KAT Exploration Inc. Announces Option Agreement to Purchase 100% of the "Cabot" Copper/Gold Properties
July 19 2010 - 09:54AM
Marketwired
KAT Exploration Inc. (PINKSHEETS: KATX) www.katexploration.com
KAT Exploration Inc. is pleased to announce that it has
completed the signing of an option agreement with PNL Ventures Ltd, and Weyburn
Investments Limited, for the Cabot properties, consisting of
138 claims in five separate licenses, located on the Baie Verte peninsula, Newfoundland.
KAT has agreed to acquire a 100 percent interest in the Cabot
properties over a five-year period in consideration of total cash
payments of $560,000, which includes a payment of $40,000 on
signing and the remaining $520,000 over the remainder of the
agreement. The agreement also includes a stock issuance of
3,000,000 shares, with 150,000 shares to be issued upon signing and
the remaining 2,850,000 over the remainder of the agreement.
KAT also agrees to allocate minimum expenditure of $1.2 million
over the five year term of the agreement and complete a National
Instrument 43-101 on the Cabot properties.
If upon completion of a feasibility study of the Cabot
Properties, KAT will pay a further four million shares, whereby it
will then have earned 100% of the five licenses which make up the
Cabot properties.
PNL Ventures Ltd, and Weyburn Investments Limited, will also
retain a 2.5% NSR in which KAT Exploration has the right to
purchase 1.5% of the 2.5% NSR for a total amount of $3.5
million.
Kat Exploration will be the operator of the project during the
option period.
The Cabot properties are located on the Baie Verte Peninsula
which is one of Newfoundland's most historic and prolific mining
districts. Down through the years the Baie Verte peninsula alone
has be host to numerous Copper, Gold and Massive Sulfide deposits.
The "Tilt Cove" mine, the "Rambler" mine and the "Bretts Cove" mine
to name just a few were all massive sulfide deposits. The "Deer
Cove" mine, the "Nugget Pond" mine and the still operating "Pine
Cove" mine were/are gold deposits.
The "Cabot Property," with its significant new
Copper/Cobalt/Gold discoveries, is a prime example that tremendous
potential still remains for new discoveries in this prolific mining
region.
The Cabot zone consists of a discrete, intensely chloritized and
moderately sericitized zone hosting an estimated 10-25%
stringer/stockwork sulfides. The zone is interpreted to represent a
feeder stockwork pipe commonly associated with volcanogenic massive
sulfide deposits. The Cabot Zone had been tested with several past
drill holes averaging 0.39% Cu over 21.6 meters with internal
intervals grading up to 0.90% Cu over 5.78 meters. The best grade
intersections over an appreciable width encountered 1.90% Copper
over 2.78 meters and 1.33% copper over 3.66 meters
respectively.
One mineralized zone exposed on surface, varies between 25-30
meters wide and a strike length of 700 meters. A rough calculation
has indicated 18 to 20 million tons of low grade copper ore, with
cobalt as a complementary mineral, together averaging approximately
½%. There are large areas of the properties unexplored with no
drill testing that has the potential to increase the volume of ore
significantly.
Ken Stead, President/CEO, states, "We have been in negotiations
for the past several months in trying to acquire this property and
very excited we've closed the deal. However, while we are excited
about the Copper/Cobalt content, it's the Gold potential that is
most attractive. One drill hole intersected 40 meters of anomalous
gold along with one meter averaging 10 grams per ton. A number of
recently discovered quartz veins have produced results of 10 grams
of gold per ton with the highest reaching as high as 12 oz/ton.
These are the kind of properties KAT Exploration is looking for as
it continues to move forward and bring real value to its
shareholders. KAT Exploration will continue to have interest in
obtaining gold, copper, silver and other minerals that would prove
to be substantial assets for the company. Multi-mineral ore
deposits are where our focus has always been and will remain."
Over the next day or so, a full write-up and photos of the Cabot
properties will be uploaded to the KAT Exploration website for
investor viewing.
This press release contains forward-looking information within
the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934 and is subject
to the Safe Harbor created by those sections. This material
contains statements about expected future events and/or financial
results that are forward-looking in nature and subject to risks and
uncertainties. Such forward-looking statements by definition
involve risks, uncertainties and other factors, which may cause the
actual results, performance or achievements of Kat Exploration to
be materially different from the statements made herein.
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Jack Zwicker KAT Exploration, Inc. Investor Relations Ph
902-497-3188 jzwicker@katexploration.com www.katexploration.com
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