VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 12, 2011) - Artha Resources Corporation (TSX VENTURE:AHC) ("Artha" or the "Company") is pleased to announce that the Company has entered into an Option Agreement to whereby it can earn an undivided fifty-five (55%) percent working interest in the interest of Cardero Argentina S.A. ("Cardero Argentina") in the tenures which make-up the Organullo Project, and thereafter form a Joint Venture with Cardero Argentina, a wholly owned subsidiary of Cardero Resource Corp. ("Cardero"). The Organullo project is a relatively advanced epithermal gold-silver project located in northern Salta Province NW Argentina with excellent potential for both high sulphidation type epithermal high grade gold and silver as well as bulk tonnage lower grade gold and silver mineralization (Maps 1 and 2).
Organullo Project Summary.
HIGHLIGHTS.
* a total of 1,580 surface rock samples collected by previous explorers from an area of approximately 8-kilometres by 8-kilometres average 0.25 g/t gold.
* 189 metres of 0.66 g/t gold and 186 metres of 0.50 g/t gold in historic drilling prior to Cardero.
* Cardero considered that historic exploration inadequately tested this large, pervasive gold-silver bearing system.
* Gold values from 361 rock samples collected by Cardero over 8 kilometres of strike on the 6100 ha property averaged 0.48 g/t gold and range from below detection to 29.7 g/t gold.
* Mapping and geochemical analyses conducted by Cardero defined a 2.1-kilometre by 800-metre zone of hydrothermal alteration indicative of both low- and high-sulphidation style epithermal gold deposits.
* Geophysical surveying conducted by Cardero characterized the historical Julio Verne Mine and identified similar targets over a 5-kilometre strike length.
* Broad zones of low grade gold mineralisation identified in Cardero diamond drilling included 445m at 0.15 g/t gold with primary targets still untested.
Artha considers the Organullo project to offer excellent drill ready targets with a focus on delineating both large bulk tonnage potential as well as higher grade zones in dilatant structures. The property delivers an exceptional and relatively advanced project into Artha's highly prospective portfolio in the under explored NW of Argentina. Drilling is planned to commence on the project in the December 2011 quarter.
A NI-43-101 Technical Report is being completed on the property as part of the Option Agreement with Cardero and is expected to be available shortly.
The Organullo property, owned by Cardero Resource Corp., is located in Salta province of Argentina approximately 20 kilometres due south of the village of San Antonio de Los Cobres and approximately 100km W-NW from the city of Salta. Access is easily attained by a network of roads through the central part of the property. The property was initially explored and mined on a small scale as the Julio Verne mine in the 1930's. Regional work on the property was conducted in the 1960's and 70's. In 1994-5 Triton Mining Corporation conducted a mapping, sampling, rock geochemistry and reverse circulation drill program. Newmont Overseas Exploration Ltd. performed a property evaluation in 1996. Northern Orion Explorations Ltd. performed a core drilling program in 1997 followed by a reverse circulation drilling program in 1999.
In 2002 Cardero acquired the property by staking and in 2005 performed a digital data compilation of information on the property and surrounding area.
The Organullo property is located in a visually anomalous area which owes its lighter colour to the argillic alteration extending 6 km north-south, parallel to the Organullo river valley. In addition, strong oxidation of pyrite has produced orange-brown gossan over significant areas of the clay alteration. The style of alteration, age of the various rock units, lithologies, structural complexity, mineralization and geochemistry are all permissive of epithermal style mineralization. Numerous mineral properties associated with magmatic and volcanic centres along regional structural features are documented in Chile and Argentina. Regionally the property lies along a major fault lineament, the northwest trending Calama-Olacapato-El Toro lineament, which is one of several NW lineaments which host magmatic and volcanic centres as well as major mineral deposits and mines, making the area an interesting target for exploration (Map 3).
Previous exploration by others at Organullo focused mainly on higher grade gold (+/-copper and bismuth) mineralization and little to no attention was paid to the bulk tonnage potential on the property. Records of historical exploration (from several operators) obtained by Cardero illustrate the significant gold endowment of the property - a total of 1,580 surface rock samples from an area of approximately 8-kilometres by 8-kilometres average 0.25 g/t gold (Map 4).
