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Woodruff announces option agreement on Long Lake VMS property, central Newfoundland
Woodruff announces option agreement on Long Lake VMS property, central Newfoundland.
About this update from Copper Road Resources Inc
[{"type":"text","content":"\n\n\n\n\nTORONTO, March 1 /CNW/ - Woodruff Capital Management Inc. (\"Woodruff\")\n(WOO-TSXV) is pleased to announce the signing of an option agreement with\nCornerstone Capital Resources Inc. (\"Cornerstone\") for Cornerstone's Long Lake\nvolcanogenic massive sulphide (VMS) property, 60 km southwest of Aur\nResources' Duck Pond project and 11 km southwest of Falconbridge's Long Lake\nmassive sulphide deposit currently under option to Messina Minerals.\nThe agreement grants Woodruff the right to earn a 51% interest in the\nproperty by spending $1.5 million on exploration over four years. The first\nyear's $125,000 expenditure is a firm commitment and includes costs associated\nwith the completion of a diamond drilling program designed to test a combined\nbase metal in till geochemical anomaly and conductive airborne geophysical\nanomaly. The agreement also calls for Woodruff to make cash payments totaling\n$100,000 over four years including $10,000 paid on signing the agreement.\nCornerstone will be operator during the earn in period.\nThe schedule of required cumulative expenditures for Woodruff to earn a\n51% interest is as follows:\n\n - $125,000 by the first anniversary of signing the formal agreement\n - $250,000 by the second anniversary\n - $500,000 by the third anniversary\n - $1,500,000 by the fourth anniversary\n\nOn Woodruff earning a 51% interest, a Joint Venture will be formed\nwhereby both parties will have the right to maintain their respective\ninterests by funding their respective share of exploration costs. Either party\nmay dilute its interest, based on exploration expenditures, or if a party's\ninterest falls to 15% or less, its interest will convert to a 2% NSR.\nAs previously released by Cornerstone (Cornerstone news release dated\nMarch 2, 2005), the Long Lake property covers favourable felsic volcanics and\nsediments akin to those which host the Long Lake deposit. The Long Lake\ndeposit is comprised of high-grade massive sulphides with base metal grades\ncomparable to those returned from Messina Minerals' recent Boomerang and\nDomino discoveries. Messina's Boomerang discovery is located 10 km west\nnorthwest of Cornerstone's Long Lake property. Cornerstone's property hosts an\nisolated, 1 km long, airborne electromagnetic conductor associated with an\nadjacent silica-sericite-pyrite alteration zone hoste...