Razore Rock Signs Agreement With Alto Ventures to Option the Oxford Lake Gold Property
December 30 2013 - 12:31PM
Marketwired Canada
Razore Rock Resources Inc. ("Razore Rock" or the "Company") (CNSX:RZR) is
pleased to announce that it has signed an Exploration and Option Agreement (the
"Agreement") with Alto Ventures Inc. ("Alto Ventures") to earn up to 60% working
interest in the Oxford Lake Gold Property in Manitoba from Alto Ventures. Razore
Rock will issue 100,000 common shares and pay $10,000 to Alto Ventures on the
closing of the transaction, scheduled for December 31, 2013, to acquire the
option.
The Oxford Lake Gold Property (the "Property") comprises 35,296 ha in central
Manitoba, approximately 150 km southeast of Thompson. The Property includes 17
staked mining claims and 3 mineral exploration licenses (MELs). Geologically,
the Property lies in the Oxford Lake-Knee Lake greenstone belt near the west end
of the Superior Province of the Canadian Shield. The Property is host to the
historical Rusty Gold Zone as well as several other significant gold and base
metals occurrences. It lies along a major regional structural corridor that
hosts the pre-development Monument Bay Gold Deposit near its eastern end. This
corridor is relatively under-explored and could be an early stage analogue to
the large gold-producing Destor-Porcupine or Larder-Cadillac corridors in
Ontario and Quebec.
Gold mineralization in the northern half of the Oxford Lake Gold Property is
associated with a banded iron formation ("BIF"). In 2011, Geotech Ltd. flew
approximately 1,700 line kilometres of VTEM and aeromagnetic surveys for Alto
Ventures. The geophysical surveys delineated numerous targets favourable for
gold deposits associated with BIF as well as targets for massive sulphide
copper, zinc, gold, and silver deposits (see Alto Ventures' news release dated
November 16, 2011). The main gold target on the Property is a 30 km long trend
of aeromagnetic "High" anomalies along which the historical Rusty Gold Zone
(Historical Resource of 800,000 tonnes averaging 6 g/t gold) which is one of
several significant gold occurrences associated with this magnetic trend. This
aeromagnetic trend is interpreted to be a geophysical signature of the BIF that
hosts gold mineralization.
The Rusty Gold Zone hosts a Historical Resource of 800,000 tonnes at an average
grade of 6 g/t and contains approximately 154,000 ounces of gold. It is open
along strike and to depth and is consistent in width (average 4.5 metres).
Although the Historical Resource is viewed as reliable and relevant based on the
information and methods used at the time they do not satisfy the requirements
set out by NI 43-101. Neither Razore Rock nor its Qualified Persons have done
sufficient work to classify the historical estimate as a current mineral
resource and are not treating the historical estimate as current mineral
resource. The Historical Resource should not be relied upon.
Other occurrences along the trend of aeromagnetic Highs include the East Rusty
Zone and the Blue Jay area. Historical drill intercepts at the East Rusty Zone
include 4.6 g/t gold over 3.7 m. The Blue Jay area is located two kilometres
east of the Rusty Gold Zone and historical drilling at Blue Jay intersected up
to 10 g/t gold over 2.0 m. Gold in both the East Rusty Zone and Blue Jay area is
associated with a BIF delineated by the aeromagnetic survey.
Mineralization at the Rusty Gold Zone, East Rusty Zone and Blue Jay area remains
open along strike and to depth. The target model for this style of
mineralization is the Musselwhite Mine in Ontario, located in the west Superior
geological province of the Canadian Shield. The Musselwhite Mine has reported
past production and reserves of over 5.7 million ounces of gold.
In 2012, Alto Ventures completed 1,029 metres of diamond drilling on six holes
and reported in its press release dated May 8, 2012 the following:
"Drill hole RUS12-03 intersected two zones of high-grade gold mineralization:
- Zone One - 2.7 m averaging 6.7 g/t gold including 22.5 g/t gold over 0.5 m
- Zone Two - 6.8 m averaging 5.7 g/t gold including 11.7 g/t gold over 1.6 m
and 16.5 g/t gold over 1.0 m.
"Drill hole RUS12-03 was drilled 2.2 km east along strike from the Rusty Zone to
test the historical Blue Jay Zone. This hole intersected better gold values than
the historical drilling (up to 10 g/t over 2.0m) and encountered multiple zones
of gold mineralization (Table 1). The mineralization is open at depth and
potential for further deposits occurs along a 30 km trend of aeromagnetic
"Highs" that are under-explored on Alto's 30,000 hectare property.
"Drill holes RUS12-01 and 02 were drilled at shallow depths to confirm the
ground location of the historical Rusty Gold Zone (Historical Resources of
800,000 tonnes averaging 6 g/t gold to a depth of 600 metres) and to obtain
samples of the mineralization as cores from the 1980's drilling are not readily
available. The two holes were spaced 200 m apart on strike and each intersected
the mineralized zones at their predicted locations (Table 1).
"Results from drilling at Oxford Lake are most encouraging confirming gold
mineralization for over 2 km along strike and the potential for high gold grades
along this trend. The Rusty trend was traced by Alto's 2011 VTEM and
aeromagnetic surveys for 30 km along strike but only a few holes were drilled in
the past along this trend.
