News

June 29, 2015

Para Resources Inc. Announces The Results On The Drilling Program At Its Tucuma Property In Para State, Brazil

Vancouver, British Columbia – 06/29/15 – Para Resources Inc. (“Para Resources” or the“Company”), a mineral exploration company listed on the TSX Venture Exchange (the “Exchange”), is pleased to announce the results on the drilling program at Angelim and Serrinha targets in its Tucumã Gold-Copper Project (the “Project”), located in Carajás Province, Brazil. The Project is 100% owned by Para Resources.

 

A shallow drilling program was conducted at Zone 1 of Angelim Target with the aim of exploring and detailing the mineralized area, defined by the previous trenching program, until the bottom of saprolite/saprock level.

The fourteen drill holes performed at Zone 1 were located under an approximated 25x25m grid and most of them had a 90o azimuth direction, 45o inclined, as shown in the map below:

 

 

Note that some of them had a different azimuth, as to infill information at 12.5m and test plunge control possibilities.

The 717.67m of drilling carried out on 14 holes from 38.30 to 59.70m of depth at Zone 1 had the double function of confirming mineralization underneath the trenches, improving the confident level of information, and fulfilling the obligation of presenting a Final Exploration Report to the Brazilian government related to Angelim and Serrinha targets.

Only a further drill hole of 60.65m of depth was performed at Serrinha Target to confirm an historical gold-copper intersection obtained by Anglo American in the beginning of the 90’s.

Core sampling was taken in respect to a 1.00 to 2.00m support, respectively in mineralized and non-mineralized intervals, although always prioritizing the geological features and breaks, such as lithological, regolith and alteration contacts.

Most of the core-drilling sampling results confirmed gold mineralization obtained in the channel sampling of the trenching program, until 40 vertical meters from surface. Saprolite/saprock bottom varies between 25 to 35m of depth, averaging 30m of weathered material.

Drilling has intercepted gold mineralization, mainly in saprolite and saprock, sometimes in fresh rock materials, represented by a brecciated quartz-sulphidized (partially oxidized) vein with veinlets in the neighborhood hydrothermally altered envelopment over metandesite rock.
Highlights of the drilling assays, obtained in Zone 1 at Angelim Target, include down-hole composite results over such core linear sampling, as follows:

North (from the fault) Block:
8.30 meters @ 8.62 gpt Au, including 2.60 meters @ 25.72 gpt Au
South (from the fault) Block:
11.05 meters @ 10.95 gpt Au, including 3.40 meters @ 19.28 gpt Au and 8.95 meters @ 4.94 gpt Au, including 2.75 meters @ 9.33 gpt Au.

Considering the drilling was programmed in order to cut the mineralized structure as perpendicular as possible, to get approximately true width, down-hole width should be multiplied by the cosin of the drill hole inclination angle.

Mineralization at Zone 1 seems to be filling a stretching (Ϭ3) discontinuity structure represented by a spaced foliation varying from N-S to N35oW direction steeply to subvertical dipping west. In addition, stretching could be also forming a lineation which plunges NW, and could be controlling gold high grade concentrations. This could explain the restrict mineralization expression at surface, making the potential be very expressive along the plunge at depth.

Highlights of the Roque Pit Zone at Serrinha Target drilling assay results include down-hole composite gold-copper mineralization, as follows:
7.00 meters @ 1.67 gpt Au and 0.14% Cu, including 3.00 meters @ 2.97 gpt Au and 0.17% Cu.
4.00 meters @ 6.03 gpt Au and 0.50% Cu, including 2.00 meters @ 4.87 gpt Au and 0.98% Cu.

Serrinha primary gold-copper mineralization, previous identified by the old informal open pit mining activity at Roque Pit Zone and proved by Anglo American historical drilling, comprises a set of quartz-tourmaline-arsenopyrite-chalcopyrite-pyrite veins, which follows a NE-SW opening structure and is probably related to a felsic intermediate subvolcanic rock, intruding the greenstone belt sequence.

The whole drilling program yielded 694 samples for assay, where the grade of gold was between  <0.005 – 48.95 gpt. The ranges were as follows:

 

 

 

 

 

 

 

A complete table of drilling gold intersections at Zone 1 of Angelim Target is presented below:

 

 

 

 

 

 

 

 

 

The only one drill hole performed at Serrinha Target beneath the Roque Pit Zone to date has its results shown as follows:

 

 

 

 

QUALITY ASSURANCE / QUALITY CONTROL (QA/QC)

All drilling core was transported by Para Resources’ personnel from drill site to the core shed at Tucumã town and then the respective samples taken, straight to an Intertek Laboratory unit located in Parauapebas City, about 260km far North from Tucumã.
All core samples from Angelim Target were analyzed for gold. In addition to gold analysis, the core samples from Serrinha Target were also assayed for copper.

Usually one quarter of the core was sent for analysis, while the other three quarters were retained in the core boxes for future reference, petrographic studies, eventual checking re-sampling, etc. However, when a duplicate sample was required for QA/QC, two quarters of the core was sent to lab and a half of the core was let in the boxes.

After preparation under PT-01 method which includes a sample grinding at 150 mesh, gold analysis for all samples were done via FA50Au method, comprising Au by Fire assay and Atomic Absorption finishing of 50g nominal sample weight. The detection range for this method is 5 ppb to 200,000 ppb.

The 46 core-samples from Serrinha Target were also analyzed for copper by GA-20 Cu method, which includes an aqua regia (nitrohydrochloric acid) attach and Atomic Absorption finishing of 2.50g nominal sample weight. The detection range for this method is 5 ppm to 250,000 ppm.

