La Quinta Acquires Kampene Gold Project in D.R. Congo
La Quinta Resources Corp. (“La Quinta or LAQ”) (TSX VENTURE:LAQ) is pleased to announce that it has signed a Memorandum of Understanding (MOU) with AMIKI (Association Miniere du Kivu sprl) to lease, or acquire all of the Exploration and Exploitation rights of AMIKI on the Kampene Project in South Kivu Province in the Democratic Republic of Congo. The Kampene project covers 49 square Kilometers and includes an Exploration Licence and a Small Miner’s Licence to mine and sell all mineral products from the Licence area including Gold, Silver, Coltan, (Columbite and Tantalite) and Cassiterite. Kampene has a long history of extensive mineral production dating back to the 1940’s and the Belgian era, when mineral production for Gold, Cassiterite and Coltan formed the economic basis for the formation of the Town of Kampene, complete with its power plant, airstrip, schools churches and hospital.
Since the Belgians left, production of gold has continued, first for the Congolese government during the Mobutu era and subsequently by the Rwandan Army during the second war of Liberation. AMIKI have held these claims since 1981 and reclaimed the property after the United Nations supported 2003 Peace Accord. Following the democratic election of 2006 and subsequent revision of the Congolese Mining Laws AMIKI has now been able to convert the licences to a modern Permis d’exploitation number 235 including a Small Miners Exploitation licence allowing immediate production from the site. The provisions of the MOU between LAQ and AMIKI include a term of 10 years renewable as the Code Miniere allows; an Annual Property Rental of US$100,000 payable in advance; and a 1.5% NSR on all production; with an outright buy out provision on the Kampene Lease Area for US$2 million after 5 years.
The Kampene Project lies adjacent to a 7,000 square kilometre licence area for gold exploration covering the southern portion of the Twangiza – Namoya Gold Belt, owned by Wa Balengela Kasai-Investments Congo sprl, (“WB. Kasai, or WBK”) which is the subject of a separate Agreement between LAQ and WBK and is currently in a due diligence process (See LAQ Press Releases 06-10 August 28th 2006; PR: 06-18, October 23rd 2006 and PR: 07-02, February 02, 2007). The AMIKI MOU is subject to completion of its own Due Diligence process, plus approval of the transaction by the TSX:V.
Malcolm Swallow, the Company’s Chairman, stated, “We are very excited to be able to move onto the Kampene Project and start work almost immediately on such a prominent past producer of gold and other minerals. The potential for hard rock production from the hills surrounding the alluvial areas will be the first target for our exploration efforts. The infrastructure in Kampene is such that the exploration work can be highly focussed giving us an excellent return for our exploration dollars in this known area of gold production Its location next to our primary land package in DRC that is currently in the due diligence process, means that we can establish a base of exploration and development in Congo, while awaiting clean title on the other areas. La Quinta is committed to mineral exploration and development in Congo and continues to work to acquire additional resources in the DRC.”
The MOU with AMIKI provides for a 60 day diligence period during which La Quinta and its advisors have the right to conduct appropriate due diligence into the terms, conditions, validity and enforceability of AMIKI’s concessions and exploration rights in the DRC. On completion of the due diligence period and the appropriate 43-101 report, La Quinta intends to vigorously pursue the exploration of the Kampene area, including pursuit of the potential hard rock sources of the alluvial mineralisation. A map showing the location and extent of the exploration leases and their relationship to the Twangiza – Namoya gold belt, plus further discussion of the new exploration initiative by La Quinta Resources in the Democratic Republic of Congo can be found on the Company’s web site at www.laquintaresources.com.
Malcolm Swallow, a Director of the Company, is a Vancouver based Mining Engineer, (B.Sc. – Hons. Mining Engineering – Imperial College, London) with over 35 years operating and management experience in the Industry. He is an Associate of the Royal School of Mines, a Fellow of the Institute of Materials, Minerals and Mining and a Chartered Engineer in the UK. He is also a registered Professional Engineer in British Columbia, Canada and acted as the Qualified Person for this news release having visited the Kampene property.
On Behalf of the board
Malcolm JA Swallow, Chairman and CEO
SOURCE: La Quinta Resources Corporation
La Quinta Resources Corp. Glen Watson President (604) 685-1818 or Toll Free: 1-877-891-4653 Email: info@laquintaresources.com Website: www.laquintaresources.com
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