TORONTO, March 1 /CNW/ - Woodruff Capital Management Inc. ("Woodruff")
(WOO-TSXV) is pleased to announce the signing of an option agreement with
Cornerstone Capital Resources Inc. ("Cornerstone") for Cornerstone's Long Lake
volcanogenic massive sulphide (VMS) property, 60 km southwest of Aur
Resources' Duck Pond project and 11 km southwest of Falconbridge's Long Lake
massive sulphide deposit currently under option to Messina Minerals.
The agreement grants Woodruff the right to earn a 51% interest in the
property by spending $1.5 million on exploration over four years. The first
year's $125,000 expenditure is a firm commitment and includes costs associated
with the completion of a diamond drilling program designed to test a combined
base metal in till geochemical anomaly and conductive airborne geophysical
anomaly. The agreement also calls for Woodruff to make cash payments totaling
$100,000 over four years including $10,000 paid on signing the agreement.
Cornerstone will be operator during the earn in period.
The schedule of required cumulative expenditures for Woodruff to earn a
51% interest is as follows:
- $125,000 by the first anniversary of signing the formal agreement
- $250,000 by the second anniversary
- $500,000 by the third anniversary
- $1,500,000 by the fourth anniversary
On Woodruff earning a 51% interest, a Joint Venture will be formed
whereby both parties will have the right to maintain their respective
interests by funding their respective share of exploration costs. Either party
may dilute its interest, based on exploration expenditures, or if a party's
interest falls to 15% or less, its interest will convert to a 2% NSR.
As previously released by Cornerstone (Cornerstone news release dated
March 2, 2005), the Long Lake property covers favourable felsic volcanics and
sediments akin to those which host the Long Lake deposit. The Long Lake
deposit is comprised of high-grade massive sulphides with base metal grades
comparable to those returned from Messina Minerals' recent Boomerang and
Domino discoveries. Messina's Boomerang discovery is located 10 km west
northwest of Cornerstone's Long Lake property. Cornerstone's property hosts an
isolated, 1 km long, airborne electromagnetic conductor associated with an
adjacent silica-sericite-pyrite alteration zone hosted by prospective felsic
volcanics. A till geochemical survey completed over the conductor in 2005
detected a broadly coincident, open ended, base metal in till anomaly.
In other news, Woodruff notified Inmet Mining that it no longer wishes to
retain Inmet's Noel Paul's and Robert's Arm projects as part of the Inmet
agreement. Woodruff is presently continuing with its drilling program on the
Estrades-Newiska properties in Northern Quebec. The Company will provide a
drilling update at a later date.
GDerald Riverin, president of Woodruff, commented: "Long Lake fits in well
with our strategy of focusing on high quality base metals exploration in
easily accessible areas. Central Newfoundland is becoming a hot spot for
exploration following the building of the Duck Pond mine by Aur Resources and
the recent discoveries of high grade massive sulphides by Messina Minerals. We
are pleased to be involved in this exciting area and remain an active player
in Newfoundland."
The Company focuses on base metal exploration in easily accessible areas
of Quebec, Ontario and Newfoundland.
On Behalf of the Board of Directors
Mark Goodman
Chairman of the Board
Telephone: 416-924-9893
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The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release.
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