Redcorp Signs New Concession Agreement at Lagoa Salgadaadmin
Redcorp Ventures Ltd. and its wholly-owned subsidiary, Redcorp Empreendimentos Mineiros Unipessoal Lda, announce a new concession agreement with the Portugal Government for the Lagoa Salgada project.
The new agreement, effective October 1, 2008, increases the concession area from 103 km2 to 208.4 km2 and reduces the minimum expenditures required to maintain the concession during the next two years, as compared to the terms of the old agreement. Under the terms of the new agreement, we have been granted an initial two year period commencing October 1, 2008. Thereafter, we have the option of applying for up to two additional one-year extensions, or of applying for one or more exploitation contracts. The area of the concession must be reduced by 50% for each extension. We maintain the concession through work programs and through cash payments. The new concession is also subject to a 3% production royalty, identical to that in the previous contract.
Lagoa Salgada is an exploration stage base metal project in the Iberian Pyrite Belt near Grandola, Portugal. The concession covers the Lagoa Salgada deposit itself as well as satellite exploration targets on geophysical anomalies. The Lagoa Salgada deposit is estimated to contain 2,017,000 tonnes in the inferred category grading 0.35% copper, 4.83% lead, 5.13% zinc, 1.29 g/t gold and 85.35 g/t silver based on an NI 43-101 compliant resource estimate completed by Wardrop Engineering Inc., previously reported on August 21, 2007.
Drilling during the first half of 2008 confirmed that elevated base metal values are also associated with the Rio de Moinhos pyrite horizon, a satellite target on the concession situated 11 km SE of the Lagoa Salgada deposit. Surface geochemical surveys were completed over both the Lagoa Salgada and the Rio de Moinhos areas during the latter half of 2008. Geochemical analysis and interpretation of survey results are in progress, and we anticipate testing some of the resulting targets in the next phase of drilling contemplated for 2009.
Redcorp is a Vancouver based mineral exploration and development company with active projects in British Columbia, Canada and Portugal. Further information on Redcorp and the Portugal projects can be obtained on website at www.redcorp-ventures.com and at Redfern’s website at www.redfern.bc.ca