Magna Terra Announces Exploration Update On The Boleadora Project

Rhea-AI Summary

Magna Terra Minerals has announced progress from its 100% owned Argentine subsidiary, Atala Resources S.A., regarding the Boleadora Project in Santa Cruz, Argentina. Newmont Corporation's subsidiary, Oroplata, has completed an exploration program covering approximately 55,000 hectares, identifying potential low-sulphidation epithermal gold mineralization. Newmont geologists discovered two new target areas and collected various samples with analytical results expected in Q1 2023. Magna Terra's agreement with Oroplata includes a $1 million payment and a 2% NSR royalty, which can be reduced to 1% for $2.5 million.

Positive

• Completed initial exploration program on the Boleadora Project by Oroplata.
• Identified two new target areas with favorable geological conditions.
• Potential for hosting low-sulphidation epithermal gold deposits.
• Pending assay results expected later in Q1 2023.

Negative

• None.

TORONTO, ON / ACCESSWIRE / January 31, 2023 / Magna Terra Minerals Inc. (the "Company" or "Magna Terra") (TSX-V:MTT) is pleased to announce through its 100% owned Argentine subsidiary Atala Resources S.A. ("Atala") that Oroplata S.A. ("Oroplata"), a subsidiary of Newmont Corporation ("Newmont"), has completed an initial exploration program on the Boleadora Project. The Boleadora Project ("Boleadora") is a large greenfields exploration land package (~55,000 hectares) encompassing 12 individual Manifestacion de Descubrimientos or exploration licenses situated 17 kilometres southeast of Newmont's Cerro Negro mine area in Santa Cruz Province, Argentina (Figure 1).

According to Newmont geologists, Boleadora is underlain by extensive Jurassic volcanic sequences that include welded pumice crystal-rich rhyolitic ignimbrites cut by bimodal subvolcanic domes. Main structural trends include northwest, north-northwest, and east-west corridors with chalcedonic and opaline silica veins with massive textures up to one-metre wide and silica sinter up to 50 metre by 50 metre exposures that might correspond to shallower levels of low-sulphidation epithermal system (Figure 2). This geology is favourable for hosting low-sulphidation epithermal gold mineralization.

As part of the exploration program, Oroplata recently collected 134 drainage samples covering main geological areas and collection of 51 rock grab samples* in areas of hyperspectral anomalies (Figure 3). Samples were delivered to Caleta Olivia - ALS prep facilities in Santa Cruz. Analytical results are pending for these samples.

Also, hyperspectral measurements will be taken at the lab to refine current spectral responses and products.

During fieldwork, Newmont geologists, recognized at least two new target areas (Targets A and B) at the northern edge of the property (Figure 3) that host associated silica structures with crackle breccia channels following the main structural corridors with subtle favorable hyperspectral responses.

Project Highlights

• Large land package comprising ~55,000 hectares;
• 17 kilometres along strike from Newmont's Cerro Negro Mine;
• Geological environment with potential to host low-sulphidation epithermal gold deposits;
• Recognition by Newmont geologists of two target areas for follow-up exploration; and
• Assays are pending and expected later in the first quarter of 2023.

* Note: "grab and float samples" are selected samples and are not necessarily indicative of mineralization that may be hosted on the property.

"We are very pleased that Newmont has completed this exploration field program at Boleadora. Their initial work supports the existence of a geological environment that is favourable for hosting low-sulphidation epithermal gold deposits in north-northwest structural control along strike from Cerro Negro, including two new areas that host silica structures and crackle breccia. We look forward to further results from Newmont's exploration efforts and are pleased with their advancement of the project to date. The trend associated with the north-northwest structural control that is an important geological feature to mineralization at Cerro Negro continues well into the Boleadora project area. The potential to delineate mineralization along this trend and identify additional similar structures within the Boleadora property is what attracted Newmont to Boleadora; that along with its close proximity to the existing infrastructure at Cerro Negro. With the geological knowledge Newmont has gained through exploring and mining Cerro Negro, we are confident that the application of this knowledge and their proven exploration techniques will add significant value to the Boleadora Project, and ensure that it is advanced in the near term."

~ Lew Lawrick, President and CEO, Magna Terra Minerals Inc.

Figure 1: Location of Magna Terra exploration Projects in Santa Cruz Province, Argentina.

Figure 2: Boleadora generalized geology with structural interpretation at district scale (courtesy Newmont).

Figure 3: Left: Total samples taken at Boleadora and Targets A & B locations. Right top and bottom: silica alteration and crackle breccia showings in these areas.

