VANCOUVER, March 1, 2012 /PRNewswire/ - Zimtu Capital Corp.
(TSXv: ZC; FSE: ZCT1) (the "Company" or "Zimtu") is pleased to
announce that the Company and one of its prospecting partners have
signed an agreement with Pinestar Gold Inc. (TSXv: PNS) (FSE: 3PI)
("Pinestar") whereby Pinestar can earn a 100%-interest in a
portfolio of graphite projects in Australia (the "Option").
The combined package is comprised of 11
tenements (the "Optioned Properties") with a total area of 533
km2 located in four different states in Australia. Of the 11 tenements subject to the
Option, three comprise the Munglinup Project in Western Australia, one comprises the Eyre
Point Project in South Australia,
five cover various historical showings located in New South Wales, one covers the Furniss East
Project in Western Australia, and
one covers the Emu Plain project located in Queensland.
For its participation in the transaction, Zimtu
will receive staged cash and share payments from Pinestar as
follows: (i) $12,500 on signing
(paid); (ii) $25,000 and 500,000
common shares on acceptance by the TSX Venture Exchange ("TSXv");
(iii) $37,500 and 500,000 common
shares 12 months from the date of TSXv acceptance; and (iv) 375,000
common shares 18 months from the date of TSXv acceptance; (v)
375,000 common shares 24 months from the date of TSXv acceptance.
Zimtu's prospecting partner will receive cash and share
considerations equal to that of Zimtu. The vendors will
collectively retain a 2% Net Smelter Returns Royalty on the
Property; 1% of which can be purchased by Pinestar for C$1 million. During the period which is 6 months
from the date of TSXv acceptance, Pinestar will complete a minimum
of $100,000 of exploration on the
properties.
The Optioned Properties are located in the main
known graphite provinces in Australia. This includes the Munglinup
region of Western Australia (host
to the Munglinup Deposit of Adelaide Prospecting Pty Ltd.) and the
Eyre Peninsula of South Australia
(host to the Uley Deposit of Strategic Energy Resources Ltd. and
Mega Graphite Inc.).
No recent or systematic exploration program has
been carried out for the exploration of graphite on any of the
Optioned Properties. The Optioned Properties are considered highly
prospective for occurrences of graphite.
MUNGLINUP
PROJECT
The Company considers the flagship property of
the Optioned Properties to be the Munglinup Project. The Munglinup
Project consists of three separate tenements covering an area of
174 km2. The project is located along strike and
contiguous with the eastern and southern sides of the Munglinup
Deposit, which is held by Adelaide Prospecting Pty Ltd. The
Munglinup Deposit contains a reported in-situ historic non-NI
43-101-compliant geologic resource of graphite of 1.47 MT at 18.2%
fixed carbon. This work had identified graphite mineralization of a
length in excess of 500 m and to a depth of 55 m. The Munglinup
Deposit is anticipated to be Western Australia's first commercial
graphite mine. The Munglinup Deposit and the historical estimate
related thereto is separate from the Munglinup Project area which
is subject to the Option, but the Company believes that there is
potential for similar style mineralization to occur within the
Munglinup Project area.
A reconnaissance field program by an independent
consulting geologist has been completed on the Munglinup Project
and samples have been taken where outcropping graphite and float
have been observed. Review of a previously completed
electro-magnetic survey (completed in connection with previous
nickel exploration) shows a significant anomaly to be coincident
with the stratigraphy that hosts the Munglinup Deposit.
The Company anticipates that the results from
this initial program will be available in the near future.
The Company and Pinestar anticipate that future exploration
programs for the Munglinup Project will include:
- Mapping and sampling.
- Geophysical acquisition and EM ground surveys.
- Data compilations.
EYRE POINT PROJECT
The Eyre Point project area is located 15 km to
the north of the Uley Graphite Mine and covers three prospective
areas within 71 km2.
The Uley Graphite Mine is an open-cut graphite
mine at Uley on the Eyre Peninsula, South Australia and has
recently been purchased by Mega Graphite Inc. Uley is recognized as
an area of world class graphite mineralization. The graphite
deposit is part of the Mikkira Graphite Province, one of the
largest coarse flake graphite deposits in the world, containing
disseminated, high-grade flake graphite.
The tenement subject to the Company's Option is
located on the eastern Eyre Peninsula, where numerous graphite
occurrences have been recorded over a 200 km long zone extending
from south of port Lincoln to Kimba.
NEW SOUTH WALES PROJECTS
There are 14 recorded occurrences of graphite in
New South Wales, all of which are in the area covered by the five
tenements subject to the Option, covering a combined area of 228
km2. They occur in two main areas in the New England
Orogen: Undercliff Falls, north of Tenterfield; and Walcha, south
of Armidale.
The most exciting of the projects is the
Plumbago and Winterbourne occurrences. The Plumbago occurrence is
located in the Undercliff Falls area and hosts the Plumbago deposit
where a total of 3000 tonnes has been mined in the past by previous
owners. In the Undercliff Falls area there are nine separate
graphite localities which includes the George Creek, Falls Creek,
Nicklaus, Half Moon, Circular Quay Gully, Hutt Spur
occurrences.
