| Absolut Resources Corp. (TSV:ABS) is pleased to announce that the Company has achieved a corporate milestone in qualifying to vest at an initial 60% interest in the Pico Machay Gold Project in Peru. Expenditure associated with the latest campaign of drilling has surpassed the contractual threshold. The Company has simultaneously notified the optionor, Monterrico Metals plc (LSE:MNA), of it’s intention to acquire an additional 15% with plans to spend an additional US$2 million or deliver a mine development plan. To this point Absolut wishes to accelerate engineering studies and scope a feasibility report to evaluate a future production scenario.
Pico Machay is characteristic of a high-sulphidation, epithermal gold system. The geological model has been repeatedly tested and additional drilling continues to delineate and expand the resource base. The Company previously announced an independent preliminary Mineral Resource Estimate indicating an inferred in situ resource of 580,000 ounces of gold at Pico Machay Gold Project (see news release Sept.26, 2005).
Absolut wishes to report the first eleven holes of the 26-hole program Phase IV reverse circulation drill program. Highlights include holes ABS-170 intersecting 77.5m @ 1.14 g/t Au, ABS-171 intersecting 21m @ 1.06 g/t Au and ABS-165 intersecting 28.5m @ 0.91 g/t Au. Results for are tabulated below;
(click here for drill location
map).
Absolut has implemented a quality control program to ensure best practice in chemical sampling and analysis of surface and reverse circulation drilling samples.
Dan Noone, President of Absolut Resources says…“we are delighted to have achieved this corporate goal and be in the position to an initial 60% in Pico Machay. In early 2006 the Company plans to define the scope of work to solicit quotes on a Feasibility Study for the development of what could be a highly profitable heap leach gold operation at Pico
Machay.”
Absolut Resources Corp. is a precious metals exploration and development company based in Toronto, Canada. Absolut strongly believes in an international best practices approach, and implements this on all its social and environmental decisions. Absolut has implemented a quality control program to ensure best practice. The required qualified person for the Pico Machay Gold Project is Mr. Dan Noone who is a member of the Australian Institute of Geoscientists.
This press release contains forward looking statements. The actual results could differ materially from a conclusion, forecast or projection in the forward-looking information. Certain material factors or assumptions were applied in drawing a conclusion or making a forecast or projection as reflected in the forward-looking information.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
For any questions or comments please contact
us directly.
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