Rio Cristal Resources- Zinc Exploration in Peru
Overview
Rio Cristal Resources Corporation (TSXV:RCZ, BVL: RCZ) is a Canadian based junior mineral exploration company focused on the discovery and development of zinc and copper deposits in Peru. A particular company strength is the experience of its Board of Directors that have a well-documented record of success in the mineral exploration industry, with a specific emphasis on Peru. Rio Cristal’s shares are listed on the TSX, Venture Exchange and the Lima Stock Exchange (Peru).
The Company’s flagship property is the 18,000 hectare Bongará zinc project in northern Peru. Initial drill results have confirmed that the property geology fits the Mississippi Valley-type zinc deposit model, and may be part of a larger district, which is also being aggressively explored by a large Brazilian mining conglomerate. MVT or Mississippi Valley type deposits are named after the area of the Mississippi Valley in the central United States, where a great number of mines producing both lead and zinc have occurred over the past 100 years. MVT deposits are part of a larger group of sedimentary carbonate-hosted deposits, all of which contain zinc. Rio Cristal is completing a second drill campaign in 2011 and results are pending.
To strengthen its position in Peru, the Company is constantly evaluating new zinc, gold and copper projects. As an example, the La Cumbre copper oxide project new Chala, Peru is currently being drilled and results are expected before the end of 2011. The Company expects to always have five or six projects under review at any one time.
Investment highlights:
- 18,000 plus hectares in a newly identified MWT (Mississippi Valley Type) zinc district: the company’s Bongará concessions fall within this region
- Adjacent to Votorantim’s high-grade advanced zinc exploration project at Florida Canyon
- Newly acquired and highly prospective IOC (Iron Oxide Copper)target
- Strategic partnership with SinoLatin Capital engaged in procuring joint venture funds from Chinese venture capital
- China’s investments in Peru are in excess of 10 billion dollars and are almost entirely in the mining sector
- An improving world zinc market
Chief Projects
Bongará Project
The property is located approximately 740 km north of Lima, Peru and 245 km northeast of the coastal city of Chiclayo within the mountainous region of the
Eastern Cordillera of the Amazonas Department, and covers a total of 18,413 hectares, consisting of 26 contiguous mining concessions. Four exploration projects have currently been identified within the Bongará claim block: Cristal, Alto Cristal, San Jose and Florida. Rio Cristal has multiple drill targets within the claim block, and is actively exploring to identify further targets for the San Jose and Florida claims.
Cristal & Alto Cristal Project
The Company’s initial exploration project at Cristal where multiple zinc oxide and zinc sulphide outcrops have been identified over an area estimated to be 2,000 meters by 1,000 meters. Zinc oxide outcrops at Cristal appear to be similar to the high grade zinc found at Cementos Pacasmayo’s Mina Grande Project. The Mina Grande project is located 6km along strike from the Cristal prospects. The limestone formation favors MVT (Mississippi Valley Type) zinc deposits in Peru.
Additional zinc sulphide-bearing outcrops suggest possible deep zinc sulphide mineralization at Cristal. One particular feature observed at Cristal is the presence of a sulphide-bearing ore grade rock with a zinc oxide envelope. Drilling commenced at Cristal in mid-2008 and results were excellent. A 4000 meter program began in April 2011 to confirm and build upon the 2008 results. Results from the 2011 drill program are pending completion of a NI-43-101 report on the property.
San Jose & Florida Projects
The San Jose exploration project, located approximately 10km southwest of the Cristal project, was identified based on stream sediment sampling. San Jose target consists of mineralization hosted within the Chambará Formation, which is again favorable to MVT mineralization. At the Florida project, targets follow the same structural control and stratigraphy observed at Votorantim’s Florida Canyon advanced exploration project.
La Cumbre Project
Consists of concessions covering 4,200 hectares located near Chala, in southern Peru at an altitude averaging 1,000 meters. The claims feature both excellent property and infrastructure access; with permitting in place drilling is underway, with more than 1,000 meters completed in 2011.
Other Projects
The company is in the early stages of evaluating six zinc, copper and gold projects in Peru.
Summary
Rio Cristal remains a highly prospective zinc play with adequate cash reserves to undertake further exploration programs on their Peruvian concessions for 2012. Their proven management team has successfully developed several mining properties in Peru.
Management Team
Charles Preble, Chairman & Director - Over forty years of mining experience, and recently served as President/Director of Peru Copper (AMEX,TSX & BVL). Pres./CEO of Southern Peru Copper (NYSE) for fifteen years.
Thomas Findley, President & CEO, Director – Over forty years in mining & exploration. Past CFO at Peru Copper (AMEX, TSXV & BVL); CFO at Southern Peru Copper (NYSE, BVL); Treasurer & Managing Director of Project Development at Asarco Inc.
Dr. Miguel Cardozo, Director - Chairman & Director of Alturas Minerals (TSXV, BVL). 30+ years experience in Peru exploring major projects for Newmont, North, Teck, and others. Exploration team leader during discovery and development of the Yanacocha gold deposit.
Hans A. Flury, Director – Legal of Southern Copper Corporation (NYSE, BVL) Former Chairman Peruvian Mining Society and former Peruvian Minister of Energy and Mines.
Tony Hines, Director – Principal & Sr. VP of Operations at Maple Energy (AIM). Responsible for all oil and gas operations at Maple.
Andrew Swarthout, Director – President & CEO of Bear Creek Mining (TSXV). Former VP of Exploration at Southern Peru Copper Corp. Has over thirty years of success in the mineral exploration industry.
Andrew Swarthout, Director – President & CEO of Bear Creek Mining (TSXV). Former VP of Exploration at Southern Peru Copper Corp. Has over thirty years of success in the mineral exploration industry.
Erik Bethel, Director – Managing Director of SinoLatin Capital. With seventeen years investment banking experience with ChinaVest, Morgan Stanley, JP Morgan and others.
Eugenio Castro, Exploration Manager -More than twenty-five years exploration experience for zinc, copper and gold. Previous experience with Zincore, Barrick, Goldfields and others.
