Gemini Explorations, Inc. ("Gemini") (OTCBB: GXPI) is pleased to announce that it has executed the second payment of US$40,000 as outlined in the definitive agreement to acquire the Los Chorros Gold Mine, a producing gold property in the El Bagre-Zargoza mining district, department of Antioquia, Colombia. Gemini has acquired an 80 percent majority controlling interest in the property for the sum of U$100,000 and the issuance of 2,500,000 restricted shares of GXPI. The company has paid US$50,000 to date in two separate payments leaving US$50,000 to complete the acquisition. Gemini has first right of refusal to acquire the remaining 20 % interest in the mine within 18 months of the Effective Date.
The Los Chorros Mine is currently being mined with extremely antiquated equipment, and Gemini believes that the project could be turned into a highly efficient producing gold project with low capital costs. Current mining operations at Los Chorros recover a low percentage of the available gold and precious metals present on the property. The plant would initially run at 30 to 50 tonnes/day with a targeted production rate of 100 tonnes per day during the first year. Gemini reported on November 5, 2007 that a 100 tonne per day production rate would produce US$1,080,280 monthly and over US$12,900,000 annually. These estimates are based on US$730 per ounce gold with US$200 per ounce operating and production costs netting US$530 per ounce.
The total cost of the project is estimated to be US$595,900, adding a contingency factor of 30% would bring the maximum projected total to US$774,700.The reports were prepared by general manager Juan Fernando Restrepo and chief geologist Carlos Alberto Vera of Minera Primecap Geological Services (MPGS) of Medellin, Colombia.
Historically one of the largest gold producing countries in the world, Colombia's vast mineral potential has remained virtually unexplored using modern exploration and mining techniques. The Department (Province/State) of Antioquia alone produces over 1,000,000 ounces of gold per year currently, and most of it is produced from antiquated production equipment and facilities. Driven by a new era of political and economic stability and an investment-friendly mining code, Colombia has emerged as one of the resource sector's most attractive new mining frontiers.
Notice Regarding Forward-Looking Statements
This news release contains "forward-looking statements," as that term is defined in Section 27A of the United States Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Statements in this press release which are not purely historical are forward-looking statements and include any statements regarding beliefs, plans, expectations or intentions regarding the future. Such forward-looking statements include, among other things, the expectation of the gold production of the property to be acquired, the low capital costs to upgrade the Los Chorros operating plant, the assumed production and net cash flow.Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, the inherent uncertainties associated with mineral exploration. These forward-looking statements are made as of the date of this news release, and we assume no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements. Although we believe that the beliefs, plans, expectations and intentions contained in this press release are reasonable, there can be no assurance that such beliefs, plans, expectations or intentions will prove to be accurate. Investors should consult all of the information set forth herein and should also refer to the risk factors disclosure outlined in our annual report on Form 10-KSB for the 2006 fiscal year, our quarterly reports on Form 10-QSB and other periodic reports filed from time-to-time with the Securities and Exchange Commission.
Contact: Michael Hill President Gemini Explorations, Inc. Suite 103, 240-11th Ave SW Calgary, AB T2R 0C3 www.geminiexploration.com email: firstname.lastname@example.org IR info: 1 877 700 1644