G4G Resources reports on Argentinian Despoblados project
G4G Resources announces report on Despoblados geothermal project in San Juan, Argentina, and name change of company to Americas Geothermal.
In a release, “G4G Resources Ltd (TSX VENTURE: GXG) announces that the independent technical report on the geothermal resource at the Despoblados prospect located in San Juan, Argentina (“technical report”) has been completed by GeothermEx, Inc. The technical report has been filed with the TSX Venture Exchange (“TSX-V”) for review prior to release. Upon receiving TSX-V approval, the Company intends to post the technical report on SEDAR.
Despoblados is one of the geothermal properties in the Valle del Cura region in respect of which G4G previously announced on February 16, 2010 that it had entered into an exploration contract with an option to purchase with Group Minero Aconcagua S.A. and Andean Geothermal Power Corporation (the “Agreement”).
The geothermal resource estimate for Despoblados has been prepared in accordance with The Canadian Geothermal Code for Public Reporting, 2010 Edition, published by the Canadian Geothermal Energy Association (“CanGEA”) (“The Canadian Geothermal Code”). Using the temperature of the geothermal system estimated from chemical geothermometry and certain standard assumptions regarding area and thickness, the technical report estimates a resource range at Despoblados of about 8 to 17 MWe for 20 years of production, which may be considered an Inferred Resource Estimate in the sense of the Canadian Geothermal Code. A larger resource may be present if further exploration shows its area and/or thickness to be greater than assumed. The technical report also states the Valle de Cura geothermal concessions collectively have a possible total resource capacity of 35 to 85 MWe (for 20 years), perhaps several tens of MW or more.
The Canadian Geothermal Code outlines the requirements for reporting of Exploration Results, Geothermal Resources and Geothermal Reserves and provides a minimum set of requirements for the public reporting of Geothermal Resources and Reserves. The Canadian Code will serve as an industry self-regulation and will be on a voluntary compliance basis for 2010. The Code is intended for all publically listed companies on Canadian Exchanges and all other private and public companies benchmarked against Canadian industry standards. Reports prepared in accordance with the Canadian Geothermal Code are presently not in accordance with National Instrument 43-101 – Standards of Disclosure for Mineral Projects, since such instrument does not apply to geothermal projects. Nevertheless, G4G believes that the Canadian Geothermal Code is the most up-to-date and credible Canadian standard for the reporting of geothermal information. The technical report was prepared by Christopher W. Klein and Roger C. Henneberger of GeothermEx, both of whom are responsible for its content. Each of Dr. Klein and Mr. Henneberger is a “qualified person” under the Canadian Geothermal Code and is independent of G4G.”
GeothermEx, Inc. is a U.S. corporation, in business since 1973, specializing exclusively in providing consulting, operational and training services in the exploration, development, assessment and valuation of geothermal energy. GeothermEx, Inc. is the largest and longest-established such organization in the Western Hemisphere. The staff consists of specialists in geosciences (geology, geochemistry, geophysics, hydrology), engineering (drilling, well testing, reservoir, production, power plant, chemical), computer science and economic analysis. All technical staff members have advanced degrees and lengthy geothermal experience (average 15 years), with several members having more than 25 years in the geothermal industry.
G4G is currently in the process of satisfying the requests from the TSX-V for documents and information relating to the proposed transaction. Trading in G4G’s common shares has been halted on the TSX-V since the announcement of the proposed transaction on February 16, 2010. Completion of the transaction remains subject to the final approval of the TSX-V and G4G Shareholders. Following completion of the transaction, G4G intends to carry out planned work that would include structural mapping, geochemistry, geophysics and drilling, with the goal of defining geothermal resources which will support the commercial generation of electricity. The amount of the work commitment by G4G for the exploration and drilling activities is US$1,863,000 over a period of two years.
In addition, an application has been made to change the name of the company to more effectively reflect the nature of the business with which it is involved. Subject to TSX-V approval, G4G will become Americas Geothermal Inc., under the symbol TSX-V: GXG.”
Source: Company release via Newsblaze