Affinity Gold Corp. Signs Letter Of Intent To Develop Near-term Production Asset

MAPLE GROVE, Minn., June 13, 2013

About Project Machacala:

The project is a low-sulphidation epithermal gold-silver-copper deposit located in the District of Carabamba, province of Julcan, La Libertad region to the North of Peru, at an elevation of 3,300 masl. The property is approximately 110 miles southeast of the city of Trujillo, capital of the region, and 574 Km of Lima, capital of Peru. 

• Project was most recently explored by Gold Hawk Resources and Meridian Gold between 1997 and 2004 with a total of 8,500m in 45 core and RC drill holes completed.
• Mine has multiple low sulphidation epithermal Au-Ag veins on property of which thirteen (13) have been identified and four (4) have been only modestly exploited where average grades are estimated to be 5 g/T Au and 155 g/T Ag. 
• In 2004, Gold Hawk Resources, Inc. estimated a total inferred resource of over 1,560,000 tons with a gold equivalent of 420,000 ounces for the overall project. (Gold Hawk, 2004)
• 210,000 metric tons of tailings with grades estimated at 1.34 g/T Au and 56.36g/T Ag  (Gold Hawk, 1997)
• Metallurgical studies show 85%+ Au, 50%+ Ag recoveries in 24 hrs. leaching of un-milled tailings. Re-milling (-400 mesh) shows ability to increase recoveries to 90% Au, 73% Ag in 24 hrs. leaching (Corizona, 2012)

According to the terms of the Letter of Intent, Affinity will earn a 60% interest in the joint venture upon the execution of the Formal Agreement and the following obligations being met:

1. a total capital investment of USD $2MM over the course of two (2) years which will be used towards exploration, development and production expenditures.
2. 15M warrants issued over the course of two years in step with the capital investments and project milestones accomplished as responsible for by Corizona.

Additional terms and conditions will be included in the definitive agreement which is expected to be signed by August 31^st, 2013.

About Corizona Mining Partners, LLC

Corizona Mining Partners was founded in 2011 as a junior mining company focused on the acquisition and immediate production of hard-rock and alluvial mining concessions in the Americas.​ Corizona's strategy is built around locating projects that can go into production and generate revenue quickly.