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Firesteel Resources and Prosper Gold close option and joint venture agreement on Sheslay property

- TSX Venture Exchange accepts for filing, as Prosper Gold's qualifying transaction, the option agreement with Firesteel Resources Inc, whereby Prosper Gold can acquire up to 80% interest in the Sheslay property;

- Prosper begins drilling and IP survey on the Sheslay property.

VANCOUVER, Sept. 4, 2013 /CNW/ - Firesteel Resources Inc. ("Firesteel" or the "Company") (TSX-V: FTR) announced that the option agreement between the company and Prosper Gold ("Prosper") (TSX-V: PGX) has been accepted for filing as Prosper's qualifying transaction. As of 3rdSeptember 2013, Prosper resumed trading on the TSX Venture Exchange under the symbol PGX.

A condition precedent for the successful conclusion of the deal was the raising of $2.5 million. This was achieved via a concurrent non-brokered private placement.

Prosper plans to shortly complete a deep penetration IP survey over the entire 12 square kilometre target area, covering the cluster of 5 copper-gold bearing porphyry targets on the property. In addition drilling has now started on the Star discovery on the Sheslay property.

About the Company

Firesteel is an exploration-stage junior mining Company engaged in the acquisition and exploration of prospective precious and base metal properties in Canada and stable jurisdictions around the world.

Firesteel currently has two highly prospective properties in British Colombia.

The ROK Coyote property is currently under option to OZ Exploration a wholly owned subsidiary of OZ Minerals (ASX:OZE). OZ Exploration has the right to acquire up to 80% of the property in return for spending $13,000,000 on exploration and providing $1,500,000 in cash.

Highlights of the ROK Coyote property include:

  • 6,900 Ha,  of highly prospective large tonnage targets with known Cu-Au results
  • Historical drilling highlights - 38.37 m @ 1.32% Cu, 1.54 g/t Au
  • Adjacent to Red Chris Mine development with P&P Reserves of 302 Mt at 0.365 Cu and 0.27 g/t Au (a 28 year mine life at 30,000 tpd) Imperial Metals

The Sheslay property is currently under option to Prosper Gold. (TSX-V: PGX) Under this agreement, Prosper has the right to acquire up to 80% of the property in return for spending $5,000,000 on exploration, providing $1,000,000 in cash and 1,000,000 shares.

Highlights of the Sheslay property include:

  • 6,700 Ha property hosts five significant Cu-Au targets within close proximity with large tonnage, high grade potential.
  • Historical drilling highlight - grading 242.3 m @ 0.44% Cu & 0.32 g/t Au.
  • Largest of the targets is 1,800 m by 750 m.

The Company's management and board of directors have extensive experience in exploration, operations, business and corporate finance.

The Company's objective is to enhance shareholder value as a prospect generator by identifying and securing early-stage exploration opportunities and developing them to more advanced stages with the help of joint venture partners.

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Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release

Advisory Regarding Forward Looking Statements

This news release contains forward-looking statements. Users of forward-looking statements are cautioned that actual results may vary from forward-looking statements contained herein. Forward-looking statements include, but are not limited to: expectations, opinions, forecasts, projections and other similar statements concerning anticipated future events, conditions or results that are not historical facts. In certain cases, forward-looking statements can be identified by the use of words such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". While the Company has based these forward-looking statements on its expectations about future events as at the date those statements were prepared, the statements are not a guarantee of the Company's future performance.  Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it cannot give any assurance that such expectations will prove to be correct. 

The Company's forward-looking statements are expressly qualified in their entirety by this cautionary statement and are made as of the date of this new release.  Unless otherwise required by applicable securities laws, the Company does not intend nor does it undertake any obligation to update or review any forward-looking statements to reflect subsequent information, events, results or circumstances or otherwise.

SOURCE Firesteel Resources Inc.

Firesteel Resources Inc.

Michael Hepworth
President and Chief Executive Officer
(647) 725-3793
mhepworth@firesteelresources.com

Copyright CNW Group 2013


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