On October 20, 2011 Calibre Mining Corp. (“Calibre”) (TSXV: CXB) and Alder Resources (TSX-V: ALR) (“Alder”) entered into an option agreement whereby Alder can earn a 65% interest in the 3,356 hectare Rosita D concession (the “Property”) located within Calibre’s 100%-owned Borosi concessions in northeast Nicaragua. Located within the Property is the historic Santa Rita open pit copper-gold mine and the Bambana copper-gold prospect.
Under the terms of the option agreement, Alder can earn a 65% interest in the Rosita D concession by expending a total of CDN$4.0 million on exploration and other work on the Property and by issuing to Calibre a total of 1,000,000 common shares of Alder over a 4 year period. Alder will be acting as the project operator for all work conducted on the Property during the option period with the first year exploration commitment being CDN$500,000. Upon Alder earning a 65% interest in the Property a joint venture will be formed with Calibre and Alder being responsible for their pro-rata share of all subsequent project expenditures.
Please see the Alder Resources Ltd News Release below.
Coincident 1100 Metre By 500 Metre Geophysical Target
Toronto, Ontario – Alder Resources Ltd. (“Alder” or the “Company”) (TSXV: ALR) is pleased to announce assay results for rock chip sampling at two 1970s era open pit benches at the Bambana prospect, Rosita copper-gold-silver project, northeast Nicaragua (see Figure 1). Channel sampling across the full width of two benches from an open pit along the side of a small hill returned two wide intercepts of 2.09% copper (“Cu”), 0.19 grams per tonne (“g/t”) gold (“Au”) and 14.6 g/t silver (“Ag”) over 29 metres in the upper bench and 1.98% Cu, 0.14 g/t Au and 14.4 g/t Ag over 29.0 metres in the lower bench. The mineralization is of an oxide nature and is open in all directions.
The results presented here are from two of four benches developed on the slopes of a small hill during the final stages of mining operations in the Rosita area during the 1970s. The benches were developed over approximately 20 metres vertically and along a strike length of 40 metres. These results complement those from a nearby trench excavated by Alder and reported previously (see news release dated March 1, 2012), that returned 3.32% Cu, 0.22 g/t Au and 37.55 g/t Ag over 12.0 metres. The trench is 30 metres west of the upper bench, and collectively these workings, referred to as the T3 Zone, occur over a strike length of 70 metres. Continuous 1 metre samples were collected across the full width of the open cut benches. Each of the two sample traverse lines ended in material grading between 0.8% and 1.2% copper. The mineralization, consisting of malachite, chrysocolla, and other copper oxides, is localized in a fine-grained, sericite-altered diorite porphyry dike which strikes generally east cutting propylitically-altered andesitic volcanic rocks.
The T3 Zone lies within a broad, discreet IP chargeability anomaly that is 1100 metres long by
500 metres wide at the -100 metre level (see Figure 2). This anomaly is attributed to the presence at depth of disseminated sulphides, which may be related to porphyry style mineralization, and represents significant potential for Alder to add to the Cu-Au-Ag resource delineated at the Santa Rita stockpiles earlier this year (see news release dated May 9, 2012).
In addition to the T3 Zone, several discreet IP chargeability anomalies at the -100 metre level have been delineated at Bambana and are under investigation. Chargeability anomalies are inferred to represent areas of disseminated sulphide mineralization that could represent porphyry-type exploration targets. An 800 metre by 500 metre anomaly occurs in the north central part of the Bambana area and an approximate 1,500 metre by 1000 metre anomaly has been delineated in the southeast corner of the Bambana area. The latter coincides with the Zopilote prospect, drilled in the 1960s, with reported reserves of 176,000 tonnes of oxide material grading 0.90% Cu and 79,000 tonnes of sulphide material grading 0.97% Cu (referenced in a map by A. Rivera, 1977)1 . Gold and silver values are not reported for this zone. A ground magnetometer survey, geologic mapping, trenching and general prospecting will be carried out over these anomalies followed by drill testing in the 3rd quarter of 2012.
1 This historical estimate was not prepared in accordance with currently accepted guidelines for the preparation of mineral resources and mineral reserves, does not comply with NI 43-101 and should not be relied upon. Although the historical estimate is relevant to recognizing potential, a qualified person, as such term is defined in NI 43-101, has not done sufficient work to classify the historical estimate as current mineral resources or mineral reserves and the Company is not treating the historical estimate as current mineral resources or mineral reserves.
