Metals Creek Resources Corp. Announces High Grade Gold Assays and the Entering Into of an Option Agreement in the Tilt Cove Areaadmin
Metals Creek Resources Corp. announce that it has entered into an option agreement with Paragon Minerals Corporation to earn a 60% interest in a group of 63 claim units spread over 1575 hectares in the Long Pond area on the Baie Verte Peninsula of Newfoundland. The Property is situated between two historic copper producers at Betts Cove and Tilt Cove (both of which were recently acquired by the Corporation), and hosts several gold and copper occurrences located along both the Tilt Cove-Betts Cove Copper-Gold Horizon and extensions of the Nugget Pond Gold Mine Horizon. The Property will add significantly to the Corporation’s interests in the Tilt Cove area. Historic work on the Property includes detailed soil and till geochemistry surveys and most of the known bedrock showings can be correlated with anomalies generated from these geochemistry surveys.
A prospecting program was recently carried out by the Corporation on the Property and results have confirmed the high grade nature of the known showings located along a 3.5 km strike length of the Betts Cove-Tilt Cove Horizon with assays up to 315.1 g/t Au at the George Showing. The following is a summary of the results from the recent sampling of the higher grade showings:
– George Showing — five grab samples taken ranging from 5 ppb to 315.1 g/t Au (nil to 9.20 oz/t Au). No previous drilling. – Long Pond Showing — nine grab samples taken ranging from 560 ppb to 71.4 g/t Au (nil to 2.09 oz/t Au). Results from previous drilling by Inco in 1988 included 21.5 g/t Au over 1.19 m.
– Nudulama Shaft Zone — seventeen grab samples taken ranging between 5 ppb and 4.5 g/t Au. (nil to 0.13 oz/t Au, which also assayed 8.7% Cu). Historic work included drilling in 1955 and an underground program of uncertain age.
An airborne geophysical survey (Geotech’s VTEM Survey) has also been carried out over the Property as part of a larger survey covering most of the Corporation’s Tilt Cove properties. The results from this airborne survey will be used for targeting exploration programs on both gold and base metal mineralization.
All samples were sent to Eastern Analytical Ltd., an accredited laboratory in Springdale, Newfoundland. The precious metals were analyzed utilizing a standard fire assay with atomic absorption finish.
Terms of the Agreement include incurring exploration expenditures of $500,000 over 4 years, including a $50,000 firm commitment in the first year, and issuing 300,000 common shares to Paragon over three years, including 50,000 common shares within 5 business days of signing the Agreement. Having made these payments and share issuances, the Corporation will earn a 60% interest in the Property and it the parties will enter into a joint venture agreement. The Property is subject to an underlying 0.5% NSR payable to Alexander Stares (the current President, Chief Executive Officer and a Director of the Corporation) and James Crocker (currently a prospecting consultant with the Corporation) that can be purchased at any time for $500,000 by Paragon. Mr. Stares and Crocker originally staked the Property while working as employees of the predecessor entity of Paragon, and as part of an arrangement with that entity retained the NSR on the Property. The Agreement and the shares issuances it contemplates remains subject to approval by the TSX Venture Exchange.
Wayne Reid, PGeo, Vice President of Corporate Development for the Corporation and a qualified person as defined in National Instrument 43-101, is responsible for this release, and supervised the preparation of the information forming the basis for this release.
Metals Creek Resources Corp. is incorporated under the laws of the Province of Ontario, is a reporting issuer in Alberta, British Columbia and Ontario, and has its common shares listed for trading on the Exchange under the symbol “MEK.” The Corporation is engaged in the identification, acquisition, exploration and development of mineral resource properties, and presently has mining interests in Ontario and Newfoundland and Labrador. Additional information concerning the Corporation is contained in documents filed by the Corporation with securities regulators, available under the company’s profile at www.sedar.com.