Comcorp to Complete Previously Announced Transactions
May 17, 2006
Comcorp announces an update to its news release, dated February 23, 2006 with respect to the acquisition of the Colombian gold projects, and the Arizona silver project (the “Acquisitions”).
In order to facilitate the Acquisitions, the Company has applied and has been conditionally accepted for listing on the Canadian Trading & Quotation System (the “CNQ”) and has applied for delisting from the NEX board (the “NEX”) of the TSX Venture Exchange. Requirements imposed under the NEX policies did not meet with the acceptance of the vendors of the Acquisitions and therefore the Company decided to seek a listing on the CNQ.
The Company’s delisting from the NEX will be effective Wednesday, May 17, 2006. The Company will thereafter close the private placement of 5,052,500 units $2.05 per unit announced on February 23, 2006 and the private placement for 500,000 units at $0.55 per unit as announced on February 6, 2006, for aggregate gross proceeds of $10,632,625, change its name to Wildcat Silver Corporation, close the Acquisitions and commence trading on the CNQ under the symbol WILD.
The Company is also pleased to announce the appointment of the following Directors to the Board: Mr. R. Stuart Angus, Mr. Robert P. Wares and Mr. Michael A. Steeves who will join the Company’s President, Mr. Donald B. Clark.
Mr. Steeves has been involved in the mining industry for more than 30 years. He was Vice President of Investor Relations for Glamis Gold Ltd. in Reno, Nevada until August 2005. Prior to joining Glamis Gold in June 2002, he served as Director of Investor Relations for Coeur D’Alene Mines in Coeur D’Alene, Idaho and Homestake Mining in San Francisco, California. Previously, Mr. Steeves worked as a mining analyst for a number of Canadian investment firms. He has a Bachelor of Science and a Master of Science degree in Geology from the University of Manitoba and is also a Chartered Financial Analyst.
Mr. Wares is a Professional Geologist and has been President of Osisko Exploration Ltd. since September 1998. Mr. Wares holds a Bachelors Degree (Honors) in Geology from McGill University, Montreal, and has 25 years of experience in mineral exploration and research. Mr. R. Stuart Angus is an independent business advisor to the mining industry. He was most recently Managing Director - Mergers & Acquisitions for Endeavour Financial.
Prior to joining Endeavour Financial, he was a partner at the Canadian law firm Fasken Martineau DuMoulin and headed that firm’s Global Mining Group. For over 25 years, Mr. Angus has focused on significant international exploration, development and mining ventures, and all aspects of their structuring and finance.
Upon the closing of the Private Placements and Acquisitions, the Company plans to proceed with the Plan of Arrangement as announced in the Company’s February 23, 2006 news release whereby the Company will distribute the shares of the Company’s wholly owned subsidiary, Ventana Gold Corp. (“Ventana”) to the shareholders of the Company on a one-for one basis. Ventana will hold all of the shares of CVS Explorations Limitada, which holds the two Colombian mineral properties described below.
The following describes the properties being acquired by the Company:
La Bodega Property, Colombia
The La Bodega gold / silver exploration property is located within the historic California -Vetas Mining District, Colombia (“La Bodega Property”) in the Eastern Cordillera of the Andes Mountains in northeast Colombia, approximately 400 kilometers (“km”) north of the capital city of Bogota. The La Bodega Property has been the site of intermittent, small-scale underground gold mining for over 400 years and currently hosts the active La Bodega mine. The La Bodega Property consists of a 178.6-hectare exploitation mining concession that covers a NE-SW fault zone that is a principal control on gold-silver mineralization in this part of the district. The property is situated adjacent to and immediately southwest of Greystar Resources Ltd.’s Angostura Gold-Silver Deposit.
A NI 43-101 Technical report prepared for the vendor by James R. Reeves (the “Reeves Report”) states: “Based on observed surface and underground exposures of the alteration and the distribution of historic workings, an immediate drill target appears to be present, extending southwest from the Greystar property line for about 750 meters along strike and 250 meters wide.” Within the 750 meters and 250 meters zone, samples were taken from three areas. These were underground channel samples obtained by the vendor of tunnels cross cutting the structure. The samples were taken across the vein. At this point the width of the veins cannot be determined as the veins extended beyond the length of the tunnels. Samples yielded the following results:
La Mascota area:
|Metres||Grams(g)/ton (t) Gold|
Los Sapos area:
|Metres||Grams(g)/ton (t) Gold|
|Metres||Grams(g)/ton (t) Gold|
In addition several grab samples returned values ranging from 0.4g to > 100 g/t Au.
The Reeves report further states “The results of the initial sampling appear to indicate that bulk tonnage grade gold mineralization is present in zones of sheeted, anastamosing quartz-pyrite veins and sericitized, silicified and/or stockwork veined porphyry separated by more weakly mineralized sections of gneiss. The observed style of mineralization at La Bodega is similar to that described in technical reports on the adjacent Angostura deposit of Greystar Resources.”
California Vetas Property, Colombia
The California Vetas Property is located in the Eastern Cordillera of the Andes Mountains in northeast Colombia, approximately 400 kilometres north of the capital city of Bogota, and lies within the historic California -Vetas mining district. Scattered historic, underground workings and a currently active small gold mine are present on the property. The property consists of 3,694.4 hectares divided in one exploration concession and one exploitation concession. The smaller exploitation concession of 99.5 hectares comprises four separate fractions, two of which lie within ground controlled by Greystar Resources Ltd. and are situated approximately one km east of Greystar Resources Ltd.’s Angostura gold-silver deposit. The larger exploration concession of 3,596.9 hectares adjoins Greystar’s property to the south.
Hardshell Property, Arizona
The Hardshell Property is located in the Patagonia Mountains, approximately 100 kilometers southeast of Tucson, Arizona (the “Hardshell Property”) and is comprised of eight patented mineral claims aggregating approximately 135 acres and 26 unpatented mineral claims aggregating approximately 486 acres. Asarco acquired the Property in 1940. Between the mid- 1960s to the 1980s, Asarco drilled 104 percussion and core holes with an aggregate length of 13,088 meters. As reported by Wardrop Engineering Inc. in their Technical Report dated May 6, 2005, Asarco has conducted several resource estimates with the most recent in 1984, outlining approximately 66,000,000 ounces of silver within a historical resource estimate of 9,596,000 short tons, grading 6.94 ounces per ton silver, using a cutoff of 1.5 ounces per ton silver. The resource was estimated to also contain lead, zinc and copper. Wardrop considers the historically estimated silver content is considered to warrant classification as an “inferred resource under National Instrument 43-101 (“NI 43-101”) standards. The company plans to complete the necessary work to arrive at an updated compliant NI 43-101 resource statement on the Hardshell Property.
In May 2005, the vendor of the Hardshell Property contracted Washington Group International Inc. and Hazen Research to test SO 2 leaching of the ore to dissolve the copper, zinc and lead minerals and liberate refractory silver. At Hazen’s research facilities two composite samples were prepared from assay pulp solids from cores provided by Asarco for the testing. The SO2 leach test was deemed very successful, with recovery rates of 85% for silver, 95% for zinc and copper. Based on this analysis and test work on the leach solution and solids, it appears that the silver may be recovered using standard carbon leach operation. The copper and zinc is recoverable using separate SX-EW operations for each metal.
On behalf of the Board of Directors,
Donald B. Clark
Interim President, Director and CFO
The TSX Venture Exchange has neither approved nor disapproved the contents of this press release.