NEW YORK, July 14, 2009 (GLOBE NEWSWIRE) -- Mayfair Mining & Minerals, Inc. (Pink Sheets:MFMM) (Frankfurt:M1M) (the "Company" or "Mayfair") is pleased to announce that, on June 29, 2009, the Board of Directors unanimously approved the acquisition of Recursos Metalicos SL., a Spanish corporation ("Recursos"), which is a wholly-owned subsidiary of Cambridge Mineral Resources plc, a UK incorporated company ("Cambridge"), in a share and cash transaction. The transaction was concluded, agreed upon and executed on July 1, 2009, and closing is subject to certain conditions.
The consideration being paid by Mayfair to Cambridge for 100% ownership of Recursos is 10,000,000 shares of the Company's Rule 144 restricted common stock and a cash payment of US$250,000, payable in two installments prior to August 31, 2009; the first installment of US$100,000 has already been paid.
The assets of Recursos are comprised of a 100% interest in the Lomero-Poyatos and Masa Valverde polymetallic volcanic-hosted massive sulphide ( VHMS ) mining projects located in the Iberian Pyrite Belt of south-western Spain. Recursos also holds applications for two further licenses at El Alamo-Tintillo and Migollas East, also in the central Iberian Pyrite Belt.
The Lomero-Poyatos project is a gold-focused poly-metallic, previously-producing pyrite mine and is comprised of a wholly-owned group of mining licenses covering the Lomero-Poyatos auriferous poly-metallic VHMS deposit, with the right for exploitation. These licenses are valid for 45 years, from 2001. Through Recursos, Cambridge expended approximately US$7.5 million on an extensive program of exploration and drilling during the years 2001-2005. Lomero-Poyatos is estimated, based on results from the aforementioned exploration and drilling program, to contain a measured and indicated resource of 3.71 million tonnes at 3.26 grams/tonne Au, 27.9 grams/tonne Ag, 0.87% Cu, 1.57% Pb and 1.16% Zn at a 1.5 grams/tonne gold equivalent cut-off (to JORC standard). The Company's anticipated mining plan includes both underground and open-pit methods and the deposit is open at depth. The licenses cover an effective ground holding of 24 square kilometers and it is possible that, within this area, there are a number of other highly prospective targets that may provide a significant opportunity for further discoveries and resource extension. An independent Scoping Study based upon the above resource data was completed in 2005 and an independent NI 43-101 compliant report (Canada) was completed in April 2007, both by Wardell Armstrong International, based in the UK.
The Masa Valverde project is a base-metal exploration project in the Iberian Pyrite Belt. The permits, P.I. Valverde and P.I. Masa Valverde-2, cover an area of 38.71 square kilometers over the Masa Valverde polymetallic VHMS deposit located in the central part of the Iberian Pyrite Belt in south-western Spain. The project represents possibly the single largest unmined VHMS mineralized area in the region. Based on the drilling program outlined below, the deposit has VHMS and cupriferous stockwork mineralization which are estimated to contain geologic resources of around 100 million tonnes and 50 million tonnes, respectively.
At Masa Valverde, twenty five holes have been drilled at a spacing of approximately 100 meters. These drill holes have intersected up to 180 meters of massive sulphide and up to 111 meters of stockwork mineralization. Intersections include 45 meters grading 0.52% Cu, 4.26% Zn, 1.41grams/ton Au (massive sulphide) and 31 meters grading 1.71% Cu, 1.35% Zn (stockwork). The average thickness of the massive sulphide intersections is about 70 meters and the average for stockwork mineralization is 90 meters. We believe that the potential exists for a high grade deposit in the adjacent area of the sulphide mineralization. Potential also exists for the upgrading and extension of the stockwork mineralization.
Of the total of twenty five drill holes which were completed by previous operators between 1986 and 1993, nineteen tested the main gravity anomaly and six tested satellite anomalies. A total of thirteen of the nineteen holes intersected VHMS and well-developed mineralization. Based on this drilling, management believes that Masa Valverde represents the potential for a very large accumulation of sulphides with notable grades of copper, zinc and lead, with strong credits from gold and silver.
