Condoto Platinum signs cooperation agreement for significant-scale alluvial mining operation in Novita, Colombia

Condoto Platinum NL (ASX:CPD) (the “Company”) is pleased to announce that it has signed a Cooperation Agreement with Evelio Casimiro Martinez Asprilla (“Martinez”) in order to commence bulk sampling initiatives on the Martinez alluvial mining operation in the area of  Novita, Colombia.

The Martinez alluvial mining operation is an active and productive mine with an area of 445 hectares within the 105,975 hectare land position of the Novita Higher Community Council (the “Novita Council”).  The Cooperation Agreement will conform to the terms of the Definitive Tenement Assignment and Royalty Agreement signed between the Company and the Novita Council in January 2012 (ASX news release dated January 31, 2012).

As part of the Cooperation Agreement, the Company will have right of sale over 100% of all produced metals other than gold, along with 25% of produced gold, as part of the bulk sampling process.  The agreement is for a term of 5 years and can be extended by mutual consent.

The commencement of bulk sampling initiatives is a major milestone for Condoto Platinum that will allow the Company to objectively assess the head grade on one of the many alluvial operations in the Novita Council tenement area, where Condoto Platinum holds exclusive rights on mineral development. The upcoming bulk sampling work will also determine the scale of increases in recovery that can be generated at such operations through the installation and use of best-in-industry equipment and processing techniques, while possibly providing a modest revenue stream to the Company.

Condoto Platinum has completed an assessment of the Martinez alluvial operation and ordered a suite of process equipment that management believes has potential to significantly enhance the recoveries of gold, and potentially other precious metals, at the project, as well as optimizing operational efficiency with the aim of further reducing the already low operating costs typical of such alluvial mining developments. A large number of the components have already been delivered to Condoto Platinum’s camp at Novita. The Company expects delivery of the remaining equipment within the coming weeks, at which time management will proceed with completing the installation of the modern process circuits at the Martinez alluvial operation. Following equipment installation, Condoto Platinum will commence operations and recovery of precious metals under the terms described above.

Jay Stephenson
Company Secretary