MORE news!Santoy to acquire 50% interest in Monster properties
Santoy Resources Ltd (2) (TSX-V:SAN) Shares Issued 41,984,244Last Close 1/26/
2005 $0.40Wednesday January 26 2005 - News Release
Mr. Ron Netolitzky reports
SANTOY ACQUIRES URANIUM PROJECTS IN LABRADOR
Santoy Resources Ltd. has signed a letter of intent with Monster Copper Corp. of
Richmond Hill, Ont., to acquire a 50-per-cent interest in the Bruce River and Mustang
Lake properties, held 100 per cent by Monster and located in the central mineral belt
of Labrador, approximately 120 kilometres north of Goose Bay.
Santoy has the right to earn a 50-per-cent interest in the above properties by
incurring a total of $600,000 of exploration and development expenditures on the
properties over two years with a minimum of $300,000 to be expended in the first
year. In addition, Santoy will issue 200,000 common shares in the capital stock of
Santoy upon receipt of TSX Venture Exchange approval, if required.
Once Santoy has incurred expenditures of $600,000 and issued Monster 200,000
common shares, Santoy will have deemed to have earned a 50-per-cent interest. At
that time, Monster may elect to either grant Santoy the right to earn a further 25-per-
cent interest, for a total 75-per-cent interest, by spending a further $600,000 over
two years and issuing a further 300,000 common shares in the capital stock of
Santoy, or to form and participate in a 50/50 joint venture.
The 62-claim Mustang Lake property is located eight kilometres northeast of the
Michelin uranium deposit, which has historical exploration and development
expenditures of approximately $30-million. On the Mustang Lake property,
assessment reports describe the Irving zone as having a boulder train 500 metres
long, containing 117 subangular to angular boulders that average 1.28 per cent
U3O8 (uranium oxide) with a range of 0.09 per cent to 6.25 per cent U3O8. The
bedrock source of these boulders containing high-grade uranium mineralization is
believed to be local and has yet to be discovered.
The Bruce River property, which consists of five licences totalling approximately
1,080 claims, is located 25 kilometres west of the Mustang Lake property. The
property hosts numerous government-documented copper occurrences in geological
settings favourable for uranium mineralization. During 2003, Monster Copper had the
property flown by a combined airborne magnetic and gravity system known as
AIRGrav. Santoy plans on reviewing all of the available data in order to select areas for
follow-up work in the upcoming 2005 field season.
Santoy has also entered into an agreement to purchase an additional 621 claims from
Geotest Corporation. The claims are located in the same area of the central mineral
belt of Labrador and also cover favourable targets for uranium-copper mineralization.
Total consideration of the purchase will be a cash payment of $47,182, the issuance
of 200,000 common shares in the capital stock of Santoy and a 2-per-cent net
smelter royalty to Geotest. One-half of the NSR may be purchased from Geotest at
any time by the cash payment of $500,000. Of the purchase price, $50 per claim may
be refunded to Santoy by the government of Newfoundland, once the company has
completed and filed the appropriate assessment work on the claims.
Highlights of previous work on the Geotest claims include the anomaly 7 area where
three uranium occurrences have been identified. One of the occurrences was drilled
by Canadian Nickel Company with the best hole returning 0.13 per cent U3O8 over
23.4 metres, including 0.25 per cent U3O8 over 9.7 metres. A total of five drill holes
were completed with the zone remaining open along strike and to depth.
Santoy also advises that it has sold its 20-per-cent interest in the shares of ATW
Resources Ltd. to Almaden Minerals Ltd. for a total consideration of $21,174.
Almaden is a private corporation that is exploring for diamonds in the Northwest
Territories.
The company is continuing to research and negotiate on the acquisition of additional
uranium, coal and coal bed methane projects, which was previously disclosed to be
the new focus for Santoy.
Ron Nichols, PEng, is the qualified person responsible for the technical information
included in this news release.
Corporate update
Further to the company's annual general meeting, the company is pleased to welcome
Ron Hochstein and William James to the board of directors for the ensuing year. The
company takes this opportunity to thank Ken Booth and Dan Larkin for their tenure.
In addition, Ronald Netolitzky was appointed president and chief executive officer,
Ron Nichols, vice-president, exploration, Robert Matthews, chief financial officer, and
Terese Gieselman, corporate secretary.
Furthermore, the company received approval from its shareholders with respect to
the consolidation of Santoy's shares on a 3:1 basis. At this time the board of directors
has elected not to proceed with the consolidation as described in the company's
information circular dated Nov. 10, 2004, and filed on SEDAR. The company is also
pleased to advise the reappointment of the company's auditors, Smythe Ratcliffe, for
the ensuing year.