Alder President and CEO, Joe Arengi, states: “Given the consistent high copper grades and the oxide nature of the mineralization at the T3 Zone, we are highly encouraged by the bench sampling program, and look forward to drill testing these anomalies in the coming months. Two of the three large-scale, deposit size geophysical anomalies delineated at Bambana by our recent survey coincide with good grade copper mineralization and provide Alder with compelling upside. These results further fuel our initial optimism about the Rosita project, which was based primarily on the immediate area surrounding the past producing Santa Rita and R-13 zones. Now Alder has four significant target areas, three of them with porphyry style attributes, within the Rosita concession block that reinforces the Company’s goal of developing an economic mineral deposit at Rosita.”
To date a total of 5,025 metres have been drilled in 16 holes, all in the Santa Rita/R-13 area. Assay results have been reported for the first 3,144 metres in 9 holes of an 8,000 metre drill program for the Rosita project (see news release of May 31, 2012). The initial 5,000 metre campaign was centered on the historic Santa Rita and R-13 pits, where approximately 5.5 million tonnes of ore averaging 2.06% Cu, 0.93 g/t Au, and 15 g/t Ag were extracted by La Luz Mines (a subsidiary of Falconbridge) in the mid-1970s when low metal prices forced mine closure. An additional 3,000 metres will be drilled at Bambana and other targets generated during the exploration program. In addition, an IP-resistivity geophysical survey has been completed at Bambana and several distinct chargeability anomalies have been delineated. The survey will now focus on the Santa Rita/R-13 area with completion expected in early July.
The Rosita Project
The Rosita project is located seven kilometres north of the Primavera prospect, where Calibre Mining Corp. (“Calibre”) and B2Gold Corp. announced the discovery of significant porphyry style Au-Cu mineralization, including 261.7 metres grading 0.78 g/t Au and 0.30% Cu in a diamond drill hole (Calibre news release dated January 20, 2012).
In a news release dated May 9, 2012 Alder announced an independent NI 43-101-compliant inferred resource estimate for the stockpiles at Rosita. The resource estimate totals 108.5 million pounds Cu, 118,500 ounces (“oz”) Au and 2.35 million oz Ag contained within 7.95 million tonnes based on a cutoff of 0.15% copper equivalent, and averages 0.62% Cu, 0.46 g/t Au and
9.21 g/t Ag.
Quality Assurance/Quality Control
Bench panel samples were collected from fresh surfaces along the face of both benches at continuous one metre intervals. Samples were placed into a heavy gauge plastic bag, sealed then trucked (by the lab or by company personnel) to Inspectorate Exploration and Mining Services’ preparation laboratory in Managua. There, pulps are prepared for shipping to Inspectorate’s Analytical laboratory in Vancouver, where each sample is analyzed for total copper using aqua regia digestion and a 30 element ICP (inductively coupled plasma-atomic emission spectrometry) method, and gold using fire assay with AA finish. Alder has implemented an industry standard Quality Assurance/Quality Control program that includes the insertion of certified standards and blanks into the sample stream.
John C. Spurney, Certified Professional Geologist (CPG-11007), Vice President Exploration for Alder and a qualified person as defined by NI 43-101, has reviewed and approved the scientific and technical content of this news release.
About Alder Resources Ltd.
Alder is a resource company focused on the development of gold and base metal projects throughout Latin America. Current focus is on the Rosita project in Nicaragua located 275 km northeast of Managua.
Alder entered into an option agreement to acquire a 65% interest in the Rosita D concession from Calibre (see news release dated August 22, 2011) by issuing 1,000,000 shares and incurring expenditures of $4,000,000 over four years of which $500,000 must be spent by October 2012. Alder has completed the $500,000 expenditure commitment.
Alder intends to continue to build its property position with strategic acquisitions.
Alder Resources Ltd.
President & CEO
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Alder Resources Ltd.
Cautionary Note Regarding Forward-looking Information
This press release contains “forward-looking information” within the meaning of applicable Canadian securities legislation. Forward-looking information includes, without limitation, statements regarding potential mineralization, reserve and resource determination, exploration results and future plans. Generally, forward-looking information can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved”. Forward- looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Alder to be materially different from those expressed or implied by such forward-looking information, including but not limited to: general business, economic, competitive, geopolitical and social uncertainties; the actual results of current exploration activities; risks associated with operations in foreign jurisdictions; ability to successfully integrate the purchased properties; and other risks inherent in the mining industry. Although Alder has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. 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 statements. Accordingly, readers should not place undue reliance on forward-looking information. Alder does not undertake to update any forward-looking information, except in accordance with applicable securities laws.