Cigma Metals Corporation signs deal in Kazakhstan
COOLUM BEACH, AUSTRALIA. May 07. KAZINFORM. Cigma Metals Corporation (Cigma, the Company)(PINK SHEETS: CGMX)(FRANKFURT: C9KA.F) is very pleased to announce the Company has signed an agreement with Eureka Mining Plc to earn up to 90% of the 14,000 km2 Dostyk project in Kazakhstan. Cigma intends to expand and diversify from its gold operations in Russia to include the Gold and base metals opportunity in Kazakhstan. To view the map of the region, please click the following link: http://www.ccnmatthews.com/docs/MapKaz.jpg. Cigma has signed an agreement with Eureka Mining Plc to earn up to 90% over the 14,000 km2 Dostyk mining area, in northern Kazakhstan. The project area is located in a region which has proven to host numerous Gold and precious metals deposits some of which have been mined continuously for decades. The project area is host to over 130 mineral deposits and occurrences, and Cigma intends to convert the current resources into JORC compliant estimations. A summary of Cigma's exploration commitments, are as follows: 1. Initial payment of US$300,000 to secure 51% of the project, which has been transferred. 2. A Second payment of Tenge equivalent to US$700,000 to increase the percentage participation of Cigma to 71% during 2007. 3. A Third and final payment of Tenge equivalent US$1,000,000 to increase the percentage participation to 90% during 2008. To view the Dostyk License Area, please click the following link: http://www.ccnmatthews.com/docs/Dostyk.pdf The Dostyk project is located in well a developed industrial region of Kazakhstan. 30km from the project area is the Ekibastuz Coal Basin, which is largest in all the post Soviet countries. The Ekibastuz Basin provides the coal and electrical energy for the whole of Kazakhstan as well as the major industrial areas of the Urals in Russia. As a result the project area is crossed by numerous high voltage power lines and railways. Underground gold mining has been continuous at the Maykain mine, located in the mid north of the license (not included) for the past 30 years. The Dostyk region has been producing gold and base metals for decades. Cigma is confident that the company will be able to expand on the several known Zinc, Copper, Nickel, Lead and Gold occurrences on the license and participate in the rapidly growing precious and base metals sector. The project area is the host of more than 130 known mineral occurrences and deposits. Cigma intends to initiate drilling on 5 of the areas in an effort to convert the deposits into JORC compliant Resources. To complete this phase of the Company's diversification a program of approximately 20,000 meters of drilling has been planned and budgeted. Within the proximity of the project area are other significant mines: MAYKAIN 2.1Moz gold, 220,000t zinc, 120,000t copper, 150t silver, BOSHEKYL 870,000t copper, ABYZ 1.3Moz gold, 340t silver. The results of data reviews and initial site investigations has given the company the opportunity and confidence to highlight drill targets to test depth and lateral extensions of Zinc, Copper and other base metals. Cigma intends to initiate drilling directly on signing the agreement. The Company is very confident that the current initial proposed round of drilling will provide significant copper and gold mineralisation to quickly add resources to the Company's inventory. Cigma previously entered into a memorandum of understanding with its current joint venture partner Geosphera in Tomsk, Russia, over the 600 km2 Tashminsky gold and polymetallic project. The Tashminsky area is located approximately 75 km for the large regional center of Tomsk. Previous work on the Tashminsky license has resulted in the discovery of 5 mineralised zones, including the Turuntaevo Zinc deposit. The Turuntaevo Zinc deposit will be the focus of exploration for the Tashminsky project area. Cigma is awaiting a license transfer to continue these negotiations. The Company is currently exploring for gold in Russia and has an 80% interest in the Tugojakovsk and Haldeiskaja Exploration licenses totaling 740 km2, situated close to the city of Tomsk in the Tomsk Oblast region of Siberia in the Russian Federation. The Haldeiskaja property shares its eastern boundary with the Tashminsky Project. Cigma Metals Corporation is a mineral exploration company focusing on the exploration and development of its 3 exploration properties totaling 740 square kilometers in the Tomsk Oblast region of Siberia in Russia, and approximately 14,000 square kilometers in the Dostyk region of Kazakhstan. All the project areas were selected based on their proximity to a well-developed infrastructure, known mineral occurrences and from historical records of gold and base metals production. Cigma Metals Corporation's stock trades on the following exchanges under the symbol "CGMX.PK" on the NASD OTC Pink Sheets in the United States of America, and under the symbols "C9KA.F" on the Frankfurt Exchange. ON BEHALF OF THE BOARD Lars Pearl, President and C.E.O. CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS This press release contains statements that plan for or anticipate the future, called "forward-looking statements." In some cases, you can identify forward looking statements by terminology such as "may," "will," "should," "could," "expects," "plans," "intends," "anticipates," "believes," "estimates," "predicts," "potential" or "continue" or the negative of those terms and other comparable terminology. These forward-looking statements appear in a number of places in this press release and include, but are not limited to, statements about: our market opportunity; revenue generation; our strategies; competition; expected activities and expenditures as we pursue our business plan; the adequacy of our available cash resources; our ability to acquire properties on commercially viable terms; challenges to our title to our properties; operating or technical difficulties in connection with our exploration and development activities; currency fluctuations; fluctuating market prices for precious and base medals; the speculative nature of precious and base medals exploration and development activities; environmental risks and hazards; governmental regulations; and conduct of operations in politically and economically less developed areas of the world. Many of these contingencies and uncertainties can affect our actual results and could cause actual results to differ materially from those expressed or implied in any forward-looking statements made by, or on behalf of, us. Forward-looking statements are not guarantees of future performance. These cautionary statements qualify all of the forward-looking statements made in this press release. Specific reference is made to our most recent annual report on Form 10KSB and other filings made by us with the United States Securities and Exchange Commission for more detailed discussions of the contingencies and uncertainties enumerated above and the factors underlying the forward-looking statements. These reports and filings may be inspected and copied at the Public Reference Room maintained by the U.S. Securities & Exchange Commission at 100 F Street, N.E., Washington, D.C. 20549. You can obtain information about operation of the Public Reference Room by calling the U.S. Securities & Exchange Commission at 1-800-SEC-0330. The U.S. Securities & Exchange Commission also maintains an Internet site that contains reports, proxy and information statements, and other information regarding issuers that file electronically with the U.S. Securities & Exchange Commission at http://www.sec.gov. We disclaim any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except to the extent required by applicable laws. This press release is for informational purposes only and is not and should not be construed as an offer to solicit, buy, or sell any security, Kazinform refers to MARKET WIRE.