Drilling to date has been insufficient to properly evaluate this potential resource as the broad spacing may have missed certain areas, including potential high grade zones. Accordingly, further drilling and exploration work will be required to determine the nature and scope of the project.
Masa Valverde is situated close to and bears a number of similarities with the Aguas Tenidas base metal project owned by Iberian Minerals, which is currently going into production.
At Masa Valverde, based on in-house compilation and assessment of the drillhole data obtained by Adaro, a state-owned Spanish exploration company, a substantial resource of VHMS and stockwork sulphides exist which have been estimated as an Inferred Resource to JORC standard: 11.95 million tonnes at 0.86 grams/tonne Au, 0.57% Cu, 4.30% Zn, 1.28% Pb, 42 grams/tonne Ag in massive sulphides and 79.95 million tonnes at 0.43 grams/tonne Au, 0.76% Cu, 22.4 grams/tonnes Ag in the stockwork. A preliminary independent NI 43-101 compliant report (Canada) was completed on Masa Valverde for Cambridge Minerals in April 2007 by Wardell Armstrong International.
Both the Lomero-Poyatos and Masa Valverde deposits have, management believes, excellent exploration upside potential.
El Alamo-Tintillo is a license application covering prospective ground, extending East from ground held by Rio Tinto, with indications of high polymetallic VHMS deposits. The license area covers 6,347 hectares, covering the prospective horizon that hosts El Tintillo, an un-mined, near surface, potentially high grade deposit previously investigated by Boliden Espana. The acreage includes other mines and occurrences of base metals and also areas with gold anomalies.
Migollas East is a licence application extending east from the cupriferous Migollas VHMS orebody in close proximity to the Sotiel and Migollas Mines.
Clive de Larrabeiti, President of the Company, stated : "The announcement of this acquisition is an extremely satisfying conclusion to an exhaustive search for suitable assets in the gold sector. It is our stated intention, using this transaction as a springboard, to make application to the Canadian financial markets and to list our securities in that mining-friendly environment. In fact, the Company has already received an offer of sponsorship for a listing from a major national Canadian brokerage house and appointed Canadian legal advisors to assist in the process. We are currently finalizing our audited financial statements and preparing to file these in anticipation of our application and this should be accomplished shortly. The Company intends to continue its efforts to build a strong portfolio of mining and exploration projects in the precious metals sector. The Company's African focus, although considerably reduced over the past year due to economic necessity and other outside factors beyond our control, will continue as management seeks ways to capitalize on past efforts, relationships, opportunities and investments, to build a productive gemstone mining and marketing business there. The Company wishes to thank its investors and shareholders for their loyal support through this period of rebuilding."
On behalf of the Board of Directors, Clive de Larrabeiti President info@mayfair-mining.com www.mayfair-mining.com
NOTE: for the purpose of this news release the word "massive" in conjunction with sulphides denotes predominance and is not an indication of size.
The Mayfair Mining & Minerals, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=5317
SAFE HARBOR STATEMENT
This news release may include forward-looking statements within the meaning of Section 27A of the United States Securities Act of 1933, as amended, and Section 21E of the United States Securities Act of 1934, as amended, with respect to achieving corporate objectives, developing additional project interests, the Company's analysis of opportunities in the acquisition and development of various mining project interests and certain other matters. These statements are made under the "Safe Harbor" provisions of the United States Private Securities Litigation Reform Act of 1995 and involve risks and uncertainties which could cause actual results to differ materially from those in the forward looking statements contained herein. Forward-looking statements involve risks and uncertainties. Words such as "will," "anticipates," "believes," "plans," "goal," "expects," "future," "intends" and similar expressions are used to identify these forward-looking statements. Actual results could differ materially from those anticipated in these forward-looking statements for many reasons, including the risks described in this press release. Such risks include, but are not limited to, world and/or regional economic and financial factors and events, terrorist and/or other events or activities that may affect our business, the mining and/or metals/gemstones industries or the economy in general; lack of success in mining and/or business activities; the prices of metals and gemstones; lack of funds to conduct mining activities; increase in costs of operation and/or production; changes in governments, laws, rules and regulations; and similar risks. For further information about the Company, please refer to its materials filed with the Securities and Exchange Commission and available on the SEC website at www.sec.gov.