MONTREAL, Canada April 13th 2011- Amex Exploration Inc. (AMX: TSX-V) is pleased to announce that Bowmore (BOW: TSX-V) has confirmed the continuation of the option to earn a first 50% interest in Amex 100% owned Chivas (formally named Natora-South) property in Mexico. As such, at the first year anniversary date of the signed option (see PR of 12-07-10) that was on last Friday, April the 8th 2011, Bowmore has delivered on due time a cash payment of $100,000 and 50,000 shares of its capital.
The Property, which is located in the productive Sierra Madre gold belt of Mexico in the Department of Sonora, covers an area of 24,841 hectares and was optioned to Bowmore Exploration ltd (BOW:TSX-V) on April 8th 2010. According to this option agreement, Bowmore can earn an interest of up to 70% of the property and Amex is the operator.
Pursuant to the Option Agreement (the “Agreement”) between Amex Exploration Inc. (“Amex”) and Bowmore Exploration Ltd., whereas Bowmore may acquire from Minerales X-Ore de S.A. de C.V a first 50% interest in the Property and will keep the exclusive rights to explore and develop the Property over the next two years in consideration of the issuance of 150,000 common shares of the Company, a total cash payments of $250,000, participation to a private placement in Amex of $62,500 and incur expenditures in the aggregate amount of at least $1,250,000 on or before the second anniversary date of the agreement. At the end of this period Bowmore will have 60 days where it may elect to acquire an additional 20% of the property by issuing to Amex 100,000 common shares of the Company, a total cash payments of $200,000 and incur expenditures in the aggregate amount of $750,000 within a 24 month period of the election date.
Following an airborne survey executed in May of 2010 and covering 75 square kilometres and a detailed stream survey (heavy mineral concentrate), several structures and target areas were identified by the joint Bowmore-Amex exploration team. A total of 14 targets were established from the magnetic and radiometric survey and most of them have been investigated. Two of which (anomaly no. 3 & 6) correspond to the wide silicified zone (lithocap) reported by Bowmore’s September 24th, 2010 press release. This area of strong to intense epithermal alteration is situated WSW of the historical Piedra Rodante zone and has now been mapped over a strike length of 2,5 kilometres, remaining open toward the SSE and NNW, and can be interpreted to be at least 125 meters thick. This silica cap is in conformity with the general stratigraphy, i.e., striking NNW and shallow dipping toward the WSW. It is hosted by felsic tuffs and rhyodacites which are strongly silicified and/or brecciated and completely flooded by amorphous silica. Three heavy mineral samples collected at the bottom of the slope within a kilometre of the silicified zone returned anomalous gold values of up to 99 ppb Au. Complete assay results of various rock samples (grab & chip) returned arsenic, mercury and antimony anomalous results. Respectively up to 1,110 ppm As, 3 ppm Hg and 145 ppm Sb. The best gold assay returned 146 ppb Au, still indicating that this hydrothermal system that generated the silica cap was gold bearing, but went most probably under boiling leaving most of the gold at depth.
The alteration (micro crystalline silica) and textures (hydrothermal breccias & open space) and assay results are consistent with a “sinter zone” situated above a typical high grade Bonanza-type low sulphidation epithermal mineralizing system (Au/Ag). Locally minor pyrite and hematite is also present. Further observations indicate that the silica cap is thicker toward the north and argilic alteration is also present toward the south-end, which indicate a possible source area for the silica and mineralization. This area coincides with an interpreted discordant NE-SW structure (‘deep seated fault?”). The exploration field work will concentrate in the near future in this target area in order to establish priority drilling target location.
Jacques Trottier, PhD, President and CEO of Amex Exploration inc comments that ‘The discovery of such a huge silica cap that extends for more than 2.5km long with a thickness of more than 100 meters clearly indicates a very important long lasting mineralized hydrothermal event in this area.” Dr. Trottier also adds that “this discovery has clearly convinced our partner to carry on into the second year of their first option agreement and also shows that working with a good partner such as Bowmore, not only allows us to ‘share the risk’ on an exploration ‘grass-root’ project but also allows us to benefit of the synergy of having two teams of professionals that are organizing and executing the field work. I am more than confident that the best is yet to come with the continuation of the field work that should lead us to some drilling in a very near future.”
The company has granted a total of 750,000 options to its directors and officers pursuant to its stock option plan. Each option entitles its holder to subscribe to one additional common shares of the share capital of Amex at a price of $0.25 per share for a period of five years and a total of 125,000 options to two consultants pursuant to its stock option plan. Each option entitles its holder to subscribe to one additional common shares of the share capital of Amex at a price of $0.25 per share for a period of two years. The vesting and hold periods of the stock options are subject to the Policy 4.4 of the TSX Venture Exchange and to the Amex’s incentive stock option plan.
Amex Exploration Inc. is a junior mining exploration company listed on the TSX Venture Exchange whose primary objective is to develop and bring into production viable gold and base metal deposits.
The technical information reported in this news release has been approved by Jacques Trottier, geol., Qualified Person as defined by Canadian NI 43-101
For additional information, contact:
Mr. Jacques Trottier
President and Chief Executive Officer
Tel.: (514) 866-8209
Neither 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 press release