Neighbor NewsNewcastle options property patents in West Timmins
2009-12-22 08:30 ET - News Release
Mr. Michael Romanik reports
NEWCASTLE OPTIONS WEST TIMMINS, ONTARIO GOLD PROSPECT
Newcastle Minerals Ltd., subject to regulatory acceptance, has negotiated an option to purchase a 100-per-cent interest in nine property patents covering approximately 120 hectares in Carscallen township adjacent to Highway 101, 21 kilometres southwest of Timmins, Ont.
The property is located in the West Timmins district, which is the western extension of the Timmins gold camp, and is bisected by the Bristol fault. The Timmins gold camp has been in production since 1909 and has produced over 70 million ounces of gold. There are several active mines and advanced exploration and development projects -- including an estimated 40 to 50 drill projects -- currently under way in the Timmins camp.
The property is surrounded by Lake Shore Gold Corp.'s 130-square-kilometre Timmins West gold mine complex, which includes its Thunder Creek project and its Timmins mine, with reported probable reserves of 3.4 million tonnes bearing 7.52 grams of gold per tonne. The property is also approximately three kilometres east of Melkior Resources' Carscallen project which recently reported drilling results of 60.27 grams of gold per tonne over 1.8 metres and 19.8 grams of gold per tonne over 3.3 metres, and approximately 4.5 kilometres northeast of Nebu Resources' recently drilled West Timmins project which reported 98.4 grams of gold per tonne over 4.7 metres, according to their respective websites. There is no certainty that similar results will be obtained from the company's property.
Newcastle's president, Michael Romanik, stated: "We are extremely pleased to have acquired a property of this strategic nature in the middle of the emerging West Timmins camp. Newcastle feels that the West Timmins camp is the most exciting and sustainable exploration and mining camp in Canada. This newly acquired property is completely surrounded by Lake Shore Gold's claims. We look forward to aggressively exploring this property in the new year."
To exercise its option, Newcastle must pay the optionor, Timmins Forest Products Ltd., a total of $325,000 and issue a total of 3.75 million shares in five stages over three years and grant the optionor a 2-per-cent net smelter returns royalty, of which Newcastle may repurchase half for $1-million. In addition, Newcastle will issue the optionor up to an additional 900,000 shares based on future exploration results. The optionor will retain the property's timber rights.
The company has also agreed to pay a finder's fee in respect of the option to Nick Horsley and 2125930 Ontario Ltd., both of whom deal at arm's length with the company.
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