Boleadora Purchase Agreement

Magna Terra entered into a Purchase Agreement with Oroplata (Newmont) (see press release dated June 9, 2020) that will pay Magna Terra (Atala) US$1 million as follows: US$25,000 on signing and six installments totalling US$975,000 payable (US$75,000 paid) within six years from the date of the Agreement. In addition, Newmont (Oroplata) has granted a 2% NSR to Magna Terra (Atala) on the Boleadora package. The royalty can be reduced to 1% by payment of US$2.5 million by Oroplata to Atala at anytime, and the gross royalty payable is capped at US$20 million.

Qualified Person

This news release has been reviewed and approved by David A. Copeland, P. Geo., Chief Geologist with Signal Gold Inc., a "Qualified Person", under National Instrument 43-101 - Standard for Disclosure for Mineral Projects.

About Magna Terra

Magna Terra Minerals Inc. is a precious metals focused exploration company, headquartered in Toronto, Canada. Magna Terra owns two district-scale, resource stage gold exploration projects in the top-tier mining jurisdictions of New Brunswick and Newfoundland and Labrador. Further, the Company maintains a significant exploration portfolio in the province of Santa Cruz, Argentina which includes its precious metals discovery on its Luna Roja Project, as well as an extensive portfolio of district scale drill ready projects available for option or joint venture.

Forward Looking Statements

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 release.

Cautionary Statements Regarding Forward Looking Information

This news release contains forward-looking statements and forward-looking information (collectively, "forward-looking statements") within the meaning of applicable Canadian legislation. All statements in this news release that are not purely historical are forward-looking statements and include statements regarding beliefs, plans, expectations and orientations regarding the future including, without limitation, the ability of the Company to file a report that complies with Regulation 43-101. Although the Company believes that such statements are reasonable and reflect expectations of future developments and other factors which management believes to be reasonable and relevant, the Company can give no assurance that such expectations will prove to be correct. Forward-looking statements are typically identified by words such as: "believes", "expects", "anticipates", "intends", "estimates", "plans", "may", "should", "would", "will", "potential", "scheduled" or variations of such words and phrases and similar expressions, which, by their nature, refer to future events or results that may, could, would, might or will occur or be taken or achieved. In making the forward-looking statements in this news release, the Company has applied several material assumptions, including without limitation, and the ability of the author of the Technical Reports to finalize same.

Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to differ materially from any future results, performance or achievements expressed or implied by the forward-looking information. Such risks and other factors include the inability of the Company to execute its proposed business plans, and carry out planned future activities. Other factors may also adversely affect the future results or performance of the Company, including general economic, market or business conditions, future prices of gold, changes in the financial markets and in the demand for precious metals, changes in laws, regulations and policies affecting the mineral exploration industry, and the Company's investment and operation in the mineral exploration sector, as well as the risks and uncertainties which are more fully described in the Company's annual and quarterly management's discussion and analysis and in other filings made by the Company with Canadian securities regulatory authorities under the Company's profile at www.sedar.com. Readers are cautioned that forward-looking statements are not guarantees of future performance or events and, accordingly, are cautioned not to put undue reliance on forward-looking statements due to the inherent uncertainty of such statements.

These forward-looking statements are made as of the date of this news release and, unless required by applicable law, the Company assumes no obligation to update the forward-looking statements or to update the reasons why actual results could differ from those projected in these forward-looking statements.

FOR FURTHER INFORMATION PLEASE CONTACT:

Magna Terra Minerals Inc.

Lewis Lawrick
President and CEO, Director
647-478-5307
Email: info@magnaterraminerals.com
Website: www.magnaterraminerals.com

SOURCE: Magna Terra Minerals Inc.

View source version on accesswire.com:
https://www.accesswire.com/737290/Magna-Terra-Announces-Exploration-Update-On-The-Boleadora-Project

FAQ

What is the Boleadora Project by Magna Terra?

The Boleadora Project is a large greenfields exploration land package of approximately 55,000 hectares in Santa Cruz, Argentina, with potential for low-sulphidation epithermal gold deposits.

What recent developments occurred at the Boleadora Project?

Newmont's subsidiary, Oroplata, completed an exploration program and identified two new target areas for follow-up exploration.

What are the financial terms of the Purchase Agreement for the Boleadora Project?

Magna Terra will receive $1 million over six years, including $25,000 on signing, with a 2% NSR royalty that can be reduced to 1% for $2.5 million.

When can we expect assay results from the Boleadora Project?

Analytical results from the samples collected are expected later in the first quarter of 2023.