Amato Announces High-Grade Iron Assay Results From El Creston Samples
The El Creston property is located approximately 24 kilometers northeast of the town of Choix, at the northeastern extent of Sinaloa state, Mexico. Choix is reached via paved Highway 32 from Los Mochis, which is located approximately 150 km to the southwest.
A reconnaissance geological survey was conducted in December 2009 to examine known magnetite skarn occurrences identified from previous historical work, to take representative samples for laboratory analysis and to examine the geological setting in order to plan for additional exploration.
A total of six chip and eight grab samples were collected from the property and submitted to ALS Chemex in Hermosillo (Mexico) for processing. The samples were then shipped by ALS Chemex to their North Vancouver (Canada) lab for analysis.
Significant sample results include 62.7% Fe over a chip sample length of 2.45 m from sample M783656, and 49.9% Fe over a chip sample length of 1.5 m from sample M783661. Additional results are provided in the table below.
Geological Setting:
The reconnaissance survey confirmed the earlier reported presence of semi-massive to massive magnetite mineralization in an area of strong skarn development. Skarn development is similar to that at the nearby Mazomique iron mine, and occurs at the contact between Cretaceous granodiorite intrusive and gently-dipping limestone host rocks. Massive iron mineralization (magnetite ± specular hematite) is intercalated with metasomatized host limestone and calc-silicate skarn assemblages.
Magnetite-bearing skarn mineralization is unevenly exposed at surface as intermittent outcrops and scattered boulders over an area of about 300 metres by 100 metres. Shallow historical excavations within this area have exposed gentle- to moderately-dipping magnetite skarn mineralization up to an exposed true thickness of 3.5 metres. The dimensions of the magnetite skarn zone remain open at depth, along strike, and along dip.
The magnetite skarn is believed to represent a mineralized contact zone, exposed in an erosional "window", between the overlying limestone and underlying granodiorite. The prospective contact zone appears to extend both west and east of the "window" area and will be tested initially by magnetometer surveys and, if warranted, by drilling.
Analytical Results:
Magnetite skarn samples returned high grade iron in the range of 45.1 to 62.7% Fe. High grade iron samples were consequently also relatively low in major oxides, including SiO2, Al2O3, and MgO. Significant results from 6 chip samples are identified in the table below.
Six samples returned anomalous copper values ranging from 1320 ppm to >10,000 ppm with no apparent preferential association with any one skarn assemblage. Samples M783657 and M783659 returned the highest grade copper assays: at 1.33 % Cu and 1.19 % Cu, respectively.
Two chip samples were taken at the Vente Pit, a small open-cast working developed in well-layered magnetite skarn. Sample M783656 is a 2.45 m chip sample taken from the massive magnetite hangingwall zone and returned 62.7% Fe and 1320 ppm Cu. Sample M783657 is a 1.10 m chip sample taken from the footwall zone and returned 54% Fe and 1.33% Cu. Copper oxide minerals are readily apparent in the footwall zone at the Vente Pit. The full thickness of the FW zone is unknown and is at least partially obscured by cave on the pit floor.
Significant chip sample results are provided in the table below:
Sample |
Fe % |
SiO2 % |
Al2O3 % |
MgO % |
Cu ppm |
S % |
Description |
Sample Type |
M783656 |
62.70 |
5.14 |
0.86 |
1.31 |
1320 |
<0.01 |
Magnetite skarn |
2.45m chip HW Vente Pit |
M783657 |
54.00 |
18.98 |
0.66 |
1.9 |
*1.33% |
0.02 |
Magnetite skarn |
1.10m chip FW Vente Pit |
M783658 |
45.10 |
19.68 |
0.45 |
5.89 |
26 |
<0.01 |
Magnetite skarn |
0.95m chip |
M783659 |
39.80 |
19.68 |
2.03 |
0.76 |
*1.19% |
0.02 |
Copper oxide skarn |
1.3m chip |
M783660 |
22.30 |
35.46 |
3.57 |
0.62 |
3130 |
0.01 |
Copper oxide skarn |
1.2m chip |
M783661 |
49.90 |
6.77 |
0.34 |
0.08 |
1410 |
0.63 |
Magnetite Skarn |
1.5m chip |
The geochemical and assay techniques used by ALS Chemex yield Total Fe percentage and are not meant as a final determination of recoverable magnetite. Future sampling for determination of recoverable magnetite will be conducted using metallurgical methods, such as Davis Tube testing or magnetic drum separation.
