BROOMFIELD, CO, Oct 8 /PRNewswire-FirstCall/ - Pan American Goldfields Ltd (OTCBB:"MXOM") (the "Company") today announced that as a result of a review by the British Columbia Securities Commission ("BCSC"), it is issuing the following news release to clarify its disclosure. In addition, the Company also announces that certain changes and modifications to its technical report titled "Geology and Mineral Resources Cieneguita Project Chihuahua Mexico" and dated April 27, 2010 (the "Technical Report"), which was filed by the Company under National Instrument Form 43-101, are being made so that it is fully independent and meets all the requirements of NI 43-101. The Company expects to file its amended Technical Report on SEDAR shortly.
The Technical Report included an in-house "mineralization estimate" for #3 Pit (658,481 tonnes @ 1.79 g/t Au and 93.5 g/t Au or 3.173 g/t AuEq) without assigning a resource classification or providing other information required by NI 43-101. The Company's amended independent technical report does not support this estimate, and consequently the Company retracts the estimate for the higher grade Pit #3 Area, where current mining activity is taking place. The Company will announce any new NI 43-101 resource estimate for high-grade areas when received.
The large scale, lower grade, resource estimate, which was the principal focus of the April 2010 report, remains unchanged, as follows:
Cieneguita Deposit In Situ Resource Within Optimized Pit Shell @ 0.8 g/t AuEq Cut-Off
|Classification||Tonnes||Au g/t||Ag g/t||Cu %||Pb %||Zn %||AuEq g/t||Au oz||Ag oz||AuEq oz|
|Meas. & Ind.||20,087,000||0.74||51.8||0.03||0.21||0.26||1.71||474,900||33,477,000||1,107,500|
Concerning corporate disclosure, the Company on September 22nd posted on its website a copy of a power point presentation entitled "Corporate Presentation September 2010". This presentation is a summary of the main points of the subject matter presented.
On page 18 of the presentation under the title "Acquisition Target #1", the Company illustrated and described key attributes of a small operating mine that the Company is negotiating to purchase. This included a high-grade 7 g/t gold reserve estimate of 200,000 ounces of gold sufficient for 6 years of production. The Company retracts the disclosure of a reserve as there is no current pre-feasibility study. The Company also retracts the 200,000 ounce quantity and associated gold grade of 7 g/t since it is not supported by any current resource estimate compliant with NI 43-101. The company does not have complete information about the source and date, or the assumptions, parameters, and methods used for any historical resource estimate at this location, and will disclose any historical estimates if and when supporting information is located, and when any estimate becomes material to the Company. In addition, the Company would like to emphasize that as an "Acquisition Target" there is no assurance that negotiations will be successful for its acquisition.
Page 6 of the presentation refers to a "seven fold upside" from an anticipated upgrade of the Cieneguita gold property's resource estimates to proven and probable reserves through the planned infill drilling recommended in the Technical Report. The company retracts information about upside potential and has amend its presentation accordingly. There can be no assurances the planned drilling will be successful in expanding the resource estimates, or that a pre-feasibility study, if completed, will upgrade any portion of the resource to reserves.
Lastly, the Company posted on its website a report prepared by Fundamental Research Corp. on the Company dated August 30, 2010. The report discusses, among other things, the completion of a scoping study in regards to the Company's Cieneguita project. The scoping study is an in-house study and was performed by the Company's partner Minera Rio Tinto to evaluate a proposed increase in gold production at the Cieneguita project. It has not been adopted or approved by the Company, does not meet the definition of a scoping study (preliminary assessment) in NI 43-101, and should not be relied on. The Company has no NI 43-101 compliant economic analysis for the deposit. The Company has removed the report and any reference to it from the Company's website, and has requested that Fundamental Research Corp. remove information about the scoping study from their report.
On behalf of the Board of Directors
Mario Ayub, Chairman
Mario Ayub is a director of the Company and is a 'qualified person' for the purposes of National Instrument 43-101 Standards of Disclosure for Mineral Properties of the Canadian Securities Administrators. He has verified the data (including sampling, analytical and test data) and prepared or supervised the preparation of the information contained in this news release.
SOURCE Pan American Goldfields Ltd.