Aug 25 2014
Meryllion Resources Corporation ("Meryllion" or the "Company") announced today that following the receipt of the NI 43-101 report completed on the Cerro Amarillo Copper Molybdenum Gold Project in Mendoza, Argentina, the Company will devote its focus and resources to its further development. As such, the Company will terminate one of four option agreements pertaining to its Providencia Silver Project located in Jujuy Province, Argentina.
Following the encouraging results from its 2014 exploration campaign at Cerro Amarillo, the Company is terminating the option agreement at Providencia that contained the most expensive option payment terms. The option agreement being terminated covers the Providencia, Nueva Providencia and Tola mineral properties of the Providencia Project which contains the inferred resource estimate. Although the ground being dropped does contain an inferred resource estimate, the cost and development profile did not fit with the Company's strategic direction.
For strategic reasons, the Company is maintaining its interests in the Olaroz Chico, Libertad, Panizos, Nazarena, Cerro Galan, Coyaguaima and Coranzulí grounds of the Providencia Project as well as grounds covered in a separate license application in the general vicinity. See figures 1 and 2 for a map that sets out the location of the various mineral properties.
"The decision to drop the La Providencia, Nueva Providencia and Tola properties comes following a strategic review of the Company's operations. Given the potential for the Cerro Amarillo project area to host multiple deposits, we have decided to focus our energy and resources on the continued development of Cerro Amarillo," commented Meryllion's CEO Terry Krepiakevich. "We retained certain ground at Providencia given their strategic location and low carrying costs. The move to drop the La Providencia, Nueva Providencia and Tola grounds will save the Company US$825,000 in option payments over the next two and a half years."
Meryllion's program at Cerro Amarillo is being supervised by Willem Fuchter, PhD P. Geo and CEO of Meryllion's subsidiary in Argentina. Dr. Fuchter is a Member of the Association of Professional Geoscientists of Ontario ("APGO"), and is a qualified person in accordance with National Instrument 43-101 Standards of Disclosure for Mineral Projects. He has approved the data disclosed in this news release.