CHIHUAHUA, Mexico, June 20 /PRNewswire-FirstCall/ -- Mexoro Minerals Ltd. Issues Clarifying Release (BULLETIN BOARD: MXOM) .
As a result of a review by the British Columbia Securities Commission, Mexoro Minerals Ltd. is issuing the following release to clarify certain prior disclosures. The information contained in this release is intended to provide clarification of prior disclosures. However, the issuance of this release shall not be deemed to be an admission that the original releases and filings described herein, when made, included any untrue statement of material fact or omitted to state a material fact necessary to make a statement contained therein not misleading.
Mexoro Minerals Ltd. has retained Apex Geoscience Ltd. to prepare a geological report pursuant to Canadian National Instrument 43-101 ("NI 43-101") that the Company will file in Canada for both its Cieneguita property and its Guazapares property. This work has been underway since January 9, 2008 and is expected to be finalized by June 2008.
We are issuing this press release to clarify (i) certain disclosures made by the previous management prior to February 2006, (ii) a press release dated April 3, 2006, and (iii) certain subsequent disclosure. Furthermore, the Company has clarified and retracted all non-compliant NI 43-101 disclosure on its website and related documents.
(i) In its Report on Form 10Q-SB for the period ending May 31, 2004, it was disclosed that the Company's Cieneguita Property contained reserves of 100,000 ounces of gold and that the company planned to put the Cieneguita property back into production at the rate of 20,000 ounces of gold per year. The Company did not file a technical report in Canada under NI 43-101 supporting these reserves, contrary to s.4.2(1) of NI 43-101, nor did it have a preliminary feasibility study establishing technical or economic recovery. The disclosure of these reserves was contrary to NI 43-101 s.2.2, s.2.3(1) and s.3.4 because it failed to provide, among other things, accepted reserve categories, quantity, grade, key assumptions, parameters, and methodologies. The Company does not have any mineral resources or mineral reserves on its Cieneguita property that comply with NI 43-101. The Company retracts any of its previous statements which indicate that it has proven reserves disclosed in its filings prior to prior to October 2006. Canadian residents should not rely upon any reports filed with the SEC by the Company prior to October 2006 stating such facts.
(ii) On April 3, 2006, the Company issued a press release providing an update on its properties and stating, among other things, that it did have potential for 250,000 ounces of gold reserves at its Cieneguita property. The disclosure of these reserves was contrary to NI 43-101 s.2.2, s.2.3(1) and s.3.4 because it failed to provide, among other things, accepted reserve categories, quantity, grade, key assumptions, parameters, and methodologies. The Company does not have any mineral resources or mineral reserves on its Cieneguita property that comply with NI 43-101. The Company retracts any of its previous statements which indicate that it has proven reserves and retracts its press release dated April 3, 2006. Canadian residents should not rely upon the information contained in this press release.
The April 3, 2006 release also provided estimates on operations from the Cieneguita mine if it should be put back into production. The Company did not file a technical report in Canada under NI 43-101 supporting these estimates, contrary to s.4.2(1) of NI 43-101, nor did it have a preliminary feasibility study establishing technical or economic recovery. The disclosure of these reserves was contrary to NI 43-101 s.2.2, s.2.3(1) and s.3.4 because it failed to provide, among other things, accepted reserve categories, quantity, grade, key assumptions, parameters, and methodologies. The Company does not have any mineral resources or mineral reserves on its Cieneguita property that comply with NI 43-101. The Company retracts any of its previous statements which estimate economical operations from the Cieneguita mine and retracts its press release dated April 3, 2006. Canadian residents should not rely upon any reports filed with the SEC by the Company prior to October 2006 stating such facts.
The April 3, 2006 release also stated that the Guazapares has the potential to host over 500,000 ounces of gold and stated that the Encino Gordo property has structures that could host a multimillion ounce deposit. The Guazapares and Encino Gordo estimates of potential are contrary to NI 43-101 and should not be relied on as indicators of future exploration potential. The Company retracts these previous statements which would indicate future exploration potential and retracts its press release dated April 3, 2006. Also, Canadian residents should not rely upon the April 3, 2006 press release stating such facts.
(iii) On July 11, 2006, current management filed an amendment to its registration statement on Form SB with the US Securities Commission ("SEC"). This amended registration statement, which was declared effective on April 13, 2007, clearly stated that the Company "has not found any proven or probable reserves ... " As well, in its report of Form 10QSB for the period ended August 31, 2006, which was filed with the SEC on October 16, 2006, and in all subsequent reports on Form 10K-SB and Form 10Q-SB filed with the SEC, the Company has clearly stated that it "has not found any proven or probable reserves ... " In the Company's disclosure documents filed with the SEC on Form 8-K, in our corporate brochure, on our website and in various press releases issued by the Company we do discuss estimated gold resources for our Cieneguita and Guazapares property. The Company did not file a technical report in Canada under NI 43-101 supporting this estimate contrary to s.4.2(1) of NI 43-101 nor did it file a preliminary feasibility study establishing technical or economic recovery. The disclosure of these estimates was contrary to NI 43-101 s.2.2, s.2.3(1) and s.3.4 because it failed to provide, among other things, accepted reserve categories, quantity, grade, key assumptions, parameters, and methodologies. The Company does not have any mineral resources or mineral reserves on its Cieneguita property that comply with NI 43-101. Canadian residents should not rely upon any of these estimates that have been provided by the Company.
