|By Marketwired .||
|January 28, 2014 09:52 AM EST|
VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 01/28/14 -- Rio Grande Mining Corp. (TSX VENTURE: RGV) (the "Company") is pleased to announce that it has entered into an agreement to purchase a 100% interest in the Zim Frac silica claim (the "Zim Frac Claim") located near the town of Golden in south-eastern British Columbia. The property comprises an area of 807.77 hectares that covers over 4 kilometers of the favourable Mt. Wilson Quartzite Formation (MWQF), known to consist of fine-grained higher purity white quartzite.
The MWQF is recognized for hosting economic deposits of friable and lump quartzites of greater than 99.5% silicon dioxide with two fully permitted and operating silica mines. The Geological Survey of Canada mapped the Golden area with focus on the Moberly silica camp, which included the Zim Frac Claims in 1980 (GSC Map 1497A). In 2010 fourteen samples collected from the property during a reconnaissance exploration program by previous operators ranged from 98.835% to 99.4%, with twelve of the samples grading over 99%. Locally, the MWQF is estimated to be at least 200 meters thick (Lindinger, 2010). The claims lie within 3 to 5 km northeast of Golden, British Columbia, a regional transportation center that is on the Trans Canada Highway and includes a major rail yard facility.
The adjacent Moberly silica mine is presently engineering a new silica frac sand plant to supplement their current production. The Hunt Silica mine, which lies 12 kilometers to the south, has previously shipped polysilicon grade silica to a silicon refinery in Washington State.
The Company is purchasing a 100% interest in the Zim Frac Claims from Zimtu Capital Corp. and Cannon Bridge Capital Corp., two arm's length vendors, in consideration for the issuance of 1,000,000 common shares to each, for a total of 2,000,000 common shares, and subject to a 2% NSR. The terms of the sale are subject to the acceptance of the TSX Venture Exchange.
The company is proposing a bulk sampling program and two shallow drill holes in order to confirm the MWQF's depth and thickness within the property.
Adrian Lamoureux, President & CEO stated, "Many industry experts see the silica sector having strong growth potential as demand increases from solar panels and other high tech applications".
The Company is also pleased to announce the appointment of Thomas Hasek, P. Eng. to the "Board of Advisors". Mr. Hasek is a geologist with over 40 years in the mining industry. The technical information in this news release has been reviewed and accepted by Thomas Hasek, P. Eng., a Qualified Person in accordance with NI 43-101.
Silicon dioxide (SiO2), also known as silica, has many applications, depending on purity. High-grade silicon metal and polysilicon are used in many high tech applications including microelectronics, computer chips, and solar panels.
On behalf of the Board of Directors,
Adrian Lamoureux, President & CEO
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 news release. Statements made in this news release that are not historical facts are "forward-looking statements", and readers are cautioned that any such statements are not guarantees of future performance, and that actual developments or results, may vary materially from those in these "forward-looking" statements.
Rio Grande Mining Corp.
President & CEO
+1 604 669 9330