NewsCEDAR MOUNTAIN ANNOUNCES LOI ON SIGNIFICANT ZACATECAS, MEXICO PROPERTIESApril 28, 2008 April 28, 2008, Calgary, AB; Cedar Mountain Exploration Inc. (TSX Venture Exchange: CED) (“Cedar” or “the Company”) is pleased to announce that it has entered into two letters of intent (“LOI’s”) with Sterling Mining de Mexico S.A. de C.V (“Sterling”) whereby Sterling has granted Cedar the option to acquire a 100% interest in the Jimenez del Tuel and Venaditas-Chapis properties in the State of Zacatecas in central Mexico. Zacatecas state is host to several world class mineral deposits including the recently discovered San Nicolas (VMS), Penasquito and Camino Rojo deposits. The acquisition of the Jimenez del Tuel and Venaditas-Chapis properties will give Cedar exposure to two exciting new exploration opportunities in addition to its portfolio of gold projects in British Columbia. Jimenez del Tuel Gold project The Jimenez del Tuel project is located at the west-central side of Zacatecas State near the Zacatecas-Durango state border, 130 km due west of the city of Fresnillo. The bulk mineable precious metal target covers some 9,500 hectares centered on a large Tertiary aged intrusive-extrusive volcanic centre, which has intruded Cretaceous aged limestones. Coalescing zones of epithermal hydrothermal alteration covering several square kilometers are present within the project area, and historic small scale mining has exploited precious metal mineralization with associated base metal sulphides from silicified breccias and stockwork silica zones. Jimenez del Tuel lies at the southern end of a trend of Tertiary aged intrusions emplaced within Cretaceous carbonate rocks, which host significant epithermal vein, replacement and skarn type deposits such as the Chalchihuites and San Martin mining districts which have been exploited since the mid 1500’s and are located 20 km and 40 km respectively north of the project area. Venaditas-Chapis VMS project The Venaditas-Chapis claim group lies within the relatively newly recognized Zacatecas VMS district and is about 20 km from, and on trend with the Chilitos Formation hosted San Nicolas VMS deposit. San Nicolas is one of the largest VMS deposits (estimated reserves of 72 Mt at 1.35% Cu, 2.27% Zn, 0.53 g/t Au and 30 g/t Ag, and a copper-rich Lower zone containing a resource of 11.4 Mt grading 1.62% Cu and 0.48% Zn, (Johnson et al, 19991) in the world currently being developed by owners Teck Cominco Ltd. and Goldcorp Inc. The Venaditas-Chapis area is located in an area deemed to be highly prospective for VMS mineralization. Other significant VMS deposits such as Bilbao and Francisco I Madero area also located proximal to the project area. The Venaditas-Chapis project covers approximately 3,900 hectares, and is located 60 km east of the city of Zacatecas, close to the town of Ojo Caliente. The claims cover primarily Jurassic/Cretaceous aged volcano-sedimentary rocks of the Chilitos Formation, host to the San Nicolas deposit, which have been intruded by Tertiary igneous bodies. The Venaditas-Chapis project also host potential for vein, stockwork and skarn type mineralization associated with Tertiary intrusions analogous to the Real de Angeles stockwork deposit located some 20 km east of the project area which hosted a mineral reserve in excess of 75 million tonnes of bulk mineable silver-lead-zinc ore. Cedar is immediately embarking on the completion of a NI 43-101 geological technical reports on these properties and other related due diligence matters. A finder’s fee is applicable on these transactions. The terms to acquire a 100% interest in these projects subject to a 3% net smelter royalty, “NSR”: are as follows:
* Cash payment is the lesser of $425,000 and actual costs incurred by Sterling.
** Cash payment is the lesser of $225,000 and actual costs incurred by Sterling. In addition to the above terms, Cedar agrees to issue an additional one million Cedar shares to Sterling in the event of a take-over of Cedar by an independent third party at a time when the principal asset of Cedar is one of the Sterling properties. Peter Kleespies, MSc., P. Geol., being a Director of the Company, is the Qualified Person pursuant to NI 43-101 that is responsible for the exploration disclosure as set out above. 1 Johnson, J., Montante, A., Kearvell, G., Janzen, J. and Scammel, R., 1999, Geology and Exploration of the San Nicolas polymetallic (Zn-Cu-Au-Ag) volcanogenic massive sulphide deposit, In: Jambor, J.J. (ed), VMS and Carbonate-Hosted Polymetallic Deposits of Central Mexico, B.C. and Yukon Chamber of Mines Cordilleran Roundup, p. 45-54. Completion of the transaction is subject to a number of conditions including, but not limited to, the parties entering into a definitive agreement and Exchange acceptance. There can be no assurance that the transaction will be completed as proposed or at all. THE TSX VENTURE EXCHANGE INC. HAS IN NO WAY PASSED UPON THE MERITS OF THE PROPOSED TRANSACTION AND HAS NEITHER APPROVED NOR DISAPPROVED THE CONTENTS OF THIS PRESS RELEASE. THE TSX VENTURE EXCHANGE DOES NOT ACCEPT RESPONSIBILITY FOR THE ACCURACY OR ADEQUACY OF THIS RELEASE. About Cedar Mountain Cedar Mountain Exploration Inc. is mineral exploration company focused on gold and base metal projects. The companies other assets include the Cedar Creek Gold Property, a bulk tonnage sediment hosted gold target situated immediately adjacent to Skygold Ventures Ltd.’s Spanish Mountain project in the Cariboo region of south-central British Columbia, the Lemon Lake Property, also in the Cariboo region, located 9 km northeast of the village of Horsefly and the Venus Property approximately 16 km northeast of Salmo in south-eastern British Columbia. About Sterling Mining de Mexico S.A. de C.V Sterling Mining de Mexico S.A. de C.V is a private Mexican mineral exploration with significant mineral assets primarily in the State of Zacatecas in central Mexico. Sterling’s majority of shares are owned by Sterling Mining Company, TSX Exchange: SMQ; OTCBB: SRLM; and the Frankfurt Stock Exchange: SMX. Charles Chebry, For more information contact: |
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