Symbol: GPO TSX-V
VANCOUVER, July 8 /CNW/ - Gold Port Resources Ltd. (The "Company")(TSX-V:GPO) is pleased to announce that it has entered into Two New Property Option Agreements and re-negotiated the Five Stars Property Agreement.
C-59 Project Optioned
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The Company is pleased to announce it has entered into an Option to Purchase the C-59 Project, located in Mining District Number Four, Cuyuni, Guyana, South America. The C-59 Project adjoins the Aurora Claim Group and is strategically located approximately 10 kilometers southwest from the main discovery at Aurora by Guyana Goldfields Ltd. It is also located 10 kilometers northwest of the main camp established by the Company at its wholly owned Akaiwong Project. The project comprises 12,620 acres.
The Correia Mining Company is the owner of the project, with the Guyana Diamond Trading Company holding an underlying purchase option on the property. Guyana Diamond Trading Company is assigning its rights to acquire the project to the Company for the following consideration: A cash payment to Correia Mining Company of $ U.S. 25,000, and a cash payment to Guyana Diamond Trading Company of $ U.S. 5,000, and the issuance of one million surplus securities to Guyana Diamond Trading Company which will be subject to a 5 year escrow agreement and a cancellation provision. No shares will be issued out of escrow until 6 months after closing, at which time 50,000 shares will be released. A further 5% of the escrowed shares will be released every six months, until such time as all are released or the project is discontinued. A cash payment to Correia Mining Company will be made one year after closing, totaling $ U.S. 45,000 at which time title to the C-59 Project will be transferred to the Company. Further payments will be due to Guyana Diamond Trading Company of $ 35,000 one year after closing, $ U.S. 150,000 two years after closing, and a final payment of $ U.S. 250,000 three years after closing. Guyana Diamond Trading Company will maintain a 2% Net Smelter Royalty which may be purchased for $ U.S. 2,000,000. Terms of the agreement are subject to the approval of the TSX Venture Exchange.
C-60 Project Optioned
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The Company is pleased to announce it has also entered into an Option to Purchase the C-60 Project, located in Mining District Number Four, Cuyuni, Guyana South America. The C-60 Project adjoins the Aurora Claim Group and is located approximately 30 kilometers northwest of the Company owned Akaiwong Project. The project comprises 12,350 acres.
The Correia Mining Company is the owner of the project, with the Guyana Diamond Trading Company holding an underlying purchase option on the property. Exploration of the project will be conducted along with ongoing exploration efforts at the Akaiwong Project, which is located nearby. Guyana Diamond Trading Company is assigning its rights to acquire the project to the Company for the following consideration: A cash payment to Correia Mining Company of $ U.S. 25,000, and a cash payment to Guyana Diamond Trading Company of $ U.S. 5,000, and the issuance of one million surplus securities to Guyana Diamond Trading Company which will be subject to a 5 year escrow agreement and a cancellation provision. No shares will be issued out of escrow until 6 months after closing, at which time 50,000 shares will be released. A further 5% of the escrowed shares will be released every six months, until such time as all are released or the project is discontinued. A further cash payment will be made to Correia Mining Company one year after closing, totaling $ U.S. 45,000 at which time title to the C-60 Project will be transferred to the Company. Further payments will be due to Guyana Diamond Trading Company of $ 35,000 one year after closing, $ U.S. 150,000 two years after closing, and a final payment of $ U.S. 250,000 three years after closing. Guyana Diamond Trading Company will maintain a 2% Net Smelter Royalty which may be purchased for $ U.S. 2,000,000. Terms of the agreement are subject to the approval of the TSX Venture Exchange.
Exploration Program for C-59 and C-60
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Exploration of the C-59 and C-60 Project areas will be conducted along with ongoing exploration efforts at the Akaiwong Project, which is located nearby. Given the close proximity of the present camp facilities located at Akaiwong, staff can be utilized for the additional project areas. Heavy equipment and a drill rig is located at the Akaiwong camp, with further equipment in transit. Initial efforts will involve basic geological reconnaissance and sampling.
Five Stars Project Re-Negotiated
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The Company is pleased to announce it has negotiated more favorable terms for the Option to Purchase the Five Stars Project, located in the northwest portion of Guyana near the Venezuelan border. The project is comprised of 12 Medium Scale Mining Permits and covers an area of 12,350 acres or approximately 20 square miles.
