Maya Acquires the Azegour Mine and Consolidates Position South of Amizmizadmin
Maya Gold & Silver Inc. is pleased to announce that the Company has recently signed an agreement to acquire from Ouiselsat Mines S.A (“Ouiselsat”) 100% interest of the AZEGOUR MINE and its associated mining permit 183208 covering 16 square-kilometres in Morocco.
This acquisition strengthened Maya’s land position around the Azegour pluton. The Azegour permit lies directly south of the Amizmiz property and covers part of the mineralized corridor associated with the proposed RIRG model (Reduced Intrusive-Related Gold System) as suggested by evaluation report (see press release of December 16, 2010).
The past producing mine contains some quantities of molybdenum, copper and tungsten that could be sold in a form of concentrate. It was shut down in 1971 due to weakness of price of these metals. Total exploration costs encountered by Ouiselsat are in the order of CAN$4.5 million, including infrastructures which account for CAN$1 to 2 million (source Ouiselsat).
Source: Region d’Azegour, Rapport Geologique Relatif au PR 36384 par Mohamed Kriaa, Janvier 2006. Historical reserves were calculated by BRPM in collaboration with Klockner (for Tungsten) between January 1977 and October 1979.
These resources are considered historical as per NI 43-101 Standards of disclosure for Mineral projects. A qualified person has not done sufficient work to classify the historical estimate as current mineral resources, the issuer is not treating the historical estimate as current mineral resources and the historical estimate should not be relied upon. SGS Canada Inc. could not confirm or validate the above stated historical numbers provided by Maya’s management. However, as per underground observations during site visit conducted January 15th-17th 2011, there are no reasons to believe that all mineralization has been mined out.
In news release issued on February 24, 2011, Maya announced its intention to complete a series of acquisition of advanced projects in Morocco. Maya also announced on March 22, the closing of a CAN$3.1 million financing in order to fulfill initial obligation payments of various mining projects in Morocco still under negotiation. A non-compliant NI 43-101 due diligence report on the Azegour project presented by SGS CANADA to the Development Committee of Maya on February 15, 2011 contains the following statements:
– Positive assays results from developments and old mine workings are encouraging and confirmed mineralization of molybdenum and tungsten – The property is presenting economic interest at today’s metal price – Mineral resources cannot be estimated from available documents, but we believe it could be done after a complete document compilation – Electric energy and manpower are available on site – This property is south of Amizmiz and has similar geology, representing
an interesting future potential
Under the terms of the Agreement dated March 2, 2011 between the Company and Ouiselat, Maya has acquired 100% interest of the mining permit 183208 (Azegour Mine) and all the outstanding data for a total consideration of 20 million dirhams (approximately CAN$2.5 million) and the issuance of 500,000 common shares of the Company in favour of Ouiselsat (the Purchase Price) as follows:
– Initial cash payment of 10 million dirhams (approximately CAN$1.25 million) (payment made) and the issuance of 250,000 common shares of the Company at the signing of the agreement; – Second payment of 5 million dirhams (approximately CAN$625,000) and issuance of 125,000 common shares of the Company after 6 months following the signing of the agreement; – Third and final payment of 5 million dirhams (approximately CAN$625,000) and issuance of 125,000 common shares of the Company after 12 months following the signing of the agreement; – Ouiselsat will also retain a 2.5% royalty on sales of metal. The common
shares issued will be subject to standard four-month hold provision.
Upon full payment of the Purchase Price, Ouiselat will immediately transfer all right, title and interest in the Property to Maya and will register ownership in the name of Maya’s Moroccan subsidiary.
The closing of the acquisition is subject to the approval of the TSX Venture Exchange and to the Ministere Marocain de l’Energie et des Mines.
The Azegour Mine; Assets:
The past operation was connected to the electrical national network, has sufficient water for such operation and is accessible by road.
The permit 183208 and the RIRG model:
The RIRG deposits are characterized by: associated tungsten, low sulphide volume, reduced sulphide mineral assemblage characterized by pyrrhotite and felsic, ilmenite-series (non-magnetic) plutons.
The most important deposit-type associated to the RIRGs group is intrusion-hosted sets of thin, sheeted quartz veins with low sulphide content and a Au-Bi-Te-W signature. This type of sheeted vein mineralization typically forms bulk tonnage, low-grade gold deposits.
The technical content of this news release has been reviewed by Michel Boily, Ph.D, P.Geo, from GEON Ltd and Claude Bisaillon P.Eng from SGS Canada Inc., independent Qualified Persons under NI 43-101 standards.