Vancouver, B.C., Canada, June 6 2013 – Vela Minerals Ltd. (TSX-V: VLA) (the “Company”) is pleased to announce it has acquired a 100% interest in Mavis Bank and Port Antonio Special Exclusive Prospecting Licenses (“SEPL”) in Jamaica, which total 126 square kilometres.
The Port Antonio and Mavis Bank Properties (the “Property” or “Properties”) are subject to a 2% net smelter royalty (“NSR”). The major terms of the Agreement are: the Agreement supersedes the option agreement dated March 1, 2013 to acquire a 90% interest in the Mavis Bank property; the Company will have paid a total of $140,000US to the Vendor to acquire a 100% undivided interest in the Property; The NSR can be purchased at a rate of $1,000,000US per percent per Property.
The Port Antonio Property covers several known prospects including the Bellevue (Au-Ag-Cu). The concession area lies within the foothills of the Blue Mountains and covers parts of the catchments of Rio Grande and Back Rio Grande Rivers.
A total of 4 historical geophysical IP lines, each approx. 1,500 meters in length resulted in the definition of a high chargeability and low resistivity anomaly with dimensions of about 1,500 meters width in the south-central portion of the Bellevue gossan. The area is hosted in Bellevue volcanics that are cut by granodiorite-diorite and Trowell Gate intrusive breccia. Argillic alteration is characterized by strong bleaching of country rock accompanied by 3 – 8% limonite (goethite & jarosite), and hematite as a result of supergene meteoric water, oxidation, and chemical weathering. This argillic altered gossan contains infilling and disseminated sericite, chlorite, and zeolite. The bleached limonitic zone covers a 1,500 meter diameter, roughly circular shaped area. Anomalous gold in bedrock samples occur peripheral to the limonite cap.
High chargeability occurs approximately 100-200 meters below the low resistivity anomaly. Historically, this geophysical response has been interpreted to represent a buried porphyry target with the overlying low resistivity blanket thought to represent a leached cap. Historical airborne geophysics consisting of total field magnetometer surveys over the Bellevue occurrence show a positive anomaly in the area of the argillic altered gossan. The combined IP chargeability and magnetometer positive response supports the interpretation of a large buried hydrothermal system. In 1993 Kennecott explored the area north of Swinging Gate Spring and discovered two occurrences that returned 2.59 g/t Au with 0.41% Cu, and 0.86 g/t Au with 0.12% Cu in rock chip sampling. Historical assaying of a sample taken in 1955 by Chesterfield is reported to have yielded 1.87g/t gold, 185 g/t silver, and 14.13% copper.
The Mavis Bank Property covers several known prospects including Epping Farm -Whitfield Hall (Cu-Ag-Au) and Mavis Bank (Cu-Ag-Au-Fe-Co) areas.The Epping Farm – Whitfield Hallgroup of mineral occurrences covers approximately 2 square 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 has defined two broad >250 meters wide high chargeability and coincident low resistivity anomalies. Historic soil sampling has outlined 3 areas of multi-element Cu-Au-Ag-As-Co-Zn-Pb-Ba-Mn geochemical anomalies. The 3 soil anomalies are approximately 100-200 meters wide, and are 400-800 meters long. The 2 multi-element soil anomalies in the Epping Farm area are flanked to the east (about 50-200 meters distance) by a north-south trending nickel-chromium in soil anomaly, and approximately 250 meters further east, exists a lead-zinc-barium soil anomaly.
The Mavis Bank area of mineral occurrences includes the Boxshaw Hill – Water Tank (Fe-Cu), Orchard Spring (Fe-Cu-Ag-Co), Tunbridge-Orchard Hill (Cu), and Dublin Castle (Cu) zones. At Boxshaw Hill – Water Tank mineralization includes magnetite, pyrite, specularite, azurite, bornite, chalcopyrite, and malachite occurring in a 368 x 760 meter area. Histroical drilling of 446 meters intersected variable chalcopyrite with highlights that include 0.61 meters at 4.31% Cu. The Tunbridge-Orchard Hill-Cu zone features pyrite, bornite, chalcopyrite, chalcocite, and malachite mineralization. A total of 70 meters of underground workings in 2 adits intersected vein/replacement zones of copper bearing mineralization that gave an average of 0.78% Cu over 40 meters from rock chip sampling. Sampling by MINEX in 1993 indicates gold values of 1g/t and silver in excess of 20g/t associated with strongly anomalous copper, cobalt, and arsenic values.
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.
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
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.
Cautionary Note Regarding Forward-Looking Information
This press release contains certain forward-looking statementswithin 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 recovery 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.