October 8, 2008
Hidalgo Mining International (HMIT) Announces LOI to Expand Fifa Land Project Ownership
Hidalgo Mining International (PINKSHEETS: HMIT), an innovative mining company headquartered in Port Washington, N.Y., announced today that it recently signed a Letter of Intent to expand the Fifa Land Project ownership to encompass the entire Property under that license, a total of 25 square miles.
Mark Daniel Klok, President of HMIT, stated: "I have finished our discussions and negotiated this Letter of Intent to expand and increase our ownership in the Fifa Land Project within Guinea, West Africa. This deal will increase our property holdings, within this Project, to a total of 25 square miles and help ensure long-term sustainability as our commercial mining operation is implemented. This will allow the company to implement production on the 4 mining blocks outlined in the NI 43-101 completed on the Fifa Project and expand that resource with drilling and additional geological work. Our geologist has indicated that the property has the potential of as much as 2 million troy ounces of reserves within the entire area and we look forward to aggressively completing the work needed to update our NI 43-101 and produce within the existing high-grade mining blocks targeted this season. Despite recent difficulties seen within the financial markets, we remain confident that gold and gold mining equities are extremely undervalued and will trade higher over the near and long term. While the price of gold fluctuates daily, it has been rising more or less steadily since 1999. Adjusted for inflation though, we are not anywhere near the all time high for gold as we saw in the early eighties. With gold prices predicted to continue rising, and the fact that gold stocks have outperformed the price of gold since 2004, we are confident that current conditions present a strategic opportunity for the company and its shareholders to pursue active growth."
ABOUT THE FIFA LAND PROJECT
The Fifa land prospecting permit is located in the northwest corner of the Siguiri Basin, approximately 88 kilometres west of the town of Siguiri and approximately 65 kilometres west of the Siguiri gold mine operation that is owned and operated by AngloGold Ashanti. On May 7, 2003, the Guinean Government granted HMM a prospecting permit for gold and associated minerals over an area that forms a rectangle extending north from the Tinkisso River. This permit was issued for a period of two years and is renewable twice for two years, but each time its surface needs to be reduced by half. The permit has been renewed until April 2009. The Fifa land prospecting permit is bound to the south by the Tinkisso River dredging permit. The Fifa permit area is underlain by finely stratified siltites, argillites and minor feldspathic sandstones typical of continental marine platform deposits and filling up most of the Siguiri Basin and is almost entirely covered with laterite duricrust plateaus, pediments and recent alluvial deposits. Outcrops are rare and mostly saprolitic in nature. Immediately south of the Fifa permit area, the pelitic sequences are cut by lenses and larger bodies of monzogranite and granodiorite of the type recognized throughout the Siguiri Basin. Altered and weathered cobbles of a fine to medium grain rock of basic composition (diabase) have also been observed in the area. The ductile deformation affecting the sedimentary sequences is along a general north-northeast axis. East-west attitudes are also noted south of the projects. The linear pattern of some of the streams draining towards the Tinkisso River in and around the area suggests that north-northeast to north-south and east-northeast to north-northeast structures have affected the rocks. The various orientations of quartz veins and some of the ridges observed on the projects and elsewhere are concordant with these orientations. Evidence of hydrothermal activity is obvious on the projects where extensive quartz veining and kaolinite alteration is pervasive. The free gold recovered from the alluvial deposits on the permit area finds its source in the country rocks. Lateritic processes acting in tropical climates have extensively transformed these rocks. Reconnaissance prospecting and soil sampling around the village of Fifa has highlighted the potential of the permit for both lateritic type and primary gold deposits. Several quartz veins related to hydrothermal activities, often associated with gold mineralization, have been found on the permit. Pits and a trench have been excavated to properly sample one of the veins located south of the village of Fifa. The trench revealed that the vein is part of an extensive hydrothermal veining system similar to the one hosting some of the gold deposits at the nearby Siguiri gold mine. Sampling in this trench returned anomalous gold concentration in the altered wall rocks. The highest value obtained was 13.4 grams of gold per tonne over a 60 centimetre section of the trench.
