|October 23, 2014|
Focus Signs Joint Venture Agreement with Daewoo International Corporation
|October 23, 2014; Vancouver, Canada: Focus Ventures Ltd. (TSX-V:FCV - "Focus") is pleased to announce that it has signed a Joint Venture Agreement with Daewoo International Corporation ("Daewoo International"), whereby Daewoo International can earn a 65% interest in Focus's Aurora porphyry copper-molybdenum project in Peru. Daewoo International is Korea's largest trading/investment company and a subsidiary of POSCO.|
David Cass, President of Focus, comments: "We are extremely pleased to have Daewoo International as our partners in the development of the Aurora copper project in Peru. We are very much looking forward to working with their Mineral Resources Division on a first phase drill program to commence as soon as drill permits have been granted. Our deal with Daewoo International will provide the funding necessary to take this copper asset to the next stage as we dedicate our financial resources to our Bayovar 12 phosphate project."
Aurora is an advanced stage porphyry copper-molybdenum exploration project located approximately 65 km north of the city of Cusco, between 2,600 - 2,900m above sea level. It is currently being permitted for a major drill program. Thirteen historical drill holes, totaling 3,900m that were drilled over an area approximately 900m by 800m cut significant intervals of copper and molybdenum mineralization, including 190m @ 0.57% Cu, 0.008% Mo in DDA-1, 142m @ 0.5% Cu, 0.004% Mo in DDA-3, and 71.7m @ 0.7% Cu, 0.007% Mo in DDA-3A (see Focus news release July 11, 2012).
Observations and interpretations made from the re-logging of available drillcore by Focus have been key in the understanding of the deposit's geometry and exploration potential. The porphyry mineralization does not outcrop apart from a small area on the northern edge of the property around drillhole ABC-6.
Drilling in 2001 and 2005 (13 holes) intercepted significant widths of copper and molybdenum hosted by multi-phase quartz-feldspar porphyries and hornfelsed slates and pelitic sandstones belonging to the Ordovician (439 - 463 ma) Sandia Formation. Several of the shallower drillholes were terminated in intrusive rock grading +0.5% copper with grades strengthening towards the bottom of the hole (see drill results on the Focus website). Molybdenum-rich mineralization, characterizing the deeper parts of the sill complex, was drilled in ABC-6, which assayed 302.4m @ 0.082% Mo and 0.23% Cu for the length of the hole, including 84m @ 0.42% Cu and 0.11% Mo.
Results of Focus's IP and Magnetic Geophysical survey support Focus's interpretation that the Aurora mineralizing system extends well beyond the limits of the historical drilling over an area 1.5 km x 2 km and could contain a large porphyry copper molybdenum deposit.
A supergene enrichment profile marked by the prevalence of secondary chalcocite, is observed in many holes and accounts for the highest grade intercepts e.g. 26m @ 0.95% Cu in DDA-1 & 72m @ 0.7% Cu, in DDA 3A. Definition of this enrichment profile at Aurora will be an important aspect of the upcoming drill program.
For additional information on Aurora, including sections and plans, see www.focusventuresltd.com.
Under the terms of the agreement, Focus and Daewoo International will establish a joint venture company (JVCo) to develop and operate the Aurora project. Upon issuance of a drill permit, Daewoo International will acquire 49% of the shares of JVCo for a purchase price of US$3,000,000. These funds will be used for an initial exploration program anticipated to include 10,000m of drilling. Daewoo International has the option to earn up to a 65% interest in JVCo by making additional investments into JVCo, contingent on the results of the further drilling.
The full Joint Venture agreement between Focus's Peru subsidiary, Minera Focus S.A.C., and Daewoo International Corporation will be posted shortly on www.sedar.com.
Sampling Quality Analysis and Quality Control
The historical drill assays quoted in this news release were undertaken by Vena Resources and Bear Creek Mining, and have not been independently verified by Focus. However the sampling and assaying are considered to have been undertaken using standard industry practice and QA/QC procedures. Most of the drill cores were lost in years prior to the acquisition of the project by Focus, however half core samples from drill holes DDA-1, DDA-3 and DDA-3A remain.