Samples of the gold standard reference materials used for the QA/QC program were obtained and prepared by CDN Resource Laboratories Limited and their gold values were certified and supervised respectively by Mr. Duncan Sanderson, Licensed Assayer of British Columbia, and Dr. Barry Smee, PhD, P.Geo. and Independent Geochemist.

Coincident to each batch of 40 samples, a standard sample was inserted alternating high, medium and low grade samples, preferentially in places where gold mineralization is visually evident. Other control samples such as duplicate and blank (collected in the field) were inserted as well for each 40 samples taken, intercalated to the standards.

Eleven blank samples had their gold values three times over the lower detection limit of 5 ppb. This indicates that Para Resources should buy or get a more accurate blank from the field. Although these samples were accepted due to be out of mineralized intervals.

In other hand, the results tested to date are fully satisfactory as the results for duplicate samples and for the standard sample assays were in the acceptable error range to meet the standards. Standard graphics did not show any bias.

Density or Specific Gravity (SG) tests were carried out at Tucumã Project –Angelim Target in order to have a good accurate measure of this parameter.

The methodologies of Hydrostatic Scale (Archimedes Principle) and Water Volume Displacement were used respectively for hard and massive materials, such as vein and breccia units, and for unconsolidated and weathered materials such as veining saprolite and saprock.

Specific Gravity (SG), Density or Apparent Specific Mass is defined by the division between the total mass of the sampled trial body (expressed in tonnage or kilos) and its volume (expressed in m3 or cm3).
Samples for density determination were taken from the core as always as possible, coincidentally to the sampling intervals.
Average results for all the 303 density samples taken were:

• Wet weathered Rock (saprolite+saprock): 2.02 g/cm3.
• Dry weathered Rock (saprolite+saprock): 1.67 g/cm3.
• Fresh Rock: 2.77 g/cm3.

Individual density values will be part of block modeling and will allow the estimative of density for each block to be used in resources calculations.

GEOLOGICAL MODELING

Ten transversal sections to the drill holes and trenches directions in Zone 1 of Angelim Target, were interpreted in 2D, as well as a detailed geological map was yielded based on the trenches wall mapping.

Modeling considered both trenches and drill holes and was discriminated by a conjunction of gold grade classes and geological alteration features defining a probable mineralized envelopment.

This work allowed a 3D solid creation of the mineralized envelopment at Zone 1, yielded in specific software, as represented by the following figure:

This solid will be the geological basis for a block model creation and resources and reserves calculation under CIM’s standards and the preparation of a NI-43-101 independent report, which are going to be the next steps for Zone 1.

The Company remains very optimistic with Zone 1 drilling results as they suggest that a small operation could be implemented in the short term.

In addition, the consistent continuity of the high grade gold mineralization at depth suggests a potential for underground mining to be explored.

Para Resources has recently presented a Final Exploration Report for the property which comprises both Angelim and Serrinha targets to the Brazilian Government and has also filed an application for trial mining and environmental licenses usual for small mineral deposits in Brazil.

Mr. Paulo J. Andrade, Senior Geologist, VP and Country Manager for Para Resources stated: “The expressive width of the high grade mineralization maintained at depth is making us to think that Zone 1 is probably not only a near surface saprolitic level gold concentration, but it should be continuous at bigger depths than the already known and that it should not be a stand-alone high grade mineralization neither. Beside this enhancing of potential expectation at Zone 1, we should keep in mind the Tucumã Project potential as a whole, using the geological and structural comprehension gotten at Angelim Target as a model for new discoveries in the property.”

Mr. Paulo J. Andrade, a Member of the Australian Institute of Geoscientists (MAIG #6136), Senior Geologist, VP and Country Manager for Para Resources, Inc., and a competent and qualified person under NI-43-101, has reviewed and approved the scientific and technical information in this press release.

About Para Resources:

Para Resources, Inc., is a publicly-listed company on the Exchange with a focus on small scale, South American mining properties. Para owns 100% of a gold and copper bearing property near the town of Tucumã in Para State in Brazil. Tucumã is located within a prospective area for gold and copper deposits, and the Company is looking to add additional prospective or advanced stage properties in LatAm to leverage the experienced and qualified geological team already on the ground.

Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the
adequacy or accuracy of this release.

ON BEHALF OF THE BOARD OF DIRECTORS
“C. Geoffrey Hampson”

C. Geoffrey Hampson, Chief Executive Officer, President and Director

For further information, please contact Andrea Laird
Telephone: 604-398-3227

Cautionary Statement Regarding Forward-Looking Information

Except for statements of historical fact, this news release contains certain “forward-looking information” within the meaning of applicable securities law, including statements regarding the proposed private placement. Forward-looking information is frequently characterized by words such as “plan”, “expect”, “project”, “intend”, “believe”, “anticipate”, “estimate” and other similar words, or statements that certain events or conditions “may” or “will” occur. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those anticipated in the forward-looking
statements. Although Para Resources believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in forward-looking statements. Factors that could cause the actual results to differ materially from those in forward-looking statements include exploitation and exploration success, continued availability of capital and financing, inability to obtain required regulatory or governmental approvals and general economic, market or business conditions. The Company undertakes no obligation to update forward-looking information if circumstances or management’s estimates or opinions should change except as required by law. The reader is cautioned not to place undue reliance on forward-looking statements. More detailed information about potential factors that could affect financial results is included in the documents filed from time to time with the Canadian securities regulatory authorities by the Company.

This news release does not constitute an offer to sell or the solicitation of an offer to buy any securities of Para Resources.
Nor is it an offer to sell securities or a solicitation of an offer to buy securities in any state or jurisdiction where prohibited
by law. No securities referred to herein have been or will be registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements.