Tarsis Resources Ltd. ("Tarsis" and "the Company") was notified on December 18th, 2013, that Osisko Mining Corporation, (the "Partner") who agreed to option out the Erika Gold Project in Guerrero State, Mexico, will not be continuing with its option to explore at the Erika property and Tarsis will maintain its 100% ownership of the project.
The return of the property at this time was unexpected by Tarsis considering the Partner was drilling on the property in November and December, 2013 and Tarsis personnel visited the project and saw two drills on site on November 26th and 27th.
During the option period, work completed included detailed geological mapping and geochemical sampling over the summer of 2013 and specific drill targets were identified in addition to the drill targets already identified and recommended by Tarsis. A preliminary drill program was completed in the fall of 2013 and was planned to be 3,000 meters and 8 holes. Tarsis does not yet received the assays from this drill program.
Under the terms of the option agreement, the Partner had to spend $500,000 on exploration at Erika before February 2014 as part of its earn-in commitment. The final report on work completed has not been received. The Partner spent a total of $339,000 up to September 30, 2013, before the drill program was begun.
Tarsis is in the process of collecting the new data which was assembled on the project. Tarsis plans to assimilate drill results and other data collected, and determine the most effective means to advance the project.
The Erika property is located in the Guerrero Gold Belt and covers approximately 16,000 hectares, located in Guerrero State, Mexico. The property is accessed by paved road via Federal Highway 95, which crosses the eastern boundary of the claims. Acapulco is 150 km south and Iguala is 47 km north of Erika.
On behalf of the Board,
Marc G. Blythe, P.Eng., MBA., President and Chief Executive Officer