09/20/2004
Everton Acquires Rights On Gold Prospecting Permits Covering 70,400 Hectares In Uruguay, South America
Everton Resources Inc. (EVR, TSX-V) is pleased to announce that it has signed agreement to acquire the option to purchase up to 100% of the shares of DelcoSur S.A., a Uruguayan-based mineral exploration company.
DelcoSur S.A. is a privately held company dedicated to the exploration and development of gold deposits in Southern Uruguay. DelcoSur has acquired exclusive rights to all geologic information of Compania Minera San José S.A. This dataset covers the entirety of the Florida Greenstone Belt and includes geologic and geochemistry field data and several airborne geophysical surveys. This data was recently compiled for the first time ever into computer based GIS environment and the resulting geologic picture indicates a classic and strongly gold anomalous greenstone belt with many of the physical characteristics of the productive greenstone terrains found in Canada, Australia and Africa. The Florida Greenstone Belt, which measures minimally 250 km long and varies from 5 to 30 km in width, is one of the most under explored gold anomalous sequences of its kind in the world.
The private company has filed applications for prospecting permits covering 70,400 Ha. of highly prospective ground with potential for hosting high-grade orogenic lode gold style deposits. The land package contains the majority of the anomalous gold drainages in the belt based upon on proprietary regional stream sediment geochemical survey of nearly 2,000 samples. Re-evaluation of past work at several prospects yielded new and fundamentally different exploration models. This has identified several advanced exploration targets. Included in this is the Nueva Helvecia prospect with surface trenching values to 30.7 g/t Au over 8.45 metres. The values of these prospects were verified by Everton during the geological due diligence process.
Everton has the option to acquire up to 50% of DelcoSur’s shares in exchange for a cash payment of US $60,000, the issuance of 1,250,000 shares with a 2-year exercisable full warrant per share, and a work commitment of US $2,550,000, over a period of three years from the effective date of the agreement. Everton may increase its shareholding in DelcoSur to 70% by funding an additional amount of US $1,000,000 for work commitment and issuing 1,500,000 additional Everton shares. Finally, Everton may increase to 85% its participation in the private company by funding a bankable feasibility study and issuing an additional 2,000,000 Everton shares. Upon a production decision, DelcoSur’s shareholders will have the option to contribute their proportionate share of funding, failing which their interest will be converted to a 2% NSR, one-half of which can be bought by Everton for 5,000 Troy ounces of gold or an equivalent in cash.
“Everton is pleased to team up with the Delcosur group in Uruguay. Their wealth of knowledge and experience will speed up the potential for multiple gold discoveries in this large under explored greenstone belt” says André Audet, Chairman and CEO of Everton Resources.
Uruguay is a democratic republic inhabited by 3.4 million citizens of whom 1.5 reside in Montevideo, the capital city. Uruguayan people enjoy a relatively comfortable lifestyle with the highest GDP and the literacy rate (98%) in Latin America. The rural community is agriculturally driven, while Montevideo is a progressive business center for light manufacturing, import/export, varied service industries and a robust banking community (ref.: CIA World Factbook, 2004). Uruguay was a founding member of Mercosur, the free trade zone with Brazil, Paraguay and Argentina.
Everton plans to begin the exploration work in the Florida Greenstone Belt this fall with an aggressive sampling, ground geophysical, trenching and drilling program on the Nueva Helvecia prospect which is at the most advanced stage, and a systematic integrated exploration program on the other six concessions. Everton will benefit from the DelcoSur’s team of experienced professionals in conducting exploration work, namely Dean K. Williams, professional geologist and vice-president exploration of DelcoSur, who most recently, was Senior Geologist for Barrick Gold Corp. in Argentina and Chile. Marc L’Heureux, P. Geo., Vice-President Exploration of Everton will act as the Qualified Person (NI 43-101) for this project.
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The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release. The Company’s Shares are listed on the TSX Venture Exchange and trade under the symbol “EVR”.
For more information, please contact
Andre Audet
Chairman and CEO
[email protected]
Tel: 613 769 1248 Fax: 613 241 6005
www.evertonresources.com
or
Dwane Brosseau
Manager of Investor Relations
[email protected]
Tel: 604 662 4955 Fax: 604 662 498
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