Newcastle Options West Timmins, Ontario Gold Prospect
December 22 2009 - 8:32AM
Marketwired
Newcastle Minerals Ltd. (TSX VENTURE: NCM) is pleased to announce
that it has, subject to regulatory acceptance, negotiated an option
to purchase a 100% interest in nine property patents covering
approximately 120 hectares in Carscallen Township adjacent to
Highway 101, 21 kilometres southwest of Timmins, Ontario.
The property is located in the West Timmins district, which is
the western extension of the Timmins gold camp, and is bisected by
the Bristol Fault. The Timmins gold camp has been in production
since 1909 and has produced over 70 million ounces of gold. There
are several active mines and advanced exploration and development
projects - including an estimated 40 to 50 drill projects -
currently underway in the Timmins camp.
The property is surrounded by Lake Shore Gold Corp.'s 130-square
kilometre Timmins West Gold Mine Complex, which includes its
Thunder Creek project and its Timmins Mine, with reported probable
reserves of 3.4 million tonnes bearing 7.52 grams of gold per
tonne. The property is also approximately three kilometres east of
Melkior Resources' Carscallen project which recently reported
drilling results of 60.27 grams of gold per tonne over 1.8 metres
and 19.8 grams of gold per tonne over 3.3 metres, and approximately
4.5 kilometres northeast of Nebu Resources' recently drilled West
Timmins project which reported 98.4 grams of gold per tonne over
4.7 metres, according to their respective websites. There is no
certainty that similar results will be obtained from the Company's
property.
Newcastle's President, Michael Romanik, stated, "We are
extremely pleased to have acquired a property of this strategic
nature in the middle of the emerging West Timmins Camp. Newcastle
feels that the West Timmins Camp is the most exciting and
sustainable exploration and mining camp in Canada. This
newly-acquired property is completely surrounded by Lake Shore
Gold's claims. We look forward to aggressively exploring this
property in the New Year."
To exercise its option, Newcastle must pay the optionor, Timmins
Forest Products Ltd., a total of $325,000 and issue a total of
3,750,000 shares in five stages over three years and grant the
optionor a 2% net smelter returns royalty, of which Newcastle may
repurchase half for $1,000,000. In addition, Newcastle will issue
the optionor up to an additional 900,000 shares based on future
exploration results. The optionor will retain the property's timber
rights.
The Company has also agreed to pay a finder's fee in respect of
the option to Mr. Nick Horsley and 2125930 Ontario Ltd., both of
whom deal at arm's length with the Company.
ON BEHALF OF THE BOARD
Signed "Michael Romanik"
Caution Regarding Forward-Looking Information. Certain of the
statements made and information contained herein is
"forward-looking information" within the meaning of the British
Columbia Securities Act and Alberta Securities Act. This includes
the mineral potential of the West Timmins district, which is
subject to uncertainties, including uncertainty in connection with
evaluating deposits until the deposits have been extensively
drilled on closely spaced centres. Actual results may vary
materially from those described in forward-looking statements.
Forward-looking statements contained herein also include the
Company's plans at its mineral properties, which involve known and
unknown risks, uncertainties and other factors which may cause the
actual results, performance or achievements of the Company, or
industry results, to be materially different from any future
results, performance or achievements expressed or implied by such
forward-looking information. Forward-looking information is subject
to a variety of risks and uncertainties which could cause actual
events or results to differ from those reflected in the
forward-looking information, including, without limitation, the
ability of the Company to continue to be able to access the capital
markets for the funding necessary to acquire and maintain
exploration properties and to carry out its desired exploration
programs; difficulties in executing exploration programs on the
Company's proposed schedules and within its cost estimates, whether
due to weather conditions in the areas where it operates,
increasingly stringent environmental regulations and other
permitting restrictions, or the availability of essential supplies
and services; and factors beyond the capacity of the Company to
anticipate and control, such as the marketability of minerals,
government regulations relating to health, safety and the
environment, and the scale and scope of royalties and taxes on
production. Should one or more of these risks or uncertainties
materialize, actual results may vary materially from those
described in forward-looking statements.
Accordingly, readers are advised not to place undue reliance on
forward-looking information. Except as required under applicable
securities legislation, the Company undertakes no obligation to
publicly update or revise forward-looking information, whether as a
result of new information, future events or otherwise.
Neither 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.
Contacts: Newcastle Minerals Ltd. Michael Romanik President
Direct line: (204) 724-0613
Goldon Resources Ltd. (TSXV:NCM)
Historical Stock Chart
From Jun 2024 to Jul 2024
Goldon Resources Ltd. (TSXV:NCM)
Historical Stock Chart
From Jul 2023 to Jul 2024