LIMA, Peru, Sept. 26, 2011 /PRNewswire/ -- Portage Resources Inc. through its wholly owned subsidiary Portage Minerals S.A. ("Portage" or the "Company") (POTG-OTCQB) has signed a definitive agreement with Nilam Resources S.A. to acquire 55% of the Rocas #1 concession, aka Concession Reco7 code 01046810 located in the Chiquian district, Department of Ancash. The concession consists of 400 hectares and is completely surrounded by 3000 hectares of mining properties that are owned by giant mining company BHP.
American Barrick bought the Pierina property from Arequipa Resources for 900 Million dollars and has operated the mine since 1996 till 2011 extracting approximately 10 Million ounces of gold from this world class property located 36 kilometers east of Rocas #1.
There was past production on this concession by numerous independent miners about 20 years ago. The costs at the time outweighed poor precious metal prices, but recently the prices of gold have hit record numbers and silver has seen a high of $49/ounce, thus making this concession once again viable.
The Portage team led by Elias Garate, took surface samples in very early August, and used internationally known and registered independent lab, Cimm Peru Labs of Lima, Peru. The following findings were very recently reported by Cimm to Portage;
Leyes del Prospecto Rocas
Portage Resources Inc. VP of explorations Elias Garate stated in his overview of the project, "The preliminary surface results are very encouraging; in my opinion Rocas #1 is definitely a viable project. The results indicate 1.5 million ounces in gold thus providing quantified and qualified information. The overall potential of the project, and I must warn this is very preliminary but in my best opinion and many years of experience, we could have 1.5 million ounces of gold and a potential of $2.5 billion in reserves. I believe everyone should be as excited as me to continue developing this project."
Portage Resources Inc. President and CEO Paul Luna added further commentary to the lab results: "These findings are very preliminary but are excellent in nature. I do caution that further geological studies must be performed before any final conclusion. These results are an unprecedented success for Portage. I am very pleased to be associated with this project."
The terms of the acquisitions include a minimum investment of $100,000 USD or 800 meters drilling within 24 months of all permits and registry. Further, the additional 45% of the project can be acquired at any time for $0.675 per each ounce of silver on the total silver resource. Nilam Resources will also receive a one time payment of seven million shares of Portage Resources Inc.
About Portage Resources Inc.
Portage Resources Inc. is focused on the exploration and production of precious and base metals in Peru. Portage Resources Inc. plans to recognize, and acquire near-term production mining properties, the Portage Resources Inc. seasoned and experienced Peruvian management team will research, review and prove any reserves for the purpose of production.
Symbol: OTCQB - POTG www.portageresourcesinc.com
FORWARD-LOOKING STATEMENTS: "Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Statements relating to the company's business activities and other statements in this press release are forward-looking statements within the meaning of the Securities Litigation Reform Act of 1995. Such statements are based on current expectations about the Company's business. Words such as expects, anticipates, intends, plans, believes, estimates and similar words and expressions are intended to identify such forward-looking statements. These statements involve risks that are difficult to evaluate. Actual results can vary from descriptions herein due to many factors including changes in metal prices and business conditions; changes in laws and regulations; problems encountered in exploration and obtaining permits; changes in the competitive environment; technological advances; shortages of skilled workers, drill rigs and equipment; the need for additional capital and other risks listed in the Company's Securities and Exchange Commission filings under "risk factors" and elsewhere. Forward-looking statements speak only as of the date they were made. The Company does not undertake any obligation to update forward-looking statements.
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SOURCE Portage Resources Inc.