Targa expands El Zanjon project, issues shares

Executive Summary

• Targa Exploration Corp. has expanded its El Zanjon gold-silver project in Argentina by acquiring three new exploration concessions, increasing the total land package by 66% to 57,276 contiguous hectares.
• The company issued 1.25 million shares to Aegis Resources Ltd. as the first tranche of option payment shares, fulfilling terms of the option agreements for the El Zanjon and Venidero projects.
• Management anticipates receiving approval for updated environmental impact statements for both El Zanjon and Venidero in February, with field work planned for the first half of the year.

Key Details

• Project Expansion:
  • El Zanjon project size increased from 34,521 hectares to 57,276 contiguous hectares (a 66% increase).
  • Three new concessions were granted, covering a total of 22,755 hectares at the north, east, and southwest edges of previous limits.
  • Eastern Extension: 8,007 hectares; staked to cover potential extensions of geochemical anomalies identified by Rugby Resources soil sampling.
  • Northern Extension: 6,383 hectares; contains elevated gold values from previous soil sampling.
  • Southwestern Extension: 8,365 hectares; unexplored area with potential for similar structural and geological conditions.
  • New concessions are subject to the same option agreement terms as the original claim group.
• Financing / Share Issuance:
  • Targa issued 1.25 million shares of common stock to Aegis Resources Ltd.
  • Deemed price per share: $0.20 CAD.
  • This represents the first of three tranches of shares to be issued to Aegis under the option agreements for El Zanjon and Venidero.
• Operational Updates:
  • Field work is planned for both El Zanjon and Venidero projects in the first half of the year.
  • Company is finalizing plans and budgets while awaiting regulatory approval.
  • Anticipated receipt of approval for updated environmental impact statements: February.
• Technical Disclosure:
  • Reviewed by Lorne Warner, PGeo, VP of Exploration.
  • Disclosure notes that results relate to exploration work conducted by Rugby Resources and have not been verified by Targa in accordance with NI 43-101 standards.

Notable Quotes

• "Previous geochemical sampling identified an area of interest that ran up to the edge of the old project boundary," commented Targa chief executive officer Cameron Tymstra. "This expansion of El Zanjon will cover any potential continuation of that trend to the northeast and help protect our project boundaries in the event of a discovery."
• "We look forward to getting on the ground at both El Zanjon and Venidero in the first half of this year. We are putting together plans and budgets while we wait for approval of our updated environmental impact statements for both projects. We are currently anticipating receipt of approvals sometime in February."