ABOUT EXPLORATION CONDUCTED BY HAMILTON MINING & MARKETING SARL
Between June 2002 and July 2007, HMM maintained a prospecting crew in the Fifa land prospecting permit area with the objective of testing the potential for economic gold deposits in the alluvial deposits and laterite formations. The fieldwork program, consisting of pitting, soil sampling and trenching, was carried out mainly west and south of the village of Fifa in the eastern section of the permit area. During this time HMM outlined four blocks where previous local mining activity had taken place within the Fifa land prospecting permit area: Kolen-Jima, Kele-Lolou, Siguiri-Sila and Kabine-Bee. HMM estimated that the four areas have a first resource estimate of 488 kilograms (approximately 15,700 ounces) of recoverable gold. A first conservative estimate, based on the data available to date and assuming that 50% of the original ore remains in-situ, inferred that a resource of 1,000 kilograms (approximately 32,000 ounces) of gold could be recovered from the four blocks. A preliminary prospecting program for alluvial gold deposits was carried out on these four blocks. A total of 28 prospecting pits in the alluvial deposits of the Bereko River were excavated. The Kabine-Bee block, located 4.1 kilometres north of Fifa where the alluvial flat of the Bereko River narrows, has been extensively exploited by past artisan operations for at least 500 metres along the course of the river. Along one line, three prospecting pits were excavated at 100 metre spacings. The basal gravel composed of sub-rounded quartz cobbles with minor amounts of pisolitic pebbles in a brownish sandy quartz matrix was reached at depths ranging from 5.6 metres to 9.44 metres under an upward sequence of sand, silt and clay overburden. The thickness of the gravel ranged between 0.27 and 1.16 metres and the calculated grades ranged between 0.2 to 1.97 grams per cubic metre. At the Kele-Lolou block, located east of Fifa, a single pit was excavated on the edge of a large alluvial mining field. The gravel was 1.90 metres thick but the recovered grade was 0.4 grams per cubic metre. At the Siguiri-Sila block, approximately 2.0 kilometres south of Fifa, 14 pits on four lines were completed over an area of about 300 cubic metres that was untouched by the local miners. The average depth to saprolitic bedrock over the area ranged between 5.0 to 9.0 metres with a basal gravel ranging in thickness between 0.5 to 2.0 metres and had a recovered grade range between trace to 7.37 grams per cubic metre with an average grade of 2.18 grams per cubic metre. These results are considered significant and of economic interest but additional prospecting will be necessary to outline larger volume of gravel with similar grades to justify an eventual mechanized operation.
During the prospecting program, several areas with outcropping quartz veins were identified in the eastern portion of the Fifa land prospecting permit area. The veins often formed positive relief and outcrop along the flanks of ridges and hills above the edge of the pediment deposits. The thickness of the veins ranges from 40 centimetres to approximately 1.0 metre. Five of these veins were sampled. Results showed gold content varying from less than 10 parts per billion gold to 250 parts per billion gold. Two samples revealed concentrations of 1.3 grams of gold per tonne over 0.5 metres and 9.5 grams of gold per tonne over 0.7 metres.
HMM also carried out prospecting for gold in eluvial deposits. During the course of HMM's program approximately 500 soil samples were collected at 100 metre spacings from the eluvial deposits and adjoining saprolitic zones over an area covering approximately 19.25 square kilometres and extending along the west bank of the Bereko River and south of Fifa. In the southeast corner of the grid, following the emergence of a significant anomalous area (up to 1,249 parts per billion gold) the sampling grid was reduced to 50 metres around the anomalous sample area. The overall average gold concentration for the entire sample population available was 5.0 parts per billion gold including samples with gold concentration below detection limits of the analytical method of 10 parts per billion gold. Excluding these samples, the average concentration was 139 parts per billion gold with 78% of the samples with concentrations between 10 and 130 parts per billion gold. Gold in soil anomalies were found in each of the sampling grids and were forming relatively scattered but persistent northeast to north-northeast trending zones. These anomalous zones are continuous for several metres along strike.
In April 2004, Pro-Veinor Resources Inc., who had entered into a joint venture agreement with HMM that has since been rendered null and void, engaged an independent consulting geologist to prepare a NI 43-101 compliant evaluation report on the gold potential of the Fifa permit area. This report estimated that the original potential for gold from alluvial gravels of the Fifa land prospecting permit area was approximately 8,400 kilograms of gold or 269,600 ounces.
ABOUT HIDALGO MINING INTERNATIONAL
Hidalgo Mining International (PINKSHEETS: HMIT), an innovative mining company headquartered in Port Washington, NY, strives to increase shareholder value, while implementing aggressive plans to continue targeting near term mining production projects on a global scale. HMIT's management, directors, and advisors hold an abundance of experience and knowledge to implement expansion in this rapidly growing industry.
DISCLAIMER: CAUTIONARY DISCLOSURE ABOUT FORWARD-LOOKING STATEMENTS
The results described herein cannot be guaranteed. The development of any and all of the subject mining claims stated herein is contingent upon multiple high risk factors that must be successfully dealt with in order to achieve the intended results. This release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E the Securities Exchange Act of 1934, as amended and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Statements in this news release other than statements of historical fact are "forward-looking statements" that are based on current expectations and assumptions. These expectations and assumptions are subject to risks and uncertainty, which could affect Hidalgo Mining Internationals' future. Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those expressed or implied by the statements, including, but not limited to, the following: the ability of Hidalgo Mining International to provide for its obligations, to provide working capital needs from operating revenues, to obtain additional financing needed for any future acquisitions, to meet competitive challenges and technological changes, and other risks. Hidalgo Mining International undertakes no duty to update any forward-looking statement(s) and/or to conform the statement(s) to actual results or changes in Hidalgo Mining International's expectations.
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Contact: Mark Daniel Klok Hidalgo Mining International (305) 778-8360 http://www.hidalgominingint.com/
SOURCE: Hidalgo Mining International