Cardero considered that historic exploration inadequately tested this large, pervasive gold-bearing system. The majority of the historic drilling (6,121 metres in 35 holes) was collared parallel to mineralized structures and hence either failed to test the principal structures and/or provided intersections which the Cardero believed may not be representative. In addition, recoveries were very poor (25-30%) due to loss of potentially mineralized clay rich zones and high groundwater saturation. Despite sub-optimal drill hole orientation and drill conditions, historical drill holes did define potentially economic bulk-tonnage style gold-silver mineralization.
Historical drill results from Organullo identified significant bulk-tonnage style gold mineralization, including up to 189 metres grading 0.66 g/t gold, Table 1. Results from mapping, geochemical and geophysical exploration in 2010 indicates potential for a large, bulk-tonnage gold system that warrants follow up drilling.
Table 1: Select Historical Drill Highlights
(*RC -- reverse circulation; **DDH -- diamond drill hole)
Exploration History.
The earliest recorded work in the area of the Organullo property comes from reports of small-scale production from the Julio Verne mine during the 1930's. Mining activity centered on 2 high-grade sub-parallel veins with concentrates reported to average 12.5% bismuth and 8.2% copper with gold ranging between 10-20 g/t. Early regional work was undertaken in the area by Fabricaciones Militares in 1962-72 in partnership with the United Nations, followed up by an IP survey and drilling by Cities Service Corporation. In 1994-1995 Triton Mining Corp. and Northern Orion Explorations, Ltd. jointly conducted a detailed surface sampling, mapping and prospecting campaign and completed a 17-hole, 3,295-metre RC drill program. This was followed with a 6 hole diamond drill program in 1997 and an additional 12-hole RC drill program in 1999 by Northern Orion. Cardero purchased the project in 2004, and conducted several reconnaissance exploration programs and detailed petrographic studies since that time and as well as 2,053 metres of diamond drilling.
Cardero's exploration programs included:
* Gold values from 361 rock samples collected over 8 kilometres of strike on the 6100 ha property average 0.48 g/t and range from below detection to 29.7 g/t.
* Mapping and geochemical analyses have defined a 2.1-kilometre by 800-metre zone of high-temperature hydrothermal alteration typical of both low- and high-sulphidation epithermal gold deposits.
* Geophysical surveying has characterized the historical Julio Verne Mine and identified similar targets over a 5-kilometre strike length.
* Geology and geochemical results consistent with the upper levels of a large magmatic porphyry-high sulphidation system have been highlighted. These type of systems host prolific gold mineralization elsewhere in the central Andes, such as in the Pascua - El Indio belt, and do not preclude the potential for a large Bajo de la Alumbrera or El Salvador-style porphyry deposit at depth.
* Drilling of 2,053 meters of diamond core in 8 holes.
Cardero completed an initial 2,053 metre, 8-hole diamond drill program to test an approximately 2.1-kilometre long by 800-metre wide north-south trending structural zone defined by the coincidence of significant historical drill intercepts (Table 1), gold-in-rock surface geochemistry, and variably developed advanced argillic (alunite+/-dickite+/-pyrophyllite) and silica alteration in the vicinity of the former Julio Verne mine (Figure 1). Results from this drilling are summarized in Table 2. A number of technical issues arose during Cardero's drilling program which resulted in the key targets still remaining untested.
Table 2 – Significant intersections in Cardero drilling 2010.
A 2053.5 m drill program on the Organullo Ridge and area proximal to the Julio Verne mine intersected silica and clay altered and faulted Puncoviscana sediments and Tertiary volcanic/intrusive rocks which returned values ranging from 0.96 ppm Au over 16.0 m and 0.14 ppm Au over 445.0 m. The drilling identified mineralization and alteration of a hydrothermal system which appears to be high sulphidation in style, with interpretation complicated by faulting.
Option Agreement Terms.
The Option Agreement between Cardero and has the following terms and is subject to TSX Venture Exchange (the "Exchange") approval. Artha has the sole and irrevocable right and option to earn an undivided fifty-five (55%) percent right, title and working interest in and to the property by:
1. incurring an aggregate of US$1.5 million in Expenditures (as defined in the Option Agreement), as follows:
1. US$250,000 on or before the day which is 1 year after the date of execution of the Option Agreement by Artha (the "Effective Date");
2. an additional US$550,0000 on or before the day which is 2 years after the Effective Date; and
3. an additional US$700,000 or before the day which is 3 years after the Effective Date.
