|May 21, 2009|
Focus Confirms Property Option and Arranges Financing for Graduation to TSX Venture
|May 21, 2009: Focus Ventures Ltd. (TSX-V: FCV.H") is pleased to announce that based on favourable results from its due diligence on the Nueva California gold property located in Peru, Focus is proceeding with its option granted by Radius Gold Inc. ("Radius") to acquire a 100% interest in the Property. Focus has also arranged for a private placement financing to raise proceeds of $1.0 million.|
The property option and financing transactions will form part of an application by Focus to graduate from the NEX Board to Tier 2 of the TSX Venture Exchange ("TSXV").
The Nueva California Property
Focus is pleased to report on its due diligence of the Nueva California property (the "Property"), located near Barrick Gold's Pierina Gold Mine in north-central Peru. Recent sampling returned a high grade intercept of 22 g/t Au + 119 g/t Ag over 5m within highly brecciated and silicified shales from a newly accessible mine heading in Level 3390. This mineralization is believed to be open in all directions.
In addition, historical assay and production data from the mine has highlighted the high grade gold potential of the mineralization which was exposed in the underground mine workings. Many of the older mine headings are no longer accessible for sampling, so this historic data is significant to Focus's evaluation and exploration work.
Highlights of the weighted average intercepts from historical channel sampling include:
Note: The assay data reported here was provided to Focus by the Nueva California mine owners, a private Peruvian company. Focus has not yet verified the accuracy of these historic results and therefore they cannot be relied upon. Focus is currently conducting an exploration program to verify the historic data, and based on its own sampling, observations and information provided by the mine, Focus considers the historic sampling reliable and relevant.
Focus's geologists believe that the mine, which has never been drilled or systematically explored, has potential to host additional high grade gold-silver mineralization both laterally along the extensions of the known mineralization and down-dip beneath the present workings.
Apart from a small portion of the center of the deposit, the mine is mostly concealed by gravel overburden. Underground and open pit mining has defined a mineralized zone some 600m wide x 250m along strike and open, and to depths of 50 -- 70 meters. Past and current mining has focused on high grade steeply-dipping silicified veins, siliceous hydrothermal breccias and vein stockworks that occur at the contact zones between highly silicified carboniferous shales and intensely clay-sericite altered granodiorite intrusive rocks.
There is also potential for low grade bulk tonnage gold silver mineralization in the intensely altered granodiorite wallrocks between zones of high grade mineralization. Recent underground sampling showed significant intercepts of low grade mineralization in adjacent wall rocks, including 1.21 g/t Au and 44 g/t Ag over 18 meters, and 0.96 g/t Au and 32 g/t Ag over 28 meters (see Focus news release March 18, 2009). The altered wall rocks host multi-phase quartz veins and vein stockworks that are typically characteristic of large disseminated gold deposits.
Focus has commenced a program of surface and underground mapping and sampling, which is being integrated with a 3D compilation and modeling of historic data. Results of the program will be used to generate targets for a first phase diamond drill program.
The Nueva California Property is located in the Cordillera Blanca, in north-central Peru at an altitude of 3,300m a.s.l. approximately 35km from Barrick Gold's Pierina mine. Underground and open pit mining operations commenced in 1983 which exploited a series of parallel northwest-southeast trending epithermal gold-silver mineralized zones with a reported head grade of 8 g/t Au and 120 g/t Ag. Gold and silver are produced on site via a small heap leach circuit and recovery plant.
The Property Option
As previously announced on March 18, 2009, Radius agreed to assign (the "Property Option Assignment") to Focus an option (the "Option") to earn a 100% interest in the Property. Focus has completed its due diligence on the Property, and has notified Radius that it will assume all of Radius's obligations under the Option. In this regard, Focus will issue to Radius 1,000,000 common shares in the capital of Focus, pay to Radius $50,000 cash, and grant to Radius a 1.5% net smelter return royalty on the Property.
The terms of the Option require exploration expenditures on the Property of US$3 million and cash payments to the property owner (a Peruvian private company) totaling US$3 million, over a period of 4 years. To keep the Option in good standing, the first year requirements are payments of US$150,000 to the owner (of which US$50,000 has been paid by Radius to date) and exploration expenditures of US$200,000.
To complete the exercise of the Option, Focus must pay the owner US$4 per ounce of gold defined in the reserve category as determined by a bankable feasibility study, and for the number of ounces of gold produced during a 6-year period thereafter that is over and above the number of ounces defined in such a study, up to a maximum of 2.5 million ounces, or US$10 million.
Radius and Focus have common directors and officers.
Concurrent with completion of the Property Assignment, Focus expects to complete a non-brokered private placement of 4.0 million Units at $0.25 per Unit, to raise proceeds of $1.0 million. Each Unit will consist of one common share and one transferable warrant to purchase a further common share of Focus exercisable at a price of $0.30 for two years. The funds will be used to conduct exploration on the Property and for corporate expenses.
Application for Graduation to the TSXV
The Property Option Assignment and private placement transactions are subject to TSXV approval and will form part of an application by Focus to graduate from the NEX Board to Tier 2 of the TSXV.
Assay Protocol & Qualified Person
All sample preparation and analyses by Focus were conducted by ALS Chemex Labs in Lima. Samples were analyzed for Au, using a 30 gram pulp with Fire Assay and AAS with gravimetric finish for samples over 10 g/t Au. Silver was analyzed by ICP, with AAS for samples over 100 g/t Ag. The scientific and technical information in this release was prepared under the supervision of Mr. David Cass, Focus's President, who is a member of the Association of Professional Engineers and Geoscientists of British Columbia, and a "Qualified Person" in accordance with National Instrument 43-101.
About Focus Ventures
Focus Ventures is listed on the NEX board of the TSX Venture Exchange, and has recently assembled an experienced technical team of geologists and consultants with superior geographical knowledge and operational capabilities to search out quality gold projects in Peru. Focus's strategy is to identify and acquire early-stage gold projects that show potential to become mines.
For further information on Focus Ventures Ltd., please call 604-688-5288 or visit our web site (www.focusventuresltd.com).
ON BEHALF OF THE BOARD
David Cass, President
Investor relations: Erin Ostrom
Shares Issued: 10.7-million
Neither the TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy of this release
You can view the Next News Releases item: Wed Aug 26, 2009, Focus Announces Update on Nueva California and Completion of NI 43-101 Technical Report
You can view the Previous News Releases item: Wed Mar 18, 2009, Focus Options the Nueva California Gold Property, Peru
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