Underworld Secures Larger Land Position at White Gold Projectadmin
Underworld Resources Inc. announce that it has expanded its Property holdings to over 169 square kilometers at the Company’s 100% owned White Gold Discovery, located 95 kilometers south of Dawson City in the Yukon.
Two additional claim groups were optioned, which are contiguous with the Property and exhibit similar geological and geochemical characteristics to the Golden Saddle Discovery (see NR-UW 2008-16, November 24, 2008). Details of the Option Agreement are posted on the Company’s web site. Underworld has commenced the infill and step-out drilling on the Golden Saddle Discovery. Three step-out holes have been completed near hole WD09-21 (3.10 grams Au over 51 meters). Assay Results are pending.
Underworld has secured an option to 86 claims located approximately 15 km to the south of the Golden Saddle and Arc Zones. The claims lie on the southern side of Thistle Creek, an area which has seen active placer gold production since 1978 and has produced in excess of 63,000 ounces of gold (Yukon Geological Survey Records, 2008). Current geological interpretation suggests the source of this placer may occur on this claim group.
Underworld can earn a 100% interest in the Thistle property by completing staged payments of $145,000 cash and by issuing a total of 200,000 shares over four years, the Company must also complete $1 million in exploration work over the same time period. The Vendors will retain a 2% Net Smelter Return Royalty with Underworld having the right to purchase 1% of the Royalty for $2 million.
The Company has also increased its holdings surrounding the White claims optioned in 2007. As a result of an amended agreement with an Arms-length Third Party, the Company has secured the rights to parts of the Cathy claims and all of the Cath and WS claims, (the “Additional Property”).
In the event that Reserves or Measured or Indicated Resources are defined on the Additional Property, the Vendor will be paid $1 for each ounce of gold identified. The Company has agreed to reimburse the Vendor $130,000 in costs for previous exploration work and complete $50,000 on exploration on the Additional Property in 2009 and 2010. Previous work on this property has identified multiple targets with anomalous geochemistry and will warrant additional sampling and trenching.