Millennial Signs Option Agreement for the Cerro Colorado Ag-Au Project in Pima County, Arizona, USA

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Millennial Signs Option Agreement for the Cerro Colorado Ag-Au Project in Pima County, Arizona, USA

Canada NewsWire

TSXV | MPM

TORONTO, Aug. 23, 2021 /CNW/ - Millennial Precious Metals ("Millennial" or the "Company") (TSXV: MPM) is pleased to announce the Company has completed its evaluation and has entered into a definitive agreement (the "Agreement") with Tri Minerals Holdings Corp., a private party, for properties related to the Cerro Colorado Project ("Cerro Colorado"). Pursuant to the Agreement, Millennial will acquire certain unpatented mining claims and state exploration permits for properties located in Pima County, Arizona. Cerro Colorado is located within a historic silver mining district, 70 km southwest of Tucson and is situated in the widely mineralized porphyry copper belt of southern Arizona and northern Mexico (Figure 1).

Cerro Colorado Property and Agreement Highlights:

  • Option to acquire 100% interest in the Cerro Colorado 4,060-hectare land package.
  • Located in a well-endowed historic Ag-mining district.
  • 4-year term total lease payments of US$500,000.
  • Option to purchase the properties for US$2,000,000.
  • Granting of a 1.0% royalty which can be bought back for US$1,500,000.
  • Along the Laramide porphyry copper belt in Arizona.
  • Ag mineralization within carbonate rich mesothermal quartz veins hosted by Jurassic and early Laramide volcanic rocks.
  • Mineralization believed to be closely associated with porphyry copper intrusions at depth.
  • No post-Laramide (Cenozoic) extensional deformation and dismemberment; copper targets, proposed to be upright and intact.
  • Abundant historic Ag production in the district and the region, oldest mineral claim in the Arizona Territory (1856).

Previous sampling programs returned significant Au and Ag values:

  • 1.53 g/t Au with 17,755 g/t Ag
  • 0.659 g/t Au with 1,595 g/t Ag
  • 0.575 g/t Au with 274 g/t Ag
  • 0.214 g/t Au with 186 g/t Ag
  • 0.211 g/t Au with 406 g/t Ag
  • 0.156 g/t Au with 795 g/t Ag
  • 0.122 g/t Au with 570 g/t Ag
  • 0.104 g/t Au with 712 g/t Ag
  • 1,307 g/t Ag
  • 1,135 g/t Ag
  • 931 g/t Ag
  • 913 g/t Ag
  • 912 g/t Ag

Jason Kosec, Millennial's President and CEO commented "The addition of the Cerro Colorado Project expands Millennial's strategic foothold in the U.S.  to include a high-grade silver project along the Laramide porphyry copper mineral belt in Arizona in addition to its already promising portfolio of gold projects in Nevada. This asset provides Millennial investors greater silver exposure and aligns with the Company's strategy of building a multimillion-ounce, multi-asset development company in the world's top mining jurisdictions. Geologic mapping and rock sampling and permitting process will start soon with the estimated goal of initiating drilling at the project in early 2022".

Cerro Colorado Background

Cerro Colorado hosts numerous historical mining operations that exploited Ag-Au (±Cu)-bearing vein hosted by Jurassic and early Laramide volcanic rocks. District-scale and local alteration patterns indicate potential for porphyry copper intrusive units beneath the volcanic host rocks. Limited historical drilling in intrusive units adjacent to Millennial's areas done by Phelps Dodge and Mine Finders reported weakly mineralized porphyry copper intrusions. Recent academic work in the area suggests a lack of Cenozoic extension and dismemberment in the district, preserving the Ag-Au veins and associated deeper porphyry copper systems upright and intact below older volcanic rocks.

Seven distinct areas of interest comprise the combined land package at Cerro Colorado, which total 219 BLM claims (1,794 hectares) and 5,600 acres (2,266 hectares) of Arizona State Land Department (ASLD) mineral exploration permits. In addition to its rich silver-producing history, the location of Cerro Colorado along the widely mineralized porphyry copper belt of southwestern North America makes the district favorable for porphyry copper exploration. Cerro Colorado is 26 km southwest of the historic Pima Mining District (Figure 2), which contains several active porphyry copper and skarn mining operations.

Previous sampling programs done by the underlying owners returned significant Au and Ag values including:  1.53 g/t Au with 17,755 g/t Ag, 0.659 g/t Au with 1,595 g/t Ag, 0.575 g/t Au with 274 g/t Ag, 0.214 g/t Au with 186 g/t Ag, 0.211 g/t Au with 406 g/t Ag, 0.156 g/t Au with 795 g/t Ag, 0.122 g/t Au with 570 g/t Ag, 0.104 g/t Au with 712 g/t Ag, 1,307 g/t Ag, 1,135 g/t Ag,  931 g/t Ag, 913 g/t Ag,  912 g/t Ag. Millennial notes that the mentioned Au and Ag results correspond to information not publicly released by the underlaying owners and Millennial's Qualified Person (QP) has not done enough work to verify these historical assay results.

Millennial's current portfolio includes Au-Ag projects located in well-endowed and pro-mining areas of Nevada. This transaction expands Millennial into additional resources in similarly recognized areas of Arizona.

Transaction Summary

Under the terms of the Agreement to acquire, Millennial will lease the properties on a 4-year term (total lease payments of US$500,000), following which Millennial will have an option to purchase the properties for US$2,000,000, and the granting of a 1.0% royalty (which can be bought back for US$1,500,000). During the lease, Millennial will have US$1,500,000 in required exploration expenditures. This agreement will be entered into on Millennial's behalf by Millennial Arizona, LLC (a newly formed LLC for the purpose of this transaction). 

