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Cabia Goldhills Inc
Symbol CGH
Shares Issued 36,469,934
Close 2013-01-14 C$ 0.205
Market Cap C$ 7,476,336
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Cabia Goldhills starts drilling at Mejia

2013-01-16 10:26 ET - News Release

Mr. Michel Delisle reports

CABIA GOLDHILLS INC. ANNOUNCES THE START OF THE DRILLING ON THE MEJIA PROPERTY AND THE ACQUISITION OF AN ADJACENT MINING CONCESSION

Cabia Goldhills Inc. has initiated the first drill hole of its current exploration program on the Mejia property. The drilling program will be testing different recognized mineralized trends, as well as geophysical and geochemical anomalies. In addition, certain areas will be tested to better understand the porphyry-style mineralization model.

In addition, Cabia announces that it has entered into a binding agreement to acquire an additional mining concession of more than 3,975 hectares located immediately to the south of its 100-per-cent-owned Mejia property, in the San Lucas gold belt of the Bolivar department, Colombia. The concession, to be known as the Mejia South property, is situated in the municipalities of Barranco de Loba, San Martin de Loba and Rio Viejo.

This new property increases the flexibility of the company's exploration and development activities within the immediate area of its Mejia project. A series of veins have been encountered on the Mejia South property having similar strike directions as those encountered at the four artisanal mines adjacent to the Mejia property, namely La Gloria mine, El Fogaje mine, Los Romanes mine and El Turco mine.

"We are delighted to have been able to add to our already sizable land position in this highly sought-after gold district. Cabia now controls about 11,000 hectares of mining concessions, including several artisanal mines, which gives us one of the largest positions in the San Lucas gold belt," stated Michel Delisle, president and chief executive officer of Cabia.

Pursuant to the agreement, Cabia will conduct a 2,000-metre drilling program on the Mejia South property over a period of two years. Upon the registration of the final transfer of title to the properties and the completion of an NI 43-101-compliant report, Cabia will pay to the owner an amount of $15 (U.S.) for each ounce of gold reserves encountered on the Mejia South property. In addition, Cabia will pay a royalty corresponding to 15 per cent of the net profits or, at the choice of the owner, a 2-per-cent net-smelter-return royalty. Cabia can return the property to the current owner at all times and without further obligations if it does not discover sufficient reserves that can be exploited economically.

Cabia's Mejia project is a 6,946-hectare mineral concession located close to sea level and outside any environmentally restricted areas in the San Lucas gold district in the Sur de Bolivar region of the department of Bolivar, Colombia. The San Lucas gold district is an underexplored area where intense artisanal mining is present, including the Mejia mines, as described in Cabia's NI 43-101 report on the Mejia project available on the company's SEDAR profile.

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