(TSXv-TK; Frankfurt-TLD (WKN A0B 884); Pinksheets-TKRFF)
VANCOUVER, June 6 /CNW/ - Mr. Andrew Carter, President, is pleased to announce that the Company has entered into a Heads of Agreement ("HOA") with an arm's length private company, that provides Tinka with the right to acquire an initial 49% and the right but not the obligation, to acquire the remaining interest in four mineral exploration claims located in north-eastern Victoria, Australia (the "Strathbogie South Project"). The Strathbogie South Project claims total approximately 960 square kilometres, situated 150 kilometres to the north-east of Melbourne, the capital of Victoria.
The goldfields of central Victoria are the second largest in Australia with regard to historic production. Victoria is famous for quartz reef-associated vein mineralization, including the active mining centres of Bendigo, Ballarat and Stawell. Gold exploration has seen a strong recent resurgence, following the discovery of extensive sediment hosted gold mineralization, including the Fosterville (2.5M oz gold resource) and Nagambie deposits, and the recent discovery of buried mineralization at Lockwood.
Sediment hosted gold mineralization was not historically identified, due to the lack of quartz and the fine grained nature of the gold. Gold mineralization is disseminated within sandstone and siltstone, grade is well distributed, and mineralization is associated with pyrite and arsenopyrite and therefore provides a geophysical target. Mineralization is believed associated with the Devonian age Strathbogie Granite, and is developed around contacts, cupolas and major structures that link the granite with the overlying sediment sequence.
The Strathbogie South Project covers the southern boundary of the Strathbogie Granite where mineralization is developed within a sandstone-bearing sedimentary sequence at the contact of the granite. Numerous historic small scale workings are recorded within the claims, including the extensive Merton and Yea goldfields. An example of the potential of the claim at Yea is indicated by historic records which include a drill intersection of 18m grading 2.75 g/t gold. Historic production is estimated in excess of 500,000 oz of gold from alluvial and hard rock workings within the Strathbogie South Project area.
Mr. Carter said: "For the last few years Tinka has focused its exploration activities in Peru where the Company's Colquipucro silver project, in particular, shows great promise. We have also been looking at select opportunities in other countries. We believe that the addition of the Strathbogie South Gold Project in Australia provides country diversification as well as a rare opportunity to work on an important project in the famous goldfields of Victoria. The project area is nearly 1000 square kilometres in size and contains sediment hosted gold mineralization that was overlooked historically by the many gold miners active in the region. We believe this to be an important addition to our property portfolio."
The Company shall collate all of the historic work undertaken within the areas and undertake a detailed stream sediment geochemical survey of the licence areas. Targets identified will be subjected to detailed geological mapping and sampling and will be advanced to the initial drill stage as soon as possible.
Pursuant to the terms of the HOA, the Company may earn 49% interest in the Claims by making one cash payment of C$6,000 on signing of the HOA and issuing 200,000 common shares upon TSX Venture Exchange acceptance and a further 300,000 common shares on the first anniversary of the HOA. The Company must also incur a total minimum expenditure of C$400,000 within the one-year option period, including a minimum of C$150,000 expenditure on two of the licences known as Merton and Yea. The Company will have the option, but not the obligation, to acquire the remaining 51% interest in the Claims once the Company has fulfilled all its obligations under the one-year option period of the HOA. The Company will pay a bonus of 500,000 common shares of the Company should the Company define a gold resource within the Claims in excess of 1,000,000 ounces of gold in the proven or probable category as defined in the JORC code. The vendor will also retain a 1% NSR on any production from the Claims which the Company has the exclusive right to purchase for C$1,000,000.
On behalf of the Board,
"Andrew Carter"
Andrew Carter, President & CEO
Forward Looking Statements. This Company news release contains certain "forward-looking" statements and information relating to the Company that are based on the beliefs of the Company's management as well as assumptions made by and information currently available to the Company's management. Such statements reflect the current risks, uncertainties and assumptions related to certain factors including, without limitations, competitive factors, general economic conditions, customer relations, relationships with vendors and strategic partners, the interest rate environment, governmental regulation and supervision, seasonality, technological change, changes in industry practices, and one-time events. Should any one or more of these risks or uncertainties materialize, or should any underlying assumptions prove incorrect, actual results may vary materially from those described herein. Neither the TSX Venture Exchange nor the Frankfurt Deutsche Börse have reviewed the information contained herein, and, therefore, do not accept responsibility for the adequacy or accuracy of this release.