Vancouver, BC Canada, March 4, 2013 – Vela Minerals Ltd. (TSX-V: VLA) (the “Company”) is pleased to announce it has entered into an option agreement (the “Agreement”) to acquire Mavis Bank, a 63 square kilometer special exclusive prospecting license (SEPL) in Jamaica.
The Agreement allows the Company to acquire a 90% interest in the Mavis Bank (SEPL 566) under the following conditions: cash payments of (i) $40,000 upon signing, (ii) $60,000 upon the first anniversary, (iii) $100,000 upon the second anniversary, along with a work commitment of $500,000 to be completed before the second anniversary date. The Company has an option to purchase the remaining 10% for $250,000 after the initial 90% interest earn-in. The property is subject to a 2% NSR which can be purchased for $1,000,000 per percent. The SEPL covers several known prospects including Epping Farm -Whitfield Hall Au- Cu-Ag and Mavis Bank Au-Cu-Ag-Fe-Co.
Epping Farm – Whitfield Hall Cu-Ag-Au Occurrences
This group of mineral occurrences covers approximately 1 kilometre by 2 kilometres (elongated north-south) and are hosted in Upper Cretaceous Blue Mountain and Main Ridge Group of sedimentary, volcanic, and ultramafic rocks. Historical IP geophysics on Epping Farm-Whitfield Hall areas defines two broad >250 meters wide high chargeability and coincident low resistivity anomalies.
Historic soil sampling performed in the Epping Farm-Whitfield Hall areas outlined 3 areas of multi-element (Cu-Au-Ag-As-Co-Zn-Pb-Ba-Mn) geochemical anomalies. The 3 soil anomalies are approximately 100 to 200 meters in width, and 400 to 800 meters in length. The 2 multi-element soil anomalies in the Epping Farm area are flanked to the east by a north-south trending nickel-chromium in soil anomaly, and also approximately 250 meters further east, exists a lead-zinc-barium soil anomaly.
Alteration minerals present in the Epping Farm-Whitfield Hall areas include secondary chlorite, calcite, quartz, ankerite, talc, pyrolusite, and sericite. The alteration minerals occur in variable amounts and are associated with mineralization that includes chalcopyrite, pyrite, pyrrhotite, bornite, chalcocite, malachite, and chalcocite.
Mavis Bank Cu-Ag-Au-Fe-Co Occurrences
The Mavis Bank area of mineral occurrences includes the Boxshaw Hill, Water Tank, Orchard Spring, Tunbridge-Orchard Hill, and Dublin Castle anomalies.
Boxshaw Hill, Water Tank Fe-Cu Zone: includes magnetite, pyrite, specularite, azurite, bornite, chalcopyrite, and malachite occurring in approximately a 400 x 750 meter area.
Orchard Spring Fe-Cu-Ag-Co Zone: include magnetite, pyrite, specularite, azurite, bornite, chalcopyrite, chalcocite, erythrite, and malachite. Cobalt minerals and associated silver occur in limestone hosted replacement zones. Sampling by MINEX in 1993 indicates gold values of 3 g/t with 2% Cu and associated silver, zinc, and cobalt.
Tunbridge-Orchard Hill Cu Zone: includes pyrite, bornite, chalcopyrite, chalcocite, and malachite. Rock Chip sampling of underground workings in two adits intersected vein/replacement zones of copper bearing mineralization that average 0.78% Cu over 40 meters. Sampling by MINEX in 1993 indicates gold values of 1 g/t and silver in excess of 20g/t associated with strongly anomalous copper, cobalt, and arsenic values.
Dublin Castle Zone includes two trenches approximately 200 metres apart returned 2.74 m @ 3.14% Cu, 3.04 m @ 2.46% Cu, and 3.65 m @ 4.14% Cu.
The Pueblo Viejo district of Dominican Republic, which hosts approximately a 25 million ounce gold deposit, is a mining district that shares geological similarities to the Mavis Bank area. The structurally complex overprinting of Mesozoic country rock and Upper Cretaceous/Eocene hydrothermal mineralization events are superimposed on sediments and volcanics with quartz-magnetite alteration, and minor pyroxenite mafic rocks with magnetite alteration. The Mavis Bank area is adjacent to Eocene volcanic center, and is likely to be a higher level environment of deposition. Historical geological mapping of the Epping Farm-Whitfield Hall area indicates that mineralized zones are adjacent to a volcanic center of Cretaceous age.
Technical information in this news release has been reviewed by Derrick Strickland P.Geo., a qualified person as defined in NI 43-101.
Neither 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.
ON BEHALF OF THE BOARD OF DIRECTORS
“Derrick Strickland P.Geo”
For further information please contact:
Suite 910 – 475 Howe Street, Vancouver, BC V6C 2B3, Tel 604.773.0992; www.velaminerals.com
Cautionary Note Regarding Forward-Looking Information
This press release contains certain forward-looking statements within the meaning of the Canadian securities laws, which are based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected. Forward-looking information in this press release includes statements about the potential existence and size of mineralization at the Epping Farm and Mavis Bank areas, geological interpretations and potential mineral recorvery processes. Information concerning mineral reserve and resource estimates also may be deemed to be forward-looking information in that it reflects a prediction of the mineralization that would be encountered if a mineral deposit were developed and mined.
In connection with the forward-looking information contained in this news release, the Company has made numerous assumptions, regarding, among other things: the geological, metallurgical, engineering, financial and economic advice that the Company has received is reliable, and is based upon practices and methodologies which are consistent with industry standards. While the Company considers these assumptions to be reasonable, these assumptions are inherently subject to significant uncertainties and contingencies. Additionally, there are known and unknown risk factors which could cause the Company’s actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information contained herein. Known risk factors include, among others: the actual mineralization may not be as favorable as suggested, or at all;; uncertainties relating to interpretation of drill results and the geology, continuity and grade of mineral deposits; and uncertainty as to timely availability of permits and other governmental approvals.
Vela undertakes no obligation to update forward-looking statements if circumstances or management’s estimates or opinions should change. The reader is cautioned not to place undue reliance on forward-looking statements.