The results from analysis confirm the relatively high-grade nature of the magnetite mineralization and warrant further follow-up. Amato is planning additional mineral exploration on the El Creston magnetite skarn project during 2010. Planned exploration includes close-spaced line cutting, a detailed ground magnetometer survey, geological mapping and, if warranted, diamond drilling. The exploration will focus on those areas with the best potential for relatively low-cost direct shipping ore.
Mr. Mel Reeves, President of Amato Exploration Ltd., stated: "I am very pleased with the progress being made on the El Creston exploration program. We have completed a preliminary sampling program, have contracted a ground magnetometer survey to Geofisica TMC S.A. de C.V. of Mexico, and are planning to extend the mapping and sampling program once a grid has been established. We expect to commence the geophysical program next week."
Mr. Reeves also stated: "The sample results, when combined with the anticipated analysis from the magnetometer survey, will help define the company's future exploration plans." The magnetometer survey will encompass approximately 55 line kilometers and will cover the majority of the El Creston property.
Quality Assurance/Quality Control:
ALS Chemex has implemented a Quality Assurance and Quality Control system that complies with the requirements of the international standards ISO 9001:2000 and ISO 17025:2005, and that system is operational in all of their laboratory sites.
ALS Chemex performed a series of internal lab quality checks using inserted standards, blanks and check duplicates. The company is satisfied with the reproducibility of analyses for the elements reported.
Prior to analysis, each sample was weighed, dried and the entire sample was fine crushed to better than 70% -2mm. Each sample was then riffle split to a 250g sample and pulverize split to better than 85% passing 75 microns.
After receipt of processed samples in North Vancouver, each sample was subjected to whole rock analysis for major oxides by X-Ray Fluorescence ("XRF") with borate fusion technique. XRF provides highly accurate and precise iron oxide results for iron ore samples. Those samples that returned greater than 10% Fe by XRF analysis were rerun by Fe assay for % Fe.
All samples were also analyzed for trace element geochemistry using 33-element ICP-AES method and four-acid digestion. Any sample that returned greater than 10,000 ppm for copper or zinc was re-run by four acid digestion with ICP-AES or AAS finish. All samples were also subjected to quantitative analysis of gold by fire assay and AAS using a 30g nominal sample weight.
Mr. Ken MacDonald, P. Geo., an independent geological consultant, is the Qualified Person under the guidelines of NI 43-101. Mr. MacDonald oversees the Company's exploration program with respect to the El Creston Project and has reviewed and approved the technical disclosure contained in this news release.
El Creston Project:
The property is underlain by Upper Jurassic to Lower Cretaceous limestone, of variable thickness, which overlies and is partially intruded by granodiorite and related compositional phases of the Late Cretaceous to Mid-Tertiary Choix Batholith. The limestone has been subject to contact metamorphic and metasomatic effects from the underlying intrusive granodiorite body. The limestone sequences appear to be "resting" on top or embedded in the intrusive body, and probably represent roof pendants of the batholith.
It is likely the roof pendants have served as loci for intrusive contact-replacement processes that have formed localized significant concentrations of magnetite and hematite in garnet-epidote bearing skarn assemblages. Skarn assemblages range from massive magnetite with subordinate hematite to locally massive hematite predominant with yellow goethite and limonite alteration prevalent on surface fractures. Other skarn facies include strongly oxidized copper-rich skarn, olivine-garnet-epidote skarn and wollastonite skarn.
Magnetite occurs as subhedral masses, aggregates, granulations, and very coarse euhedral, crystals up to 2mm across. Surface exposures can range from cm-scale interlayers of semi-massive to massive magnetite, in intensely altered epidote skarn, to exposures of >80% magnetite over 2.5 m with minor gangue minerals.
About Amato Exploration Ltd.:
Amato Exploration Ltd. is a North American mineral exploration company, based in Vancouver, B.C., Canada. We are currently focused on exploring for silver and gold deposits in northern Mexico and securing other leading mineral properties in the Americas. The Company's primary asset is its Colosio-Los Letreros property located in southwestern Chihuahua State, in northern Mexico.
