"The acquisition of a majority interest and control of the development of Cieneguita project is a turning point for Pan American Goldfields, as it puts our technical and management team firmly in the driver's seat to initiate and accelerate the development of what we consider to be a very exciting project. In 2009, our original decision to make a significant investment in Pan American's predecessor, Mexoro Minerals, occurred after an extensive evaluation of the Cieneguita resource. Events since then, while frustrating, have not diminished our view of the potential of the Cieneguita project, and we are pleased to double our interest in, and take control of, the Cieneguita project and move it forward with our own technical and management team.
Now that the Letter Agreement has been executed, our first goal will be to initiate and complete a scoping study for Cieneguita, the first step towards the completion of a feasibility study. The scoping study should take approximately six months to complete and from there we will initiate a pre-feasibility or full feasibility study for what we expect to be a fairly straightforward mining development. I speak for the entire Pan American team when I say how excited we are to get started and, as a consequence, immediately start the process of building value for the company and its shareholders.
In the meantime progress is being made at our Cerro Delta porphyry exploration project in Argentina, where we continue to expand our land position. Assays of samples taken during a recent field trip further confirmed the core of the previously mapped gold zone. As a final step towards commencing drilling at Cerro Delta, we plan to expand our program of geological work at the onset of the coming exploration season in the third quarter of this year. Actual drilling is expected to commence either in the late 2011 or early 2012.
In closing, I must emphasize how thrilled I am to have the honor of leading such an accomplished group of explorationists and company builders. Approximately two years has lapsed since we began restructuring the company and recruiting the current technical and executive team. I would like to thank our current directors and management, and at the same time welcome the latest member of our team, Dr. Alex Becker, who is geological adviser to the board. I look forward to drawing on this distinguished group's prior successes and expertise to help us achieve the full potential of our current and future projects, and build value for our shareholders."About Forward-Looking Statements Except for statements of historical fact, the matters discussed in this press release are forward looking and reflect numerous assumptions and involve a variety of risks and uncertainties, many of which are beyond our control and may cause actual results to differ materially from stated expectations. For example, there can be no assurance that we will complete the definitive agreements with MRT and MM on a timely basis, or at all. Actual results may also differ substantially from those described in or contemplated by this press release due to risks and uncertainties that exist in our operations and business environment, including, without limitation, our ability to enter into definitive agreements with MRT and MM, our ability to successfully complete the feasibility study for the Cieneguita property, and our ability to raise funds to support our future operations, and other risks described from time to time in our filings with the Securities and Exchange Commission. We undertake no obligation to release publicly the results of any revisions to these forward-looking statements to reflect events or circumstances arising after the date hereof. SOURCE: Pan American Goldfields Ltd., a fully reporting company in United States and Canada http://www.panamgoldfields.com SOURCE Pan American Goldfields Ltd.