VVN.v - PR: VICTORY TO ACQUIRE THE KITTSON COBALT PROPERTY VICTORY TO ACQUIRE THE KITTSON COBALT PROPERTY
Victory Ventures Inc. has entered into an option agreement to acquire a 100-per-cent interest in the Kittson colbalt property, located in the Kittson and Coleman townships of the Larder Lake mining division in Northeastern Ontario. The Kittson property comprises five unpatented mining claims totalling 68 units, having a combined area of approximately 1,090 hectares, located approximately eight kilometres northwest of the town of Latchford and 120 kilometres by road north of North Bay.
The Kittson cobalt property is located within the prolific Cobalt mining camp, which has produced over 420 million ounces of silver. The property includes two former mines, Shakt Davies and Cobalt-Kittson. These two mines saw limited production and differed from the typical Cobalt camp in that they possessed low silver grades, but were enriched in cobalt and gold.
The Cobalt-Kittson mine operated from 1927 to 1930, and production records are scarce; however, records from the 598-foot level show this level produced 600,000 pounds of smaltite (a cobalt-bearing mineral), and gold assays of up to 6.9 grams per tonne were reported.
The Shakt Davies mine saw intermittent development from 1906 to1964, with the bulk of the underground working completed between 1924 to 1926. No production records remain; however, historic reports indicate values of 1.5 per cent cobalt over 1.37 metres, and select grab samples returning up to 4 per cent cobalt and 93.3 grams per tonne gold. More recent sampling (1987) of the mine waste pile by Ontario Geological Survey staff returned 0.25 per cent cobalt, 0.75 per cent nickel, 0.05 per cent copper and 3.4 grams per tonne gold.
Victory can earn a 100-per-cent interest in the property under the terms of the option agreement for an aggregate purchase price of $1,155,000, payable by a combination of common shares and cash, of which $1,125,000 of the purchase price will be satisfied by the issuance of 25 million common shares at a deemed price of 4.5 cents per common share and $30,000 by cash, payable within 12 months following the execution of the option agreement. The property is subject to an underlying 2-per-cent net smelter return royalty, of which 1.5 per cent may be purchased by the company for $1-million. This transaction is subject to TSX Venture Exchange approval.
The technical content of this news release has been reviewed and approved by James Place, PGeo, a director of the company and a qualified person as defined by National Instrument 43-101.
Victory Ventures is a Canadian-based junior mining exploration company focused on the procurement, exploration and development of resource properties in North and South America.
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