REPEAT: QRS Signs Option Contract for Las Leddas Gold Project in Chile
THUNDER BAY, ONTARIO -- (Marketwire) -- 02/17/12 -- QRS Capital Corp. (TSX VENTURE: QRS) ('QRS' or the 'Company') is pleased to announce that it has entered into an option agreement (the 'Option Agreement') to acquire 100% of the Las Leddas Project located in the Maricunga District of Chile. The project consists of 5,100 hectares across 24 individual concessions and is an epithermal gold porphyry system, showing a number of geological, structural and alteration similarities to the gold-bearing porphyry systems which characterize the Maricunga District in Chile.
QRS's CEO, John Seaman, stated, 'We are very excited to add another high quality project to the QRS portfolio. Our President Diego Benalcazar's relationships and experience in Latin America has proven invaluable in the review of over 147 projects and then selecting and negotiating transactions that provide QRS with tremendous upside potential with limited up-front costs. The Company continues to utilize its corporate model of low up-front costs to help minimize risk during the early stages of project development. It is our belief to let drill results establish the value of projects prior to committing substantial capital. With three advanced exploration stage projects that represent three distinct markets; gold, silver, and copper, QRS is in a position to execute on its business model of developing advanced exploration assets into significant resources throughout Latin America.'
Location and Surrounding Area
The Las Leddas Project is located in the prolific Maricunga Belt in the Atacama Region of Chile approximately 200km southeast of the city of Copiapo and is accessible by a well-maintained gravel road which also leads to the Cerro Casale Mine, the Quebrada Seca deposit and eventually to the border between Chile and Argentina.
The Maricunga Belt contains multiple large tonnage world class porphyry gold-copper deposits such as Barrick/Kinross' Cerro Casale project and Kinross' Maricunga project. The Maricunga Belt also contains high-sulphidation type epithermal deposits with higher gold grades and no copper, such as Kinross' Lobo-Marte deposit.
Historic Work
The Las Leddas property has an overburden from modern ash flows and was originally discovered and believed to be prospective, due to erosion exposing mineralization at the base of creeks. The property was explored by Kinross Gold Corporation (Kinross) from 2008-2010 where rock geochemical analysis from trenching and road cut sampling was undertaken. In 2009 a 3,000m reverse circulation (RC) drill program, consisting of 13 holes, was carried out to test for potentially mineralized zones of granodiorite. Drill hole depth averaged 230m, with significant mineralization intersected in holes:
-- LED-02: 52 m at 0.38 g/t Au
-- LED-04: 10 m at 0.79 g/t Au
-- LED-09: 50 m at 0.52 g/t Au and 26 m at 0.9 g/t Au
-- LED-11: 6 m at 0.52 g/t Au.
True widths are not known. Rock chip sampling carried out by Kinross indicated grades of outcropping mineralization. 217 surface samples were taken and analyzed by ALS Chemex Coquimbo IV Region Chile. Grades range between 0.02 and 2.19 g/t Au. A complete summary of the historical drill results and rock samples will be available on the Company's website at www.qrscapital.com.
A ground magnetic survey was also carried out by Kinross. The data indicates a significant elliptical anomaly in the central portion of the property. The anomaly consists of an inner weak magnetic anomaly approximately 600m in length which is surrounded by a magnetic low halo approximately 200 to 400m in width.
The Company is of the view that given the project's location and historic work, an exploration program seeking to define the potential extension or the presence of a separate covered gold porphyry deposit (or deposits) is warranted.
QRS's President, Diego Benalcazar, stated, 'We were very fortunate to acquire such great property in an established mining area with a number of world-class deposits around us. The results from the previous exploration drilling are very encouraging and provide an excellent starting point for us to build on.'
Terms of Agreement
Under the terms of the Option Agreement, QRS has the right to acquire a 100% interest in the Las Leddas Project by making the following payments to the vendor as follows:
-- US$15,000 on signing of the option agreement, which amount has been paid
-- US$10,000 by March 15, 2012
-- US$250,000 by March 30, 2012 (the 'First Option Payment Date')
-- US$250,000 within 6 months from the First Option Payment Date
-- US$250,000 within 12 months from the First Option Payment Date
-- US$350,000 within 18 months from the First Option Payment Date
-- US$400,000 within 24 months from the First Option Payment Date
-- Upon satisfying the above option payments the Company will have the
right to acquire 100% of the Leddas project by making a cash payment of
US$13,465,000 within 990 days of the First Option Payment Date, subject
to a 1.5% Net Smelter Return royalty (NSR) payable to the vendor.
In connection with the Option Agreement, QRS will pay to an arm's-length third party a finder's fee of up to the maximum allowed under the policies of the TSX Venture Exchange in connection with the acquisition. The Option Agreement and payment of the finder's fee is subject to the approval of the TSX Venture Exchange.
The above information has been prepared under the supervision of geologist Mr. Allen Maynard, MAIG, MAusIMM, who is designated as a 'Qualified Person', and who has reviewed the data and information and has approved the contents of this release.
About QRS Capital Corp.
QRS is a mineral exploration company actively seeking exploration stage copper and gold targets in South America, particularly in Chile, Mexico, Colombia, Brazil, and Ecuador.
ON BEHALF OF THE BOARD OF DIRECTORS
John Seaman, Chairman & CEO
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION: This news release includes certain information that may constitute 'forward-looking information' under applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, statements about the completion the acquisition of the Las Leddas Project and the exploration results relating to the Las Leddas Project. Forward-looking information is necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking information, including the risks identified in the Company's disclosure documents. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. All forward-looking information contained in this press release is given as of the date hereof and is based upon the opinions and estimates of management and information available to management as at the date hereof. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.
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.
Contacts:
Apex Capital Inc.
Brett Allan
416-907-4148
ballan@apexcap.ca