ICN Icn Resources Ltd.

ICN Resources Ltd. ("ICN" or the "Company") (TSX VENTURE:ICN) is pleased to
announce the signing of the Definitive Agreement between ICN and Lode Star Gold,
Inc. ("LSG") for the Goldfield Bonanza Project. A binding Letter of Intent was
signed and announced in December 2010 (see ICN News Release of December 16,
2010). Final execution of the full and more detailed agreement was subject to
certain due diligence conditions which have now been met and satisfied. 


Carl Hering, President and CEO of ICN stated that, "This is a great project for
ICN, and the arrangement with Lode Star Gold is structured in such a way as to
be mutually beneficial to both parties as the project advances. We are certainly
thrilled to have LSG as a future partner and believe that this high quality,
potentially very high grade gold project is a significant addition to ICN's
portfolio of volcanic hosted exploration properties in Nevada. Having now
completed our due diligence and finalized the Definitive Agreement, ICN has
initiated a significant drill program on the Property."


The Property consists of 31 patented and one unpatented mill site claim,
(approximately 450 acres), and forms the Goldfield Bonanza Project, located in
the historic mining district of Goldfield Nevada. The Goldfield District was
discovered in 1903 and has produced intermittently since that time, with the
last recorded production coming from open pit operations conducted during the
1980's. According to Nevada Bureau of Mines and Geology Bulletin 78 (1972), the
Goldfield District has recorded production in excess of 4.1 million ounces of
gold from high grade quartz-alunite ledges, with some historic stopes grading in
excess of 1 oz/ton Au (greater than 34 g/tonne). Bulletin 78 also noted that the
average grade of recorded gold production from 1903 to 1940 was in excess of 0.5
oz/ton Au (greater than 17 g/tonne). 


The District is a classic, epithermal, high sulfidation gold system, hosted by
volcanic rocks of Tertiary age. A large portion of the GF Bonanza Property is
covered by a thin veneer (less than  130 feet or less than  40 metres) of post
mineral sediments, and consequently offers untested exploration targets not
located by historic prospecting and mining. During the past ten years, Lode Star
has completed over 35,000 feet (10,750 m) of reverse circulation and core
drilling, from both surface and underground. They have encountered intercepts of
multiple ounces per ton in some of their drilling, but have only tested less
than 1,000 feet (300 m) of the main structural zone. The preliminary CSAMT data
indicates a potential strike length in excess of 5,000 feet (1500 m) along this
principle structural zone. 


ICN's year one work commitment is a minimum of US$1 million dollars. Initially,
ICN has completed a CSAMT (Controlled Source Audio-frequency Magnetotelluric)
geophysical survey over the entire property, as this specific geophysical
technique has been shown to clearly identify and outline the main structural
trend. Drill testing of new exploration targets will follow the initial core
drilling program now underway. This core program is designed to verify historic
drill results from previous operators. ICN plans to mobilize an RC (Reverse
Circulation) drill rig to the property within the next 6 weeks to augment the
initial core drilling program. 


Upon the signing of the Definitive Agreement, and approval thereof from the TSX
Venture Exchange, ICN will pay Lode Star US$50,000 and issue Lode Star 500,000
units (each unit consisting of one ICN common share and one full share purchase
warrant with each warrant entitling the holder to purchase one additional common
share of ICN for a period of two years at an exercise price equal to 110% of the
average closing market price of ICN's common shares over a five consecutive day
period immediately prior to the date of share issuance). To earn their 80%
interest in the Property, ICN would be required to pay to LSG a total of US$3
million in cash, issue 3 million units and complete US$5 million of exploration
work over a four (4) year option period. If ICN completes all requirements of
the Option to vest at 80% in the Property, a standard mining joint venture would
be formed with ICN as operator in the 80/20 JV. 


Mark Walmesley, Director of Operations for LSG states, "With the mutual respect
garnered from working with Carl on this Definitive Agreement, ICN and Lode Star
Gold are a great combination. The approach to develop the property is sound and
on track. With the geophysics concluded and drilling underway we are both
eagerly awaiting initial results." 


Lonnie Humphries, owner and President of LSG states, "Lode Star is excited to
see this project moving forward towards its true potential. ICN is coming in
with a solid understanding of the district and a fitting exploration approach. I
am confident that this alliance and our good working relationship will produce
very favorable results."


The closing of the Definitive Agreement is subject to the approval of the TSX
Venture Exchange. Tom Temkin, a Qualified Person as defined by National
Instrument 43-101 - Standards of Disclosure for Mineral Projects, has reviewed
and approved the technical content of this news release.


About ICN Resources

ICN is primarily focused on exploration for volcanic-hosted precious metal
deposits in western Nevada, emphasizing targets with geological similarities to
Sleeper, Sandman, Hollister, Midas and Aurora in Nevada. ICN plans to explore
for high-grade feeder zones associated with large low-grade gold and silver
systems, as well as high grade deposits at the our new Goldfield Bonanza
Project, primarily in western Nevada. ICN is also evaluating other opportunities
in established metallogenic belts elsewhere in the United States. The ICN
management and geologic team have extensive experience in Nevada and will
utilize this experience to generate prime opportunities for ICN shareholders.


On Behalf of the Board of Directors of ICN Resources Ltd.,

Carl Hering, President & CEO

ICN Resources Ltd.

The forward-looking information contained in this press release is made as of
the date of this press release and, except as required by applicable law, ICN
does not undertake any obligation to update publicly or to revise any of the
included forward-looking information, whether as a result of new information,
future events or otherwise. By its very nature, such forward-looking information
requires ICN to make assumptions that may not materialize or that may not be
accurate. This forward-looking information is subject to known and unknown risks
and uncertainties and other factors, which may cause actual results, levels of
activity and achievements to differ materially from those expressed or implied
by such information.

Icn Resources Ltd. (TSXV:ICN)
Historical Stock Chart
From Aug 2024 to Sep 2024

Icn Resources Ltd. (TSXV:ICN)
Historical Stock Chart
From Sep 2023 to Sep 2024