DISCLAIMER
This news release contains forward-looking statements which reflect management's current expectations regarding the Company's objectives, plans, goals, strategies, future growth, results of operations, performance and business prospects and opportunities. These forward-looking statements are not guarantees, but only predictions. Although the Company believes that these statements are based on information and assumptions which are current, reasonable and complete, these statements are necessarily subject to a number of factors that could cause actual results to vary significantly from current expectations. These factors and other risks and uncertainties are discussed in the Company's materials filed with the Canadian securities regulatory authorities from time to time, as identified in the Company's disclosure record on www.sedar.com. The forward-looking statements included in this news release are made only as of the date of this news release and the Company does not undertake to publicly update these forward-looking statements to reflect new information, future events or otherwise, except as required by law.
Neither the 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 news release.
For more information, please contact: Mr. Melvin R. Reeves, Chief Executive Officer, Amato Exploration Ltd. Tel: 604-315-2559
Investor relations contact: Mr. John Bevilacqua, Acqua Capital Group. Tel: 604-721-3000. For further information, please send enquires to info@acquacapitalgroup.com.
THIS PRESS RELEASE, REQUIRED BY APPLICABLE CANADIAN LAWS, IS NOT FOR DISTRIBUTION TO U.S. NEWS SERVICES OR FOR DISSEMINATION IN THE UNITED STATES, AND DOES NOT CONSTITUTE AN OFFER TO SELL OR A SOLICITATION OF AN OFFER TO SELL ANY OF THE SECURITIES DESCRIBED HEREIN IN THE UNITED STATES. THESE SECURITIES HAVE NOT BEEN, AND WILL NOT BE, REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAWS, AND MAY NOT BE OFFERED OR SOLD IN THE UNITED STATES OR TO U.S. PERSONS UNLESS REGISTERED OR EXEMPT THEREFROM.
Amato Appoints New Officer And Auditor
Ms. Egan is experienced in the financial management and regulatory compliance of dynamic organizations across Canada, private and public, with extensive experience in building financial systems and controls. She has held financial roles with RADARSAT International Inc., CUC Broadcasting Ltd. (now Shaw Communications) and most recently with Protox Therapeutics Inc. Ms. Egan is a graduate of the University of Waterloo where she received her Bachelor of Arts in Economics in 1987 and has held the designation of Certified Management Accountant since 1992.
Change of Auditor
The Company announces that it has requested the resignation of Minni, Clark & Company as the auditor of the Company and that it has appointed Dale Matheson Carr-Hilton Labonte LLP as auditor of the Company effective January 8, 2010. In the opinion of the Company, there have been no "Reportable Events" (as such term is defined in National Instrument 51-102) in connection with the audit of the Company's financial statements reported on by Minni, Clark & Company.
Stock Options Granted
The Company announces that it has granted an aggregate of 284,500 incentive stock options pursuant to its option plan to directors, officers and consultants. The options are granted as fully vested and exercisable at a price of $0.60 until January 11, 2015.
El Creston Property Update
Amato conducted a brief orientation sampling and reconnaissance mapping survey at the property in December 2009. The intent of the program was to confirm the location and tenor of the known magnetite mineralization and outline a prospective area for a subsequent phase of detailed geological mapping, lithogeochemical sampling and magnetometer survey work which is scheduled to begin in January 2010. The reconnaissance survey confirmed the presence of semi-massive to massive magnetite mineralization in an area of strong skarn development. A series of grab and chip samples were taken and submitted to ALS Chemex in Hermosillo Mexico for major oxide analysis by XRF fusion method, and for trace element analysis by ICP method. Results are pending and expected shortly. Ken MacDonald, a consultant to Amato, is a Qualified Person and has approved the technical content of this news release.
About Amato Exploration Ltd.
Amato Exploration Ltd. is a North American mineral exploration company based in Vancouver, B.C., Canada. We are currently focused on exploring for silver and gold deposits in northern Mexico and securing other leading mineral properties in the Americas. The Company's primary asset is its Colosio-Los Letreros Property located in southwestern Chihuahua State, in northern Mexico.
DISCLAIMER
This news release contains forward-looking statements which reflect management's current expectations regarding the Company's objectives, plans, goals, strategies, future growth, results of operations, performance and business prospects and opportunities. These forward-looking statements are not guarantees, but only predictions. Although the Company believes that these statements are based on information and assumptions which are current, reasonable and complete, these statements are necessarily subject to a number of factors that could cause actual results to vary significantly from current expectations. These factors and other risks and uncertainties are discussed in the Company's materials filed with the Canadian securities regulatory authorities from time to time, as identified in the Company's disclosure record on www.sedar.com. The forward-looking statements included in this news release are made only as of the date of this news release and the Company does not undertake to publicly update these forward-looking statements to reflect new information, future events or otherwise, except as required by law.