Figure 1: Regional location of the Cerro Colorado District (from Mizer, 2018) (CNW Group/Millennial Precious Metals Corp.)

Figure 2. Location of the Cerro Colorado property and adjacent copper mining operations and deposits. (CNW Group/Millennial Precious Metals Corp.)

Figure 3: Ag assays from grab samples and trenching at select locations across the Cerro Colorado District. (CNW Group/Millennial Precious Metals Corp.)

Figure 4: Au assays from grab samples and trenching at select locations across the Cerro Colorado District. (CNW Group/Millennial Precious Metals Corp.)

Addition of Miguel Heredia as VP Exploration

Millennial is also pleased to announce today that Miguel A. Heredia has joined the Company and will be assuming the role of VP, Exploration. Mr. Heredia is a geologist who graduated from the Universidad Nacional Autonoma de Mexico (UNAM) in 1984. He has previously worked for multiple companies in a career spanning more than 35 years, including Compañia Fresnillo (now Fresnillo PLC), BHP Minerals, Minera Aztec (now Endeavour Silver), Peñoles, Fronteer Development Group and Riverside Resources. He also worked as a consultant to Mount Isa Mines, Codelco-Peñoles JV (Pecobre), BHP Billiton, Bluejoint, Agnico Eagle, Sable Resources, among others. He has had the opportunity to work in many parts of Mexico, the United States, Ecuador, Nicaragua, and Peru. Mr. Heredia is President of Gambusino Prospector de Mexico and is also a Certified Qualified Person (QP) by the American Institute of Professional Geologists. Mr. Heredia replaces JD Mizer in the role of VP, Exploration. Mr. Mizer remains an integral member of the Millennial exploration team and will focus on target generation at the Company's key assets moving forward. 

ABOUT MILLENNIAL PRECIOUS METALS LTD.

Millennial Precious Metals (TSX.V:MPM) is a Nevada-based development company focused on unlocking quality ounces through the responsible expansion of its seven gold projects. The Company plans to accelerate the development of its two flagship projects, Wildcat and Mountain View. The Wildcat Inferred Mineral Resource estimate contains 776,000 ounces of Au oxide (60.8 million tonnes at 0.40 g/t gold; effective date of November 18, 2020) and the Mountain View Inferred Mineral Resource estimate contains 427,000 ounces of Au oxide (23.2 million tonnes at 0.57 g/t gold; effective date of November 15, 2020). Each of the technical report titled "NI 43-101 Technical Report Resource Estimate for the Wildcat Project, Pershing County, Nevada, United States", dated November 20, 2020 with an effective date of November 18, 2020 prepared by William J. Lewis, B.Sc., P.Geo., Rodrigo Calles-Montijo, MSc., CPG, and Leonardo de Souza, MAusIMM (CP) and the technical report titled "NI 43-101 Technical Report for the Mountain View Project, Washoe Country, Nevada, USA", dated November 25, 2020 with an effective date of November 15, 2020, prepared by William J. Lewis, B.Sc., P.Geo., Rodrigo Calles-Montijo, MSc., CPG, and Leonardo de Souza, MAusIMM (CP) is available on Millennial's issuer profile on SEDAR at www.sedar.com.

Millennial Precious Metals is led by an experienced management team and board of directors with a proven track record of success in financing and developing mining assets. The Company is well positioned to create value for all stakeholders by applying a systematic strategy to develop all seven gold projects over the next few years.

QUALIFIED PERSON

Leonardo De Souza, P. Geo., is the Qualified Person for the scientific and technical information contained in this press release and is an independent Qualified Person within the meaning of National Instrument 43- 101.

CAUTION REGARDING FORWARD LOOKING STATEMENTS

Certain statements in this news release are forward-looking statements, which reflect the expectations of management regarding the business development objectives and plans of Millennial.

Forward-looking information contained in this news release are based on certain factors and assumptions. While Millennial considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect. Forward looking information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information. Such factors include risks inherent in the exploration and development of mineral deposits, including risks relating to changes in project parameters as plans continue to be redefined, risks relating to variations in grade or recovery rates, risks relating to changes in mineral prices and the worldwide demand for and supply of minerals, risks related to increased competition and current global financial conditions, access and supply risks, reliance on key personnel, operational risks, regulatory risks, including risks relating to the acquisition of the necessary licenses and permits, financing, capitalization and liquidity risks, title and environmental risks and risks relating to health pandemics and the outbreak of communicable diseases, such as the current outbreak of the novel coronavirus, COVID-19.

Further, these forward-looking statements reflect management's current views and are based on certain expectations, estimates and assumptions which may prove to be incorrect. A number of risks and uncertainties could cause the Company's actual results to differ materially from those expressed or implied by the forward-looking statements, including: (1) a downturn in general economic conditions in North America and internationally, (2) the inherent uncertainties and speculative nature associated with mineral exploration, (3) a decreased demand for precious metals, (4) any number of events or causes which may delay exploration and development of the property interests, such as environmental liabilities, weather, mechanical failures, safety concerns and labour problems, (5) the risk that the Company does not execute its business plan, (6) inability to finance operations and growth, (7) inability to obtain all necessary permitting and financing, and (8) other factors beyond the Company's control. These forward-looking statements are made as of the date of this news release and Millennial does not assume an obligation to update these forward looking statements, or to update the reasons why actual results differed from those projected in the forward-looking statements, except in accordance with applicable securities laws.

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.

SOURCE Millennial Precious Metals Corp.

Cision View original content to download multimedia: http://www.newswire.ca/en/releases/archive/August2021/23/c8571.html

Copyright CNW Group 2021

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