Any excess in Expenditures incurred in any period may be carried forward against Expenditures due to be incurred in the next.
2. issuing a total of 350,000 voting common shares in the capital of Artha by way of the following tranches as follows:
i. 50,000 shares within 15 days after the Exchange's acceptance of the Option Agreement (the "Exchange Acceptance Date");
ii. 100,000 shares within 1 year after the Exchange Acceptance Date;
iii. 100,000 shares within 2 years after the Exchange Acceptance Date; and
iv. 100,000 shares within 3 years after the Exchange Acceptance Date.
3. otherwise complying with the terms and conditions of the Option Agreement during the currency of the Option.
With the exception of the obligation to incur $250,000 in Expenditures and issue 50,000 shares to Cardero pursuant to (a)(i) and (b)(i) above (which will become a binding obligation of Artha on the Exchange Acceptance Date), the remaining Expenditures and share issuances are optional.
This news release has been approved and reviewed by Charles Straw, B.Sc., who is a qualified person within the meaning of National Instrument 43-101.
Artha was founded by a team of mining industry professionals with a proven track record in project generation, exploration, mining and finance. Artha's principle exploration target adjoins Silver Standards Pirquitas Mine, one of the largest primary silver mines in the world located in the province of Jujuy in NW Argentina. Artha is one of the largest mineral explorers in this region with over 2,100 square kilometers of properties prospective for silver, gold, base metals and rare earths.
On Behalf of the Board of Directors,
Todd McMurray, President
Forwarding Looking Statement Disclaimer.
This news release includes certain forward-looking statements or information. All statements other than statements of historical fact included in this release, including, without limitation, statements regarding future plans and objectives of the Company are forward-looking statements that involve various certain risks and uncertainties. In certain cases, forward-looking statements can be identified by the use of words such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's plans or expectations include availability of capital and financing, general economic, market or business conditions, regulatory changes, timeliness of government or regulatory approvals, risks inherent in the mineral exploration and production industry, and other risks detailed herein and from time to time in the filings made by the Company with securities regulators, most of which filings are available at www.sedar.com. The Company disclaims any intention or obligation to revise or update such statements, whether as a result of new information, future events or otherwise, except as required under applicable securities laws.
Note: To view the maps associated with this release, please click the following link: http://media3.marketwire.com/docs/ahc0912.pdf.
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.
Contact Information
Artha Resources Corporation
Todd McMurray
President and Director
1 604 648 1530
todd@artharesources.com
www.artharesources.com
Organullo Project Summary.
HIGHLIGHTS.
* a total of 1,580 surface rock samples collected by previous explorers from an area of approximately 8-kilometres by 8-kilometres average 0.25 g/t gold.
* 189 metres of 0.66 g/t gold and 186 metres of 0.50 g/t gold in historic drilling prior to Cardero.
* Cardero considered that historic exploration inadequately tested this large, pervasive gold-silver bearing system.
* Gold values from 361 rock samples collected by Cardero over 8 kilometres of strike on the 6100 ha property averaged 0.48 g/t gold and range from below detection to 29.7 g/t gold.
* Mapping and geochemical analyses conducted by Cardero defined a 2.1-kilometre by 800-metre zone of hydrothermal alteration indicative of both low- and high-sulphidation style epithermal gold deposits.
* Geophysical surveying conducted by Cardero characterized the historical Julio Verne Mine and identified similar targets over a 5-kilometre strike length.
* Broad zones of low grade gold mineralisation identified in Cardero diamond drilling included 445m at 0.15 g/t gold with primary targets still untested.
Artha considers the Organullo project to offer excellent drill ready targets with a focus on delineating both large bulk tonnage potential as well as higher grade zones in dilatant structures. The property delivers an exceptional and relatively advanced project into Artha's highly prospective portfolio in the under explored NW of Argentina. Drilling is planned to commence on the project in the December 2011 quarter.
A NI-43-101 Technical Report is being completed on the property as part of the Option Agreement with Cardero and is expected to be available shortly.
