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Doubleview Capital Corp. ("Doubleview") is pleased to announce that it has entered into an option agreement to earn a 90% interest in the Red Spring Copper-Silver-Gold Property from Farshad Shirvani (President and CEO) (45%), Peter Burjoski (45%) and Erik Ostensoe, P.Geo.(10%), ("Vendors"). The optioned property enhances Doubleview's portfolio of copper properties in British Columbia where the Hat Copper-Gold property remains the main focus of exploration. Doubleview is currently arranging financing to continue exploring the Hat property by geophysical surveys and diamond drilling.
The Red Spring Copper-Silver-Gold Property comprises 1,349 hectares and is located 120 km north of Smithers, in the Omineca Mining District of British Columbia. Subject to TSX Venture Exchange (the "Exchange") approval, option agreement terms and commitments are:
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1.50,000 shares of Doubleview on Exchange approval, cash payment of $7,000 to Vendors and conduct $100,000 work program on the property before the first anniversary of the agreement,
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2.100,000 shares of Doubleview on the first anniversary of signing, and $15,000 in cash payment to Vendors and conduct an additional $100,000 work program on the property before the second anniversary of the agreement,
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3.150,000 shares of Doubleview on the second anniversary of signing, and $25,000 in cash payment to Vendors and conduct an additional $100,000 work program on the property before the third anniversary of the agreement,
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4.200,000 shares of Doubleview on the third anniversary of signing, and $35,000 in cash payment to Vendors and conduct an additional $100,000 work program on the property before the fourth anniversary of the agreement ,
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5.300,000 shares of Doubleview on the fourth anniversary of signing, and $45,000 in cash payment to Vendors and conduct an additional $250,000 work program on the property before the fifth anniversary of the agreement.
Vendors will retain a 2.5% NSR ("Net Smelter Royalty") on the Red Spring Copper-Silver-Gold property of which Doubleview can purchase 50% for $1,500,000.
The option agreement and the transaction contemplated therein are subject to the approval of the TSX Venture Exchange.
About the Red Spring Copper-Silver-Gold Property
The Red Spring Copper-Silver-Gold property, located 120 km north of Smithers, B.C., was discovered in 1972. Copper mineralization occurs within interbedded volcanic, volcaniclastic and sedimentary rocks of the Jurassic age Hazelton Group close to the eastern edge of the Bowser sedimentary basin. Previous exploration was directed to a dolomitic limestone formation that carries finely disseminated silver-rich chalcopyrite. Drilling programs in 1973 outlined a historic "drill indicated reserve" of 5,000,000 tons grading 0.5% copper and 11.9 grams/ton silver (4,500,000 tonnes of 0.5% copper and 0.38 troy oz/tonne silver). (Assessment Report #20364,p. 1, 1990, G. Ryznar, P. Eng., quoting from a 1973 internal company report for Canadian Superior Exploration Ltd.).
The historical "drill indicated reserve" cited above is mentioned for historical purposes only and uses terminology not compliant with current reporting standards. The reliability of these historical estimates is unknown but considered relevant by Doubleview as it represents a significant target for future exploration. The qualified person has not reviewed all pertinent original documents nor done sufficient work to classify the historical estimate as a current mineral resource and Doubleview is not treating this historical estimate as a current mineral resource. Historical "drill indicated reserves" are not equivalent to mineral reserves or resources as they are not supported by at least a preliminary feasibility study. In order to verify this as a current estimate, Doubleview will need to conduct additional exploration work in the form of diamond drilling to verify the historic data. Details of such work have not been determined.
Highlights of significant historic drill results are tabulated in following table:
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|Drill|From (feet)|To (feet)|Length (feet)|% Copper|Oz/ton Silver|
|Hole | | | | | |
|No. | | | | | |
|----------------------------------------------------------------|
|73-2 |10 |140 |130 |0.56 |0.32 |
|----------------------------------------------------------------|
|73-3 |6 |142 |136 |0.54 |0.61 |
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|73-5 |5 |170 |165 |0.47 |0.16 |
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|73-6 |3 |150 |147 |0.47 |0.28 |
|----------------------------------------------------------------|
|73-7 |3 |160 |157 |0.30 |0.14 |
|----------------------------------------------------------------|
|73-9 |11 |50 |39 |0.59 |0.39 |
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Caution: Doubleview has not confirmed the historic drilling data that supports the above-cited historical resource estimate and has no reliable information concerning details of the sampling and analysis of the core samples in the above-cited tabulation. Available data, although believed to be reliable, does not comply with CIM requirements and the Company does not consider the drill core analyses as wholly reliable and should not be relied upon in any evaluation of the Red Spring property.
Programs of geochemical soil sampling surveys, induced polarization (IP) geophysical surveys and a total of 12 diamond drill holes with total length 1380 metres, were completed in 1972 - 1976 by major exploration companies. In addition to the drilled area of mineralized dolomitic limestone, the IP surveys outlined several as yet unexplored anomalies in the nearby area and, subsequently, prospectors located in outcrops a short distance south of the drilled area a second occurrence of the mineralized dolomitic limestone. Surface samples from this second occurrence returned copper and silver values similar to those from the discovery area.
The characteristics of the copper-silver mineralization on the Red Spring property are similar to those of stratabound sediment-hosted copper deposits. Such deposits frequently have large areal extents with good potential for large tonnages. Speculatively, the Red Spring property, located on the eastern edge of the Bowser Basin, has some similarities to the geological setting of the Eskay Creek Mine that lies on the western edge of the Basin: comparable rock types, stratigraphy and style of copper mineralization occur at both.
The Company is planning to explore the Red Spring property by an initial program of geologic mapping, prospecting and soil geochemical sampling, followed by ground-based or airborne geophysical surveys and, possibly, diamond drilling.
Erik A. Ostensoe, P. Geo., a consulting geologist, is Doubleview's Qualified Person as defined by National Instrument 43-101 - Standards of Disclosure for Mineral Projects, with respect to the Red Spring property and has reviewed and approved the technical disclosure of this news release. Mr. Ostensoe is not independent of Doubleview as he is a shareholder and co-optioner of the Hat and Red Spring properties.
On Behalf of the Board of Directors
Farshad Shirvani, M.Sc. Geology
President and Chief Executive Officer
For further information please contact:
Doubleview Capital Corp.
Suite 310, 675 West Hastings Street
Vancouver, BC V6B 1N2
Farshad Shirvani
T: (604) 678-9587
E: corporate@doubleview.ca
CAUTION: Some analytical results in this news release have been taken from historic data and are yet to be verified by Doubleview.
Forward-Looking Statements
Information set forth in this news release contains forward-looking statements that are based on assumptions as of the date of this news release. These statements reflect management's current estimates, beliefs, intentions and expectations. They are not guarantees of future performance. Doubleview cautions that all forward looking statements are inherently uncertain and that actual performance may be affected by a number of material factors, many of which are beyond Doubleview's control. Such factors include, among other things: risks and uncertainties relating to Doubleview's ability to exercise its option to acquire the Red Springs Property, Doubleview's ability to complete an exploration program on the Red Springs Property, Doubleview's limited operating history and the need to comply with environmental and governmental regulations. Accordingly, actual and future events, conditions and results may differ materially form the estimates, beliefs, intentions and expectations expressed or implied in the forward looking information. Except as required under applicable securities legislation, Doubleview undertakes no obligation to publicly update or revise forward-looking information.
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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