Vancouver, BC - March 2, 2011, Ethos Capital Corp.(the "Company" or "Ethos") (TSX-V: ECC) is pleased to announce that ithas obtained the option to acquire a 100% interest in two prospectivegold properties located respectively 70 km and 120 km south of DawsonCity, Yukon. The Bridget and Hen properties, identified by experiencedtarget generator Shawn Ryan (Wildwood Exploration Inc.), comprise atotal of 1,385 claims (approximately 28,950 hectares) and are located inthe highly prospective White Gold area, west-central Yukon. The newlyrecognized high-grade, lode gold mineralization in the area has led totwo significant discoveries: the Golden Saddle deposit (Kinross GoldCorporation) and The Coffee Creek prospects (Kaminak Gold Corporation)in 2008 and 2010 respectively. The Casino copper-molybdenum-golddeposit (being developed by Western Copper Corporation) is locatednearby.
The Bridget and Hen properties are strategically located in the WhiteGold region of the Dawson Range, respectively east and north ofKaminak's Coffee Property. Part of the Hen property adjoins KinrossGold's claims containing the new "JP Ross" discovery. The primarytarget on the Bridget and Hen properties is a near-surface, bulk tonnagegold setting analogous to Kinross Gold Corporation's recently acquiredWhite Gold Project, and Kaminak Gold Corporation's newly discoveredCoffee Project. The Bridget and Hen properties represent promising goldexploration targets in an emerging gold district with historic placergold production and significant discoveries in 2008 and 2010. Please
CLICK HERE to view the claim map.
Recent Gold Discoveries in the Dawson Range
In 2008, Underworld Resources Inc. drilled 18.1m grading 4.35 g/t Au and50.7m grading 3.1 g/t Au following up with an intercept early in 2009grading 3.39 g/t Au across 104.0m. This led to delineation of the GoldenSaddle deposit with an Indicated Resource of 1,004,570 oz gold @ 3.2g/t Au, and an additional Inferred Resource of 407,413 oz gold @ 2.5 g/tAu. In Spring of 2010, drilling on the Coffee Project produced twosignificant discoveries: the Supremo Zone which yielded 17.07 g/t Auover 15.5m, and the Latte zone which returned 2.35 g/t Au over 51m.This information is not necessarily indicative of the mineralizationthat may be identified on the Betty and Wolf properties.
Mineralization at both Golden Saddle and on the Coffee Project isbelieved to be dominantly associated with felsic plutonic and oldermetamorphic rocks. Mineralization is structurally controlled and has agold - arsenic - antimony surface soil geochemical response.
The Bridget and Hen Properties
In 1970, regional silt sampling by Silver Standard identified theBridget Property area as one of three significant copper-silveranomalies along with what is now the Minto mine (Capstone) and the LuckyJoe prospect (Copper Ridge) in the region. In 2001 Shawn Ryanfollowing up on government airborne magnetic surveying recognized theassociation of gold with the historically identified copper targets andthe coincidence of this mineralization to magnetic highs.
The Bridget Property was explored by Shawn Ryan over three years between2005 and 2008. Work included prospecting, geochemical sampling (atotal of 1,455 soil samples collected) and ground magnetic surveying(~32 line kms) on the Bridget property. Soil sample analyses from the2008 detailed soil grid indicate a geochemically anomalous area greaterthan 750 meters in length with copper >200 to 711 ppm coincident withanomalous bismuth (to 155 ppm) and molybdenum (to 322pmm) associatedwith a strong magnetic anomaly. The results suggest similarities withthe Minto and Lucky Joe areas of mineralization.
The Bridget Property is contiguous with the Company's Betty Propertyoptioned from Shawn Ryan in November 2010 (see NR 30 November 2010).The area is highly prospective for White Gold District style goldmineralization such as Kinross's White deposit and Kaminak's Coffeeprospects as well as porphyry copper-gold mineralization similar toMinto or Lucky Joe.
The Hen property has seen limited exploration. The property covers ~100square kilometres centred on Henderson Creek which is a current andlong-lived area of placer gold mining made famous by the American authorJack London who had a cabin on Henderson Creek during the Klondike goldrush. The Hen property covers an airborne magnetic anomaly and adjoinsclaims owned by Kinross who have made a gold discovery at the "JP Ross"prospect east of the Hen property boundary.
2011 Work Program
Ethos Capital Corp. management believes these two new propertiesrepresent excellent opportunities for exploration for bulk tonnage goldmineralization in the emerging White Gold District. There is alsopotential for gold-copper- molybdenum mineralization similar in style tothe nearby Casino deposit and the Minto deposit. Summer 2011exploration plans include airborne magnetics and radiometric surveyingplus ground follow-up soil geochemical surveys designed to infill andexpand existing data, trenching of existing soil anomalies, groundmagnetic surveying and geological mapping. The goal of this work is toidentify and prioritize diamond drill targets.
The Option Agreements
The Company has entered into option agreements with Shawn Ryan andWildwood Exploration Inc., to acquire a 100% interest in each of theBridget and Hen properties.
The Bridget property option agreement calls for Ethos to make cashpayments aggregating $550,000, incur exploration expendituresaggregating $2.5 million and issue up to 1.25 million shares staged overthe five-year term of the option. More specifically, to acquire andmaintain the Bridget option, Ethos will make upfront payments of$100,000 cash and 250,000 common shares. To maintain the option, Ethoswill be required to make additional option payments of $450,000 in cashand issue 1.0 million shares, staged over four years. Upon completionof $4.0 million in exploration expenditures, Ethos will be required toissue an additional 250,000 shares; and upon completion of $7.5 millionin exploration expenditures it will be required to issue an additional250,000 shares.
