(via Thenewswire.ca)
Vancouver, B.C. October 30, 2013; Birch Hill Gold Corp. (TSX.V: BHG: "Birch Hill" or "the Company") On behalf of the Management and Board of Directors is pleased to announce it has entered into a Binding letter of Intent with an Ontario citizen to purchase three patented mineral claims N1, N2, N3 which cover a total area of 113.4 hectares that are internal to the Company's Coldstream property. (The "Internal claims") To acquire a 100% interest in the claims Birch Hill has agreed, subject to normal course due diligence and TSX Venture Exchange approval, to issue the vendor 500,000 common shares of Birch Hill Gold, pay $50,000 and grant an NSR up to 2%, 1% of such (being half the NSR granted) may be purchased for $1million prior to a production decision on the Property and $2 million thereafter.
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The Internal claims cover portions of the past producing North Coldstream mine that had recorded production of 102 million pounds copper, 22,000 ounces gold and 440,000 ounces silver from 2.7 million tons ore of Archean mafic hosted VMS genesis. Of importance to Birch Hill, the Internal claims lie immediately to the WSW of the Company's East Coldstream Deposit (previously known as the OG Deposit) which hosts an indicated resource of 2.25 million tonnes at a grade of 1.05 g/t Au (76,000 oz) and an inferred resource of 16.975 million tonnes at a grade of 1.01 g/t Au (549,000 oz) both at a 0.6 g/t Au cut off. (See 2011 43-101 Technical Report by TetraTech/Wardrop on SEDAR and Company's website). The majority of prior exploration on the Internal claims took place in the 1950s and 1960s appears to have been focused on VMS copper mineralization with little effort made at assessing the gold potential of the property. A preliminary review of historic drill logs suggests areas of sheared and altered metavolcanics and feldspar porphyritic intrusive were intersected - the host for the majority of the East Coldstream mineralization.
"This stands to be a strategic acquisition for the Company," stated Barry Girling, President and CEO of Birch Hill Gold. "Our exploration at the East Coldstream Deposit indicates that the two defined gold-bearing mineralized zones, EC1 and EC2, merge together as they strike westerly onto the Internal claims providing a favourable corridor for additional mineralization over an additional 1.5 kilometers offering potential to increase the tonnage and improve the geometry of the East Coldstream deposit."
Birch Hill Gold Corp. is a mineral exploration company focused on the development of the Coldstream Gold Project, located 115 Km North West of Thunder Bay, Ontario within the Shebandowan Greenstone Belt. The Company's NI 43-101 resource estimate reported December 16, 2011 by Wardrop hosts an indicated resource of 2.25 million tonnes at a grade of 1.05 g/t Au (76,000 oz) and an inferred resource of 16.975 million tonnes at a grade of 1.01 g/t Au (549,000 oz) both at a 0.6 g/t Au cut off on the East Coldstream Deposit, which is one of five highly prospective gold targets that Birch Hill has within this 16 km long Coldstream Gold Trend.
Completion of the transaction is subject to the approval of the TSX Venture Exchange.
John E. Hiner, Licensed Geologist and Registered Member of SME, a qualified person as defined by National Instrument 43-101 has reviewed and approved the information provided in this news release.
In an unrelated matter Robert Hanson has resigned as a director of the company for health reasons. Management of Birch Hill thanks him for his contributions and wishes him a healthy retirement.
On behalf of the Board of Directors
Barry Girling
President
Birch Hill Gold Corp.
For further information, please contact:
Fern Turner
VP Business Development
(604) 681-0405
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.
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