Delta Mutual Project Development Updates
SCOTTSDALE, Ariz., Sept. 21 /PRNewswire-FirstCall/ — DELTA MUTUAL, INC. (OTC Bulletin Board: DLTZ) – an international company specializing in energy (i.e.: oil, gas and mining) announced today that the drilling phase of the procedure in Guemes exploratory well site in Salta province has been completed and deemed successful. The well reached a depth of 549 m. after entering in the target formation — Yacoraite. Delta’s wholly owned subsidiary, SAHF Argentina, has carried out this drilling plan in conjunction with local suppliers including: M-I Swaco (a Schlumberger company), Geominera Vespucio for lithology sampling and Baker-Hughes International for the wire line-conveyed well logging. In mid-August, the well manifested positive traces of natural gas and hydrocarbons (oil) of low-density quality through the sampling analysis. The well is in its completion phase, which will take approximately 4 to 5 weeks.
After a “Production” license application submitted by the Company in June, the Secretary of Energy informally suggested that the site’s status was favorable which should expedite the Company’s receipt of the license. The Company expects the permanent license document in late September.
Jollin and Tonono
Delta Mutual, Inc. also announces that its recent government approval of its admission into and participation in the JV partnership of Jollin and Tonono oil and gas sites has provided Delta further rights regarding the proven reserve documentation. In the certificate of proven reserves prepared by the Joint Venture Seismic Program taken place in Jollin by the Service Company Wicap-Western Geco, the Company will be included in the report of proven reserves to the Secretary of Energy. This event will take place after the Seismic Report conclusion estimated in the fourth Quarter 2010. The Company tested one well in late 2009 in the Jollin Area named Jollin 2 that had an output rate average of 1,000,000 meters cubed/day of gas.
Tartagal & Morillo
The Morillo Area Seismic and Data Processing including area cut, leveling and topographic calculations for source and reception of the seismic data was performed as planned in the contract terms signed in December, 2009 between Wicap and New Times Energy from Hong Kong. The Joint Venture expects the conclusions of the study in the fourth quarter of 2010. The investment made so far exceeds $21,000,000 USD. Delta maintains its 9 % property rights in both areas in the “carry-over” mode for the complete investment program.
Cachi Coltan (Columbus -Tantalum) Project
The Company is pleased to announce that it has entered into an agreement with Enrique Vidal and Ansotana SA (vendors) wherein Delta has been granted the exclusive option to acquire up to 51% in direct interest in the Ansotana Tantalum Project in the east central region of Salta Province. The Ansotana property consists of three mines that produced Tantalite and Columbite in 1940 and 1950. The mines Tres Tetas, El Quemado and Penas Blancas host the largest Tantalite and Columbite deposits in the country and covers approximately 150 kilometers squared. The Tantalum Project is underlined by basement rocks and was producing Tantalum and Columbus for export using basic manual labor. Delta intends to rapidly advance the property to the production stage; currently, an exploration task force with geologists and engineers is working in the Santa Elena concession in order to establish the spots for subsequent drilling and trenching stages.
The price of 60% Tantalite (Ta(2)O(5)) in 1973 was $15/kg; in 2009, the price of 60% Tantalite (Ta(2)O(5)) in the London Metal Bulletin rose to $100/kg. The global demand of Tantalite is steady and firm due to its applications to electronics and wireless technology.
Delta Mutual, Inc. also announces that after the sample results taken from the Casabindo River of 1.022 g/Lt of B(2)O(3) and the results from the Doncella River of .025 g/Lt of B(2)O(3), an agreement was reached with Recursos Mineros SA, a local company, to obtain detailed geological, structural and alteration mapping for at least two drilling samples. The geological process in the area that identifies the higher amplitude, basin center and flat-lying events (salts) shows that they are the most probable targets with high saturated brines. The drilling event is planned for the next 30 years and awaiting for favorable climate conditions in the area. We are currently negotiations with parties for the sale of a fraction of the property.
Forward Looking Statement
This Press Release contains forward-looking statements that involve risks and uncertainties, which may include statements about business strategy and development plans, plans for entering new business, anticipated sources of funds, including proceeds from future operations and plans, objectives, expectations and intentions contained in the Press Release that are not historical facts such as “estimated gross”…prospective resources, total potential revenue, substantially exceeds, etc. “Because these forward looking statements involve risk and uncertainties, actual results could differ materially from those discussed in this Press Release. These risks are outlined in our SEC filings.
SOURCE Delta Mutual, Inc.