(via Thenewswire.ca)
TORONTO, DECEMBER 4, 2012 - Cava Resources Inc. ("Cava")(TSXV - CVA)
is pleased to announce today that it has entered into an Option Agreement with Metalcorp Limited ("Metalcorp") (TSXV - MTC) pursuant to which it can earn a fifty percent interest in 40 mineral exploration claims in its Hemlo East property near Marathon, Ontario. The agreement is subject to the approval of the TSX Venture Exchange.
To earn a 50% interest, Cava must incur $1,500,000 of exploration expenditures on the property and issue 3,250,000 shares to MetalCorp. Of the expenditures, $250,000 must be incurred by December 31, 2012, a further $500,000 by December 31, 2013 and the balance by December 31, 2014. Of the shares, 500,000 must be issued within 7 days after the commencement of a drilling program, 750,000 by December 31, 2013 and 2,000,000 by December 31, 2014. During the term of the option agreement, MetalCorp will act as operator. On completion of the option, the two companies will form a joint venture and MetalCorp will retain a 2% net smelter returns royalty, half of which may be purchased by Cava for $2,000,000.
Cava and Metalcorp have also agreed to a two kilometre area of interest from the outer boundary of the current Gouda Lake Property, excluding any claims currently held by Metalcorp.
The Gouda Lake Property covers an area of approximately 5470 hectares or 54.7 square kilometres. The property is located approximately 12 kms east of the Hemlo Gold Mines which to date has produced over 23.0Moz of gold. A sketch showing the location of the property will be posted shortly on the company's website at www.cavaresources.com
The Gouda Lake Property hosts the Gouda Lake Gold-Zinc Zone which was discovered by Lac Minerals in 1988. The Gouda Lake Zone is hosted within a 20 metre thick quartz-sericite schist unit containing disseminated to semi massive sulphides (pyrite+/-sphalerite with minor amounts of chalcopyrite and galena). The zone has been traced by historic diamond drilling for over 350 metres along strike.
In 1996 a previous operator estimated a resource of 253,000 tonnes @ 4.1 gpt gold for the Gouda Lake Zone (Cava is not treating this historical resource estimate as a NI 43-101 defined resource (or reserve) verified by a qualified person and as such this historical resource should not be relied upon).
In 2010 Metalcorp diamond drilled 29 holes totalling 3,650 metres on the Gouda Lake Zone. Assay results included 19.7 g/t gold and 155 g/t silver over 1.2 meters in hole HEGZ-10-16, 11.4 g/t and 253 g/t silver over 1.34 meters in HEGZ 10-20, and 11.15 g/t and 200 g/t silver over 1.5 meters in HEGZ 10-24. These results are based on public records and have yet to be verified by a Qualified Person on behalf of Cava.
Currently a diamond drill is being mobilized unto the property. The proposed drill program is to consist of 3 or 4 diamond holes to test the down dip extension of the Gouda Lake Zone. The drill program is expected to be completed by the end of 2012.
Mr. Bruce Mackie, P.Geo., of Bruce Mackie Geological Consulting Services has reviewed and verified the technical content of this press release on behalf of Cava Resources Inc. and is a "Qualified Person" as defined in National Instrument 43-101.
Other Business
Cava also announces that it has granted 2 million stock options exercisable at $0.10 per share to certain officers, directors and consultants to the Company.
About Cava Resources
Cava Resources Inc. (TSX-V: CVA) is a junior exploration company. The company previously carried on business as Sea Green Capital Corp. and on July 24, 2012, it changed its name to Cava Resources Inc. and consolidated its shares on a one for five basis. There are currently 19,984,114 common shares issued and outstanding.
In addition to the Hemlo East property being optioned from Metalcorp, Cava is also exploring for precious metals on its Casa Berardi Property which consists of two non contiguous claim groups comprising 63 square kilometres located in the Casa Berardi area of northwestern Quebec. Cava currently holds a 70% interest in the properties in Joint Venture with Explorers Alliance Corporation ("Explorers"). In late 2011 Cava flew a VTEM Plus Airborne Survey over the Casa North Property which hosts the historic "Glen Auden Gold Zone".
Results from the 2012 drill program conducted by Cava were highlighted by the discovery of a potential new gold zone (the "Conductor 1410 Zone") located approximately 250 metres east and along strike of the Glen Auden Gold Zone. The Conductor 1410 Zone was tested by two drill holes, CAS-12-04 and 05 which both encountered anomalous gold values within an altered sercite-fuchsite schist. Significant assay results include 1.4 metres of 5.0 g/t gold and 1.5 metres of 6.11 g/t gold in hole CAS-12-05.
Further diamond drilling on the Conductor 1410 Zone as well as the Glen Auden Gold Zone is planned for 2013.
In addition, Cava has acquired an oil & gas licence in the Peace River Arch area of Alberta. The Company is currently evaluating it options with regards to developing or selling this licence.
For further information contact:
John V. Hickey R. Brian Murray
President, 416-637-2139 CFO, 416-985-7810
The TSXV has not reviewed this news release and does not accept responsibility for the adequacy or accuracy of this news release. The TSXV has neither approved nor disapproved the contents of this news release.
All statements other than statements of historical fact, included in this release, including, without limitation, statements regarding potential mineralization and reserves, exploration results, and future plans and objectives of the Company, are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's expectations are exploration risks detailed herein and from time to time in the filings made by the Company with securities regulators.
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