In its latest report on Form 10Q-SB for the period ended November 30, 2007, filed with the SEC on January 14, 2008, the Company provides an in depth discussion on its Cieneguita property and the proposal to put the property into production. Under reporting requirements applicable in the United States, an important premise of a reporting company's "Management Discussion and Analysis or Plan of Operation ('MD&A')" disclosures in quarterly and annual reports is to provide management's best estimates of the Company's plans going forward. The Company also published estimates regarding its intention to put the Cieneguita property into production and its projected results from such an operation on Form 8K and in corporate press releases and corporate materials. These estimates, qualified by safe harbor provisions in our disclaimer regarding forward looking statements included in our filings with the SEC and in our corporate material, were based on exploration work conducted by professional geologists working for the Company, exploration work completed by former owners of the property, and public information published by other companies. At this time, the Company has not completed sufficient exploration and development to establish the economic viability of the Cieneguita property. However, it is continuing to explore and develop the property with a view to determining its resource potential. There is added risk of putting this property into production without mineral reserves, mineral resources or demonstrated economic viability based on a feasibility study compliant with NI 43-101. Furthermore, the Safe Harbor disclaimer for forward-looking information is not a concept recognized in Canada and therefore does not apply in Canada. This type of Safe Harbor disclosure does not relieve the Company of any obligation it might have to comply with current NI 43-101 requirements in Canada. As we have not filed a technical report that complies with NI 43-101, we retract our reference to estimated gold resources on all of our properties and therefore, residents of Canada should not rely upon these estimates and projections made by the Company.
Furthermore, our disclosure documents filed with the SEC and corporate material published by the company and posted on our website, including previously issued press releases, summarize drill results and exploration results by reporting only the highest values or best values and use words such as "up to" or "as high as". This method of disclosure does not meet the requirements with regard to disclosure of assay results and should not be relied upon without reviewing all of the data related to the sampling or drill results which it refers to. The Company posts all of its exploration results, including sampling and drilling details on its website which can be viewed at http://www.mexoro.com/.
Prior to December 12, 2007, our press releases available to residents in Canada through various wire services did not disclose the technical person who prepared or supervised the preparation of the technical information that was reported. This type of disclosure does not comply with current NI 43-101 s.3.1. Since March 1, 2007, Mr. Francisco Barry Quiroz, MSc., in Economic Geology and is the V.P. Exploration for the Company is the technical person who prepared or supervised the preparation of the technical information that was reported for all of our projects in Mexico. While Mr. Quiroz is a member in good standing of the Society of Economic Geologists (SEG) and of the Asociacion de Ingenieros Mineros, Metalurgistas y Geologos de Mexico (AIMMGM) membership in such organizations is not recognized under NI 43-101. The disclosure of all our results from our exploration work were prepared under the supervision of Mr. Quiroz, MSc. Contrary to earlier disclosure, the Company has not had a Qualified Person.
At the time Mexoro made its disclosure, it did not believe that the requirements of Canadian NI 43-101 were applicable to it because it is a Colorado company trading on an U.S exchange with operations in Mexico, the majority of its shareholders are located outside of Canada and all of its employees live and work in Mexico. Prior to October 2007, Mexoro did maintain a corporate office in Vancouver, Canada and one or more of its officers and directors resided in British Columbia, Canada. Mexoro does however wish to comply with the highest level of disclosure and have thereby commissioned the 43-101 report with Apex Geoscience Ltd.
This Press Release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The Company has tried, whenever possible, to identify these forward-looking statements using words such as "anticipates", "believes", "estimates", "expects", "plans", "intends", "potential" and similar expressions. These statements reflect the Company's current beliefs and are based upon information currently available to it. Accordingly, such forward looking statements involve known and unknown risks, uncertainties and other factors which could cause the Company's actual results, performance or achievements to differ materially from those expressed in or implied by such statements. The Company undertakes no obligation to update or advise in the event of any change, addition or alteration to the information catered in this Press Release including such forward looking statements.
Corporate Headquarters Mexoro Minerals Ltd. C. General Retana #706 Col. San Felipe, C.P. 31203 Chihuahua, Chih., Mx +1 (866) 936-4283
