PEORIA, Ariz., Sept. 7, 2012 -- Viking Minerals Inc. (OTC: VKMD) today announced that the Company has entered into an agreement for a 60% interest ownership stake in a known gold-producing property in the district of Miraflores, province and department of Lima, Peru.
"We have taken this step so that we can position Viking Minerals Inc. to be turned into a fully producing Gold Mining Company. The company has undertaken extensive due diligence on the property. We have been advised by our geological team and joint venture partners, Corizona Mining Partners LLC of Peru, that this property can produce gold immediately upon the establishment of the proper infrastructure and an alluvial processing plant on the property," commented Charles Irizarry, President.
"We want to move out of exploration and into production as soon as possible. This property is in an area adjacent to other properties that have produced gold for hundreds of years. It is also adjacent to a property that has a National Instrument 43-101 technical report showing 36,432 oz of proven reserves with 235,900 oz of probable reserves," Mr. Irizarry continued.
Viking has agreed to fund $500,000 USD to establish a base camp and an alluvial production plant. The work and all necessary governmental and environmental approvals are scheduled to be underway within the next two weeks.
Description of the flagship property of Viking Minerals
The properties subject to the agreement are known as "RECA I," "RECA II," and "RIO ROJO" covering 1800 hectares, or 4447 acres, under the ownership title of CORPORACIÓN MINERA MARIO S.A., duly subscribed in entry N°: 11007849 in Registry of Legal Entities of Lima, with RUC N°: 20406335888, with a legal address in Av. Ricardo Palma N° 846, district of Miraflores, province and department of Lima, with its General Manager being Mario Edgar Bermejo Menéndez, identified with DNI N°: 08182333. The mining concession rights are located in the Inambari River Basin on the flat plains region at an altitude greater than 1500' and accessible by land and air, in the district of Ayapata, province of Carabaya, department of Puno, Peru.
The Inambari Gold Project is located in Peru in the district of Ayapata, province of Carabaya, department of Puno on the eastern side of the Andes Mountains. The Inambari River flows generally north and east out of the Andes into the headwaters of the Amazon River. Commercial quantities of gold have been known to exist in this part of the Inambari River system for many years.
Downstream from the Project's blocks there has been significant mining activity. The project is 30km downstream from the Project at Rio Huaypetue, a gold mine.
The area mined at Rio Huaypetue is almost 20km long. At peak production, during the late 1990s, the area is estimated to have produced about 2% of the world's annual gold output.
This press release may contain certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Investors are cautioned that such forward-looking statements involve risks and uncertainties, which include among others, the inherent uncertainties associated with smaller reporting companies, including without limitation, other risks detailed from time to time in the Company's periodic reports filed with the Securities and Exchange Commission.
VIKING MINERALS INC.
7558 W. THUNDERBIRD RD. STE: 1-486
PEORIA, AZ. 85381
C/O CHARLES IRIZARRY, PRESIDENT CEO
SOURCE Viking Minerals Inc.