Amerix Precious Metals Reports on Progress on Vila Porto Rico Drilling Program
Tuesday July 4, 9:01 am ET
TORONTO, ONTARIO--(CCNMatthews - July 04, 2006) - Amerix Precious Metals Corporation ("Amerix") (TSX VENTURE:APM - News; FWB:NJG) is pleased to announce progress on its drilling program at the Nova Brasilia (NBSB) target at its Vila Porto Rico Property in Para State, Brazil.
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Through June 30th, 2006, the drill contractor Kluane International Drilling has completed 1,866.4 meters of diamond drilling in eleven holes and all of the holes intersected the target, a five meter thick ultra-mylonite, hydrothermal zone. To date, the drilling has confirmed a five-meter thick zone along a strike length of 700 meters, up to a vertical depth of 160 meters. The initial phase of the drill program, which commenced on April 25th, 2006, is designed to test and confirm the NBSB target along strike and at depth.
Additionally, the target zone has been identified in surface outcrop and garimpeiro workings over a continuous strike length of 900 meters. Based on the structural geology, geochemical results and surface outcrops Amerix estimates that the NBSB target extends for more than 2.5 kilometers.
The Corporation further wishes to announce that subject to regulatory approval it has granted an aggregate of 725,000 incentive stock options to directors, officers and employees of the Company at a price of $0.93 per share and exercisable for a period of five years, expiring on June 30, 2011.
Furthermore, Amerix wishes to clarify details from its press release dated June 23, 2006 ("Amerix Precious Metals Report on NI 43-101 Results"). The relevant paragraphs in the June 23, 2006 press release should have read as follows:
To date, two different resource estimates have been developed for the Ouro Roxo gold deposits. In December 2005, Antonio Carlos Girodo, P.Eng. CREA and Camila Passos, M.Sc. of Mineralium Deposita Consultoria Ltda and Senior Engenharia of Belo Horizonte, Brazil, completed a resource estimate which was filed with the Brazilian DNPM in support of an application for an extension of the exploration licenses for the Vila Porto Rico Properties. Subsequently, on January 24, 2006, Amerix accepted a proposal from SRK (Canada) to prepare a technical report complying with Canadian Securities Administrators National Instrument 43-101 ("NI 43-101") reporting guidelines. SRK nominated a project team consisting of G. David Keller, P. Geol. of SRK (Canada), and, Antonio Carlos Girodo, P.Eng. CREA and Camila Passos, M.Sc. of the SRK Brazil office to complete this work by about the end of March 2006. On April 27th, 2006, SRK (Canada) presented a draft report with an inferred resource estimate of 1.34 million tonnes at a grade of 5.8 g/t containing 252,000 ounces of gold which was substantially lower than the first estimate. The SRK estimate was based on 27 drill holes on sections approximately 100 metres apart, using the inverse distance method and a cut off grade of 1.0 g/t.
In order to reconcile the differences between the estimates, Amerix engaged the services of an independent expert in resource estimation, Mr. Alan C. Noble, Ore Reserves Engineering, a Qualified Person within the meaning of National Instrument 43-101. "Based on significant problems with each of the estimates" Mr. Noble was unable to endorse either of them. Mr. Noble made a number of specific recommendations for the "preparation of a fair, unbiased estimate" related to the interpretation of the Shear Zone, the Mineral Zones, the range of influence of drillhole intersections and the cut-off grade. Amerix Management concurred with Mr. Noble's findings. (For the full Alan C. Noble's report, please visit www.amerixcorp.com or www.sedar.com).
Commenting on the report, John Andrews, President and CEO of Amerix said: "The substantial difference in the estimates, based on the same borehole data and made within four months of one another, defies logic. Nevertheless, drilling continues to proceed smoothly and we are delighted with our results achieved in the field thus far. Moreover, our geologists believe that the potential at Nova Brasilia is superior to the Ouro Roxo deposits and we should expect assay results in August from the initial phase of the drilling program at the Nova Brasilia (NBSB) target. Then, toward the end of the year the Corporation intends to engage Mr. Noble to undertake a reevaluation of the resource".
The technical and scientific information contained in this press release has been reviewed by John Andrews, P.Eng. (Ontario), a Qualified Person within the meaning of National Instrument 43-101. Mr. Andrews is President and Chief Executive Officer of Amerix.
Amerix also announces that it incurred a loss of $0.01 per share for the quarter ended January 31, 2006 and that the unaudited Financial Statements and Management Discussion & Analysis have been completed and are available for review at www.sedar.com/.