ICN Signs Definitive Agreement With Lode Star Gold, Inc.
March 29 2011 - 9:15AM
Marketwired
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.
Neither TSX Venture Exchange nor the Investment Industry
Regulatory Organization of Canada accepts responsibility for the
adequacy or accuracy of this release.
Contacts: ICN Resources Ltd. Tasso Baras 1-877-738-3882 or
604-738-3882 www.icnresources.com
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