- Drilling in progress identifies massive sulphides at Babacu
- Detailed geological mapping ongoing
Karmin Exploration Incorporated is pleased to announce an update on their 30% owned, free-carried Aripuana zinc/copper/lead/gold/silver massive sulphide district in Mato Grosso, Brazil.
Independent Scoping study by AMEC - The independent engineers, AMEC, are preparing a scoping study on the Arex and Ambrex deposits, which was slated to be completed in the first quarter of 2007. The publication of the study has been delayed due to limited human resources at the consultant, a common event throughout the industry. This is the first scoping study ever carried out independently on the property. Karmin will release the study as soon as it is received and the data verified to meet Canada's NI 43-101 reporting requirements.
Budget for 2007 - Votorantim are responsible for all expenditures up to a completed bankable feasibility study. Karmin is free carried to that point. In December 2006, Votorantim presented to Karmin a development budget for the joint venture for 2007 of US$3.5 million, and the program is ahead of schedule. The project operator, Votorantim, have informed Karmin that an underground decline may be commenced in the second half of 2007.
Drilling update - Drilling is investigating east of the Ambrex deposit below Babacu, a 1,700 metre gap between Ambrex and Massaranduba (see attached map). Karmin discovered the Ambrex, Babacu and Massranduba deposits in 1995.
At Babacu, hydrothermal alteration was intersected in all the 5 holes drilled in April, with massive sulphides described over 3.65 metres in hole FPAR-105 initially interpreted as having "feeder zone" affinities and massive and semi-massive sulphides described over 22.4 metres in FPAR-106. This hole also included 138 metres displaying a weakly mineralized stringer zone often associated with feeder zones below massive sulphide bodies. Assay results are pending.
The 2004 - 2006 drilling covered an extensive scout drilling program plus infill and extensional drilling at Ambrex and Arex. All this data will be incorporated in the AMEC scoping study. The Cafundo drilling, 30 kms to the east of Aripuana did not intersect meaningful mineralization, and much of the 2004-2006 scout drilling did not intersect meaningful mineralization. Resource evaluation is concentrating on Ambrex, Arex and potentially Babacu.
The Aripuana project has been drilled as follows:
Diamond Total
Date Drill holes Metres
---- ----------- ------
2007 (to date) 20 8,320
2006 26 12,356
2005 34 9,435
2004 25 9,189
Pre- 2004
Anglo American 95 29,000
Karmin 51 16,300
TOTAL 251 84,600
Ground investigations
In 2007, Votorantim field crews have completed 34,000 metres of line-cutting over the Boroca, Vaca-Bigode and Mocoto targets, 6-10 kilometres south of the main Ambrex/Arex deposits (see attached map). 430 samples were sent to the laboratory in March and a further 331 samples were sent in April. At Mocoto, mapping has identified shear zones, previously described in drilling by Anglo American, while Votorantim report limited potential at Vaca-Bigode. The main ongoing surface mapping program will focus on the Boroca area.
Karmin, Anglo-American & Votorantim
Karmin Exploration is a mineral exploration company focused on exploration and development in Brazil. Karmin through its subsidiary Mineracao Rio Aripuana Ltda. holds 30% of the Aripuana project. Karmin is free carried to the completion of a fully independent bankable feasibility study. The remaining 70% is owned by Anglo American Corporation who is optioning their interest to Votorantim Metais (a division of the privately-held Votorantim Group), the project operator. Votorantim, the world's 6th largest zinc producer, have three zinc smelters, and are currently purchasing between 55% and 60% of their concentrate needs. Their stated objective is to find more zinc resources from their own mines to feed concentrates to their smelters, rather than rely on external mining companies.
Karmin is publicly traded on the TSX-Venture Exchange under the symbol KAR. The company has 38,453,591 shares outstanding and 40,053,591 fully diluted. William Fisher, P.Geo. President of Karmin, is the designated Qualified Person under NI 43-101. He has reviewed this release for accuracy.
FORWARD-LOOKING STATEMENTS: Except for statements of historical fact, all statements in this news release - including, without limitation, statements regarding production estimates and future plans and objectives of Karmin are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate; actual results and future events could differ materially from those anticipated in such statements.
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