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Grande Portage Resources Ltd. Signs Agreement to explore the Herbert Glacier High Grade Gold Project in Alaska
Grande Portage Resources Ltd. Signs Agreement to explore the Herbert Glacier High Grade Gold Proj...
About this update from Grande Portage Resources Ltd.
[{"type":"text","content":"\n\n\n\n Jun. 17, 2010 (Canada NewsWire Group) -- Grande Portage Resources Ltd. (TSX-V GPG) ("Grande Portage" or "the Company") is pleased to announce that it has entered into an agreement with Quaterra Resources Inc. (TSX-V: "QTA", NYSE Amex: "QMM") to explore the Herbert Glacier gold property located 20 miles north of Juneau, Alaska.\nGPG has the right to earn a 51% interest in the Property and the Lease by incurring Expenditures on the Property of not less than USD$750,000 on or before June 15, 2011. The Company can earn an additional 14% interest in the Property and the Lease for an aggregate 65% interest in the Property and the Lease by incurring Expenditures on the Property of not less than an additional USD$500,000 on or before June 15, 2012. If Grande Portage acquires an interest, then Grande Portage and Quaterra will form a joint venture for the further exploration and development of the project, with each party bearing their proportionate share of costs, and a dilution formula will be applicable to any non-contributing party to reduce such party's joint venture interest. If either party is reduced to 10% or less, then such party's joint venture interest will be reduced to a 1% net smelter returns royalty, which may be acquired by the other party for USD$1 million.\nThe Herbert Glacier Property comprises 1,880 acres, and consists of 74 Federal unpatented mining claims and 17 leased mining claims, which host six main composite vein-fault structures that contain ribbon structure quartz-sulfide veins. The structures strike east-west and dip steeply, mostly to the north. Only one of the six known vein systems was drilled in 1986 and 1988. Sampling in 2007 shows that all six structures locally have high-grade gold-quartz mineralization and should be drill tested.\nThe Herbert Glacier property is subject to a mining lease dated November 1, 2007 with the underlying property owners for a term of 20 years, with a right of renewal. During the option period, Grande Portage will assume the annual lease minimum work commitments of USD$50,000 on the property, and pay annual advance royalties of USD$12,000 until October 31, 2011, increasing to USD$20,000 thereafter until October 31, 2017, and thereafter increasing to USD$30,000 per annum for the term of the lease. All advance royalties will be c...