Casablanca Mining acquires option in Chile

CASABLANCA MINING (OTCQX: CUAU) announced that its wholly-owned subsidiary, Santa Teresa Minerals, S.A., has acquired the option to purchase 80% of the Las Palmas gold mine in Chile. Santa Teresa has the right to mine the property during a one-year option period. The Company may continue to make purchase payments over a period of 30 months to acquire Las Palmas or decline to purchase the property.

The Las Palmas Property (“Property”) is located in IV Region Coquimbo, Choapa Province, Chile. The property consists of 2 non-contiguous surveyed blocks totaling 158 hectares. The first block, Keyla Uno, consists of 20 surveyed exploitation concessions. The second block, Keyla Dos, consists of 34 surveyed exploitation concessions. The current owner built an access road on the south end of the property. This access road exposed outcrops of silicified sandstones, which are strongly fractured with an abundant presence of hematite and limonite black oxides, substances commonly associated with the presence of gold. The central part of the property has an alluvial cover.

“We are very excited about the potential of the Las Palmas gold property, said Juan Carlos Camus, Casablanca’s CEO. “We will begin additional geological work immediately and deploy our people and equipment onto the property to begin mining in the next 60-90 days,” he added.

Based on the geological projections, it appears the historical India Central claim and the India North claims potentially lie within the Las Palmas property. The India vein zone approximately parallels the Chamuscada Mine (adjacent property). The Chamuscada Mine is one of the oldest mines in the district which began work over 200 years ago. It is situated on a pronounced vein that runs through the Las Palmas Property. The vein is composed of ferruginous quartz that is 1.5 meters wide and enriched with lead and visible gold. To the West the vein is formed with quartzite, also called Farrellon, and is about 10 meters wide containing an average grade of 10 g/t Au. The India Central claim zone has one vein of 47" (120 cm) width. It has been developed with four tunnels to a depth of 330' (100 m), and length of 390' (120 m). There is a shaft that is 15m deep where massive pyrite 1.2m wide was assayed at 30 g/t Au in 1897 - 1899.

A geological study performed in 1932 showed at least 20 veins on the Property, the longest of which outcrops tor 22,960' (7,000 m). Widths of these veins vary from 6" (15 cm) to 47" (120 cm) and reported assays range from trace Au to 852 g/t Au, with an average of 47 g/t Au. The Chamuscada vein is 40" (1 m) to 390" (10m) in width, with a silicified footwall whose assays reportedly average 20 g/t Au.