Concordia Resource Corp. To Focus Its Resources On Development Projects In West Africa And ArgentinaVANCOUVER, BRITISH COLUMBIA - In response to the current market conditions, Concordia Resource Corp. (TSX VENTURE:CCN) ("Concordia" or the "Company"), announces that it intends to focus its resources on the advancement of development stage projects in Burkina Faso, through its proposed acquisition of Swala Resources Inc. ("Swala"), and at the 100% owned Providencia Silver Project in Argentina. As part of a prioritization process the Company has made the decision to suspend drilling on both the Baza copper/gold project in Spain and Albisu gold project in Nevada.
On September 6, 2011 Concordia announced that it had signed a letter of intent to acquire Swala via a share exchange. Swala brings to Concordia an extensive exploration portfolio of gold projects in Burkina Faso, as well as a land package totaling over 12,400 km2 in the countries of Gabon, the Democratic Republic of the Congo, Mozambique and Zimbabwe. Additionally, Swala brings a strong management team and a board of directors with extensive expertise in Africa. All projects outside Burkina Faso are subject to joint venture farm-out agreements. The Company and Swala expect to have a definitive agreement in place in respect of the acquisition by November 2011.
In light of the pending acquisition Concordia will reposition its resources to implement an aggressive drill program in Burkina Faso, where Swala owns 100% of the Kerboulé property and is earning up to an 80% joint venture interest on the Guéguéré property. The focus of the proposed drilling program is to generate a NI 43-101 qualified resource on the Kerboulé property while expanding the currently identified mineralization on the Guéguéré property.
Providencia Silver Project, Argentina
Concordia, through its wholly owned South American subsidiary Meryllion Minerals Corporation ("Meryllion"), has received authorization from the Directorate of Mines -- Province of Jujuy to proceed with drilling at the Providencia silver-copper prospect in Northwestern Argentina. A 3,000 to 5,000 m drill program is currently underway with approximately 15 of the designated 50 drill holes already completed. The objectives of the program are to extend known resources in the near surface environment as well as to test for high grade mineralization at depth with an initial target of some 15 to 20 million ounces of silver based upon previous drilling on the property.
"Swala's highly prospective Kerboulé and Guéguéré projects are in early stage development and can be rapidly advanced to a defined resource stage with focused drilling programs. This process is already underway at the Providencia Silver Project. Drilling in Burkina Faso is scheduled to commence by the end of October under the current plan. This refocusing of resources follows our strategy to create greater near-term shareholder value in two of the most prospective geologic and favorable mining environments in the world," stated Edward Flood, CEO of Concordia.
Suspended Drill Programs
Concordia will suspend drilling programs on both the Baza copper/gold project in Spain and Albisu gold project in Nevada. Drilling at Baza will cease upon completion of the current hole. An IP geophysical survey will be conducted at Albisu in the coming month to better define controls and mineralization.
Concordia Resource Corp. is a junior mining exploration company. The successful acquisition of Swala will position Concordia as a well financed African-focused explorer with an emphasis on developing gold deposits holding the potential of one million ounces upwards. Members of Swala's team are former Anglo American and De Beers executives with extensive experience of operations throughout the African continent. Concordia has its head office and executive management team in Vancouver, Canada; its technical team is based in Reno, Nevada.
On behalf of the Board of
Concordia Resource Corp.
"R. Edward Flood"
R. Edward FloodChairman
Concordia Resource Corp.
Karl Cahill VP, Investor RelationsTelephone: +1-858-531-6100
Forward Looking Statements
Certain of the statements made and information contained herein is "forward-looking information" within the meaning of the Ontario Securities Act, including the receipt of necessary permits to conduct exploration and construction, timing of anticipated exploration program, the number of the holes and metres to be drilled and future plans of the Company. Forward-looking information is subject to a variety of risks and uncertainties which could cause actual events or results to differ from those reflected in the forward-looking information, including, without limitation, risks and uncertainties relating to risks inherent in mining including environmental hazards, industrial accidents, unusual or unexpected geological formations, ground control problems and flooding; risks associated with the estimation of mineral resources and reserves and the geology, grade and continuity of mineral deposits; the possibility that future exploration, development or mining results will not be consistent with the Company's expectations; the potential for and effects of labour disputes or other unanticipated difficulties with or shortages of labour or interruptions in production; actual ore mined varying from estimates of grade, tonnage, dilution and metallurgical and other characteristics; the inherent uncertainty of production and cost estimates and the potential for unexpected costs and expenses, commodity price fluctuations; uncertain political and economic environments; changes in laws or policies, delays or the inability to obtain necessary governmental permits; and other risks and uncertainties, including those described in each management discussion and analysis. Forward-looking information is in addition based on various assumptions including, without limitation, the expectations and beliefs of management, the assumed long term price of metals; appropriate equipment and sufficient labour and that the political environment where the Company operates will continue to support the development and operation of mining projects. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in the forward-looking information. Accordingly, readers are advised not to place undue reliance on forward-looking information.
The TSX-V has neither approved nor disapproved the contents of this press release. Neither the TSX-V nor its Regulation Services Provider (as that term is defined in the policies of the TSX-V) accepts responsibility for the adequacy or accuracy of this press release.
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