Neither the 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 news release.
For more information, please contact: Mr. Melvin R. Reeves, Chief Executive Officer, Amato Exploration Ltd. Tel: 604-315-2559
Investor relations contact: Mr. John Bevilacqua, Acqua Capital Group. Tel: 604-721-3000. For further information, please send enquires to info@acquacapitalgroup.com.
THIS PRESS RELEASE, REQUIRED BY APPLICABLE CANADIAN LAWS, IS NOT FOR DISTRIBUTION TO U.S. NEWS SERVICES OR FOR DISSEMINATION IN THE UNITED STATES, AND DOES NOT CONSTITUTE AN OFFER TO SELL OR A SOLICITATION OF AN OFFER TO SELL ANY OF THE SECURITIES DESCRIBED HEREIN IN THE UNITED STATES. THESE SECURITIES HAVE NOT BEEN, AND WILL NOT BE, REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAWS, AND MAY NOT BE OFFERED OR SOLD IN THE UNITED STATES OR TO U.S. PERSONS UNLESS REGISTERED OR EXEMPT THEREFROM.
Amato Closes Second Tranche of Brokered Private Placement
Wolverton Securities Ltd. ("Wolverton") acted as the lead agent with respect to the private placement. Wolverton and members of its selling group were paid an aggregate commission of $21,000 and received 42,000 agent's options, each of which entitles the holder to purchase one Unit of the Company at an exercise price of $0.50 per Unit until December 23, 2011 on the same terms as the Units comprising the offering.
Shares acquired by the placees are, and shares which may be acquired upon the exercise of the share purchase warrants will be, subject to a hold period until April 24, 2010, in accordance with applicable securities legislation. The proceeds of the private placement will be used to advance Amato's portion of the proposed exploration program on the El Creston property and to meet its obligations under the letter agreement with Minera Copper Canyon de Mexico SA de CV , as previously announced.
About Amato Exploration Ltd.
Amato Exploration Ltd. is a North American mineral exploration company based in Vancouver, B.C., Canada. We are currently focused on exploring for iron ore, silver and gold deposits in northern Mexico and securing other leading mineral properties in the Americas. The Company's primary asset is its Colosio-Los Letreros Property located in southwestern Chihuahua State, in northern Mexico.
DISCLAIMER
This news release contains forward-looking statements which reflect management's current expectations regarding the Company's objectives, plans, goals, strategies, future growth, results of operations, performance and business prospects and opportunities. These forward-looking statements are not guarantees, but only predictions. Although the Company believes that these statements are based on information and assumptions which are current, reasonable and complete, these statements are necessarily subject to a number of factors that could cause actual results to vary significantly from current expectations. These factors and other risks and uncertainties are discussed in the Company's materials filed with the Canadian securities regulatory authorities from time to time, as identified in the Company's disclosure record on www.sedar.com. The forward-looking statements included in this news release are made only as of the date of this news release and the Company does not undertake to publicly update these forward-looking statements to reflect new information, future events or otherwise, except as required by law.
Neither the 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 news release.
For more information, please contact: Mr. Melvin R. Reeves, Chief Executive Officer, Amato Exploration Ltd. Tel: 604-315-2559
Investor relations contact: Mr. John Bevilacqua, Acqua Capital Group. Tel: 604-721-3000. For further information, please send enquires to info@acquacapitalgroup.com.
THIS PRESS RELEASE, REQUIRED BY APPLICABLE CANADIAN LAWS, IS NOT FOR DISTRIBUTION TO U.S. NEWS SERVICES OR FOR DISSEMINATION IN THE UNITED STATES, AND DOES NOT CONSTITUTE AN OFFER TO SELL OR A SOLICITATION OF AN OFFER TO SELL ANY OF THE SECURITIES DESCRIBED HEREIN IN THE UNITED STATES. THESE SECURITIES HAVE NOT BEEN, AND WILL NOT BE, REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAWS, AND MAY NOT BE OFFERED OR SOLD IN THE UNITED STATES OR TO U.S. PERSONS UNLESS REGISTERED OR EXEMPT THEREFROM.
