BURLINGTON, ONTARIO -- (Marketwire) -- 01/10/13 -- GTA Resources and Mining Inc. ("GTA") (TSX VENTURE: GTA) is pleased to announce that it has entered into an Option Agreement with Metals Creek Resources Corp. ("MEK") in which GTA can earn a 51% to 70% interest in MEK's Squid East property in the Matson Creek area of Yukon Territory. The 82 claim Squid East property was initially staked by MEK in 2011 and there are no underlying royalties or other interests on the property.
To earn an initial 51% interest, GTA must make cash payments of $60,000 over three years ($20,000 due upon regulatory approval), issue a total of 2,000,000 GTA shares over three years (200,000 due upon regulatory approval) and incur work expenditures of $2,000,000 over three years ($500,000 firm including a minimum 400 meters of drilling by 1st anniversary). MEK will be the operator during the earn-in period. Once a 51% interest is earned by GTA, either a 51/49 joint venture will be formed, or GTA may elect to earn an additional 19% interest to bring its total property interest to 70%.
The terms to increase GTA's interest from 51% to 70% include payment of $100,000 and 1,000,000 GTA shares within 120 days of the 3rd anniversary date and incurring an additional $1,000,000 in exploration expenditures by the 5th anniversary. GTA would assume operatorship once it had earned a 51% interest.
Late in 2012 MEK's soil sampling program delineated a strong northwest trending gold plus pathfinder element anomaly located on the Squid East claim block. (see Metals Creek News Release dated 23 October 2012). Strong anomalous gold (Au) values are continuous between sample locations ranging from 15 ppb (parts per billion) to 1086 ppb. Associated with the gold assays are strong pathfinder element results which include silver (Ag) from below detection up to 78.5 parts per million (ppm), lead (Pb) from 5.3 up to 4493.5 ppm, arsenic (As) from 6.9 up to 50.9 ppm, Antimony (Sb) from 0.1 up to 241.2 ppm, Barium (Ba) from 133 up to 2370 ppm, and mercury (Hg) from below detection up to 36.32 ppm.
The anomaly has minimum dimensions of approximately 450m long by 200m wide and is coincident with a distinct northwesterly trending magnetic low. The anomaly is located in an area of moderate topography, within the unglaciated Dawson Range terrain. It is located upslope from the Matson Creek placer gold mining camp which is accessed via an airstrip and a four wheel drive ridge road originating from the "Top of the World" Highway west of Dawson City. Several other Au, As and Ba anomalies are also present within this mag low and will require additional follow-up sampling. The strength and size of this newly discovered anomaly is comparable to soil anomalies associated with the recent discoveries in the White Gold District and the associated pathfinder elements are similar to anomalies associated with these new discoveries.
Wayne Reid, President and CEO of GTA states, "We are very excited to finalize the terms of this agreement with MEK, to earn a substantial interest in the Squid East property. The potential of the property is demonstrated by a number of factors including the quality of the untested gold target, its location within the emerging White Gold District and its proximity to the Matson Placer Gold Camp. We look forward to the results from the upcoming field program which should culminate in a diamond drill program by late summer to test the gold target. Our main exploration efforts will continue to be directed at our flagship Northshore project, however, the Squid East gold target provides an excellent opportunity for GTA to expand its gold portfolio."
Most Popular Stories
- Twitter Names Woman to Board
- NSA Tracks 5 Billion Cellphone Records a Day
- Nelson Mandela Dies After Momentous Life
- W.H. Corrects Itself on Unclegate
- Nelson Mandela Dead at 95
- Fast-Food Workers Want $15 an Hour
- Roybal-Allard Tours Gordon Brush Plant
- Pope Francis Says He'll Fight Child Sex Abuse
- Aspen Contracting Adding 300 Jobs
- Yemen Attack Kills 52