Arco Completes Tres Hermanas Property Option to Zodiac
March 22 2011 - 8:00AM
Marketwired Canada
Arco Resources Corp. (TSX VENTURE:ARR) ("Arco" or the "Company") announces that
the Company has now signed a definitive option agreement (the "Option") for the
Tres Hermanas claims (the "Property") with Zodiac Capital Ltd., an Australian
company ("Zodiac"), subject to TSX Venture Exchange approval. This announcement
follows Arco's news release of January 18, 2011 concerning its access agreement
with the community at Rio Dulce, and its existing letter of intent with Zodiac.
Pursuant to the terms of the Option, Zodiac will incorporate and fund a Mexican
subsidiary ("Zodiac Mexico") that will earn a 90% interest in the Property over
a three-year period in consideration for total cash payments of US$500,000.
Zodiac Mexico will be required to perform a minimum of US$1.5 million in
exploration expenditures on the Property over the three-year term of the Option.
The remaining 10% interest in the Property will remain with Arco as a carried
interest. Zodiac may elect at any time during the term of the option to purchase
Arco's 10% carried interest in the Property for US$1,000,000. In addition, Arco
will receive shares of Zodiac Mexico, having a value of US$250,000, concurrent
with Zodiac Mexico's listing on the Australian Stock Exchange or such other
stock exchange as Zodiac may determine. Finally, Arco will receive a 1% net
smelter royalty on any production from the Property.
Tres Hermanas Property
The Property consists of the Tres Hermanas 1 and Tres Hermanas 2 claim blocks,
which have areas of 500 and 900 hectares respectively, and the Khulan claim
block of 2310 hectares.
The Tres Hermanas property covers a silver-lead-zinc-bearing vein system that
has historic underground workings on five levels along a 400 metre strike.
Previous underground sampling showed local values greater than 500g/t of silver.
In addition, chip samples taken included values as high as 764.5 g/t of silver
and 10.4% lead across 1.5 metres. Regional soil sampling has indicated the vein
system continues along strike in both directions. The vein system shows widths
of one to two metres with a lower grade shell upwards of 15 metres wide.
Paul Cowley, P.Geo. and Chief Geologist for Arco Resources Corp., is the
Qualified Person, as defined in National Instrument 43-101, who has reviewed and
approved the technical content of this news release.
About Arco Resources
Arco holds a 100% interest in seven mineral claim blocks, all located in the
State of Oaxaca, Mexico. The Company has begun to focus its efforts on its
Taviche and Predilecta claim blocks, each of which has had historical production
of gold and silver. The Company has optioned its Lachiguiri, Silacayoapan and
Nino Perdido properties to Argentum Silver Corp., and has optioned a 90%
interest in its Tres Hermanas property to Zodiac Capital Ltd. For further
information on the Company please go to www.arcoresources.com. Follow Arco on
Facebook.
On behalf of the Board of Directors of Arco Resources Corp.
Warren McIntyre, President and Chief Executive Officer
Arco Resources Corp.