Toronto, Canada (May 22, 2013) - Mammoth Resources Corp. (TSX-V: MTH) is pleased to report assay results for its most recent and fourth exploration campaign on the company's Tenoriba Property, located in the prolific Sierra Madre precious metal belt in south western Chihuahua state, Mexico (refer to the company's web site www.mammothresources.ca, for a detailed location map). Surface rock samples taken during the company's fourth exploration campaign mapping and sampling at Tenoriba continue to return encouraging highly anomalous channel samples and the occasional grab sample which in many instances assay in excess of 10 grams per tonne (gpt) gold and 50 gpt silver, including the following highlight sample results.
Carneritos Area:
- 26.10 gpt gold and 121.0 gpt silver in a grab sample;
- 6.41 gpt gold and 34.0 gpt silver over a 1.0 metre channel sample; and
- 5.48 gpt gold and 34.3 gpt silver over a 1.0 metre channel sample.
El Moreno Area:
- 13.00 gpt gold and 17.1 gpt silver over a 1.0 metre channel sample;
- 12.95 gpt gold and 7.1 gpt silver over a 1.0 metre channel sample;
- 9.79 gpt gold and 6.8 gpt silver over a 1.0 metre channel sample; and
- 9.19 gpt gold and 8.9 gpt silver over a 1.5 metre channel sample.
Mammoth President and CEO, Thomas Atkins, commented on the results from this fourth exploration campaign stating: "Of approximately 400 samples collected and assayed to-date at Tenoriba, the company has returned fantastic results. At the Los Carneritos Area where vuggy silica and brecciated volcanic rocks have been observed in surface outcrops over an approximate 1.5 by 0.75 kilometre area 74% of 146 samples have returned grades of gold in excess of 0.3 grams per tonne gold equivalent with results assaying as high as 26.1 grams per tonne gold in a grab sample from the area. Los Carneritos, together with the El Moreno Area and the area previously explored by Masuparia Gold in 2007 and 2008, combined measure 15 square kilometres of anomalous mineralization which remains open in all directions. Detailed surface mapping and sampling over these areas and along strike continues on the property. Bottle roll testing of core samples to further confirm the extent to which gold in these samples is amenable to heap leaching has also begun and the company looks forward to reporting on results from these activities in the coming weeks."
Los Carneritos Area:
At Carneritos, sampling during the fourth exploration campaign continued to return consistently anomalous results. Of the 31 samples sent for assay from this area in the fourth exploration campaign 84 percent returned values greater than 0.3 gpt gold equivalent (1:50 gold : silver ratio for equivalent calculation purposes). The best sample lines across outcrop are summarized in Table 1 - Channel Sample Lines, Carneritos Area. Many of these samples and sample lines could be extended by additional sampling (refer to Image 1 - Sample Location Map and Assay Results, Fourth Campaign, Tenoriba Project, Mexico).
Recent sampling extended the Carnetitos Area toward the south-southwest for approximately an additional 350 metres. This area which exhibits on surface favourable alteration characteristics (highly silicified and with vuggy silica together with dickite and kaolinite clays) and consistent anomalous assay results (greater than 0.3 gpt gold equivalent) now covers an area measuring 1.5 by 0.6 kilometres and is open in all directions (refer to Image 2 - Photo of Vuggy Silica Sample).
Table 1 - Channel Sample Lines, Carneritos Area.
|
Line |
From - To |
Width |
Average |
Average |
Average Gold |
|---|---|---|---|---|---|
|
1 |
330404-405 |
3.0 |
0.63 |
2.85 |
0.68 |
|
2 |
330406-408 |
2.8 |
5.03 |
28.79 |
5.61 |
|
3 |
330410-411 |
2.0 |
0.41 |
15.65 |
0.72 |
|
4 |
330412-413 |
1.7 |
0.17 |
8.07 |
0.33 |
|
5 |
330414-420 |
7.8 |
0.58 |
3.06 |
0.64 |
|
6 |
330427, 433 & 435 |
3.8 |
2.00 |
8.70 |
2.20 |
Of a total of 146 samples assayed to date from Carneritos, 74%, or 115 samples have assayed greater than 0.3 gpt gold equivalent (Mammoth has determined to use results greater than 0.3 gpt gold equivalent as highly anomalous results for the purposes of reporting) and have a weighted average grade of 1.56 gpt gold equivalent (weighted for length of sample). The average silver to gold ratio of these samples is approximately 13:1 silver to gold (refer to Table 2 - Samples Grading Above 0.3 gpt Gold Equivalent, Fourth Exploration Campaign).
El Moreno Area:
At El Moreno during the fourth exploration campaign 44 channel samples collected within the main historic artisanal mine workings returned various anomalous assay results, the best of these results including: 13.0 gpt gold and 17.1 gpt silver and 12.95 gpt gold and 7.1 gpt silver over 1.0 metre each. Of a total of 148 samples assayed to date from El Moreno, 41%, or 56 samples have assayed greater than 0.3 gpt gold equivalent and have a weighted average grade of 2.55 gpt gold equivalent. The average silver to gold ratio of these samples is approximately 15:1 silver to gold (refer to Table 2 - Summary of Samples Grading Greater Than 0.3 gpt Gold Equivalent).
Masuparia Area:
At the area previously explored by Masuparia Gold Corp., of a total of only 28 samples assayed to date (there is less outcrop in this area however there is an abundance of vuggy silica and silicified float), 61%, or 17 samples have assayed greater than 0.3 gpt gold equivalent and have a weighted average grade of 2.59 gpt gold equivalent. The average silver to gold ratio of these samples is approximately 10:1 silver to gold.