The Winterbourne occurrence contains the
formerly operating Winterbourne graphite mine and is developed in a
north-trending micropegmatite dyke that intrudes granitic stocks of
the Cheyenne Complex, Hillgrove Supersuite.
The dyke is 2 m to 30 m wide and is exposed over
a distance of about 250 m. It contains abundant segregations of
fine-grained graphitic material.
GRAPHITE BACKGROUND
Graphite is one of three forms of naturally
occurring carbon, the others being charcoal and diamond. It is a
black to grey, lustrous mineral that crystallizes in a hexagonal
system, is soft (H = 1-2) and has a specific gravity of 2.1 to 2.2.
Plumbago and black lead are old names for graphite, owing to its
lead-like appearance. Graphite is compressible and malleable, an
excellent conductor of heat and electricity and is highly
refractory — with a melting point of 3650°C. Thermal oxidation of
natural graphite begins at about 300°C, and it is commonly stable
and chemically unreactive at lower temperatures. Natural graphite
is also typically resistant to chemical degradation, thermal shock,
shrinkage and oxidation.
Three discrete commercial types of natural
graphite are recognized: flake (also referred to as crystalline or
disseminated flake); crystalline vein (or lump); and amorphous
(microcrystalline).
- Flake graphite is the most important commercially. The name
refers to graphite that occurs as thin disseminated flakes in
metamorphic rocks.
- Crystalline vein graphite consists of coarse, platy or
needle-like crystals in veins, mainly in Precambrian igneous and
metamorphic rocks.
- Amorphous graphite is massive microcrystalline graphite,
generally derived from thermally metamorphosed coal seams or
carbonaceous sedimentary rocks.
Graphite deposits of commercial interest occur
widely in regionally or thermally metamorphosed sedimentary rocks
and in hydrothermal and metasomatic deposits. There are five
identified deposit types.
- Early magmatic deposits (rare)
- Deposits formed by concentration and crystallization of carbon
(from coal or carbonaceous sedimentary rocks) during regional or
contact metamorphism
- Vein deposits
- Contact metasomatic (skarn) deposits
- Residual deposits
China produces around 70-80% of the world's
graphite. Quality is declining as surface oxide deposits are
depleted resulting in increasing costs as mines go deeper. Supply
suffers from the seasonal closure of mines in northern China over
winter.
The optioned claims were acquired by the Company
and its partners by staking, and were acquired for project
generation. Zimtu, along with its prospecting partners, continue to
evaluate and acquire prospective resource properties to make
available for sale or joint venture. As part of the Company's
business, Zimtu provides mineral property advisory services and
helps to connect companies with mineral properties of interest.
Mr. Andrew Spinks B.App.Sc, Grad.Dip
(Mining), a member of AusIMM, and an independent consultant
geologist, is a Qualified Person as defined in National Instrument
43-101 - Standards of Disclosure for Mineral Projects ("NI
43-101"). Mr. Spinks is a principal shareholder of SRM, and is an
arm's length party to the Company. Mr. Spinks has reviewed and
approved the technical disclosure contained in this news
release.
About Zimtu Capital Corp.
Zimtu Capital Corp. invests in, creates and
grows natural resource companies thereby providing a way for
shareholders to indirectly participate and profit in the public
company building process. The Company also provides mineral
property advisory services helping to connect companies to
properties of interest.
Zimtu Capital trades on the TSX Venture Exchange
under the symbol "ZC" and the Frankfurt Stock Exchange under the
symbol "ZCT1."
On Behalf of the Board of Directors
ZIMTU CAPITAL CORP.
"David Hodge"
David Hodge
President & Director
Phone: 604.681.1568
Neither TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this release.
Statements in this document which are not purely
historical are forward-looking statements, including any statements
regarding beliefs, plans, expectations or intentions regarding the
future.
Forward-looking statements in this news release
include that Pinestar can earn a 100%-interest in a portfolio of
graphite assets in Australia; that in consideration for its
interest, Zimtu will receive staged cash and share payments from
Pinestar, that Zimtu's partner will receive cash and share
consideration equal to that of Zimtu; that the vendors will
collectively retain a 2% Net Smelter Royalty on the property, 1% of
which can be purchased by Pinestar for C$1
million; that Pinestar anticipates that the results of the
initial exploration at Munlinup by a consulting geologist to the
vendors will be available in the near future; that future
exploration programs at Munlinup will include: mapping and
sampling, geophysical acquisition, EM ground surveys, and data
compilations; and that Zimtu with the support of its prospecting
partners will continue to evaluate and acquire prospective resource
properties to make available for sale or joint venture.
It is important to note that actual outcomes and
the Company's actual results could differ materially from those in
such forward-looking statements. Risks and uncertainties include,
but are not limited to, economic, competitive, governmental,
environmental and technological factors that may affect the
Company's operations, markets, products and prices. Readers
should refer to the risk disclosures outlined in the Company's
Management Discussion and Analysis of its audited financial
statements filed with the British Columbia Securities
Commission.
SOURCE Zimtu Capital Corp.