"Table-1- Significant Gold Assays from the 2012 Drilling at Oxford Lake,
Manitoba
----------------------------------------------------------------------------
Hole Number From (m) To (m) Width (m) Au (g/t)
(ii)downhole
----------------------------------------------------------------------------
RUS12-01 108.5 114.0 5.5 1.22
includes 109.35 110.0 1.65 2.8
147.3 147.75 0.45 2.22
----------------------------------------------------------------------------
RUS12-02 119.2 120.7 1.5 0.97
133.0 134.0 1.0 1.02
144.2 149.2 5.0 0.45
----------------------------------------------------------------------------
RUS12-03 63.0 65.0 2.0 0.50
102.2 109.35 7.15 0.83
134.8 137.5 2.7 6.7
includes 136.5 137.0 0.5 22.5
198.65 205.45 6.8 5.7
includes 200.6 202.2 1.6 11.7
and 203.0 204.0 1.0 16.5
220.35 229.35 9.0 0.88
includes 227.5 228.5 1.0 3.7
----------------------------------------------------------------------------
OMA12-03 66.5 67.65 1.15 1.75
----------------------------------------------------------------------------
"(ii)The widths reported are down-hole lengths as there is insufficient drilling
density to determine the true widths. Mineralized zones generally start at 0.1
g/t gold and assay averages may include minimal intervals of waste material. No
top cuts of assays were used.
"Drill Holes OMA12-01 to 03 tested airborne electromagnetic (VTEM) conductors
associated with aeromagnetic "Highs" at the south end of the property. These
conductors occur in a separate, east trending band that is located approximately
three kilometres to the south of the Rusty Gold Zone. Each of the drill holes
intersected iron formation and sulphides and drill hole OMA12-03 returned
anomalous gold of 1.75 g/t gold over 1.15m. Results from the OMA holes indicate
that this second trend also has potential to host significant gold
mineralization."
Razore Rock can earn a 51% working interest in the Property by issuing a further
500,000 common shares, paying a further $50,000 in cash option payments and
incurring $2,100,000 in expenditures on the Property by December 30, 2016 as set
out below. Razore Rock has until March 15, 2014 to commit to expend a minimum of
$60,000 on or before June 1, 2014 to keep part of the Property in good standing
(the MELs) and to spend an aggregate of $100,000 in exploration on the Property
on or before December 30, 2014 when 200,000 common shares are issuable and
$20,000 is payable to Alto Ventures. Razore Rock will then be required to expend
$1,000,000 in exploration of the Property on or before June 30, 2015. A further
$30,000 option payment and 300,000 common shares are issuable on or before
December 31, 2015 and Razore Rock will be required to spend a further $1,000,000
on expenditures on the Property on or before December 31, 2016.
Once Razore Rock has earned its 51% working interest, it has the option for
ninety (90) days to elect to either earn a further 9% working interest by paying
$40,000 and issuing 400,000 common shares to Alto Ventures and expending a
further $1,000,000 on the Property on or before December 31, 2017 after which
the parties will enter into a joint venture pursuant to which Razore Rock will
have a 60% participating interest and Alto Ventures will have a 40%
participating interest in the Property. If Razore Rock elects not to earn the
additional 9% working interest, the parties will enter into a joint venture
immediately with Razore Rock holding a 51% participating interest and Alto
Ventures holding a 49% participating interest in the Property.
Sixteen of the staked claims are subject to a 2.5% Net Smelter Returns Royalty
and a 7.5% Net Profits Interest Royalty. The remaining staked claim is subject
to a 2.5% Net Smelter Returns Royalty with a right to buy back a 1% Net Smelter
Returns Royalty for $1,000,000.
Further particulars of the Property and the proposed exploration program to be
undertaken will be provided in the New Year.
This new release has been reviewed and approved for technical content by Marian
(Mike) Koziol, P.Geo., President of Alto Ventures, a qualified person under the
provisions of National Instrument 43-101.
Forward-Looking Statement:
Some of the statements contained herein may be forward-looking statements which
involve known and unknown risks and uncertainties. Without limitation,
statements regarding potential mineralization and resources, exploration
results, and future plans and objectives of the Company are forward-looking
statements that involve various risks. The following are important factors that
could cause the Company's actual results to differ materially from those
expressed or implied by such forward-looking statements: changes in the world
wide price of mineral commodities, general market conditions, risks inherent in
mineral exploration, risks associated with development, construction and mining
operations, the uncertainty of future profitability and the uncertainty of
access to additional capital. There can be no assurance that forward-looking
statements will prove to be accurate as actual results and future events may
differ materially from those anticipated in such statements. Razore Rock
undertakes no obligation to update such forward-looking statements if
circumstances or management's estimates or opinions should change. The reader is
cautioned not to place undue reliance on such forward-looking statements.
FOR FURTHER INFORMATION PLEASE CONTACT:
Razore Rock Resources Inc.
Mr. William R. Johnstone
Corporate Secretary and a director of the Company
(416) 865-6605
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