Detailed geology and assay result maps are being prepared for the Los Carneritos and El Moreno Areas and should be available in the coming weeks illustrating mapped details and the distribution of the assay results in more details.
Other Corporate Matters:
The company would also like to announce the approval by its board of directors of an advance notice policy (the "Policy") of which the purpose is to: (i) facilitate an orderly and efficient annual general or, where the need arises, special meeting, process; (ii) ensure that all shareholders receive adequate notice of the director nominations and sufficient information regarding all director nominees; and (iii) allow shareholders to register an informed vote after having been afforded reasonable time for appropriate deliberation.
The Policy, among other things, includes a provision that requires advance notice to Mammoth in certain circumstances where nominations of persons for election to the board of directors are made by shareholders of the company. The Policy fixes a deadline by which director nominations must be submitted to the company prior to any annual or special meeting of shareholders and sets forth the information that must be included in the notice to the company for the notice to be in proper written form.
In the case of an annual meeting of shareholders, notice to the company must be made not less than 30 days nor more than 65 days prior to the date of the annual meeting, provided, however, that in the event that the annual meeting is to be held on a date that is less than 50 days after the date on which the first public announcement of the date of the annual meeting was made, notice may be made not later than the close of business on the 10th day following such public announcement.
In the case of a special meeting of shareholders, which is not also an annual meeting, called for the purpose of electing directors (whether or not called for other purposes), notice to the company must be made not later than the close of business on the 15th day following the day on which the first public announcement of the date of the special meeting was made.
The Policy is in effect as at the date of this news release. Pursuant to the terms of the Policy, the company will seek shareholder ratification of the Policy at its annual general and special meeting of shareholders scheduled for June 18, 2013. If the Policy is not confirmed at the meeting, the Policy will terminate and be of no further force and effect following the termination of the annual general and special meeting. The full text of the Policy is available under the Company's profile at www.sedar.com or upon request by contacting the Company's Corporate Secretary, Errol Farr at (416) 479-0887.
The Company also announces that, subject to the approval of the TSX Venture Exchange, an aggregate of 1,410,000 stock options for the purchase of an aggregate of 1,410,000 common shares of the Company having an exercise price of $0.25 per common share held by insiders of the Company have been re-priced to the exercise price of $0.10 per common share. This re-pricing is being undertaken as a means to provide some potential compensation to directors who are assisting the company without payment and employees of the company who are working at reduced salaries relative to the terms of their employment agreements. As required by the policies of the Exchange, all re-priced options are subject to disinterested shareholder approval at the Meeting. All other terms of the stock options, including the option term, remain the same. None of the re-priced options may be exercised prior to receipt of Exchange and disinterested shareholder approval.
Mammoth would also like to announce that following completion of the phase 1 exploration program on the Urique project held under option with Yale Resources Ltd., the company has decided to no longer proceed with this option and has advised Yale of the same. Instead the company will focus all of its resources on the exploration and development of the Tenoriba Project.
About Mammoth Resources:
Mammoth Resources (TSX-V: MTH) is a mineral exploration company focused on acquiring and defining precious metal resources in Mexico and other attractive mining friendly jurisdictions in the Americas. The Company has an option to acquire 100% in the Tenoriba Property located in the Sierra Madre Precious Metal Belt in southwestern Chihuahua State, Mexico. The company continues to seek other option agreements in the Americas on other properties it deems to host above average potential for economic concentrations of precious metals mineralization.
Qualified Person / Quality Controls:
Richard Simpson, P.Geo., Vice-President Exploration for Mammoth Resources Corp. is Mammoth's Qualified Person, according to National Instrument 43-101, for the Urique property and is responsible for any technical data mentioned in this news release. Samples were prepared and analyzed by ALS CHEMEX in their facilities in Mexico and Canada, respectively or IPL Inspectorate in their facilities in Mexico and Vancouver, respectively. Samples generally consisted of 1-3 kilograms of material. Gold analyses were performed by 30 gram fire assay with an Atomic Absorption finish. Silver, copper, lead and zinc were analyzed as part of a multi-element ICP package using an aqua regia digestion. Over limit samples with greater than one percent copper, lead and zinc were re-analyzed using ore grade detection limits.
To find out more about Mammoth Resources and to sign up to receive future press releases, please visit the company's website at www.mammothresources.ca.
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.
Forward Looking Information: This news release may contain or refer to forward-looking information. All information other than statements of historical fact that address activities, events or developments that the Company believes, expects or anticipates will or may occur in the future are forward-looking statements; examples include the listing of its shares on a stock exchange and establishing mineral resources. These forward-looking statements are subject to a variety of risks and uncertainties beyond the Company's ability to control or predict that may cause actual events or results to differ materially from those discussed in such forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise. Although the Company believes that the assumptions inherent in the forward-looking statements are reasonable, forward-looking statements are not guarantees of future performance and, accordingly, undue reliance should not be placed on these forward-looking statements due to the inherent uncertainty therein.
For further information please contact:
Thomas Atkins
President & CEO
tom@mammothresources.ca
Image 1 - Sample Location Map, Fourth Campaign, Tenoriba Project, Mexico
Image 2 - Photo of Vuggy Silica Sample
Table 2 - Samples Grading Above 0.3 gpt Gold Equivalent, Fourth Exploration Campaign
