Caerus Resource Granted Nine Concessions in Two of Colombia’s Most Prolific Gold Districts

November 9, 2009 Filed Under: Precious Metal  

Caerus Resource Corporation report further property acquisitions in the region of two recent major gold discoveries in Colombia. White Gold Corporation’s Colombian subsidiary, Oro Barracuda Ltda., has been informed by Ingeominas (Instituto Colombiano de Geologia y Mineria), that it has been awarded nine concessions (claim blocks) totalling approximately 14,000 hectares in the departments of Tolima, Quindio and Santander. Oro Barracuda has until December 13th to advise Ingeominas of its acceptance of title to the concessions, after which a total of approximately $U.S. 121,000 will be due in canon fees. The claim blocks were selected based on favourable geologic features for potentially hosting gold deposits and their strategic location in areas of known gold mineralization.

Including the acceptance of the nine concessions, the total land package that Oro Barracuda controls is approximately 21,000 hectares in two of Colombia’s prolific gold areas. The grants in Tolima and Quindio Departments establishes an exploration presence near the La Colosa gold discovery by Anglogold Ashanti Ltd. (NYSE: AU) that has a JORC compliant inferred mineral resource of 12.9 million ounces of gold. The grants in Santander Department enhances the exploration package Oro Barracuda currently owns which is strategically located 5 to 10 kilometers west of the emerging La Bodega gold discovery by Ventana Gold Corp (TSX: VEN).

Tolima and Quindio Departments – Five Titles Near La Colosa Gold Deposit

Five titles have been granted in Tolima and Quindío Departments and total approximately 8,000 hectares. Three of the concessions are located between Armenia, in the department of Quindío, and Ibague, in the department of Tolima, in the municipalities (counties) of Calarca and Cajamarca, and about seven kilometers from the La Colosa deposit of AngloGold. These concessions are located in an area of Paleozoic gneisses and schists with a thick but variable cover of recent volcanic ash, cut by strong NNE faults. The La Colosa deposit is hosted by a stock intrusive into the gneiss and schist. Intrusive stocks are exposed to the west and south, and the area beneath the ash cover represents a potential target for a concealed stock on the Oro Barracuda concessions. Oro Barracuda has applied for eight additional concessions adjacent to and contiguous with these three concessions.

The other two concessions are located south of the first three, in the municipality of Roncevalles, Tolima. These concessions are located in an area of strong NE faulting, where the Ibague Batholith is in fault contact with the Paleozoic gneisses and schists. Ingeominas reports a number of gold occurrences in this area. Oro Barracuda has applied for four additional concessions in this area.

Santander Department – Four Titles Near La Bodega Project

Four titles have been received in Santander Department and total approximately 6,000 hectares. The concessions are located north of the town of Surata in the municipality of the same name. They are about 10 kilometers from Ventana Gold’s La Bodega deposit in the California-Vetas District containing gold occurrences along a NE trending fault zone.

The concessions cover an area of hydrothermal alteration along and on both sides of a major NE-trending fault, where younger dioritic stocks and cupolas have intruded Paleozoic gneisses and dioritic dikes in hydrothermally altered Cretaceous sedimentary rocks that indicate the presence of concealed younger intrusives. There are prospects on veins in the altered area, some of which are said by local habitants to date from Pre-Colombian times. The target in this area is disseminated gold which may have been overlooked by prospectors searching for veins. Oro Barracuda has applied for additional concessions west, north and south of these concessions.

The Company is completing the Plan of Arrangement previously announced with White Gold Corporation, and expects to file documents in the immediate future.