Amato Closes First Tranche Of Brokered Private Placement
Wolverton Securities Ltd. ("Wolverton") acted as the lead agent with respect to the private placement. Wolverton and members of its selling group were paid an aggregate commission of $71,000, a corporate finance fee of $20,000 plus GST, and received 142,000 agent's options, each of which entitles the holder to purchase one Unit of the Company at an exercise price of $0.50 per Unit until November 27, 2011 on the same terms as the Units comprising the offering.
Shares acquired by the placees are, and shares which may be acquired upon the exercise of the share purchase warrants will be, subject to a hold period until March 28, 2010, in accordance with applicable securities legislation. The proceeds of the private placement will be used to advance Amato's portion of the proposed exploration program on the El Creston property and to meet its obligations under the letter agreement with Minera Copper Canyon de Mexico SA de CV , as previously announced.
Amato also announces that it has granted an aggregate of 100,000 incentive stock options to directors of the Company, pursuant to the Company's Stock Option Incentive Plan. The options are exercisable at a per share price of $0.58 until November 26, 2014. Any common shares issued on exercise of these options prior to March 27, 2010 will be subject to a hold period until March 27, 2010, pursuant to the policies of the TSX Venture Exchange.
About Amato Exploration Ltd.
Amato Exploration Ltd. is a North American mineral exploration company based in Vancouver, B.C., Canada. We are currently focused on exploring for iron ore, silver and gold deposits in northern Mexico and securing other leading mineral properties in the Americas. The Company's primary asset is its Colosio-Los Letreros Property located in southwestern Chihuahua State, in northern Mexico.
DISCLAIMER
This news release contains forward-looking statements which reflect management's current expectations regarding the Company's objectives, plans, goals, strategies, future growth, results of operations, performance and business prospects and opportunities. These forward-looking statements are not guarantees, but only predictions. Although the Company believes that these statements are based on information and assumptions which are current, reasonable and complete, these statements are necessarily subject to a number of factors that could cause actual results to vary significantly from current expectations. These factors and other risks and uncertainties are discussed in the Company's materials filed with the Canadian securities regulatory authorities from time to time, as identified in the Company's disclosure record on www.sedar.com. The forward-looking statements included in this news release are made only as of the date of this news release and the Company does not undertake to publicly update these forward-looking statements to reflect new information, future events or otherwise, except as required by law.
Neither the 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 news release.
For more information, please contact: Mr. Melvin R. Reeves, Chief Executive Officer, Amato Exploration Ltd. Tel: 604-315-2559
Investor relations contact: Mr. John Bevilacqua, Acqua Capital Group. Tel: 604-721-3000. For further information, please send enquires to .
THIS PRESS RELEASE, REQUIRED BY APPLICABLE CANADIAN LAWS, IS NOT FOR DISTRIBUTION TO U.S. NEWS SERVICES OR FOR DISSEMINATION IN THE UNITED STATES, AND DOES NOT CONSTITUTE AN OFFER TO SELL OR A SOLICITATION OF AN OFFER TO SELL ANY OF THE SECURITIES DESCRIBED HEREIN IN THE UNITED STATES. THESE SECURITIES HAVE NOT BEEN, AND WILL NOT BE, REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAWS, AND MAY NOT BE OFFERED OR SOLD IN THE UNITED STATES OR TO U.S. PERSONS UNLESS REGISTERED OR EXEMPT THEREFROM.
Amato Announces Proposed Joint Venture Option With Minera Copper Canyon, Appoints New Directors And Private Placement
The letter agreement further provides that the Optionor has the right to representation by one director on Amato's Board of Directors and, in this regard, Robert Biagioni has been appointed as an additional director to Amato's Board of Directors. Mr. Biagioni is the President and Chief Executive Officer of the Corus Financial Group that provides financial and operational management consulting services and corporate finance and merger and acquisition advisory services in the United States and Canada, primarily in real estate, technology and manufacturing. Prior to forming the Corus Financial Group, Mr. Biagioni was a senior manager with Peat, Marwick, Mitchell & Co. (now KPMG) in the firm's Vancouver office. Mr. Biagioni has held senior financial roles with the HTM Group, the First Merchant Group, CoreQuest Exploration Group, Canadian Bioenergy Corporation, Katie Gold Corp., MDU Communications International, Inc., TelSoft Mobile Data Inc. (now MDSI Mobile Data Solutions Inc.) and Sand River Resources Ltd. (now Fortune River Resource Corp.). Mr. Biagioni received a BComm from the University of British Columbia in accounting and management information systems in 1979 and was admitted to the Institute of Chartered Accountants of British Columbia in 1981. He is also a member of the Institute of Corporate Directors, focusing on corporate governance education and issues.
