MONTREAL, QUEBEC -- (Marketwire) -- 02/13/13 -- BOWMORE Exploration Ltd. (the "Company" or "Bowmore") (TSX VENTURE: BOW)(FRANKFURT: 0B5) is pleased to announce that it has signed a Letter Of Intent (the "LOI") to acquire 100% of the La Scie Gold Property (the "Property"), located in Newfoundland, Canada from Mr. Jason Burton, prospector. The LOI states that a formal Option Agreement (the "Agreement") is to be entered into on or before March 15th, 2013.
The Property is composed of 60 claims covering over 1,500 hectares and is located along the eastern-most extent of the Baie Verte Peninsula, roughly 45 km east of the town of Baie Verte in the White Bay South District. Bowmore collected 43 rock samples on the Western and the Central blocks of the Property as part of due diligence sampling of recently discovered gold showings by Mr. Burton, and obtained values of up to 56.5 g/t Au from outcropping quartz veins. The La Scie Gold Property has never been the subject of a systematic exploration program. The Baie Verte Peninsula, however, has long been the focus of intermittent mining and exploration for copper and gold dating back to the 1850's.
Bowmore has also claimed an additional 395 claims covering 9,875 hectares (the "Area of Interest") surrounding the La Scie Gold Property and covering the eastern extremity of the Baie Verte peninsula, for a total land package of 11,375 hectares or 113.75 km2.
Pursuant to the Letter Of Intent between Mr. Jason Burton and Bowmore Exploration Ltd., the Company may acquire 100% interest in the Property and will have the exclusive rights to explore and develop the Property over the next 4 years in consideration of:
(i) Total cash payments of $110,000 to Mr. Jason Burton as follows: a. $15,000 payable upon the signature a the formal Option Agreement; b. $20,000 payable on the second anniversary date of the Agreement; c. $25,000 payable on the third anniversary date of the Agreement and; d. $50,000 payable on the fourth anniversary date of the Agreement.(ii) Total issuance of 195,000 common shares of the Company on or before the following dates: a. 30,000 common shares upon signature of the formal Option Agreement; b. 40,000 common shares on the second anniversary date of the Agreement; c. 50,000 common shares on the third anniversary date of the Agreement and; d. 75,000 common shares on the fourth anniversary date of the Agreement.(iii) Incur expenditures in the aggregate amount of at least $700,000 on or before the following dates: a. $75,000 within the first year of the date of the Agreement; b. $150,000 on the second anniversary date of the Agreement; c. $175,000 on the third anniversary date of the Agreement and; d. $300,000 on the fourth anniversary date of the Agreement.
At the end of this period, Bowmore will have acquired a 100% undivided interest in the Property. The Company may incur a portion of the exploration expenditures on its 100% owned property in the area of interest as long as the La Scie Gold Property remains in good standing. The property is subject to a 2% NSR payable to Mr. Burton, Bowmore at anytime purchase 50% of the NSR Royalty by making a payment of $1,000,000.
Mr. Paul Dumas, President of Bowmore, stated "We are very pleased with this recent transaction providing the Company with additional property within the mineral rich province of Newfoundland. The La Scie Gold property and the recently acquired claim bloc add excellent value to our existing portfolio and great potential for new discovery in an unexplored area. This transaction complements our continued efforts in increasing our asset base and becoming an important gold exploration company in Canada.
ABOUT THE PROPERTY
The property is easily accessible by the La Scie highway (Route 414) to the town of La Scie and further by logging roads and ATV trails. The 11,375 hectares property cover the entire Baie Verte peninsula and the area has long been the focus of mining and exploration for copper and gold, dating back to the 1850's and primarily the 1980's, respectively. The rock lying to the east of the Baie Verte line belongs to the Baie Verte Belt which is part of the Dunnage Tectonostratigraphic Zone. The eastern-most area of the property has been under explored since efforts were mostly done along the Baie Verte line and the Bett's Cove Complex.
The area is predominantly composed of subaerial mafic to felsic volcanics and minor sediments of the Silurian Cape St-John Group that were intruded by quartz-feldspar porphyry as well as gabbros, per alkaline syenite and porphyritic granite, interpreted to be of the same intrusive complex. These rocks sit uncomformably atop submarine calc-alkaline volcanics and sediments which host the former producers of Bett's Cove (7,112 tonnes Cu), Tilt Cove (489,600 tonnes Cu and 42,425 oz. Au) and Nugget Pond (115,830 oz. Au).
Bowmore collected 43 whole rock and chip samples on the Western and the Central blocks of La Scie Gold properties to corroborate the gold showings within the property and to verify additional gold showings.
Sampling returned values of 0.14g/t Au over a true width of 7 meters obtained from a quartz stockwork containing minor amount of pyrite, hosted within felsic volcanic flows. The center of the zone returned values of 56.5 g/t Au over 2 meters.
A new zone was discovered that returned 0.91g/t Au over 6 meters within a northeast-trending shear zone 6-8 m wide by 15-20 m long, hosted by a felsic volcanic unit.
The anomalous gold values recently found are very encouraging due to the fact that the entire land package is virtually unexplored.
All the assays were analyzed at EASTERN ANALYTICAL Ltd laboratories (http://www.easternanalytical.ca/) located in Springdale, Newfoundland. Results were obtained by standard 30 g Au fire assay AA finish and ICP-OE analysis of 30 elements from a 0.5g subsample dissolved in hot aqua-regia. In order to secure the accuracy of the results, Eastern Analytical Lab used 4 duplicates, 2 standards and 2 blanks during the process of analysis of the 43 samples.
Jean-Marie Pronovost, P. Geo is the Qualified Person who has reviewed this news release and is responsible for the technical information reported herein.
BOWMORE is a Canadian exploration mining company focused on precious metal exploration in Canada and Mexico. The Company trades on the TSX Venture Exchange under the symbol "BOW". For further information on BOWMORE, visit www.bowmorexploration.com
Except for statements of historical facts, all statements in this news release regarding, without limitation, new project acquisitions, future plans and objectives are forward-looking statements which involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate; Actual results and future events could differ materially from those anticipated in such statements.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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BOWMORE Exploration Ltd.
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BOWMORE Exploration Ltd.
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