Unity Acquires Gold Project in La Ronge Gold Belt
May 26 2011 - 10:08AM
Marketwired
Unity Energy Corp. (TSX VENTURE: UTY)(FRANKFURT: UJN) (the
"Company") is pleased to announce that it has entered into an
acquisition agreement with an arms'-length vendor to earn a 100%
interest in the Dickens Lake Property, located in the LaRonge Gold
Belt, northern Saskatchewan. The Project consists of four adjoining
mineral dispositions and covers an area of over 6000ha in a region
that has produced over 600,000 ounces of gold. Unity can earn a
100% interest in the Dickens Lake Project by paying the vendor
$30,000 and issuing 2,000,000 common shares. A 2% NSR has been
granted to the vendor, of which 1.5% can be purchased for
$1,500,000. No new insiders or control persons will be created
through this acquisition. This transaction is subject to TSX
Venture Exchange Approval.
More than one hundred gold showings and four past producers are
documented in the La Ronge Gold Belt and over $70 million has been
spent on gold exploration and development since 1980. Companies
involved in exploration in this productive belt included Placer
Dome, Cameco, Shore Gold and Cominco. At present, the most active
company in the LaRonge Gold Belt is Golden Band Resources, which
recently commenced commercial gold production, controls 12 known
deposits, 4 former mines and over 290 square miles of project land.
In a news release dated April 20, 2011, Golden Band reported that,
"Its Jolu gold mill (400 tpd) processed a total of 9,912 dry tonnes
of high-grade ore from the Roy Lloyd mine during March, producing
3,349 troy ounces (107.7 Kg) of gold, with a recovered grade of
10.25 g/t Au. Total gold production to April 18th is 6,586 troy
ounces (211.7 Kg), and the Company is on track to achieve its
target of 45,000 troy ounces of gold for the first year of
commercial production."
The Dickens Lake Project has been the subject of several
exploration programs, which have resulted in the identification of
a host of occurrences and showings, including the Yates Au, Texas
Grid Au, Slaney Lake, Teacher's Point Au, V.G. Au, Sulphide Island
Au, Perepelitz Cu-Au, Sample MM-10-10-3, Cockwill Lake Cu, and the
GB Gold. Unity included Dickens Lake in its VTEM survey and expects
to have preliminary results this spring.
The Greywake (51% Masuparia/49% Golden Band) and Bingo (Golden
Band) are the nearest deposits to the Dickens Lake Project. The
Greywake Deposit lies 2.5km to the east and Masuparia Gold
Corporation reports, "Wardrop Engineering (2008) has completed an
independent, NI 43-101 compliant resource estimation of the North
Zone which gives an indicated resource of 184,000 tonnes grading
8.4 grams per tonne gold (est. 49,700 Troy ounces) plus an inferred
resource of 58,000 tonnes at 7.29 grams per tonne gold (est. 13,600
Troy ounces) at a cut-off of 5 grams per tonne gold." The Bingo
Deposit lies 10.5km to the southwest and in a 2006 NI43-101 report,
Ronal G. Simpson P.Geo estimated the Bingo Deposit to "contain an
Indicated Mineral Resource of 22,900 tonnes grading 13.8 g/t gold
at a cut-off of 5 g/t gold over a minimum width of 1.3 metres. An
additional 136,500 tonnes averaging 12.74 g/t gold is classified as
inferred."
The Dickens Lake Project area lies within the
northeasterly-trending, early to mid-Proterozoic, island
arcderived, volcanosedimentary-plutonic belt, referred to as the La
Ronge Domain. The La Ronge Domain is comprised dominantly of the
150 km long by 10 - 20 km wide Central Metavolcanic Belt (in which
the majority of the projects are located). The boundaries between
the Central Metavolcanic Belt and the flanking metasedimentary
belts are generally characterized by a prominent zone of shearing.
The volcanosedimentary succession is intruded by a variety of
ultramafic to felsic plutons. The majority of the gold occurrences
and those deposits which have been exploited are classed as shear
zone-hosted quartz vein lode deposits, and they are located in
areas with significant rock competence differentiations, as in the
vicinity of pluton-volcanic contacts, at the contact of different
phases within plutons, or between mafic and felsic flows. These
structurally-controlled deposits can be further sub-divided into
"felsicintrusion-hosted" (eg: Star Lake Type) and "volcanic-hosted"
(eg: Bousquet Type and Memorial Occurrence).
Anita Algie, President, commented: "We are very pleased to make
this strategic acquisition in the Saskatchewan gold space. With
Golden Band's recent production success and the robust nature of
the gold market, the Dickens Lake Project offers Unity an
irresistible opportunity. In the coming months, Unity will be
reviewing corporate strategies that could allow further expansion
in gold in order to create value for its loyal shareholders."
On Behalf of the Board of Directors of Unity Energy Corp.
Anita Algie, B.Sc. Hon, President
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: Unity Energy Corp. Anita Algie, B.Sc. Hon President
604-681-0004 www.unityenergycorp.com
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