Selected intervals of mineralized core from drill holes DDA-1and DDA-3A were re-assayed by Focus to determine levels of other elements such as silver and gold, and confirm the reliability of the historical drill assays. A total of 47.26m were sampled (34 samples). The re-assayed intervals (available on Focus website) confirm the copper and molybdenum grades in the historical drilling and give confidence in the data assays. Half core was split using a diamond core splitter and bagged, security-sealed and transported by Focus personnel to ALS Chemex laboratories in Lima. Silver, copper and molybdenum were determined by multi-acid digestion and ICP-AES. Gold was assayed by Atomic Adsorption Spectrometry. ALS Chemex's quality control system complies with International Standards ISO 9001:2000 and ISO 17025:2005. Analytical accuracy and precision are monitored by the analysis of reagent blanks, reference material and replicate samples. Quality control is further assured by Focus's own QA/QC program which involves the insertion by Focus personnel of blind certified standards and blanks into the sample stream at regular intervals in order to independently assess analytical precision and accuracy of each batch of samples as they are received from the laboratory.
The scientific and technical information in this release was prepared for Focus 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. Mr. Cass has reviewed and approved this release.
About Daewoo International Corporation
Created as a spin-off of Daewoo Group in 2000, Daewoo International has a leading role in Korean national economic development, specializing in international trade, project organizing, and resource development. After experiencing remarkable annual sales growth, Daewoo International was incorporated in 2010 into POSCO Group, an integrated steel producer in South Korea.
With over 100 global networks around the world, Daewoo International does business with local and international customers, carrying a wide range of products including steel, metal, machinery, automotive component, industrial electronics, steel raw material, non-ferrous metal, chemical and agro-fishery product. In addition, Daewoo International has been involved in numerous oil, gas, mineral and food resource projects throughout the world, including A1/A3 gas project in Myanmar (operator), Narrabri coal project in Australia and Ambatovy nickel project in Madagascar. Such efforts have established Daewoo International as a leading resource developer in the global market.
About Focus Ventures
Phosphate rock is a raw material for fertilizers and vital to world food production. Focus is acquiring and developing quality phosphate projects in Latin America, including the Bayovar 12 project in Peru, where the discovery and development of new deposits is becoming increasingly important given the growing demand and limited local supply of phosphate for fertilizer production. For further information, please call 604-630-5544 or visit our web site www.focusventuresltd.com.
ON BEHALF OF THE BOARD
Director & Vice-President, Corporate Development
Shares Issued: 76.8-million
Contact: Ralph Rushton
Tel: (604) 630-5544; Fax: (604) 682-1514
Neither the TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy of this release.
Forward-Looking StatementsCertain statements contained in this news release constitute forward-looking statements within the meaning of Canadian securities legislation. All statements included herein, other than statements of historical fact, are forward-looking statements and include, without limitation, statements about the proposed exploration and development of the Aurora Project and the funding of same by Daewoo International. Often, but not always, these forward looking statements can be identified by the use of words such as "estimate", "estimates", "estimated", "potential", "open", "future", "assumed", "projected", "used", "detailed", "has been", "gain", "upgraded", "offset", "limited", "contained", "reflecting", "containing", "remaining", "to be", "periodically", or statements that events, "could" or "should" occur or be achieved and similar expressions, including negative variations.
Forward-looking Statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any results, performance or achievements expressed or implied by forward-looking statements. Such uncertainties and factors include, among others, receipt of a drill permit for the Project; changes in general economic conditions and financial markets; Daewoo International or the Company not having the financial ability to meet its exploration and development goals; risks associated with the results of exploration and development activities, estimation of mineral resources and the geology, grade and continuity of mineral deposits; unanticipated costs and expenses; and such other risks detailed from time to time in the Company's quarterly and annual filings with securities regulators and available under the Company's profile on SEDAR at www.sedar.com. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended.
Forward-looking statements contained herein are based on the assumptions, beliefs, expectations and opinions of management, including but not limited to: expectations regarding receipt of a drill permit for the Project and funding of work programs by Daewoo International; that the Company's stated goals and planned exploration and development activities will be achieved; that there will be no material adverse change affecting the Company or its properties; and such other assumptions as set out herein. Forward-looking statements are made as of the date hereof and the Company disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or results or otherwise, except as required by law. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, investors should not place undue reliance on forward-looking statements.
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