Wow!LSG must really think they have an elephant by the tail!
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RT MINERALS ANNOUNCESTHE ACQUISITION OF THE ADVANCED STAGED BAZOOKA GOLD PROPERTY FROMLAKE SHORE GOLD CORP. & MEUNIER DEEP HOLE UPDATE
VANCOUVER, Nov. 25 /CNW/ - RT Minerals Corp. ("RTM" / the"Company") (CNSX: RTM) announces that the Company has settled the termsof an agreement with Lake Shore Gold Corp. (TSX: LSG) whereby RTM willacquire from LSG 100% of the advanced staged Bazooka gold property,Quebec, and the McWatters gold property, Quebec. RTM will acquire theseproperties by issuing an aggregate of 10,000,000 RTM shares to LSG. Inaddition, as further consideration, RTM will transfer its interest inthe Golden Property near Timmins, Ontario and will transfer 50% of RTM'searned interest in the Meunier JV property to LSG. Completion of thetransactions described herein remains subject to the approval ofunderlying property vendors and the shareholders of RTM.
TheBazooka property is a great acquisition for the Company as it provides a100% vested title interest in an advanced staged property that hostsknown gold zones in the Noranda-Val D'Or mining region.
BAZOOKA GOLD PROPERTY, QUEBEC
TheBazooka property to be acquired by RTM is an advanced gold prospectconsisting of 15 mining claims in Beauchastel Township, 7 km southwestof Rouyn Noranda, Quebec and contiguous with the west boundary ofproperties owned and being actively explored by Yorbeau Resources. Theproperty is situated about 45 km southwest of Agnico Eagles Laronde mineand about 40 km west of Osisko's Malartic project.
Geologically,the property overlies 1.8 km of the Cadillac-Larder Lake DeformationZone (CLDZ) a major structural zone near the south margin of the AbitibiGreenstone Belt hosting numerous gold occurrences and depositsincluding the Val d'Or, Cadillac, Kirkland Lake, Larder Lake andMatachewan gold camps. Most significant gold mineralization identifiedto date at Bazooka is located near the east boundary with Yorbeau andhosted by strongly altered sedimentary and volcanic rocks surrounding adistinct northeast trending flexure in the CLDZ. This mineralization isin the direct westward extension of the CLDZ from Augmitto andCinderella Blocks of the Yorbeau Property where past mining has beenconducted to a depth of 250m from surface and recent drilling hasyielded results such as 3.35 gpt over 33.0m, including 9.59gpt over 7.0mand 74.67 gpt over 10.35m (Yorbeau releases, May 26, 2010 and September23, 2009, respectively). Yorbeau Resources has also recently announcedthe commencement of a 43-101 study to evaluate the resource potential atthe Augmitto deposit.
The first significant exploration at theBazooka property was conducted by Siscoe Mines in 1946 and includedcompletion of 26 holes and development from an exploration shaft at 120 mbelow surface to evaluate the main mineralized showing. Significanthistoric drill intersections from this program include 8.8 gpt Au over9.1 m, 3.8 gpt Au over 5.4 m, 10.7 gpt Au over 3.0 m, and 4.1 gpt Auover 3.0 m.
Soquem evaluated the property in 1981 and 1982drilling 16 holes. The program identified four distinct mineralizedzones (A,B,C and D) and obtained significant intercepts of 42.5 gpt Auover 4.5 m, 2.9 gpt Au over 9.0 m, 12.3 gpt Au over 7.5 m, and 21.1 gptAu over 2.05 m. The above historic intercepts are from a 250m longportion of the (CLDZ) surrounding the Siscoe Shaft and at depths lessthan 220m below surface.
The most recent work at the propertyincludes drilling by Lake Shore Gold Corp. in 2003 and 2004 which testedgaps in previous drilling by Soquem as well as areas up to 250 metreswest of the Siscoe shaft with good success. In total, 23 holes and 7676mwere drilled and obtaining several significant gold intersections atshallow depths from surface including:
Hole Section From metres To metres Length metres Au gpt
BA-03-01 2220 80.0 82.0 2.0 11.7
BA-03-01 2220 159.0 161.3 2.3 6.5
BA-03-02A 2220 260.0 261.0 1.0 316.2
BA-03-02A 2220 274.9 277.1 2.3 10.8
BA-03-02A 2220 304.7 305.7 1.0 13.8
BA-03-04 1980 146.0 47.3 1.3 94.1
BA-03-08 2040 175.4 176.5 1.1 21.3
BA-04-21 1740 201.4 203.5 2.1 9.1
Thebest results from the Lake Shore drilling are closely associated withstrongly deformed and altered sections of the CLDZ near the northeasttrending flexure containing quartz and tourmaline veins withdisseminated arsenopyrite, pyrite, chalcopyrite and arsenopyrite. Thedrill results indicate excellent potential to extend the known depositalong strike and to depth as well as to define new deposits surroundingother northeast trending flexures west of the shaft. Further drillingis recommended.