The Five Stars Project is located within the Barama-Mazaruni Supergroup assemblage of rocks which form part of the Guiana Precambrian Shield. The regional distribution of both primary (lode) and secondary (alluvial, eluvial and colluvial) gold deposits correlates well with the distribution of greenstone belts which are found within the stable Precambrian craton known as the Guiana Shield. The Guiana Shield is similar to other stable cratons such as the Precambrian shield areas of West Africa and Canada.
Dennison Mines (1989) and Golden Star Resources (1994) conducted reconnaissance exploration programs in the area of the Five Stars Project. A landsat radar imagery survey and an airborne magnetic-radiometric geophysical survey of the Five Stars area was completed by Geonex Aerodat Inc on behalf of Golden Star Resources. Based upon interpretation of the data, regional structures and greenstone boundaries were identified prior to ground work. Trenching, sampling and pit sampling was conducted at the Five Stars Project by HGB Ventures between 1995 and 1996, with assay work completed by Loring Laboratories of Georgetown. Results of this program identified three greater than 50 ppb in soil gold anomalies within the project area. Anomaly 1 trends 030 degrees and is approximately 15,000 feet long and 1,000 feet wide. Anomaly 2 trends 000 degrees and is approximately 11,000 feet long and 1,000 feet wide. Anomaly 3 trends 090 degrees and is approximately 10,000 feet long and 1,000 feet wide. (Source: Report No. 789, A.C.A. Howe International Limited, Toronto Ontario) Sampling by HGB Ventures from within a pit located at an area of mining activity on the project returned 4.05 grams per tonne gold over 10 feet, and a second trench returned a nine foot interval of 1.5 grams per tonne gold. Chip samples from dump rock material returned gold values of 1.57, 18.80 and 5.90 grams per tonne gold respectively (Source: Report No. 789, A.C.A. Howe International Limited, Toronto Ontario). Caution: The Issuer did not perform work necessary to verify the foregoing results, is treating them as historical, and as such, should not be relied upon.
Five Stars Project New Terms
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New terms for the Option to Purchase include a $ U.S. 5,000 payment to the owner, Case Development Corp., and the maintenance of the project. Further payments of $ U.S. 25,000 will be due at the end of year one, two and three, with a cash payment of $ U.S. 50,000 due at the end of year four and a final cash payment of $ U.S. 100,000 due at the end of year five. Case Development Corp. will maintain a 2% Net Smelter Royalty on the project, which may be purchased for $ 2,000,000. The Company will issue to Case Development Corp., one million surplus securities which will be subject to a five year escrow agreement. If the project option is terminated prior to conclusion, any shares not issued out of escrow during the course of the agreement will be cancelled. Terms of the agreement are subject to the approval of the TSX Venture Exchange.
Work at Five Stars will likely involve the improvement of current access, which is poor due to road conditions. Geological reconnaissance and sampling will then be considered.
The contents of the Press Release were reviewed by Allen V. Ambrose, a Registered Geologist in Washington State and a Qualified Person under National Instrument 43-101 and a director of the Company.
On Behalf of the Board of Directors of Gold Port Resources Ltd.
Adrian F.C. Hobkirk
President and C.E.O.
The TSX Venture Exchange has not reviewed the contents of this press
release and assumes no responsibility for the adequacy or accuracy.
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act and Section 27E of the Exchange Act. Such statements include, without limitation, statements regarding future anticipated exploration program results, the discovery and delineation of mineral deposits/resources/reserves, business and financing plans, potential mining scenarios, the success of mineral processing procedures, business trends and future operating costs and revenues. Although the Company believes that such statements are reasonable, it can give no assurance that such expectations will prove to be correct. Forward-looking statements are typically identified by words such as: believe, expect, anticipate, intend, estimate, postulate and similar expressions, or are those, which, by their nature, refer to future events. The Company cautions investors that any forward-looking statements by the Company are not guarantees of future results or performance, and that actual results may differ materially from those in forward looking statements as a result of various factors, including, but not limited to, variations in the nature, quality and quantity of any mineral deposits that may be located, the Company's ability to obtain any necessary permits, consents or authorizations required for its activities, the Company's ability to produce minerals from its properties successfully or profitably, to continue its projected growth, to raise the necessary capital or to be fully able to implement its business strategies.