Trueclaim Completes Assignment of Option to Acquire Up to a 100% Interest in the Scadding Gold Propertyadmin
Friday, August 14th 2009
Trueclaim Exploration Inc. announce that it has completed the assignment (the “Assignment”) of an option and joint venture agreement between MPE International Inc. (“MPE”) and Currie Rose Resources Inc., pursuant to which the Company can acquire up to a 100% interest in certain provincial mining leases and mineral claims located in the district of Sudbury in the Province of Ontario (collectively the “Property” or the “Scadding Gold Property”), as previously announced on May 8, 2009.
Under the terms of the Assignment, the Company reimbursed MPE the amount of $110,000 for expenses incurred by MPE on the Scadding Gold Property and issued to MPE an aggregate of 1,000,000 common shares in the capital of the Company. In order to maintain the Assignment in good standing and to acquire a 51% interest in the Scadding Gold Property, the Company is required to issue an aggregate of 2,000,000 common shares in the capital of the Company to MPE in instalments of 500,000 shares every six months over a period of two years from the date of closing; maintain the Scadding Gold Property in good standing; spend an aggregate of $2,000,000 on the Scadding Gold Property over a period of three years and issue an aggregate of 450,000 common shares in the capital of the Company to Currie Rose in equal instalments of 150,000 shares over a period of three years. The Company issued an aggregate of 150,000 of these shares to Currie Rose on closing and paid to Currie Rose $110,000 due under the option and joint venture agreement. The Company will be the operator of the project during the period of the Option.
The Company also issued to finders at arm’s length to the Company an aggregate of 750,000 common share purchase warrants as a finder’s fee in consideration for their services provided to the Company. Each warrant entitles the holder to purchase one common share in the capital of the Company at a purchase price of $0.10 per share at any time until August 13, 2011. All of the securities issued to MPE and Currie Rose in connection with the Assignment and to the finders are subject to a four month hold period expiring on December 14, 2009 under applicable securities laws and the rules of the Exchange.
The Company can increase its interest in the Scadding Gold Property from 51% to 100% by paying Currie Rose the amount of $2,000,000 in cash on or before commencement of commercial production on the Property. The Scadding Gold Property is subject to a $1.00 per ton royalty covering ore removed from the Scadding Gold Property and a 3% net smelter return royalty.
The Scadding Gold Property is located in Scadding Township, District of Sudbury, Ontario between Wanapitei and Ashigami Lakes about 50 kilometres northeast of Sudbury, Ontario and consists of seven contiguous mining leases containing a total of 56 mining claims. The Scadding Gold Property reportedly produced approximately 914 kg of gold from 127,000 tonnes (t) of ore grading 7.2 g/t Au (grams per tonne gold) (or 29,400 ounces of gold from 139,742 short tons of ore grading 0.21 ounces/ton) during the period from 1984 to 1990.
Since the initial discovery in 1973, five zones of gold mineralization hosted by structurally controlled chloritic breccias within the feldspathic quartzites of the Serpent Formation of the Quirke Lake Group of early Proterozoic (Huronian) age have been identified on the Property. These zones are the North, Central (Intermediate), South, East-West and the New Zone. All zones lie within an area of approximately 36 acres measuring approximately 600 metres north-south by 600 metres east-west. The North, East-West and South Zones have all been mined by shallow open cuts or pits while the Central (Intermediate) Zone was exploited underground from about 15 metres below surface to about 110 metres below surface. The New Zone which lies west of the East-West Zone is known only from diamond drilling.
Surface diamond drilling as well as underground development has indicated that the zones of economic grade gold mineralization are shoot-like bodies that generally have a limited strike length and a significant downdip/plunge extent. It would appear that the down plunge potential of all the zones has not been totally evaluated to date since most drill holes have been less than 100 metres in length. It is considered that for the currently known five zones of mineralization, the areas of highest potential for the localization of new mineralization is down plunge from the known zone and within the Serpent feldspathic quartzite units where breccias could be developed due to faulting and shearing.
It is considered that the potential for the discovery of additional mineralization lies in two areas; – down plunge below currently known mineralization and particularly in the New Zone and,- within areas underlain by the Serpent feldspathic quartzite outside of the area where the five zones of known mineralization are located. It is estimated that 600 of the 907 hectares of the Property are underlain by the Serpent Formation.
The Company plans to evaluate the Scadding Gold Property by carrying out a two phase program of exploration, with a Phase 1 budget of $565,500 and a Phase 2 budget of $2,030,000. A total of 2,000 metres of drilling is planned in Phase 1 and 9,000 metres of drilling is planned in Phase 2. If both phases are implemented, the total expenditure would be approximately $2,595,500.