Amato has entered into a finder's fee agreement with WestCorp Financial Inc., a company wholly owned by Robert Biagioni, pursuant to which Amato will pay to WestCorp. subject to Exchange approval, a finders fee of 5% of the cash and share payments made to the Optionor under the letter agreement, as such payments are made.
Private Placement
In order to advance Amato's portion of the proposed exploration program on the Property and to meet its obligations under the letter agreement, Amato will conduct a brokered private placement up to 4,000,000 units (the "Units") at a price per Unit of CND$0.50 for aggregate proceeds of up to CND$2,000,000 pursuant to a letter of engagement with Wolverton Securities Ltd. (the "Agent"). Each Unit will consist of one common share in the capital of the Company and one-half of one non-transferable share purchase warrant, each whole warrant entitling the holder to purchase an additional common share in the capital of the Company at a per share price of CND$0.75 for a period of 24 months from the completion of the offering, subject to accelerated expiry in certain circumstances. A commission of 8% of the proceeds of the financing shall be paid to the Agent in cash, Units, or a combination thereof at the Agent's election. In addition, the Agent will receive a corporate finance fee of $20,000 plus GST, payable in cash, Units, or a combination thereof at the Agent's election, and will receive an option to acquire such number of shares as is equal to 8% of the Units sold under the offering. Shares acquired by the placees, and shares which may be acquired upon the exercise of the share purchase warrants, will be subject to a hold period of four months plus one day from the date of completion of the financing in accordance with applicable securities legislation.
Property Information
The El Creston property is located in the Mexican State of Sinaloa, 30 km from the city of Choix and is centered at latitude 26° 52'N and longitude: 108° 15' W. The Creston is a 500 hectacre property that is located within a larger mineral concession controlled by the Optionor, that totals 17,300 ha. This larger concession contains three additional areas of known massive magnetite mineralization that crop out on surface and for which Amato has the right of first refusal to acquire. These three additional areas have the potential to share infrastructure and operational efficiencies with any El Creston mining plan, contingent on success of the current exploration programs.
El Creston iron deposit is a magnetite-skarn that formed within re-crystallized limestone host rock at the contact with a Late Cretaceous -- Early Tertiary age intrusion. The skarn deposit is comprised of almost 100% magnetite formed as replacements of limestone beds. Minor showings of sulphide/oxide mineralization, with copper, zinc and silver are reported in historical work. A composite sample of outcroppings and boulders of magnetite skarn on in the center of the Vente / El Creston deposit area was assayed and contained 91.97% Fe2O3, 4.06 SiO2 with low aluminum, phosphorus, manganese, calcium and titanium. The iron in this composite sample was 64.3% Fe.
Amato is planning a program of geological mapping, geophysical surveys and diamond drilling to quantify the dimensions of the massive magnetite bodies that crop out extensively on the El Creston property. Based on the results of the delineation drilling of the El Creston, Amato will conduct a detailed scoping study and/or full feasibility study to demonstrate the potential for full commercial production.
Direct-shipping magnetite ore is currently being produced by a small operator who controls a 40 hectacre parcel that is completely surrounded by concessions for which Amato has a right of first refusal.
The Choix area is serviced by paved highways and the Chihuahua Pacific railway, both connecting to the nearby Pacific port of Topolobampo, located 130 km from Choix. The property has existing electrical power supply and road access. Paul McGuigan, P. Geo., Director, is a Qualified Person and has approved the technical content of this news release.
Change to the Board of Directors
Amato also announces that Isadore (Izzie) Reisler and Daniele (Danny) Bresciani, both directors of Amato since its incorporation, have resigned for personal reasons. Amato's Board of Directors extend thanks to both Messrs. Reisler and Bresciani for their contributions to the Company over the past 2½ years. Amato welcomes as newly appointed directors, Jack Fugman and Ioannis (Yannis) Tsitos.
