|August 26, 2009|
Focus Announces Update on Nueva California and Completion of NI 43-101 Technical Report
|August 26, 2009 Vancouver, Canada: David Cass, President of Focus Ventures Ltd. (TSX-V: FCV.H) is pleased to provide an update on its exploration program at the Nueva California gold property located in Peru, and a report on progress regarding its planned graduation from the NEX Board to Tier 2 of the TSX Venture Exchange ("TSXV"). A National Instrument 43-101 ("NI 43-101") Technical Report on the Nueva California property has now been completed and filed on SEDAR.|
Focus is targeting a multi-million ounce bulk tonnage gold-silver deposit at Nueva California. The mine, which has never been drilled or systematically explored, has potential to host bulk-tonnage gold-silver mineralization within intensely altered granodiorite wallrocks and high grade gold mineralization in sheared argillites.
Underground and open pit mining over the last 26 years has defined a mineralized zone some 700 m wide, 250 m along strike and open, and to depths of up to 100m. Apart from a small portion in the center of the deposit, the existing mine is exploiting mineralization that is concealed by gravel overburden which is estimated to be over 60 m thick in places.
Focus has completed a full digital compilation of all available historic mine data including over 750 mine plans and assay data from approximately 7,500 sample points. This information has been compiled for the very first time into a 3-dimensional model which provides a unique perspective on the geology of the underground workings, and a much clearer understanding of the historical gold grade distribution. (Several interpretative 3D maps and plans will be available shortly on the Focus webpage www.focusventuresltd.com.)
The results of the work, combined with geological and structural mapping, indicate that the Nueva California is a robust and long-lived hydrothermal system that formed a range of mineralization and alteration styles within strongly altered intrusive and sedimentary host rocks.
Focus' geologists are designing a surface exploration program to "see" through the gravel cover which covers the majority of the deposit. Several lines of deep penetrating Induced Polarization geophysics are currently being surveyed on the property, and the results of this survey will be integrated with the 3D model and used to define targets for drilling.
Graduation to the TSXV - Update
The Company's option to acquire the Nueva California Property and the private placement financing announced in our news release dated May 21, 2009, are subject to TSXV approval and form part of an application by Focus to graduate from the NEX Board to Tier 2 of the TSXV.
The Company's NI 43-101 Technical Report on the Property has now been approved by the TSXV and filed on SEDAR. The Company is requesting shareholder approval (by consent in writing) to the proposed Company's change of business to the resource sector.
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.
As previously announced, Focus will assume the terms of an Option held by Radius Gold in return for 1,000,000 common shares in the capital of Focus, US$50,000 cash, and a 1.5% net smelter return royalty on the Property to Radius. 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 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.
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 NI 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
ON BEHALF OF THE BOARD
David Cass, President
Investor relations: Erin Ostrom
Shares Issued: 14.1-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: Thu Sep 24, 2009, Focus graduates to Tier 2 and completes Nueva California option assignment and financing
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