Cangrejos Property, Ecuador: NI43-101 Report Filed
June 30, 2004
Vancouver, BC - June 30, 2004: Odin Mining and Exploration Limited (“Odin”) announces that a NI 43-101 report has been filed with the British Columbia Securities Commission with respect to its Cangrejos property in south-western Ecuador.
The Cangrejos property is located in the western foothills of the Andes, 30 km south-east of Machala, Ecuador’s fourth largest city. The irregularly shaped property covers 4756 ha and Odin has held the mineral rights since the early 1990s. From 1994 until 2001, the property comprised part of the El Joven joint venture formed between Newmont Exploration Overseas Limited (“Newmont”) (60%) and Odin (40%).
During the life of the El Joven joint venture, Newmont, as operator, carried out various geological mapping, soil sampling, pitting, geophysical and drilling programmes over both the concessions that comprise Odin’s present Cangrejos property and over other concessions that at the time were controlled by the joint venture, but which are now controlled by other parties. Press releases made during the life of the El Joven joint venture summarized results from the joint venture area as a whole without differentiating between the results from concessions with different underlying ownership.
The current NI 43-101 report deals only with the results of the work that Newmont carried out on the current Cangrejos property during the life of the joint venture and that Odin carried out prior to the commencement of the joint venture. The report was prepared by Mr Michael Potter, MSc, MBA, MIMMM, MAusIMM, a “qualified person” for the purposes of NI 43-101. The report has been filed with Sedar and can be accessed on the internet by searching for Odin’s public company documents in the search database of the Canadian Securities Administrators’ website (www.sedar.com).
The report concludes that the mineralization on the Cangrejos property is of porphyry gold-copper type. Gold occurs with weakly disseminated sulfides (mainly chalcopyrite) associated with large zones of pervasive hydrothermal alteration, brecciation and intrusive andesite developed within a (quartz-) diorite intrusive of presumed Miocene age.
Newmont’s exploration work on the Cangrejos property culminated in 2 800 m of diamond drilling. Drilling under the soil and pit anomalies in the area of the Cangrejos east grid identified two north-east trending zones, Trinchera and Paloma. Each of these zones is thought to have a sub-vertically dipping, tabular form with a true thickness in the range 50 – 100 m and an average grade of about 1 g/t Au and 0.1 % Cu. However, the drilling to date is inadequate to permit the estimation of any formal mineral resource.
The presence of other gold anomalies elsewhere on the property, especially at Dos Bocas on its north-eastern boundary, suggest that the Cangrejos property has potential for the definition of several deposits of low grade gold-copper mineralization with a possible combined tonnage sufficient to support a large-scale, open-pit operation producing a gold-copper-sulphide concentrate. The report proposes a 5000 m scout drilling programme at a cost of about CN$ 2.0 million to test this concept
Odin is currently awaiting results of long term negotiations with a number of adjacent mineral rights holders to enlarge the mineral rights areas under Odin’s control before endorsing this scout drill program. In the interim, the focus is on the Company’s other main area of interest, at Plateado where Odin has committed upto US$250,000 to identify drill ready targets in the most prospective areas.
As at June 29, 2004 Odin has approx. US$845,000 in cash and cash equivalents i.e. not including amounts held in Ecuador against future monthly expenditures there).
Odin Mining & Exploration Ltd. is listed on the TSX Venture Exchange (symbol ODN).
“Stephen W C Stow“
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Stephen W C Stow
President
The TSX Venture Exchange has not reviewed and does not accept responsibility for the accuracy or adequacy of this news release.
Forward-Looking Statements: Statements in this release that are forward-looking statements are subject to various risks and uncertainties concerning the specific factors disclosed under the heading "Risk Factors" and elsewhere in the corporation's periodic filings with Canadian Securities Regulators. Such information contained herein represents management's best judgment as of the date hereof based on information currently available. The company does not assume the obligation to update any forward-looking statement.
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