exploraciones S.A.C. pursuant to which Rokmaster may earn up to a 75% interest in the Pinaya Gold-Copper Project ("Property") located in Caylloma and Lampa Provinces, Peru on the following terms:
(i) Rokmaster will earn an initial 51% interest in the Property by paying to AM Gold a total of $2,900,000 (of which Rokmaster may elect to pay $500,000 with common shares of Rokmaster), incurring an aggregate of $12,100,000 in exploration work on the Property ("Expenditures") and completing a minimum of 10,000 meters of drilling on the Property, within 4 years of the date of receipt of approval by both Rokmaster and AM Gold from the TSX Venture Exchange (the "Exchange") to this transaction (the "Effective Date'); and
(ii) Rokmaster will earn an additional 24% interest in the Property by paying AM Gold an additional $1,300,000 (of which Rokmaster may elect to pay $500,000 with common shares of Rokmaster), completing a Preliminary Economic Assessment on the Property, and incurring no less than an additional $9,700,000 in Expenditures, all within 5 years of the Effective Date.
After Rokmaster has earned either a 51% interest (and elected not to earn an additional 24% interest in the Property) or earned a 75% interest in the Property, Rokmaster and AM Gold will form a joint venture (the "Joint Venture"). Any party whose interest in the Joint Venture dilutes below 10% will have its interest onverted into a 3% net smelter returns royalty ("NSR") which NSR may be reduced from 3% to 2% by paying the NSR holder $2,000,000, and which NSR may be further reduced from 2% to 1% by paying the NSR holder a further $5,000,000.
About the Property
The Property consists of 19,200 hectares in 35 contiguous concessions located in southern Peru 775 kilometres ("kms") southeast of Lima, the capital of Peru and approximately 110 kms north-north west of Arequipa, the second largest city in Peru. Access to the Property is by road 7 kms off the access road to Xstrata's Tintaya Mine.
The Property covers 25 kms of the south-eastern portion of the newly emerging Andahuaylas-Yauri Porphyry Belt, along the north-eastern edge of the Western Andean cordillera. This copper-gold porphyry skarn belt contains in excess of 31 significant mineralized occurrences and mines (ie: Tintaya-720Mt @ 0.56% Cu, Antapaccay-817 Mt @ 0.51% Cu, Las Bambas-1.7Bt @ 0.6% Cu, Coroccohauayo-90 Mt @ 3.1% Cu and 0.3 g/t Au and Chucapaca-83.7 Mt @ 1.9 g/t Au and 0.09% Cu) which are alternatively porphyry copper-gold or gold dominant occurrences.
A portion of the Property overlies three significant styles of mineralization including:
(i) Intrusive hosted porphyry copper-gold mineralization associated with mineralized diorite to monzonite composition rock. Mineralization in these rocks is associated with stockwork and sheeted quartz veins locally with potassic and argillic alteration zones. The Northwestern (NWPZ) and Western (WPZ) Porphyry Zones contain significant copper and gold contents with
Measured, Indicated, and Inferred mineral resources* shown in the table below:
(ii) Calc-silicate skarn assemblages developing in the protolith rocks in the proximal hanging wall to the main WPZ, the Gold Oxide Skarn Zone ("GOSZ") contains Measured, Indicated, and Inferred mineral resources* shown in the table below:
(The mineral resources were estimated using ordinary kriging for the GOSZ and the WPZ zones and by the inverse distance squared method for the NWPZ zone. Classified blocks were constrained by an optimized pit shell. Cut-off values utilized are 0.25 grams gold per tonne ("g/t Au") and 0.3 percent copper equivalent ("%CuEq"). The copper equivalent determination is based upon metal values of US$3.00/lb copper and US$1,100/oz gold. The resource estimate is effective May 30, 2011 and was prepared in accordance with National Instrument 43-101 -- Standards of Disclosure for Mineral Projects ("NI 43-101") as well as commensurate with CIM definitions (2005) and were previously disclosed by AM Gold and may be referenced on their website at (www.amgold.ca and www.sedar.com)
(iii) Gold mineralization characterized by epithermal quartz-adularia-sericite, mineral assemblages. Careful documentation of alteration assemblages associated with several of these mineralized zones shows distinctly epithermal gold signatures may be overprinting earlier porphyry and skarn assemblages. These zones are typically gold dominant and are commonly identified several hundreds of metres into the hanging wall of the main porphyry mineralized zones.
The three mineralized areas above are open both along strike and to depth and exhibit superb structural controls.
Pinaya Exploration Potential
Rokmaster is confident that the Property has potential to host large porphyry copper-gold deposit(s) in this world class mineral belt.
In addition to the Property's resources, the Property includes a number of prospects and zones which have seen very limited work as most exploration to date has focused only on the resource area.
Targets of interest include:
1) Wide brittle-ductile structural zones often exceeding hundreds of metres in true width are common throughout the Property.
2) Drill ready targets such as "hanging" or open drill intersections of significant gold or copper mineralized zones which have not been closed off by historical drill patterns are readily documented and successful development of these targets could rapidly increase the known resource.
3) Expansion of the resource area on strike and down dip.
4) Seven other zones and mineralized occurrences to assess the size, nature, grade and mineral distribution.