The Organullo property, owned by Cardero Resource Corp., is located in Salta province of Argentina approximately 20 kilometres due south of the village of San Antonio de Los Cobres and approximately 100km W-NW from the city of Salta. Access is easily attained by a network of roads through the central part of the property. The property was initially explored and mined on a small scale as the Julio Verne mine in the 1930's. Regional work on the property was conducted in the 1960's and 70's. In 1994-5 Triton Mining Corporation conducted a mapping, sampling, rock geochemistry and reverse circulation drill program. Newmont Overseas Exploration Ltd. performed a property evaluation in 1996. Northern Orion Explorations Ltd. performed a core drilling program in 1997 followed by a reverse circulation drilling program in 1999.
In 2002 Cardero acquired the property by staking and in 2005 performed a digital data compilation of information on the property and surrounding area.
The Organullo property is located in a visually anomalous area which owes its lighter colour to the argillic alteration extending 6 km north-south, parallel to the Organullo river valley. In addition, strong oxidation of pyrite has produced orange-brown gossan over significant areas of the clay alteration. The style of alteration, age of the various rock units, lithologies, structural complexity, mineralization and geochemistry are all permissive of epithermal style mineralization. Numerous mineral properties associated with magmatic and volcanic centres along regional structural features are documented in Chile and Argentina. Regionally the property lies along a major fault lineament, the northwest trending Calama-Olacapato-El Toro lineament, which is one of several NW lineaments which host magmatic and volcanic centres as well as major mineral deposits and mines, making the area an interesting target for exploration (Map 3).
Previous exploration by others at Organullo focused mainly on higher grade gold (+/-copper and bismuth) mineralization and little to no attention was paid to the bulk tonnage potential on the property. Records of historical exploration (from several operators) obtained by Cardero illustrate the significant gold endowment of the property - a total of 1,580 surface rock samples from an area of approximately 8-kilometres by 8-kilometres average 0.25 g/t gold (Map 4).
Cardero considered that historic exploration inadequately tested this large, pervasive gold-bearing system. The majority of the historic drilling (6,121 metres in 35 holes) was collared parallel to mineralized structures and hence either failed to test the principal structures and/or provided intersections which the Cardero believed may not be representative. In addition, recoveries were very poor (25-30%) due to loss of potentially mineralized clay rich zones and high groundwater saturation. Despite sub-optimal drill hole orientation and drill conditions, historical drill holes did define potentially economic bulk-tonnage style gold-silver mineralization.
Historical drill results from Organullo identified significant bulk-tonnage style gold mineralization, including up to 189 metres grading 0.66 g/t gold, Table 1. Results from mapping, geochemical and geophysical exploration in 2010 indicates potential for a large, bulk-tonnage gold system that warrants follow up drilling.
Table 1: Select Historical Drill Highlights
(*RC -- reverse circulation; **DDH -- diamond drill hole)
Exploration History.
The earliest recorded work in the area of the Organullo property comes from reports of small-scale production from the Julio Verne mine during the 1930's. Mining activity centered on 2 high-grade sub-parallel veins with concentrates reported to average 12.5% bismuth and 8.2% copper with gold ranging between 10-20 g/t. Early regional work was undertaken in the area by Fabricaciones Militares in 1962-72 in partnership with the United Nations, followed up by an IP survey and drilling by Cities Service Corporation. In 1994-1995 Triton Mining Corp. and Northern Orion Explorations, Ltd. jointly conducted a detailed surface sampling, mapping and prospecting campaign and completed a 17-hole, 3,295-metre RC drill program. This was followed with a 6 hole diamond drill program in 1997 and an additional 12-hole RC drill program in 1999 by Northern Orion. Cardero purchased the project in 2004, and conducted several reconnaissance exploration programs and detailed petrographic studies since that time and as well as 2,053 metres of diamond drilling.
Cardero's exploration programs included:
* Gold values from 361 rock samples collected over 8 kilometres of strike on the 6100 ha property average 0.48 g/t and range from below detection to 29.7 g/t.
* Mapping and geochemical analyses have defined a 2.1-kilometre by 800-metre zone of high-temperature hydrothermal alteration typical of both low- and high-sulphidation epithermal gold deposits.
* Geophysical surveying has characterized the historical Julio Verne Mine and identified similar targets over a 5-kilometre strike length.
* Geology and geochemical results consistent with the upper levels of a large magmatic porphyry-high sulphidation system have been highlighted. These type of systems host prolific gold mineralization elsewhere in the central Andes, such as in the Pascua - El Indio belt, and do not preclude the potential for a large Bajo de la Alumbrera or El Salvador-style porphyry deposit at depth.
