Explorator Resources Inc. is a Canadian-based mining exploration company focused on building a strong portfolio of copper-gold Projects in South America.
Message: Explorator Announces El Espino Project 2011 Program and
Budget of US$14.5 Million and Related Capital Call to Complete Prefeasibility Study and Commence Feasibility Study
TORONTO, ONTARIO--(Marketwire - Jan. 27, 2011) - Explorator Resources Inc. ("Explorator" or the "Company") (TSX VENTURE:EXO) holds an indirect interest in the El Espino project (the "Project") through its partially owned subsidiary, Explorator Resources Chile SCM ("Explorator Chile", 49% owned by Explorator and 51% owned by Sociedad Punta del Cobre S.A. ("Pucobre"), the Operator).
At a shareholder meeting held on the 24th of January 2011, the shareholders of Explorator Chile approved the Project's 2011 Program and Budget. The 2011 Program and Budget totals US$14.5 million and includes the following key activities:
Completion of a Pre-Feasibility Study in Q3 2011;
25,000 meters of diamond drilling for 2011, of which about 30% will be in the core Rachel and Chon Chon zones and the remaining 70% directed in the peripheral zones;
Additional Metallurgical test work;
Other related technical engineering studies;
Advancing Social aspects of the project;
Commence Feasibility Study on completion and approval of the Pre-Feasibility study, scheduled for completion in Q3, 2012;
Environmental Impact Study to be submitted on completion of the Pre Feasibility Study.
In connection with the approval of the 2011 Program and Budget, the shareholders of Explorator Chile approved, by majority vote, a capital call from its shareholders of US$ 16.0 million, of which Explorator's 49% pro-rata share is US$7.84 million. Following the shareholder approval, Explorator and Pucobre have a period of 90 days in which to make their respective contribution, failing which each shareholder may elect to fund, thereby diluting the non-performing shareholder's interest in Explorator Chile.
Explorator plans to meet its share of the capital call through a combination of cash on hand and pursuing additional equity funding during the 90 day funding period. As of November 24, 2010, Explorator had a cash balance of approximately C$4.47 million.
A copy of the release, as well as other information related to the Company, is available on the Company's web site at >www.sedar.com.
EXPLORATOR RESOURCES INC.
David Prins, President & CEO, Explorator Resources Inc.
ABOUT EXPLORATOR RESOURCES:
Explorator Resources is a Canadian-based mining exploration company with a 49% interest in the El Espino Copper-Gold Project in Chile (the "Project"). Sociedad Punta del Cobre S.A. ("SPC") acquired the remaining 51% of the Project in March 2009 in return for an investment of up to US$18.5 million, with US$7.0 million used to exercise the option to purchase agreement on the Project and the remaining funds directed at the continued exploration and evaluation activities.
The Project lies within the prolific copper-gold mineral area of the Cordillera de la Costa, 240 km. north of Santiago. An Updated Preliminary Economic Assessment undertaken by AMEC on behalf of Explorator Resources Inc. (see press release dated Jan 24, 2011) defined the potential for an average annual payable production of 120 million pounds of copper and 61,000 ounces of gold over a 13.5 year mine life (life-of-mine payable production of 1.621 billion lbs copper and 828,000 oz. gold) at an average cash cost for the base case of $1.02/lb, net of gold credits (based on a gold price of $1,059/oz.).
Certain statements contained in this news release may contain forward-looking information within the meaning of Canadian securities laws. Such forward-looking information are identified by words such as "estimates", "intends", "expects", "believes", "may", "will" and included, without limitation, statements regarding the company's plan of business operations, production levels and costs, potential contractual arrangements and the delivery of equipment, receipt of working capital, anticipated revenues, mineral reserve and mineral resource estimates, and projected expenditures. There can be no assurance that such statements will prove to be accurate; actual results and future events could differ materially from such statements. Factors that could cause actual results to differ materially include, among others, metal prices, risks inherent in the mining industry, financing risks, labour risks, uncertainty of mineral reserve and resource estimates, equipment and supply risks, regulatory risks and environmental concerns. Most of these factors are outside the control of the company. Investors are cautioned not to put undue reliance on forward-looking information. Except as otherwise required by applicable securities statutes or regulation, the company expressly disclaims any intent or obligation to update publicly forward-looking information, whether as a result of new information, future events or otherwise.
FOR FURTHER INFORMATION PLEASE CONTACT: David Prins
Explorator Resources Inc.
President & CEO
+56 2 793-4925
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