Firestone Announces Consolidation of Torlon Hill Ownership through Amending Agreement with Goldcorp
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 03/28/13 -- Firestone Ventures Inc. ("Firestone" or the "Corporation") (TSX VENTURE: FV)(FRANKFURT: F5V) is pleased to announce that it has reached an agreement with Goldcorp Inc. ("Goldcorp") and their 100% owned Guatemalan subsidiary Montana Exploradora de Guatemala S.A. ("Montana") (collectively termed the "Vendor") on the amendment to the formal option agreement for the Saturno and Selegua concessions. These concessions surround Firestone's Torlon Hill Zinc-Lead-Silver deposit and are underlain by Permian carbonate formations which are considered to have excellent exploration potential for zinc and lead mineralization.
Firestone's President and CEO, Pamela Strand commented, "The consolidation of 100% ownership in this surrounding land package is important for Firestone as we progress on the recommendations of our recently announced positive preliminary economic assessment for the Torlon Hill deposit. The concession area covers prospective carbonate but also covers the access route and the proposed site infrastructure."
Under the terms of the agreement dated March 2007 and restated in October 2009 and February 2011, Goldcorp has agreed to Firestone vesting a 100% interest in the property in return for the issuance of 200,000 common shares of Firestone. The Vendor retains a 1.5% Net Smelter Royalty (NSR) and the underlying vendor retains an additional 2% NSR. This transaction is subject to all regulatory approvals.
Whale Cove Project Update - Nunavut
Firestone would also like to announce that the Company finalized the acquisition of Option Agreement for the Whale Cove Project, Nunavut (see news release dated January 13, 2013). The TSXV gave conditional approval of the acquisition on February 22, 2013.
Firestone is a Canadian-based exploration and development company with zinc-lead-silver and copper projects in Central America and has been working in Guatemala since 2004. Our main project is the Torlon zinc-lead-silver deposit in Guatemala where Firestone has recently announced a Preliminary Economic Assessment ("PEA") (see news release dated March 6, 2013). The PEA was completed by ProMet Dadi Africa (Pty) Ltd. based in Cape Town, South Africa. The PEA outlines an operation with a 617,000 tonne per year throughput, projecting an after-tax 97% internal rate of return and an after-tax US $45.4 Million net present value at a 5% discount rate. The current NI 43-101 oxide resource (see news release 18 November 2008 on www.sedar.com) is summarized in the following table and the deposit remains open to expansion. The NI 43-101 resource used a 3% zinc equivalent cut-off grade and a 35.5% zinc top-cut.
Torlon Deposit Oxide Mineral Resource - as at March 6, 2013
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Zinc Lead Silver Silver
Tonnes Zinc % (lbs)(i) Lead % (lbs)(i) (g/t) (oz)(i)
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Measured
and
Indicated 1,891,636 7.32 304,905,997 2.41 100,294,541 14.25 866,663
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Inferred 169,705 4.42 16,502,114 1.96 7,317,680 12.53 68,367
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(i) The total contained metal assumes 100% metal recovery and does not
indicate economic viability
In addition to Torlon, Firestone also has a large land position covering a significant portion of the Central Guatemala Zinc District with four drill ready targets and over fifty zinc mineral occurrences. The land position has excellent exploration potential and with systematic exploration could develop as the world's next major zinc district. The company also owns 100% of the past producing Oxec copper deposit which, based on historical reports, has produced over 1Mt grading 3% copper (according to unverified historical records).
The technical information in this news release has been reviewed and approved by Pamela Strand, P.Geol., President of Firestone and a Qualified Person as defined in NI 43-101.
This news release may contain forward looking statements, being statements which are not historical facts, including, without limitation, statements regarding potential mineralization, exploration results, resource or reserve estimates, anticipated production or results, sales, revenues, costs, "best-efforts" financings or discussions of future plans and objectives. There can be no assurance that such statements will prove accurate. Such statements are necessarily based upon a number of estimates and assumptions that are subject to numerous risks and uncertainties that could cause actual results and future events to differ materially from those anticipated or projected. Important factors that could cause actual results to differ materially from the Company's expectations are in Company documents filed from time to time with the TSX Venture Exchange and provincial securities regulators, most of which are available at www.sedar.com. The Company disclaims any intention or obligation to revise or update such statements unless 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:
Firestone Ventures Inc.
Pamela Strand, P. Geol.
President
Toll Free: 1-888-221-5588
(780) 428-3476 (FAX)
info@firestoneventures.com
www.firestoneventures.com
