VANCOUVER, BRITISH COLUMBIA--(Marketwired - April 23, 2014) - Vega Mining Inc. (Vega) (TSX VENTURE:VMI) is pleased to announce that it has entered into an option agreement (the "Option Agreement"), subject to regulatory approval, whereby Vega may earn a 100% interest in the 2,567 hectare (6,343 acres) "Sheslay Property" (the "Property").
The Property is located in the Sheslay Valley, Northwestern British Columbia. The claims lie approximately 60 kilometres northwest of Vega's 7,106 hectare Vega Star 1 & 2 properties adjoining Red Chris Mines' copper/gold project. Vega has an option, pending regulatory approval, to earn a 70% interest in the Vega Star 1 & 2 properties.
About The Sheslay Valley Area
Approximately 2 kilometres south of Vega's Sheslay Property, Prosper Gold announced drill results (see October 1, 2013 news) of
| DDH |
From |
to |
intersection |
Cu
% |
Au
g/t |
Ag
g/t |
| S024 |
4.88 metres |
317.04 metres EOH |
312.16 metres |
0.37 |
0.24 |
0.69 |
| S025 |
7 metres |
276 metres |
269 metres |
0.42 |
0.198 |
0.61 |
| S026 |
11 metres |
274 metres EOH |
263 metres |
0.35 |
0.15 |
0.63 |
In addition, Doubleview Capital recently announced (see January 20, 2014 news - from its Hat Property approximately 2 kilometres southeast of Vega's Sheslay Property) drill hole H-11 starting from surface returned 313.11 metres (1027.3 ft) with 0.32% CuEq, including 61.08 metres with 0.52% CuEq (including 21.34 metres of 1.05% CuEq), and 51.82 metres with 0.62% CuEq. Furthermore, drill holes H-8 and H-11 ended in Copper Mineralization and on the basis of geological characteristics, mineralization and size potential, Doubleview believes that its Hat property qualifies as a "copper-gold alkali porphyry" type deposit.
Vega's Sheslay Property as well as its Vega Star 1 & 2 properties is located in the Stikine District that includes the large Galore Creek, Schaft Creek, Red Chris and Kutcho copper deposits that collectively have 7.65M tonnes copper, 14.9M oz gold and 148.5M oz silver in measured and indicated resources. This whole area is situated in the Stikine tectonic terrane of middle Mesozoic volcaniclastic formations and related alkali intrusions that parallels and is analogous to the Quesnellia terrane that hosts the Princeton Highland Valley-Gibraltar-Kemess, et al. copper deposits.
Technical information in this news release has been prepared and/or revised by Mike Magrum, PEng, a qualified person as defined in NI 43-101.
Terms of the Agreement
Under terms of the Option Agreement, subject to TSX Venture Exchange (the "Exchange") approval, the Company has the option to earn a 100% interest in the Property by making $37,000 in cash payments to the Vendor and issuing 1,000,000 common shares as follows:
| Date |
Cash
Payment |
Share
Issuance |
| On the Effective Date |
$ |
10,000 |
Nil |
| On Exchange approval of the Option Agreement |
|
Nil |
250,000 common shares |
| On or before the date which is One Year from Exchange Approval |
$ |
12,000 |
350,000 common shares |
| On or before the date which is Two years from Exchange Approval |
$ |
15,000 |
400,000 common shares |
| Total: |
$ |
37,000 |
1,000,000 common shares |
The Vendor will retain a 2% Net Smelter Royalty (NSR) on the property upon completion of the terms of the Option Agreement, of which 1% of the NSR can be purchased for the sum of Seven Hundred Fifty Thousand Dollars ($750,000) at any time up to when a production decision is made. Finders' fees, as allowed pursuant to the policies of the TSX Venture Exchange, may be payable in connection with this acquisition.
Vega Mining Inc. (TSX VENTURE:VMI) is a Canadian junior exploration company focused on discovering gold and graphite deposits in politically safe jurisdictions.
On behalf of the board of VEGA MINING INC.
Archie Boyce, President
"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."
Cautionary note:
This report contains forward looking statements. Resource estimates, unless specifically noted, are considered speculative. Any and all other resource or reserve estimates are historical in nature, and should not be relied upon. The production rate and mine-life projections have been made without support of a feasibility study, there is no certainty the proposed operations will be economically viable. By their nature, forward looking statements involve risk and uncertainties because they relate to events and depend on factors that will or may occur in the future. Actual results may vary depending upon exploration activities, industry production, commodity demand and pricing, currency exchange rates, and, but not limited to, general economic factors. Cautionary Note to US investors: The U.S. Securities and Exchange Commission specifically prohibits the use of certain terms, such as "reserves" unless such figures are based upon actual production or formation tests and can be shown to be economically and legally producible.