* Drilling of 2,053 meters of diamond core in 8 holes.
Cardero completed an initial 2,053 metre, 8-hole diamond drill program to test an approximately 2.1-kilometre long by 800-metre wide north-south trending structural zone defined by the coincidence of significant historical drill intercepts (Table 1), gold-in-rock surface geochemistry, and variably developed advanced argillic (alunite+/-dickite+/-pyrophyllite) and silica alteration in the vicinity of the former Julio Verne mine (Figure 1). Results from this drilling are summarized in Table 2. A number of technical issues arose during Cardero's drilling program which resulted in the key targets still remaining untested.
Table 2 – Significant intersections in Cardero drilling 2010.
A 2053.5 m drill program on the Organullo Ridge and area proximal to the Julio Verne mine intersected silica and clay altered and faulted Puncoviscana sediments and Tertiary volcanic/intrusive rocks which returned values ranging from 0.96 ppm Au over 16.0 m and 0.14 ppm Au over 445.0 m. The drilling identified mineralization and alteration of a hydrothermal system which appears to be high sulphidation in style, with interpretation complicated by faulting.
Option Agreement Terms.
The Option Agreement between Cardero and has the following terms and is subject to TSX Venture Exchange (the "Exchange") approval. Artha has the sole and irrevocable right and option to earn an undivided fifty-five (55%) percent right, title and working interest in and to the property by:
1. incurring an aggregate of US$1.5 million in Expenditures (as defined in the Option Agreement), as follows:
1. US$250,000 on or before the day which is 1 year after the date of execution of the Option Agreement by Artha (the "Effective Date");
2. an additional US$550,0000 on or before the day which is 2 years after the Effective Date; and
3. an additional US$700,000 or before the day which is 3 years after the Effective Date.
Any excess in Expenditures incurred in any period may be carried forward against Expenditures due to be incurred in the next.
2. issuing a total of 350,000 voting common shares in the capital of Artha by way of the following tranches as follows:
i. 50,000 shares within 15 days after the Exchange's acceptance of the Option Agreement (the "Exchange Acceptance Date");
ii. 100,000 shares within 1 year after the Exchange Acceptance Date;
iii. 100,000 shares within 2 years after the Exchange Acceptance Date; and
iv. 100,000 shares within 3 years after the Exchange Acceptance Date.
3. otherwise complying with the terms and conditions of the Option Agreement during the currency of the Option.
With the exception of the obligation to incur $250,000 in Expenditures and issue 50,000 shares to Cardero pursuant to (a)(i) and (b)(i) above (which will become a binding obligation of Artha on the Exchange Acceptance Date), the remaining Expenditures and share issuances are optional.
This news release has been approved and reviewed by Charles Straw, B.Sc., who is a qualified person within the meaning of National Instrument 43-101.
Artha was founded by a team of mining industry professionals with a proven track record in project generation, exploration, mining and finance. Artha's principle exploration target adjoins Silver Standards Pirquitas Mine, one of the largest primary silver mines in the world located in the province of Jujuy in NW Argentina. Artha is one of the largest mineral explorers in this region with over 2,100 square kilometers of properties prospective for silver, gold, base metals and rare earths.
On Behalf of the Board of Directors,
Todd McMurray, President
Forwarding Looking Statement Disclaimer.
This news release includes certain forward-looking statements or information. All statements other than statements of historical fact included in this release, including, without limitation, statements regarding future plans and objectives of the Company are forward-looking statements that involve various certain risks and uncertainties. In certain cases, forward-looking statements can be identified by the use of words such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's plans or expectations include availability of capital and financing, general economic, market or business conditions, regulatory changes, timeliness of government or regulatory approvals, risks inherent in the mineral exploration and production industry, and other risks detailed herein and from time to time in the filings made by the Company with securities regulators, most of which filings are available at www.sedar.com. The Company disclaims any intention or obligation to revise or update such statements, whether as a result of new information, future events or otherwise, except as required under applicable securities laws.
Note: To view the maps associated with this release, please click the following link: http://media3.marketwire.com/docs/ahc0912.pdf.
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.
Contact Information
Artha Resources Corporation
Todd McMurray
President and Director
1 604 648 1530
todd@artharesources.com
www.artharesources.com
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