MCWATTERS PROPERTY, QUEBEC
This is a 12claim property (404 Ha) located 8 km southeast of the town ofRouyn-Noranda. The property is just north of the Cadillac Larder LakeFault Zone.
The McWatters property is contiguous with the eastboundary of the Yourbeau Astoria Property where past mining has extendeda shaft to 515 meters below surface and Yourbeau has been evaluatingthe potential for open pit mining. The McWatters property has seenlimited past exploration but several gold showings have been identifiedboth within and in the surrounding area.
The mineralization atMcWatters consists of gold, pyrite and arsenopyrite. The Lac LaBruere-Bischoff showing is located by past drilling (Lake Shore Gold2003), which crosscut quartz veins with pyrite and arsenopyrite in asilicified wacke. These historic results returned up to 1.02 g/t Au over0.91 meters and 7.79 g/t Au over 3 meters.
As different parts ofthe property remain covered by overburden mineralized zones could bepresent at such locations. A compilation of past geophysical work andnewly proposed geophysics should be undertaken on the property.
THE MEUNIER JV PROPERTY, WEST TIMMINS, ONTARIO
Thecurrent initial deep drill hole onto the Meunier JV property is ongoingand when completed is estimated to provide a deep cut on the projectedtarget area at about a vertical depth of 2600m. This will enableshallower wedge cuts to be considered if significant mineralization isfound to be present in this area. The initial deep hole was collared onLSG's Timmins Mine property in August 2010 and is now about 1700m indepth.
This hole is targeting potential zones down plunge and onstrike to mineralization at LSG's 100% owned Timmins Mine gold depositwhere LSG has recently announced intercepts of up to 13.55 gpt Au over50.80m and 61.35 gpt Au over 15m (LSG - August 10, 2010 News Release).
TheTimmins Mine deposit straddles a volcanic/sedimentary/ultramaficcontact zone, within a folded sequence that plunges about 54 degrees tothe west-northwest towards the RTM - Adventure Gold (TSX.V: AGE) MeunierJV Property in which RTM may earn up to a 50% interest and LSG may nowearn at least half of RTM's interest when vested. LSG may also earn afurther 5% in the Meunier JV Property by carrying out an EconomicAssessment Study on the property within the next 3 years.
LSG'sTimmins Mine ore body has demonstrated vertical persistence as it can betraced down-plunge for a distance of approximately 1500m from surface,and remains open at depth. Newly emerging and significant foldstructures and complexities are now becoming apparent on the deepestsections of the Timmins mine from LSG drilling. Overall, the grossgeometry of the structure has remained surprisingly consistent fromsurface to a 1300m vertical depth and it is apparent that this geometryand structure continues to depth toward and potentially onto the MeunierJV Property.
In connection with the transfer of the Meunier JVProperty, RTM and LSG will form a 50/50 joint venture and will shareRTM's obligations under the Meunier JV with Adventure Gold Inc. (TSX.V:AGE). The terms of the RTM/LSG joint venture will provide that, in theevent that a party does not contribute its pro-rata share ofexpenditures on the Meunier JV property and a party's interest in theMeunier JV property falls below 10%, then such party will transfer itsremaining interest to the non-diluting party being either LSG or RTM.
Toview a location map of the Bazooka and McWatters properties, please usethe following link: https://files.newswire.ca/912/RTM_Bazooka_map.pdf
Quality Control
Mr.Robert Laakso, P.Eng., is the Independent Qualified Person who hasprepared or supervised the preparation of the information that forms thebasis for the scientific and technical disclosure in this news release.
Forward-looking Statements
Certain statements in thispress release relating to the Company's exploration activities,potential for increasing resources, project expenditures and businessplans are "forward-looking statements" within the meaning of securitieslegislation. The Company does not intend, and does not assume anyobligation, to update these forward-looking statements. These forwardlooking statements represent management's best judgment based on currentfacts and assumptions that management considers reasonable, includingthat operating and capital plans will not be disrupted by issues such asmechanical failure, unavailability of parts, labor disturbances,interruption in transportation or utilities, or adverse weatherconditions, that there are no material unanticipated variations inbudgeted costs, that contractors will complete projects according toschedule, and that actual mineralization on properties will not be lessthan identified mineral reserves. The Company makes no representationthat reasonable business people in possession of the same informationwould reach the same conclusions. Forward looking statements involveknown and unknown risks, uncertainties and other factors which may causethe actual results, performance or achievements of the Company to bematerially different from any future results, performance orachievements expressed or implied by the forward-looking statements. Inparticular, fluctuations in the price of gold or in currency marketscould prevent the Company from achieving its targets. Readers should notplace undue reliance on forward-looking statements. More informationabout risks and uncertainties affecting the Company and its business isavailable in Lake Shore Gold's most recent Annual Information Form andother regulatory filings which are posted on SEDAR at www.sedar.com.There is no guarantee that drill results reported in this news releasewill lead to the identification of a deposit that can be minedeconomically, and further work is required to identify resources andreserves. We seek safe harbour.