QRS Capital Corp. Announces San Felix 100% Option Agreement
THUNDER BAY, ONTARIO -- (Marketwire) -- 08/02/12 -- 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 San Felix Project, a 2,435 hectare Copper (oxide)-Silver and Gold mineralized property at the south-western extension of the El Indio Mineral Belt, Chile.
Highlights
-- A total of 24 concessions for a total area consisting of 2,435 hectares
-- A total of 32 grab, channel and panel chip samples were taken with best
results including: grades of 9% copper, 1,360 g/t silver and 3.1 g/t
gold
-- 19 samples brought back results of greater than 1% copper, of which 16
contain greater than 200 g/t silver, and 4 contain greater than 0.5 g/t
gold
-- Located within the Pre-cordillera of the Andes in the IV Region of
Coquimbo, Chile with good access to infrastructure
QRS's President Diego Benalcazar, stated, "We are very excited to add another prospective Project to QRS's Portfolio. The San Felix project has demonstrated incredible copper grades from our sampling program, and this combined with our magnetometry work to date provides us the confidence to further explore the property. The geological model and the multiple zones of mineralization encountered in "San Felix" combined with the size of the land package provide sufficient opportunities to define significant discoveries."
LOCATION
The San Felix Project is located within the Pre-cordillera of the Andes within the Province of Limari, IV Region of Coquimbo, Chile. It consists of 24 mining concessions for a total of 2,435 hectares a can be access from the town of "Ovalle" via paved road to "Pichascas"(25km) and then some 70km on gravel road to the limits of the concession. The concessions lies between 2,500 to 3,900 meters above sea level, with abundant water, and power from the Electricity National Grid located only 5km from the center of the concessions.
The most significant Mining Projects located close proximity to San Felix are Barrick's El Indio, Teck Cominco's Carmen de Andacollo and Chilean "Los Mantos de Punitaqui" (see Figure 1).
To view Figure 1, please visit the following link: http://media3.marketwire.com/docs/qrs0802fig1.pdf.
QRS PRELIMINARY WORK
As part of the technical due diligence, QRS's conducted a rock sampling program, regional geological and structural mapping, and partial magnetometric survey of the main trend of the mineralization.
Rock Sampling
Surface rock samples were taken during three separate field campaigns, with a total of 32 grab, channel and panel chip samples. The best results include grades of 9% Cu, 1,360 g/t Ag and 3.1 g/t Au. 19 samples brought back results of greater than 1% Cu, of which 16 contain greater than 200 g/t Ag, and 4 contain greater than 0.5g/t Au. The table and map below shows results from 28 samples taken during the 2 main field campaigns (see Table 1 and Figure 2).
Table 1: San Felix Rock Sample Results (QRS 2012)
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Sample
Sample Length Cu Ag Au Pb Zn
Sample Easting Northing Type (m) % ppm ppm % %
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I236464 352188 6621731 Grab 9.03 382 0.04 0.03 0.04
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I236465 352122 6621570 Channel Chip 0.3 x 0.3 2.98 122 0.01 0.00 0.00
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I236466 351877 6623098 Channel Chip 1.4 x 0.1 0.33 23 0.02 0.00 0.02
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I236467 351886 6623061 Channel Chip 0.3 x 0.3 2.71 187 0.01 0.00 0.02
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I236468 351664 6624043 Channel Chip 1.3 x 0.1 0.63 13 0.55 0.01 0.01
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I236469 351664 6624043 Channel Chip 0.35 x 0.35 0.03 2 0.02 0.00 0.04
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I236470 350949 6625004 Channel Chip 4. x 0.1 0.27 1 0.06 0.00 0.00
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I236471 350950 6625001 Channel Chip 2.9 x 0.1 0.27 1 0.05 0.00 0.00
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I236472 350970 6625020 Channel Chip 3. x 0.1 0.05 0 0.01 0.00 0.00
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I236473 350996 6624987 Channel Chip 4.4 x 0.1 0.09 0 0.02 0.00 0.00
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I236474 350999 6625017 Channel Chip 5. x 0.1 0.16 0 0.02 0.00 0.00
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I236475 351622 6623164 Channel Chip 0.8 x 0.1 1.88 216 0.16 0.00 0.01
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I236476 351928 6622788 Channel Chip 2.7 x 0.1 2.13 125 0.16 0.02 0.03
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I236477 351928 6622804 Channel Chip 2. x 0.1 1.79 85 0.01 0.22 0.12
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I236478 351649 6622649 Channel Chip 1.4 x 0.1 4.45 215 0.02 0.31 0.37
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I236479 351517 6622847 Channel Chip 2.2 x 0.1 2.05 139 0.05 0.19 0.05
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I236480 351530 6622810 Channel Chip 1.3 x 0.1 3.89 181 0.01 0.70 1.00
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I236481 352200 6622081 Channel Chip 0.8 x 0.1 4.44 426 0.33 0.33 0.03
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I240089 351492 6624047 Channel chip 3 x 1 7.58 1360 1.40 0.00 0.02
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I240090 351485 6624042 Panel Chip 7 x 0.5 1.92 218 3.06 0.00 0.04
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I240091 351474 6624041 Panel Chip 8.5 x 0.1 4.18 387 0.72 0.00 0.05
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I240092 351464 6624060 Channel chip 5.5 x 0.1 1.22 62 0.44 0.00 0.01
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I240093 351459 6624047 Channel chip 6. x 0.1 2.25 587 2.41 0.00 0.01
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I240094 352004 6622710 Channel chip 2.5 x 0.1 1.30 85 0.02 0.00 0.03
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I240095 351925 6622774 Grab 4.47 375 0.14 0.02 0.02
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I240096 351903 6653063 Panel Chip 3 x 0.5 0.20 18 0.01 0.02 0.03
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I240097 351600 6652710 Channel chip 0.6 x 0.1 3.06 128 0.01 0.17 0.07
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I240098 351547 6622769 Channel chip 1.5 x 0.1 2.65 164 0.07 0.19 0.12
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To view Figure 2, please visit the following link: http://media3.marketwire.com/docs/qrs0802fig2.pdf.
