Gitennes To Acquire 100% Ownership Of Tucumachay

 

VANCOUVER, BC - Gitennes Exploration Inc. reported that it has reached an agreement whereby the concessions that comprise the Tucumachay Property are to be transferred to Gitennes in exchange for a sliding-scale Net Smelter Returns royalty on any future gold production. The NSR will apply as follows: 1.25% at gold prices above US$400 per ounce, 1.0% at gold prices between US$ 400 and US$ 330 per ounce, and 0.75% at gold prices below US$ 330 per ounce. The NSR royalty is to be registered in favour of a Peruvian company controlled by Inmet Mining Corporation.

The transfer agreement should be positive for the Tucumachay Project and Gitennes. The new, simplified ownership will remove the encumbrance of a post-discovery dilution due to the claw-back clause in the original option that was in favour of Inmet. Gitennes can now focus on a variety of alternative strategies to capitalize on Tucumachay's exploration upside.

Exploration from mid-2004 to the end of 2006 was funded and conducted by Gitennes under an option agreement with Inmet Mining Corporation. Exploration was suspended in 2007 pending the transfer of the claims to Gitennes. During the exploration period crews collected over 1,830 rock samples (of which 1,700 are chip channel samples over an aggregate distance of over eight kilometres) as well as 1050 soil samples, and 367 MMI samples, completed 25 line kilometres of I.P. and VLF-EM surveys, and drilled 1,984 metres in 19 core holes and 1990 metres in 28 reverse circulation holes. Despite the amount of work completed to date the property is underexplored, particularly in light of current strong bullion prices.

The Tucumachay Property covers a large area of limestone-hosted gold mineralization similar in grades, appearance and mineralogy to the famous "Carlin deposits" in Nevada. At Tucumachay higher grade gold mineralization is found in zones of silicified limestone along fractures, faults and against a thrust and folded regional-scale contact with younger shale and sandstone. A number of showings have been found in outcrop and a combination of systematic rock-chip sampling and soil geochemical surveys within an area that is 7,000 metres long by up to 4,000 metres wide. Within this large area, individual showings can be traced through outcrop sampling and drilling over lateral distances of 100 to 500 metres, and are up to 40 metres true thickness.

The company’s address is Suite 2390 - 1055 West Hastings Street, Vancouver, BC V6E 2E9, (604) 682-7970, fax: (604) 608-9014, email:[email protected].