VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 03/28/13 -- Logan Resources Ltd. (TSX VENTURE: LGR) ("Logan" or the "Company") is pleased to announce that it has signed an Option and Joint Venture Agreement (the "Agreement") with Premium Exploration Inc. ("Premium") which affords Logan the option to acquire up to a 75% interest in the Idaho Gold Property.
The Idaho Gold Property (the "Property") is a contiguous land package encompassing approximately 18,000 hectares (ha) in north-central Idaho. Contained within this package is the Friday-Petsite gold deposit with an Indicated Mineral Resource estimate of 629,000 oz (21.5 Mt @ 0.91 g/t Au) and an Inferred Mineral Resource estimate of 146,000 oz (5.9 Mt @ 0.77 g/t Au).
The property also encompasses the Buffalo Gulch gold deposit which has a historic Indicated Mineral Resource estimate of 111,000 oz (4.8 Mt @ 0.8 g/t), and the Deadwood gold deposit that has a historic Indicated Mineral Resource estimate of 39,000 oz (1.6 Mt @ 0.75 g/t Au) and an Inferred Mineral Resource estimate of 18,000 oz (0.7 Mt @ 0.75 g/t Au). These historical resource estimates were completed by Micon International for Beartooth Platinum in 2004. The estimates were based on a polygonal resource calculation method. The estimates use Indicated and Inferred resource categories that are consistent with National Instrument 43-101 ("NI 43- 101") and CIM definitions. There are no recent mineral resource estimates at Buffalo Gulch or Deadwood. Given the quality of the historic work completed on the Property, the Company believes the resource estimates to be both relevant and reliable. However, a qualified person has not completed sufficient work to classify the historic mineral resources as current mineral resources, and the Company is not treating the historic resources as current.
The mineral resource estimates with respect to the Property are from the Technical Report titled "Technical Report, Idaho Gold Project, Idaho County, Idaho, USA" dated effective May 31, 2012, filed on SEDAR on August 16, 2012 and prepared for Premium (the "Technical Report"). Mr. Adrian Bray, P. Geo, President & CEO of the Company and a Qualified Person as defined by NI 43-101, has reviewed the Technical Report on behalf of the Company. To the best of the Company's knowledge, information, and belief, there is no new material scientific or technical information that would make the disclosure of the mineral resources inaccurate or misleading.
Under the terms of the Agreement, the Company can earn a 51% interest in the Property ("Interest") by doing the following:
i. Making a cash payment of $250,000 to Premium on the Closing Date.ii. Providing a secured bridge loan in the amount of $250,000 to Premium (the "Bridge Loan") on the Closing Date. The Bridge Loan shall be for a term of twenty-four (24) months (the "Maturity Date") and shall bear interest at a rate of 5% per annum, calculated and payable on the Maturity Date. The Company shall have the option, exercisable at any point up to and including the Maturity Date, to apply the principal and accrued interest amount of the Bridge Loan as credit to the Exploration Expenditures (discussed below) and have such expenditure commitment reduced by a corresponding amount.iii.Incurring a total of $5,000,000 in exploration, permitting and development expenditures ("Exploration Expenditures") on the Property as follows: a. $1,500,000 in Exploration Expenditures on or before 12 months from the Closing Date; and b. $3,500,000 in Exploration Expenditures on or before 36 months from the Closing Date,