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Amseco Signs Joint Venture Agreement on Malartic Property

^{Published on 2009-12-14 10:37:39 - Market Wire}
 

MONTREAL, QUEBEC--(Marketwire - Dec. 14, 2009) - Amseco Exploration Ltd. (TSX VENTURE:AEL) ("Amseco") is pleased to announce that it has signed a Letter of Intent leading to the signature of a formal Option and Joint-Venture Agreement("JV") with Les Mines JAG Ltee. (TSX VENTURE:JML) for twenty (20) mining claims, covering a total area of 720 hectares located within the northern section of the Cadillac Tectonic Fault Structure.This highly prolific tectonic structural feature hosts several major gold deposits and mines which can be traced from east of Val d'Or to Rouyn, QC. The property is located along highway 117, approximately 7 km north of town of Malartic and a few kilometres east of Agnico Eagle's Lapa gold deposit.

In order to acquire a fifty-percent (50%) interest in the property the transaction calls for Amseco to pay $50,000 in cash and issue 1 million (1,000,000) Amseco shares according to the following schedule:

$10,000 and 300,000 common shares upon receipt of regulatory approvals;

$10,000 and 300,000 additional shares once $250,000 of exploration work has been invested on the property; and

$30,000 and 400,000 additional shares once $750,000 of cumulative exploration work has been invested on the property.

A 1.5% Net Smelter Royalty ("NSR") is payable on thirteen (13) claims, a separate 1.5% NSR is payable on five (5) other claims and a ten percent (10%) Net Profit Interest is payable on the last two claims.

The initial work as well as all subsequent exploration work to be completed under the terms established by the JV Agreement will be managed by Amseco under the guidance of a JV management committee up until the point where a 50% interest has been earned. The exploration work to be undertaken on the property shall be completed in accordance to the following schedule:

$250,000 prior to December 31, 2010;

$750,000 of cumulative work to be done prior to December 31, 2011, and

$1,500,000 of cumulative work to be completed prior to December 31, 2012.

Once the 50% interest earned threshold has been achieved, the property will be managed under a standard mineral exploration/mining JV agreement where each party's initial interest will be deemed to be worth $1.5 million and any dilution will be calculated from this base. Under this agreement each party included in the JV Agreement, meaning both companies JAG and Amseco will need to participate on an equal 50/50 basis in any additional exploration work, as well as any other property related expenses. If a party decides not to participate in such work it will see its interest in the JV diluted according to the formula.

The property is underlain by rocks belonging to six different lithological units.These units have been identified as being part of the Cadillac Group (sediments), Blake River Group (volcanics), Kewagama Group (sediments), Piche Group (volcanics),Malartic Group(volcanics) and the Pontiac Group (sediments).

Located approximately 15km to 25km west of the property, the highly prolific Blake River Group volcanic belt is host to several highly productive gold mines of the Abitibi Mining District. These are as the Doyon, Bousquet, Dumagami and LaRonde mines.The gold mineralization found within these deposits is all located in the Bousquet Formation located in the upper portion of the Blake River Group.

Historical exploration work completed on the JAG property has indentified the existence of gold mineralization located along the northern contact of the lower Blake River volcanics with the Kewagama Group sediments. Previous exploration work completed on the property has also identified anomalous gold values and associated alteration located within the upper portion of the Blake River Group volcanics. Therefore, both the upper Bousquet Formation felsic volcanic unit and the lower Bousquet Formation mafic to felsic volcanic unit within the property have been identified as two high priority gold targets during the 2010 exploration campaign.

The Malrobic shaft is an old exploration shaft which is located at the far western boundary of the JAG property. Previous exploration work completed by JAG in the area of the Malrobic shaft within the property and also west, outside the JAG property encountered high grade but erratic gold values. These gold values were traced over a strike length of approximately 1,300 meters. The gold values are associated with an important gold bearing structure identified as the Malrobic. Exploration work conducted along the Malrobic structure identified eight (8) gold zones ranging in average length of 30 to 76 meters and between 1.2 to 5 meters in thickness and previous work indicates that these zones remain open at depth.

Historical Diamond drill holes returned the following values:

Hole # Depth (m) Width (m) Au-(g/t)
-------------------------------------------------
JM-85-01 45.72-49.07 3.35 3.85
JM-85-07 24.90-26.37 1.47 8.50
JM-85-18 57.15-58.55 1.4 7.50
JM-85-43 29.20-30.42 1.22 7.59
JM-85-45 193.67-198.73 5.06 2.89

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.