03:23:35 EDT Fri 29 Mar 2024
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or Name
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Focus Ventures Ltd
Symbol FCV
Shares Issued 76,870,000
Close 2014-10-22 C$ 0.24
Market Cap C$ 18,448,800
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Focus Ventures to option 65% of Aurora in JV deal

2014-10-23 10:54 ET - News Release

Mr. Ralph Rushton reports

FOCUS SIGNS JOINT VENTURE AGREEMENT WITH DAEWOO INTERNATIONAL CORPORATION

Focus Ventures Ltd. has signed a joint venture agreement with Daewoo International Corp., whereby Daewoo International can earn a 65-per-cent interest in Focus's Aurora porphyry copper-molybdenum project in Peru. Daewoo International is Korea's largest trading/investment company and a subsidiary of Posco.

David Cass, president of Focus, comments: "We are extremely pleased to have Daewoo International as our partner in the development of the Aurora copper project in Peru. We are very much looking forward to working with its mineral resources division on a first-phase drill program to commence as soon as drill permits have been granted. Our deal with Daewoo International will provide the funding necessary to take this copper asset to the next stage as we dedicate our financial resources to our Bayovar 12 phosphate project."

Aurora is an advanced-stage porphyry copper-molybdenum exploration project located approximately 65 kilometres north of the city of Cusco, between 2,600 metres and 2,900 metres above sea level. It is currently being permitted for a major drill program. Thirteen historical drill holes totalling 3,900 metres that were drilled over an area approximately 900 metres by 800 metres cut significant intervals of copper and molybdenum mineralization, including 190 metres at 0.57 per cent copper and 0.008 per cent molybdenum in DDA-1, 142 metres at 0.5 per cent copper and 0.004 per cent molybdenum in DDA-3, and 71.7 metres at 0.7 per cent copper and 0.007 per cent molybdenum in DDA-3A (see Focus news release of July 11, 2012).

Observations and interpretations made from the relogging of available drill core by Focus have been key in the understanding of the deposit's geometry and exploration potential. The porphyry mineralization does not outcrop apart from a small area on the northern edge of the property around drill hole ABC-6.

Drilling in 2001 and 2005 (13 holes) intercepted significant widths of copper and molybdenum hosted by multiphase quartz-feldspar porphyries, and hornfelsed slates and pelitic sandstones belonging to the Ordovician (439 million to 463 million years ago) Sandia formation. Several of the shallower drill holes were terminated in intrusive rock grading more than 0.5 per cent copper with grades strengthening toward the bottom of the hole (see drill results on the Focus website). Molybdenum-rich mineralization, characterizing the deeper parts of the sill complex, was drilled in ABC-6, which assayed 302.4 metres at 0.082 per cent molybdenum and 0.23 per cent copper for the length of the hole, including 84 metres at 0.42 per cent copper and 0.11 per cent molybdenum.

Results of Focus's induced polarization and magnetic geophysical survey support Focus's interpretation that the Aurora mineralizing system extends well beyond the limits of the historical drilling over an area of 1.5 by two kilometres, and could contain a large porphyry copper-molybdenum deposit.

A supergene enrichment profile marked by the prevalence of secondary chalcocite is observed in many holes and accounts for the highest-grade intercepts, for example 26 metres at 0.95 per cent copper in DDA-1 and 72 metres at 0.7 per cent copper in DDA 3A. Definition of this enrichment profile at Aurora will be an important aspect of the upcoming drill program.

For additional information on Aurora, including sections and plans, see the company website.

The agreement

Under the terms of the agreement, Focus and Daewoo International will establish a joint venture company (JVCo) to develop and operate the Aurora project. Upon issuance of a drill permit, Daewoo International will acquire 49 per cent of the shares of JVCo for a purchase price of $3-million (U.S.). These funds will be used for an initial exploration program anticipated to include 10,000 metres of drilling. Daewoo International has the option to earn up to a 65-per-cent interest in JVCo by making additional investments into JVCo, contingent on the results of the further drilling.

The full joint venture agreement between Focus's Peru subsidiary, Minera Focus SAC, and Daewoo International will be posted shortly on SEDAR.

Sampling quality analysis and quality control

The historical drill assays quoted in this news release were undertaken by Vena Resources and Bear Creek Mining, and have not been independently verified by Focus. However, the sampling and assaying are considered to have been undertaken using standard industry practice and quality assurance/quality control procedures. Most of the drill cores were lost in years prior to the acquisition of the project by Focus; however, half-core samples from drill holes DDA-1, DDA-3 and DDA-3A remain.

Selected intervals of mineralized core from drill holes DDA-1 and DDA-3A were reassayed by Focus to determine levels of other elements such as silver and gold, and confirm the reliability of the historical drill assays. A total of 47.26 metres were sampled (34 samples). The reassayed intervals (available on Focus website) confirm the copper and molybdenum grades in the historical drilling, and give confidence in the data assays. Half core was split using a diamond core splitter, and bagged, security sealed and transported by Focus personnel to ALS Chemex laboratories in Lima. Silver, copper and molybdenum were determined by multiacid digestion and ICP-AES. Gold was assayed by atomic adsorption spectrometry. ALS Chemex's quality control system complies with international standards ISO 9001:2000 and ISO 17025:2005. Analytical accuracy and precision are monitored by the analysis of reagent blanks, reference material and replicate samples. Quality control is further assured by Focus's own quality assurance/quality control program, which involves the insertion by Focus personnel of blind certified standards and blanks into the sample stream at regular intervals in order to independently assess analytical precision and accuracy of each batch of samples as they are received from the laboratory.

Qualified person

The scientific and technical information in this release was prepared for Focus under the supervision of Mr. Cass, who is a member of the Association of Professional Engineers and Geoscientists of British Columbia, and a qualified person in accordance with National Instrument 43-101. Mr. Cass has reviewed and approved this release.

About Daewoo International

Created as a spinoff of Daewoo Group in 2000, Daewoo International has a leading role in Korean national economic development, specializing in international trade, project organizing and resource development. After experiencing remarkable annual sales growth, Daewoo International was incorporated in 2010 into Posco Group, an integrated steel producer in South Korea.

With over 100 global networks around the world, Daewoo International does business with local and international customers, carrying a wide range of products including steel, metal, machinery, automotive component, industrial electronics, steel raw material, non-ferrous metal, chemical and agro-fishery product. In addition, Daewoo International has been involved in numerous oil, gas, mineral and food resource projects throughout the world, including the A1/A3 gas project in Myanmar (operator), the Narrabri coal project in Australia and the Ambatovy nickel project in Madagascar. Such efforts have established Daewoo International as a leading resource developer in the global market.

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