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Kootenay and Arctic Hunter enter into option agreement to drill the Santa Lucia gold property in Mexico
VANCOUVER, Dec. 10 /CNW/ - Kootenay Gold Inc. ("Kootenay") (KTN: TSX.V) and Arctic Hunter Uranium...
About this update from Trans Canada Gold Corp
[{"type":"text","content":"\n\n\n\nVANCOUVER, Dec. 10 /CNW/ - Kootenay Gold Inc. ("Kootenay") (KTN: TSX.V)\nand Arctic Hunter Uranium Inc. ("Arctic") (AHU: CNSX) are pleased to announce\nthey have entered into a Letter Agreement, whereby Arctic has the right to\nearn 60% interest in the Santa Lucia Property, Sonora Mexico. Kootenay has\ngranted Arctic the right to earn an undivided 60% interest in the Property in\nexchange for US$25,000 on signing of the Agreement; issuing an aggregate of\n750,000 common shares of Arctic to Kootenay; and funding an US$1,000,000 of\nexploration expenditures on the Property within a four years period.\n\n\nDrill Targets Identified\n\n\nDuring the last several years Kootenay has conducted extensive\nexploration on the Santa Lucia Property which includes prospecting, mapping,\nsampling, Airborne Mag and EM work. In addition, a complete historic Data\nPackage was purchased in 2009. The Data contains information from more than\nUS$1 million of exploration expenditures conducted in the 1990's. Based\nKootenay's exploration and drill intercepts contained within the Data Package,\nseveral compelling Drill Targets have been identified. Planning and permitting\nis now underway for a comprehensive diamond drilling program at Santa Lucia.\n\n\nGeological Information\n\n\nThe Santa Lucia project consists of a very large concession, extending\nabout 16.5 km north-south x 11.5 km east-west. The project area contains\nseveral styles of precious-metals mineralization including: 1) coarsely\ncrystalline, deep-seated, gold-silver +/- minor base metals quartz veins in\nMesozoic plutonic rocks, 2) vuggy finely crystalline quartz-breccia veins and\nstockworks in Tertiary volcanics, 3) barren sulfide-deficient hairline quartz\nveinlets in Tertiary volcanics, 4) barren sulfataric (argillic and silicic)\nalteration in andesitic volcanics.\n\n\nTerms of Agreement\n\n\nTo fulfill the terms of the option agreement Arctic must spend US$1\nmillion on exploration over four years and issue up to 750,000 shares with\n150,000 shares due on execution of the Letter Agreement and 150,000 common\nshares of Arctic on or before the first year anniversary and each of the\nsecond, third and forth anniversaries thereafter, of the Execution Date.\nSubsequent to exercise of the earn-in, Arctic and Kootenay will form a 60/40\njoint venture. Funding...