VANCOUVER, CANADA and LIMA, PERU — (Marketwire) — 09/02/11 — Rio Cristal Resources Corporation (TSX VENTURE: RCZ)(BVL: RCZ) („Rio Cristal“ or the „Company“) is pleased to provide a corporate progress report including activities at its exploration projects.
Thomas Findley, President & CEO, said, „2011 is an important year for Rio Cristal and we have been active on several fronts to move our projects forward, to add additional projects to our portfolio and to identify a partner with the financial resources to develop our Bongara zinc property.“
Bongara Zinc Project
Rio Cristal-s flagship property is the 18,000 hectare Bongara zinc concessions in Amazonas, Peru. In August, the Company completed a 3,077 meter drill campaign at the Cristal zinc oxide project with good results. This drilling is in addition to 4,229 meters drilled in 2008. The Company will now analyze the complete package of results to determine if there is sufficient data to calculate an economic resource or if additional drilling is necessary.
Highlights of Zinc Oxide Intercepts at Cristal 2011 (see note (1))
At the Florida project in the southern end of Rio Cristal-s concessions, the Company had anticipated drilling in the third quarter of 2011. However, negotiations with the community of Shipasbamba have taken longer than expected and it is likely that drilling will be postponed until 2012. At the Company-s San Jose project in the southeastern part of its Bongara concessions, an agreement has been reached with the Yambrasbamba community and the Company expects to begin drilling in October following the completion of surface exploration and geochemical analysis currently underway.
Both the Florida and the San Jose programs have excellent potential to identify zinc sulfide deposits similar to the adjacent Votorantim Florida Canyon Mississippi Valley Type ore bodies currently under development on Bongara-s southern border. Votorantim Metais continues to aggressively develop those zinc sulfide deposits which trend directly beneath unexplored targets on the Company-s concessions (see Solitario Exploration & Royalty Corp. news release dated 12/21/10).
La Cumbre Copper Project
On November 12, 2010, the Company signed an option agreement on the La Cumbre copper exploration project. Rio Cristal-s preliminary review of La Cumbre indicates evidence of potential zones of bulk-mineable copper oxide mineralization grading in excess of 2% copper. Extensive recent underground workings indicate a possible copper oxide resource at surface which could be rapidly quantified with potential for mineralization extensions. Additionally there is potential for copper sulfide mineralization in a very prospective belt including the Minas Justa ore deposit currently under development hosting iron oxide copper-gold deposits.
The Company filed its permit application with the Peruvian Ministry of Energy and Mines („MEM“) in May and received a short list of questions which it answered within one week. Following a delay of almost two months during an election period, the Company received a second list of questions to which a response has been submitted. The Company is now awaiting issuance of the permit so that it may begin a 3,000 meter drilling program at La Cumbre which should last no longer than two months to evaluate the near surface copper as well as test for extensions at depth where the mineralization remains open.
Other Developments
Rio Cristal maintains an active program of seeking new projects in Peru, principally zinc, copper and gold. A number of projects are under review and the Company is confident that it will increase its portfolio of projects in the coming months.
Rio Cristal-s strategy has always been to identify a partner for its exploration projects. In April it signed an agreement with SinoLatin Capital to act as its financial adviser in China. China is the world-s largest consumer of zinc and the Company believes that the coming shortage of zinc will create even greater Chinese interest in the acquisition of zinc assets abroad. In July, Mr. Eric Bethel, Managing Director of SinoLatin Capital, was named a Director of the Company.
About Rio Cristal Resources Corporation
Rio Cristal Resources is a Canadian corporation focused on the discovery and further development of zinc, copper and gold deposits in Peru. The Company-s shares are listed on the Toronto Stock Exchange, Venture Segment and the Bolsa de Valores de Lima (Lima Stock Exchange).
Information about Rio Cristal Resources Corporation can also be found on the Company-s website, .
This news release includes certain „forward-looking statements“ under applicable Canadian securities legislation. All statements other than statements of historical fact included in this release, including, without limitation, statements regarding potential exploration results, future plans and objectives of the Company are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future results, events and objectives could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from Rio Cristal-s expectations include exploration and other risks detailed from time to time in the filings made by the Company with securities regulators.
This news release does not constitute an offer to sell or solicitation of an offer to sell any securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the „U.S. Securities Act“) or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.
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.
Contacts: For North American Investors: Rio Cristal Resources Corporation Bernie Kennedy 877-489-4440
For Peruvian and Latin American Investors: Rio Cristal Resources Corporation Lucia Cestti (51) (1) 628-5124 extension 102
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