Goldhill acquisition NRHere is the full article - and I say we are
UNDERVALUED big time - GLTA.
GOLD – BCGold Corp. recently signed an option agreement with Guardsmen Resources Inc., a private company registered in British Columbia, to acquire a 100 percent interest in Guardsmen’s Gold Hill Property, which partially surrounds BCGold’s historic Engineer Mine Property, located 32 kilometers, or 20 miles, west of Atlin, B.C. The Gold Hill property consists of five mineral claims (2,104 hectares, or 5,197 acres), which includes the Happy Sullivan high-grade gold epithermal prospect and a 2.2-kilometer-long segment of the highly prospective Shear Zone “B” structure. This agreement, subject to TSX Venture Exchange approval, gives BCGold the option to earn a 100 percent interest in the Gold Hill Property over 4 years by issuing 100,000 BCGold common shares to Guardsmen within 5 days of Exchange approval, making C$100,000 in staged cash payments to Guardsmen, and incurring C$500,000 in exploration work on the Gold Hill property. Guardsmen retains a 2.5 percent net smelter return on the Gold Hill Property, which can be reduced to 0.5 percent by BCGold for a price of C$1.5 million. BCGold intends to conduct a property-wide soil geochemical survey on the property in 2011 to target narrow-vein and bulk tonnage, shear-related gold mineralization. The Gold Hill property overlays a north-trending silicified shear zone (Shear Zone “B”), which measures up to 24 meters wide and extends from the northern portion of the Gold Hill property (Happy Sullivan claim) and 3 kilometers southward, onto BCGold’s Engineer Mine property. The company considers Shear Zone “B” and associated splays and fault intersections to offer excellent high-grade and bulk tonnage gold exploration potential. “The Gold Hill Property acquisition exemplifies BCGold’s commitment to the Engineer Mine Camp,” said BCGold President and CEO Brian P. Fowler in a statement Oct. 4. “The company can now take a much broader view of the Engineer Mine gold mineralizing system and better explore its outer reaches and depth extent.” The Happy Sullivan prospect was explored for high-grade gold in the early 1930s by two adits and several trenches. A grab sample from a nearby quartz dump reportedly assayed 323.6 grams per metric ton gold and 226.2 g/t silver (British Columbia Minister of Mines Annual Report 1933, p. 81). In Guardsmen’s 2006 prospecting and geochemical survey report on the Happy Sullivan property, the explorer reported that “Shear Zone “B” contains abundant vuggy quartz veins up to 1 meter wide with up to 10 percent disseminated arsenopyrite, pyrite, electrum and gold. A 2001 trench sample from the Happy Sullivan prospect averaged 1.8 g/t gold across 15 meters. A number of other high-grade veins and gold showings, including the historic Sweepstake vein which measures up to 7.6 meters wide occur peripheral to Shear Zone “B.” Vancouver, B.C.-based BCGold has an option to earn a 100 percent interest in the Engineer Mine Property. Engineer Mine was a high-grade gold producer that peaked in the mid-1920s and ceased production in the early 1930s, primarily due to water ingress issues. More than 560 kilograms of gold and 278 kilograms of silver were officially produced at realized grades exceeding 39 g/t gold and 20 g/t silver, respectively, from high-grade epithermal quartz-carbonate veins on six mine levels. The presence of visible gold was the primary method of identifying and following ore shoots in the veins. The junior is currently conducting a second phase of underground drilling at the historic high-grade gold mine. Phase II drilling is directed at further defining the geometry of high-grade gold shoots in the Engineer and Double Decker veins and upgrading and increasing the current potential mineral target at Engineer Mine to an National Instrument 43-101 compliant mineral resource estimate.