Similarly, the Hen property option agreement calls for Ethos to makecash payments aggregating $650,000, incur exploration expendituresaggregating $2.55 million and issue up to 1.75 million shares stagedover the five-year term of the option. More specifically, to acquire andmaintain the Hen option, Ethos will make an upfront payment of $125,000cash and 350,000 common shares. To maintain the option, Ethos will berequired to make additional option payments of $525,000 in cash and theissuance of 1.4 million shares, staged over four years. Upon Ethoscompleting $4.0 million in exploration expenditures Ethos will berequired to issue an additional 350,000 shares, and upon completion of$7.5 million in exploration expenditures it will be required to issue anadditional 350,000 shares.
Each of the properties will be subject to a 2% NSR royalty in favour ofthe optionors ,with an option in favour of the Company to buyout 1% ofthe NSR royalty exercisable for CDN$2.5 million per property.
The Bridget and Hen option agreements, taken together with the Betty andWolf option agreements described in the Company's November 30, 2010news release, are being treated by the TSX Venture Exchange as aFundamental Acquisition. Consequently, the property acquisitionspursuant to the Bridget and Hen option agreements are subject to theacceptance of the TSX Venture Exchange, which acceptance is, among otherthings, subject to the Company completing and filing NI 43-101compliant technical reports on each of the Bridget, Hen, Betty and Wolfproperties. The Company has engaged Jean Paulter, P.Geo, JP ExplorationService Inc., to prepare these technical reports, and expects to haveall of the required reports completed by March 31, 2011. The Companywill not make any cash payments or share issuances under the Bridget andHen option agreements until they have been accepted for filing by theTSX Venture Exchange. Any shares subsequently issued by the Companyunder these option agreements will be subject to a four-month holdperiod.
About Ethos
Ethos is junior mining company focused on exploration and development ofits valuable mineral assets located in highly prospective mineralizedbelts, close to infrastructure and in areas that are politically stable,mining-friendly and hospitable to exploration and development. TheCompany's principal projects are its 2,187 claims totalling 457 squarekilometre property package in the heart of the emerging White Gold /Klondike gold district as well as its Santa Teresa and Corralessilver-zinc-lead properties in Mexico.
Work in Mexico at the Corrales Property in past year has includedshallow drilling testing silver-zinc-lead mineralization, limited deeperdrilling aimed at establishing vectors to higher-grade mineralization,and currently ongoing detailed magnetics surveying aimed at identifyingpriority drill targets beneath the pediment cover. Results of themagnetics surveying are pending.
This News Release has been reviewed and approved by Peter Tallman,P.Geo, Chief Operating Officer of Ethos Capital Corp. and QualifiedPerson for the Yukon projects, in accordance with regulations underNational Instrument 43-101.
For additional information please contact Gary Freeman or Andy Hay at 604-682-4750 or visit the company website at
www.ethoscapitalcorp.com.
Ethos Capital Corp.
Per:
"Gary Freeman"
Gary Freeman, President & CEO
Forward-Looking Statement Cautions:
This press release contains certain "forward-lookingstatements" within the meaning of Canadian securities legislation,relating to, among other things, the Company's plans for the acquisitionof the above-described Hen and Bridget properties, and the futureexploration of the Hen, Bridget, Wolf and Betty properties. Although theCompany believes that such statements are reasonable, it can give noassurance that such expectations will prove to be correct.Forward-looking statements are statements that are not historical facts;they are generally, but not always, identified by the words "expects,""plans," "anticipates," "believes," "intends," "estimates," "projects,""aims," "potential," "goal," "objective," "prospective," and similarexpressions, or that events or conditions "will," "would," "may," "can,""could" or "should" occur, or are those statements, which, by theirnature, refer to future events. The Company cautions thatForward-looking statements are based on the beliefs, estimates andopinions of the Company's management on the date the statements are madeand they involve a number of risks and uncertainties. Consequently,there can be no assurances that such statements will prove to beaccurate and actual results and future events could differ materiallyfrom those anticipated in such statements. Except to the extent requiredby applicable securities laws and the policies of the TSX VentureExchange, the Company undertakes no obligation to update theseforward-looking statements if management's beliefs, estimates oropinions, or other factors, should change. Factors that could causefuture results to differ materially from those anticipated in theseforward-looking statements include, the Company's inability to securethe acceptance by the TSX Venture Exchange for the above-describedoption agreements, delays faced by the Company in completing the NI43-101 technical reports, accidents and other risks associated withmineral exploration operations, the risk that the Company will encounterunanticipated geological factors, the possibility that the Company maynot be able to secure permitting and other governmental clearancesnecessary to carry out the Company's exploration plans, and the risk ofpolitical uncertainties and regulatory or legal changes in thejurisdictions where the Company carries on its business, includingMexico and the Yukon Territory, that might interfere with the Company'sbusiness and prospects. The reader is urged to refer to the Company'sreports, publicly available through the Canadian SecuritiesAdministrators' System for Electronic Document Analysis and Retrieval(SEDAR) at
www.sedar.com for a more complete discussion of such risk factors and their potential effects.
Neither the TSX Venture Exchange nor its Regulation ServicesProvider (as that term is defined in the policies of the TSX VentureExchange) accepts responsibility for the adequacy or accuracy of thisrelease.