TORONTO, ONTARIO -- (Marketwired) -- 06/10/13 -- Red Pine Exploration Inc. (TSX VENTURE: RPX) has entered into two Mineral Property Acquisition Agreements to sell the Saracourt and Mortimer gold target properties. These property sales are a result of Red Pine's continued efforts to divest of certain properties in order to raise capital to fund exploration programs for its more advanced properties. The company believes both these properties have very good potential for gold discovery but will require robust exploration programs for discovery.
The terms of the sales are as follows:
-- Saracourt Property - Red Pine has received $25,000 and is due $150,000. Red Pine also receives the fair value of the equivalent of $300,000 common shares of Joshua Gold Resources Inc ("JGR"). If on September 15, 2013, JGR is a public company and their shares are worth less than $300,000, Red Pine will receive additional shares to bring the value to $300,000. If JGR is not public on September 15, 2013, Red Pine will receive $300,000 in exchange for JGR's shares. If JGR is not on an exchange and elects not to pay $300,000, Red Pine receives back title to the property claims. Red Pine retains a 3% net smelter return ("NSR").-- Mortimer Property - Red Pine has received $75,000 and is due $50,000. Red Pine also receives the fair value of the equivalent of $100,000 common shares of JGR. If on July 15, 2013, JGR is a public and their shares are worth less than $100,000, Red Pine will receive additional shares to bring the value to $100,000. If JGR is not a public company on July 15, 2013, Red Pine will receive $100,000 in exchange for JGR's shares. If JGR is not on an exchange and elects not to pay $100,000, Red Pine receives back the title of the property claims. The company retains a 3% NSR.
About Red Pine's Other Gold Properties
Fern Elizabeth Property, Atikokan, ON, Thunder Bay Mining District
Red Pine has a 75% interest in the Fern Elizabeth property, which is located 9 kilometres northwest of the town of Atikokan, Ontario. The area has a rich mining and exploration heritage and was a major iron mining centre in the mid-1970's. More recently Osisko has identified an inferred resource of 6.70 million ounces of gold approximately 20km to the North East (Hammond Reef). The Fern Elizabeth property is approximately 11 square kilometres and contains 25 claims and leases. The property has excellent infrastructure with both all weather road and boat access.
Soil sampling, geological mapping, prospecting, ground geophysical surveying and 8 diamond drill holes (1,490 m) were carried out to explore the Fern Elizabeth Property. Interesting intervals of gold mineralization was intersected in the vicinity of the historic No. 2 Shaft. Three of the intersections ranged from 3.0 to 12.2 grams per tonne gold.
Costello Property - Timmins, Ontario
The Costello property is located along the Bristol fault, a splay of the Destor Porcupine Deformation Corridor immediately to the east of the Timmins Mine ("TM"). At the TM, gold is hosted in mafic and ultramafic volcanic rock units and in sedimentary rock units of the Porcupine Group. The TM is located at the contact of the volcanic rocks and the sedimentary rocks.
The Costello property is underlain by strongly deformed and transposed sedimentary rock units of the Porcupine Group. Observation of outcrop has shown that the "sedimentary bedding" corresponds in fact to tectonic layering and that the rocks have experienced severe deformation. In a recent Lake Shore 43-101 report, it is mentioned that: "There has been a high degree of deformation in terms of shearing, folding, and likely faulting in the TM deposit and the relationship of the primary lithologies is more complex in three dimensions than surface plans suggest".
Mt Logano Property - Timmins, Ontario
The Mt. Logano Porphyry property consists of 162 claim units in Whitney, Shaw, Carman and Cody townships, Porcupine Mining Division, Ontario. Bedrock on the property includes the Mt. Logano quartz-feldspar porphyry, which intruded near the Deloro- Tisdale assemblages contact. Much of the gold deposition in the Porcupine Gold Camp is spatially associated with mafic/ultramafic rocks of the Lower Tisdale assemblage, and felsic intrusive rocks similar to the Mt. Logano porphyry intrusion. Recent geochronological investigation (2005) has placed the age of the Mt. Logano porphyry body at 2689 +/-1.4 Ma, the same as the Pearl Lake porphyry (2689 +/- 1.0 Ma), which has played a spatial role in major gold deposits including the Hollinger- McIntyre mines of the Porcupine Gold camp.
Base Metal Property
Cayenne-Chili Property - Swayze Belt, Ontario
The Cayenne-Chili Property consists of 57 contiguous mining claims for 8,704 hectares. The property has been subject to two major tectonic events: an earlier one generating north-south trending folds and a later one generating east-west folding. These have been interpreted as the western extension from the Larder-Cadillac deformation zone and the second a western extension from the Porcupine-Destor deformation zone to the north. In 2006 a fold nose was discovered 500m west of Jefferson deposit. The "Jefferson" is a non NI 43-101 compliant resource estimate of 30,100 tons @ 7.05% Zn and 4.58% Pb. The deposit consists of massive sulphides enriched in zinc and lead over 150m strike and 30m depth.
Historical exploration was focused on the Jefferson. In 1950, additional drilling tested the continuity of the mineralized zone to a depth of 85m. The results of this effort intersected 4.43% Zn and 1.25% Pb over 22.9m and 9.1% Zn and 11.5% Pb over 6.9m. In the 1980's, work by Falconbridge at the Jefferson concluded that the mineralization is associated with cross-cutting fractures and not strictly of the VMS type. The best hole encountered 2.7% Zn over 9.12m and 1.6% Zn over 13.83m. Another hole had 1.7% Zn over 17.2m.
Work by Red Pine in 2006 supports the Falconbridge hypothesis of the current intersections representing stringer-type mineralization and the potential exists to discover a proximal VMS deposit.
Red Pine Receives Permit for Exploration
Red Pine is pleased to announce that it has received an exploration permit from the Ministry of Northern Development and Mines to further explore the Cayenne-Chili Property in the Swayze Belt, Ontario. The new permit is good for 3 years and covers diamond drilling, airborne and surface geophysics, mechanized stripping, trenching sampling and mapping. Current work is focussing on the evaluation and interpretation of the extensive data set on the property with a field program being planned in the next few months.
More detailed information about the Company is available on the website: www.redpineexp.com.
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Red Pine Exploration Inc.
Senior Vice President, Corporate Development
(416) 364-2753 (FAX)
Red Pine Exploration Inc.
President & COO