Geology and Mineralization
The mineralized structures within the San Felix area are associated with local faults in-filled with hydrothermal mineralization (Ag, Cu and Au, Pb, Zn). A pre-Cordillera volcanogenic environment dominates the area of San Felix. Andesitic-rhyolitic volcanic rocks dominate in the area and the dominant lithology consists of wide mineralized mantos. The mantos intercalate agglomerates, lithic and fine tuffs, breccias and andesitic-rhyolitic lavas. At the center of the system, a clear geomorphological feature depicted by the presence of a collapsed volcanic caldera reveals a sub-volcanic complex. A granitic intrusive body outcrops in this area which measures approximately 500m x 300m and is in contact with a sulphide enriched porphyry and some neck shaped volcanic breccias containing high grade Ag-Cu veins and veilets. (see Figure 3)
To view Figure 3, please visit the following link: http://media3.marketwire.com/docs/qrs0802fig3.pdf.
Magnetometry
In March 2012, QRS contracted Argali Geofisicos Chile E.I.R.L. to produce an 85 linear km magnetometric survey (N-S). Forty kilometers were completed with the remaining 45 km to be undertaken later this year once the winter season finishes and access to the area regain.
The ground magnetic survey so far outlines a weak to moderate magnetic high in the northern portion of the grid that is over 1km in strike and open to the East. Several smaller and weaker magnetic highs in the south are coincident with topographic ridges and also correlate with target areas based on location of old workings and exploration roads. The magnetic relief is limited in the southern portion of the grid indicating underlying hydrothermal alteration. Encouraging anomalies have been encountered at San Felix and completion of the planned survey is recommended in the spring when snow melts. (see Figure 4)
To view Figure 4, please visit the following link: http://media3.marketwire.com/docs/qrs0802fig4.pdf.
TERMS
A total of 24 concessions for a total area of 3158 hectares were acquired in a 2 step process (see Figure 5). Initially, 13 concessions with a total area of 1285 hectares had been optioned from Mr. Felix Gallardo under an Option Agreement for QRS to have the right to acquire a 100% interest in the San Felix Project by making the following payments to the vendor:
-- US$50,000 on signing of the option agreement, which amount has been
paid.
-- US$100,000 by November 11, 2012.
-- US$150,000 by May 8, 2013.
-- US$150,000 by November 11, 2013.
-- US$200,000 by May 11, 2014.
-- US$200,000 by November 11, 2014.
-- US$200,000 by May 8, 2015.
-- Upon satisfying the above option payments the Company will have the
right to acquire 100% of the San Felix project under the following
terms:
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RESOURCE SIZE CIM STANDARD PROVEN PAYMENT
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less than 50M ton @ min 0.5% Cu T $ 1,000,000 USD
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50M less than greater than 75M ton @ min 0.5% Cu T $ 2,000,000 USD
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75M less than greater than 100M ton @ min 0.5% Cu T $ 3,000,000 USD
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greater than 100M ton @ min 0.5% Cu T $ 4,000,000 USD
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The second set of concessions rights has been purchased from "Inversiones y Asesorias Limitada".
A total of 11 concessions making up 1,100 additional hectares were traded for the emission of 100,000 common shares of the Company. All costs of maintenance and patents are QRS's responsibility.
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.
To view Figure 5, please visit the following link: http://media3.marketwire.com/docs/qrs0802fig5.pdf.
Quality Assurance and Quality Control
Samples are selected on the property and driven directly to ALS Minerals Laboratory and Activation Laboratories Ltd. "Actlabs" respectively in La Serena and Coquimbo IV Region Chile for preparation. Sample pulps of 80 mesh are assayed for gold Fire Assay, silver and multi-element ICP analysis.
The above information has been prepared under the supervision of geologist Terry Walker Qualified Professional with Registration # 20116 (Association of Professional Engineers and Geoscientists of British Columbia) who has reviewed the data and information and has approved the contents of this release.
About QRS Capital Corp.
QRS Capital (TSX VENTURE: QRS) is a mineral exploration company actively seeking exploration stage copper, gold, and silver targets, focused on Latin America, particularly in Chile, Mexico, Colombia, and Brazil.
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 future results of exploration and objectives and expected date of commencement of drilling. 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:
QRS Capital Corp.
Daniel Sorger
Director, Corporate Development
416-925-8981
dsorger@sorsacap.com