Yannis Tsitos is the President and a director of First Bauxite Corporation (TSX-V:FBX) and the President, CEO and a director of Carat Exploration Inc. (TSX-V:CRZ). He worked with the BHP Billiton group for 18 years. He holds a Master's degree in Applied Geophysics and Geology from the University of Birmingham and a Bachelor's degree in Physics from the University of Athens. In addition, Mr. Tsitos has completed management and finance studies as part of an MBA program in Herriot Watt University, Edinburgh. Mr Tsitos is experienced in the mining sector focused on exploration for a wide spectrum of commodities, from gold, base metals, nickel and diamonds to bulk minerals such as bauxite, coal and iron ore.
Jack Fugman has been a self-employed sales and marketing consultant since 1970. He worked with Gaults Hospitality for nine years, a hospitality and foodservice provisioning company that was acquired by Transworld Imports in July 2009. Mr. Fugman is a Board member of the Louis Brier Home and Hospital in Vancouver. He is a past-President (1995 to 1997) and Board member (1986 to 1995) of Western Apparel Markets and a past-Board member (1993 to 1997) of the Canadian Association Wholesales Salespersons.
Amato's Board of Directors has granted options to Robert Biagioni and Yannis Tsitos entitling each to purchase 50,000 common shares in the capital of Amato at a per share price of $0.61 until October 19, 2014.
In connection with the newly constituted Board of Directors, the Amato Advisory Board has been dissolved as the new Board brings a wide range of experience to fulfill the needs of Amato. Amato's Board of Directors extend thanks to both Messrs. Kostiuk and Henning for their contributions to the Company over the past six months.
Also, in connection with the newly constituted Board of Directors, agreements have been entered into such that an aggregate 1,382,500 common shares in the capital of Amato owned by Messrs. Reisler and Bresciani, among others, and subject to escrow pursuant to the terms of a National Instrument 46-201 Escrow Agreement entered into at the time of completion of Amato's initial public offering, have been purchased by Messrs. Biagioni, Fugman and Tsitos as well as Melvin Reeves, the President and CEO of Amato, and are to be transferred within (and to remain subject to) escrow pursuant to the terms of the Escrow Agreement and the policies of the TSX Venture Exchange. These transfers of shares within escrow are subject to acceptance by the TSX Venture Exchange. The shares subject to escrow will be released as to 15% on each of October 27, 2009, April 27, 2010, October 27, 2010, April 27, 2011, October 27, 2011, with the balance released on April 27, 2012.
About Amato Exploration Ltd.
Amato Exploration Ltd. is a North American mineral exploration company based in Vancouver, B.C., Canada. We are currently focused on exploring for silver and gold deposits in northern Mexico and securing other leading mineral properties in the Americas. The Company's primary asset is its Colosio-Los Letreros Property located in southwestern Chihuahua State, in northern Mexico.
DISCLAIMER
This news release contains forward-looking statements which reflect management's current expectations regarding the Company's objectives, plans, goals, strategies, future growth, results of operations, performance and business prospects and opportunities. These forward-looking statements are not guarantees, but only predictions. Although the Company believes that these statements are based on information and assumptions which are current, reasonable and complete, these statements are necessarily subject to a number of factors that could cause actual results to vary significantly from current expectations. These factors and other risks and uncertainties are discussed in the Company's materials filed with the Canadian securities regulatory authorities from time to time, as identified in the Company's disclosure record on www.sedar.com. The forward-looking statements included in this news release are made only as of the date of this news release and the Company does not undertake to publicly update these forward-looking statements to reflect new information, future events or otherwise, except as required by law.
Neither the 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 news release.
For more information, please contact: Mr. Melvin R. Reeves, Chief Executive Officer, Amato Exploration Ltd. Tel: 604-315-2559
Investor relations contact: Mr. John Bevilacqua, Acqua Capital Group. Tel: 604-721-3000. For further information, please send enquires to info@acquacapitalgroup.com.
THIS PRESS RELEASE, REQUIRED BY APPLICABLE CANADIAN LAWS, IS NOT FOR DISTRIBUTION TO U.S. NEWS SERVICES OR FOR DISSEMINATION IN THE UNITED STATES, AND DOES NOT CONSTITUTE AN OFFER TO SELL OR A SOLICITATION OF AN OFFER TO SELL ANY OF THE SECURITIES DESCRIBED HEREIN IN THE UNITED STATES. THESE SECURITIES HAVE NOT BEEN, AND WILL NOT BE, REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAWS, AND MAY NOT BE OFFERED OR SOLD IN THE UNITED STATES OR TO U.S. PERSONS UNLESS REGISTERED OR EXEMPT THEREFROM.