TORONTO, Oct. 23 /CNW Telbec/ - Roxmark Mines Limited (TSX-V: RMK) today announced that several properties being acquired by PREMIER GOLD MINES LIMITED (TSX:PG) from Lac Properties, a subsidiary of BARRICK GOLD CORPORATION (TSX, NYSE:ABX), will form part of the Geraldton Project, a joint venture between Premier and Roxmark.
In a news release yesterday, Premier announced that it had entered into a definitive purchase agreement with Lac to acquire Lac's interest in all of the mining claims commonly known as the Geraldton, Ozone Creek and Eva Summers properties located in the Geraldton district in the Province of Ontario (collectively the "G-L Property"), together with certain equipment and other assets.
Premier will transfer an interest in the G-L Property so that it will form part of the existing Geraldton Project which is operated under a joint venture between Premier (earning a 70% interest) and Roxmark which will have a 30% carried interest in the Project.
The G-L Property is host to several past-producing mines which
collectively produced more than 2.0 Million ounces of gold from the same
deposits to relatively shallow depths of approximately 2,000 feet
(600 metres) from 1938-1968. The mined zones remained wide open at depth
at the time mining ceased.
Immediately prior to the end of the mining on the G-L Property, new development workings were built on a substantial extension of the "F-Zone" of the G-L Property, approximately 700 metres of the down-plunge from the area mined to a depth of 800 metres (2,621 foot level). Highlight results from drilling into this area (approximately true widths) include:
10.25g/t Au (0.30 oz/ton) over 17.1 m (56 feet)
8.43g/t Au (0.25 oz/ton) over 17.1m (56 feet)
6.03g/t Au (0.18 oz/ton) over 23.2m (76 feet)
The mined zones remain open at depth highlighted by intersections of 13.75g/t Au over 6.4m down-dip beneath the mine workings in the "F-Zone" and 18.41g/t Au over 5.1m down-dip beneath the mine workings in the "North Zone" of the G-L Property. In addition to the depth potential of the mined zones, significant potential exists for developing resources in several areas, including promising open pit-style mineralization at the site of the original discovery. As well, several newer high-grade discoveries have been made throughout the property package that have received little to no follow-up and Premier intends to pursue resources within the existing mine workings.
"We share Premier's optimism about future prospects for the acquired properties and for the Geraldton district overall," said Monir Younan, Roxmark President. "We are equally optimistic about the development potential for the neighbouring Beardmore district in which Roxmark enjoys an undivided dominant position."
Recent discoveries on the Geraldton Project include open pit-style mineralization in the Kailey Zone and high-grade veins located proximal to the historic Little Long Lac Gold Mine. As previously released by Premier, results to date from drilling in the recently discovered Kailey Zone include 39.64g/t Au (1.16 oz/ton) across 2.0 metres contained within a wider zone of mineralization which returned 5.87g/t Au across 16.0 metres, and 2.01g/t Au across 101.0 metres.
The Geraldton Joint Venture Project is located in the heart of the Beardmore-Geraldton greenstone belt, a highly prospective high-grade gold district that has seen relatively little exploration over the past several decades. The Project area covers approximately 15 kilometres of some of the most prospective geology in the region and is host to several past-producing mines and numerous exploration targets in a district that has seen historic production of more than 4.1 Million ounces of gold.
The closing of the Acquisition transaction is scheduled to take place on the fifth business day after Premier and Lac have obtained the all of the regulatory approvals required under the Purchase Agreement (including the approval of the Toronto Stock Exchange and the Ontario Ministry of Northern Development and Mines), which is expected to be in December 2008. In consideration, Premier will issue to Lac certain common shares and make cash payment as well as granting to Lac a 3% net smelter return on all Geraldton Project properties, including the G-L Property, which previously carried a 5% NSR.
Stephen McGibbon, P. Geo., is the Qualified Person for the information contained in this press release and is a Qualified Person within the meaning of National Instrument 43-101.
Further information is available on the Company's website at www.roxmark.com and on SEDAR under the Company's profile at www.sedar.com.
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of the content of this news
release.
The statements made in this Press Release may contain forward-looking
statements that may involve a number of risks and uncertainties. Actual
events or results could differ materially from the Company's expectations
and projections.