Stratabound options Elmtree Gold Property in potential $3.7 million dealadmin
Stratabound Minerals Corp. announce that it has entered into a three-year option agreement with Castle Resources Ltd. whereby Castle can acquire a 60% interest in Stratabound’s 100% owned Elmtree Gold Property by:
– Spending $2,500,000 on drilling and exploration before June 1, 2012, including a minimum of $750,000 in each of the first two years – Paying Stratabound $100,000 and 200,000 shares of Castle upon signing of the agreement, subject to regulatory approval
– Making additional payments of $50,000 to Stratabound on June 1, 2010 and June 1, 2011
Castle can acquire another 10% by paying Stratabound $1,000,000 within 90 days of earning the initial 60%.
Castle intends to fast-track exploration at Elmtree, beginning with a substantial drilling program with the objective of significantly expanding the gold resource.
Consisting of 85 claims (1,375 hectares, 3,400 acres) and situated near the port city of Bathurst, New Brunswick, the Elmtree property contains at least three gold-bearing zones, the higher grade West Gabbro Zone (WGZ), original Discovery Zone (DZ) and the larger tonnage, lower grade South Gold Zone (SGZ). The DZ and a portion of the SGZ contain significant stringer mineralization with appreciable zinc-lead-antimony-gold-silver-indium values.
A National Instrument 43-101 mineral resource estimate was completed in 2008. The resource comprises 525,000 Indicated tonnes grading 2.45 g/t gold (41,000 ounces gold) plus 4,624,000 Inferred tonnes at an average grade of 1.25 g/t gold (185,500 ounces gold), plus 41,000 Inferred tonnes containing 201,000 ounces of silver, 7.0 million lbs zinc and 2.4 million lbs lead. Contained metals reported were in situ. Ten subsequent drill holes have not been factored into the resource estimate.