CALGARY, Aug. 28 /CNW/ - (TSX Venture: CBA) Champion Bear Resources Ltd.
("Champion Bear" or the "Company") is pleased to announce that it has earned a
100% interest in the Aubrey gold property from Teck Cominco Limited ("Teck
Cominco"), subject to Teck Cominco's back-in right and 2% net smelter return
(NSR) royalty. Champion Bear earned the 100% interest in the Aubrey gold
property, located near Dryden, Ontario, pursuant to an agreement with Teck
Cominco (see Champion Bear's press release dated August 19, 2004) whereby
Champion Bear, as operator, spent $250,000 on the property. Following the
completion of a preliminary feasibility study on the property by Champion
Bear, Teck Cominco may, within 90 days, elect to exercise a back-in right. To
earn a 65% interest, Teck Cominco must fully fund, prepare and deliver to
Champion Bear a feasibility study on the property. After exercising its
back-in right, Teck Cominco shall have the right to acquire an additional 5%
interest in the property by providing notice to Champion Bear, within 120 days
of the delivery of a production plan to Champion Bear, of Teck Cominco's
commitment to use its best efforts to arrange or provide project debt
financing for not less than 60% of the projected capital costs to construct a
mine on the property. Should Teck Cominco not exercise its back-in, it will
retain a 2% net smelter return (NSR) royalty but will not retain any interest
in, or further rights to, the property.
The Aubrey gold property, consisting of 18 unpatented mineral claim
units, extends by 1.6 kilometres to the west, the strike length of favourable
stratigraphy, covered by Champion Bear's Plomp Farm gold property. Champion
Bear has recently completed a 5,000 metre drilling program on its Plomp Farm
property with three of these holes collared on the Aubrey property optioned
from Teck Cominco. The results of the exploration by Champion Bear to date has
indicated that the gold mineralization is concentrated within a well-defined,
up to 150 metre wide fault or deformation structure which Champion Bear has
now traced along strike for more than 4.6 kilometres. Gold and associated
anomalous base metal mineralization concentrated within this structural zone
appears to occur within a series of steeply southwestward plunging lenses. The
recent drilling has confirmed the western and down plunge extension of the
anomalous gold mineralization.
Champion Bear is a mineral exploration company focused exclusively on the
historically prospective regions of Ontario. The Company's primary target is
platinum group and precious metals and to a lesser extent polymetallic base
metal and pegmatite-hosted tantalum deposits. Champion Bear's aim is to create
shareholder value through selective property acquisition and joint venture
followed by focused exploration emphasizing drilling. The Company has
assembled a large land position in the Dryden and Sudbury areas, totalling
over 16,000 hectares.
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release.
