VANCOUVER, BRITISH COLUMBIA--(Marketwired - April 10, 2013) - Odin Mining and Exploration Limited ("Odin") (TSX VENTURE:ODN) is pleased to provide an exploration update and some information on its concessions in Ecuador as follows:
1) Improvements in status of mining in Ecuador generally, and some feedback regarding Ecuadorean windfall tax issues.
2) results of preparatory fieldwork for the second phase drill program, and a "fly through" video based on Odin's currently available data sets (see hyperlink referred to at para. 2.4, below).
3) Odin's proposed exploration plans for 2013.
1. Improvements in status of mining in Ecuador, in 2013
1) On February 17th, 2013 President Correa was re-elected as President of Ecuador. He appears to have taken a brave stand to commit to international development of Ecuador's nascent mineral wealth.
2) President Correa has stated investment is to be encouraged by foreign mining companies in the sector of Ecuador's Non Renewable resources.
3) Local congressional elections have already taken place, with the result that on the first day of the new Congressional sitting, May 24th, the President expects to enjoy some 75% political support from Congress for all his proposed reforms. These include reforms expected in laws regulating the mining sector, which is the responsibility of the Government Ministry for Non Renewable Resources (the "Ministry" - esp. see para. 1.6 below).
Windfall tax issues
4) It is our Board's view that amendments are required to the existing Ecuadorian windfall tax legislation.
5) Local process requires any amendments to the windfall tax legislation be referred by the President's office, in draft, to Congress for amendment and approval. Congress must then return the draft (with amendments, if any) to the President's office within 30 days of that referral. It is the Company's understanding that the first draft of changes to the windfall tax law are prepared, ready for Presidential referral to Congress. This is not expected to proceed until the new session of Congress begins in May 2013.
6) The Company understands that a similar but workable tax windfall structure, already operates in Ecuador for petroleum exploitation imposed on exploiting companies. This is also under regulation of the Ministry.
If the Ministry intends to regulate the gold industry consistently with the petroleum industry, then 70% of the total income generated above a contractually pre set (gold) price will still be attributable to the government, but only after all capex costs incurred in the development of the mine are fully amortized.
The proposed reform of the windfall tax structure is importantly understood to permit depreciation of all capex costs incurred prior to the application of any windfall tax calculations. However, this remains subject to governmental approval.
2. Odin's 2nd phase drill program preparation work, since Q2, 2012
1) The drilling program in 2011-2012 provided vital follow up to earlier drilling by Newmont Mining Corporation ("Newmont").
The Newmont drill program took place in 1998-2000 over a larger concession area. The results from relevant holes upon which Odin's modeling is now based, were from those drilled on concessions entirely under Odin's current control.
2) The 2011/12 Odin drill program provided both key geological information on mineralization, host structures and significant information on ore geneses and gross geometries, regarding the relevant drilled areas.
3) Odin's local geological team undertook a detailed infill mapping program of relevant areas, since the 2012 first phase drill program.
This preparation work included review of all geological exposures, structures and rock-chip sampling from the larger zones where next stage drilling had been expected. That work was completed early in March 2013.
4) The above data sets have been re-interpreted in a 3D modeling of Odin's system, by one of our consultants, a technical services group specializing in computer generated geological interpretation of data, ("ASVI-TSG").
ASVI-TSG has also produced a "3D fly through movie". This provides an overview of current models, existing drilling and new target zones. It can be accessed by all shareholders by
a) downloading program "Archive Utility™", after searching in any search engine.
b) downloading the hyperlink below and
c) opening the hyperlink using "Archive Utility™" program.
Shareholders are also referred to letters to shareholders by our President on Odin's website (www.odinmining.com) for additional exploration updates and details, from time to time.
5) The potential footprint of these zones was expanded by our subsequent surface geological mapping. The result is a significant scale geological target now recommended for drill testing.
6) The follow-up drilling program is limited to very specific 2000/2500m of drilling. It has a potential commencement date in Q3 2013, and is purposed to enhance Odin's grade definition by adding vital data on strike and down-dip.
3. Odin's ongoing work and future plans for 2013
1) As a result of considerable global developments in the understanding of systems similar to those which currently appear to be present at Odin's Greater Cangrejos project, all of Odin's own drill core is being relogged.
This will include the relogging of 7000m of the Newmont 1999/2000 original JV core, drilled on Odin's current concessions.
The 1999/2000 JV core has already been reboxed. It includes some valuable deeper intersections in the system, which Odin intends to retest at a future date.
2) Relogging is being completed by an independent geologist with established modern expertise in porphyry systems.
The relogging is expected to refine the conceptual geological interpretation already presented. It will be completed prior to the second phase drill program.
The decision when and whether to proceed with the proposed next phase drill program can only be made by Odin once it is of the view that revisions anticipated of the Ecuadorean windfall tax legislation will be satisfactory, and on its subjective view of any other risks prevailing.
Depending on the above, and availability of locally experienced Ministry approved drilling contractors, and on Odin's weather dependent site access, the project could be "drill ready" within 6 weeks of a decision by the Board.
All scientific and technical data contained in this press release and in the two Schedules was reviewed and approved by Mr. Daniel Noone, a member of AIG and Director of the Company, as the Qualified Person in accordance with the requirements of NI 43-101.
As at March 25th, 2013, Odin had the benefit of C$720,000 in cash and cash equivalents on a consolidated basis.
Stephen W.C. Stow, President
This release may include certain statements that may be deemed to be "forward-looking statements". All statements in this release, other than statements of historical facts, that address events or developments that management of the Company expect, are forward-looking statements.
Actual results or developments may differ materially from those in forward-looking statements.
Odin Mining and Exploration Ltd. disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, save and except as may be required by applicable securities laws.
President and CEO
Odin Mining and Exploration Limited
Director, Responsible for Our Exploration Program