5) Extensive untested open ended areas of anomalous gold-copper soil and rock geochemistry (many several kms in size and of similar intensity to the anomalies overlying the principal known zones).
6) ZTEM airborne and ground Induced Polarization geophysical anomalies which, with limited ground truthing, could rapidly develop into viable drill targets.
7) Large sections of the Property which are underlain by rock masses exhibit strong, "far-field" geochemical or metal signatures to either currently known or yet to be identified mineral occurrences.
8) The ZTEM data also suggests that the main resource area may be underlain by an extensive and deeper resistivity anomaly which may be suggestive of a porphyry body.
An initial property wide exploration program will be commenced following Exchange approval of the Agreement for filing.
John Mirko, Rokmaster's President and CEO stated "Several months ago, Rokmaster took the strategy of slowing down general exploration to conserve cash and focused on identifying opportunities that are closer to production by way of acquiring moderately advanced projects that demonstrate world class potential and contain commodities showing long term price strength. After reviewing many potential opportunities, we are very pleased to have completed this Agreement with AM Gold. With our management team's experience and proven track record in exploring, developing and bringing mines into production in countries such as Peru and Canada, we are very excited to move the Pinaya Project towards development and production. In addition, we are pleased to be working with AM Gold and will be nominating John Fiorino, CEO of AM Gold to Rokmaster's board of directors at our next annual shareholders meeting."
As stated by John Fiorino, "We are pleased to have partnered with Rokmaster to advance the exploration and development of the Pinaya Project. We expect the team John Mirko and Feisal Somji have assembled will be an invaluable asset to advance the Pinaya Project through the next phases of the project. Optioning the Pinaya Project to Rokmaster streamlines our assets and allows us to focus on our Red Mountain Gold Project in the Yukon while allowing AM Gold to benefit in any future success of the Pinaya Project through AM Gold's retained interest."
*The mineral resource estimates referred to above are contained in a technical report dated May 30, 2011 titled "Updated Resource Estimate on the Pinaya Gold/Copper Property, Caylloma and Lampa Provinces, Peru for AM Gold Inc.", prepared by Simpson, R.G., P.Geo and Cole, B.L., P.Geo (the "Existing Technical Report"). Qualified persons under NI 43-101 reviewed the Existing Technical Report on behalf of Rokmaster. To the best of Rokmaster's knowledge, information and belief, there is no new material scientific or technical information that would make the disclosure of the mineral resources inaccurate or misleading. In accordance with NI 43-101, Rokmaster intends to file a new technical report to support its disclosure of the above mineral resource estimates as soon as possible.
Subject to the approval of the Exchange, the Company will pay a finder's fee of 3,000,000 common shares of the Company to an arm's length party to the Company.
The Company also announces a non-brokered private placement (the "Private Placement") of a minimum of 4,000,000 units of the Company ("Units") at a price of $0.25 per Unit, each Unit being comprised of one common share of the Company ("Share") and one non-transferable common share purchase warrant (a "Warrant") exercisable to purchase one additional common share of the Company (a "Warrant Share") for a period of two years from the date of closing of the Private Placement at a price of $0.35 per Warrant Share. The cash proceeds from the Private Placement will be used to fund an initial exploration program on the Property and for general working capital purposes.
The Private Placement is subject to Exchange approval.
The Company may pay a finder's fee in connection with the Private Placement, subject also to Exchange approval.
Antonio M. de Quadros Ph.D, P. Eng, a consulting geologist and Director of the Company is a Qualified Person as defined by National Instrument 43-101 -- Standards of Disclosure for Mineral Projects, and has reviewed and approved the technical disclosure of this news release.
On behalf of the Board of Directors of
ROKMASTER RESOURCES CORP.
President & Chief Executive Officer
For further information, contact: John Mirko, President and Chief Executive Officer
Rokmaster Resources Corp.
Neither the 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.
Information set forth in this news release contains forward-looking information (as such term is defined under applicable securities legislation) that are based on assumptions as of the date of this news release regarding, among other things, the reliability of information prepared and/or published by third parties that are referenced in this press release or was otherwise relied upon by Rokmaster in preparing this press release. Forward-looking information reflects management's current estimates, beliefs, intentions and expectations and include statements related to the potential to identify new viable drill targets, the potential to increase the mineral resource estimate prepared for the Property, the potential of identifying porphyry bodies on the Property, the potential to expand the resource area of the Property, the potential to
develop and commence production on the Property and the completion of the Private Placement. They are not guarantees of future performance. Rokmaster cautions that all forward-looking information is inherently uncertain and that actual performance may be affected by a number of material factors, many
of which are beyond Rokmaster's control. Such factors include, among other things: risks and uncertainties relating to Rokmaster's ability to implement and complete exploration programs, risks inherent to the conduct of mineral exploration activities in general, Rokmaster's limited operating history,
the need to comply with environmental and governmental regulations, the conduct of mineral exploration activities in Peru and the state of the financial markets in general. Accordingly, actual and future events, conditions and results may differ materially from the estimates, beliefs, intentions and expectations expressed or implied in the forward-looking information. Except as required under applicable securities legislation, Rokmaster undertakes no obligation to publicly update or revise forward-looking information.
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