Benton Resources Signs Letter of Intent to Acquire up to 75% Interest in Cape Ray Gold Deposits and Provides Update
September 20 2012 - 9:00AM
PR Newswire (Canada)
THUNDER BAY, ON, Sept. 20, 2012 /CNW/ - Benton Resources Inc.
("Benton" or the "Company") is pleased to announce that the
Company, subject to TSX-V approval, has signed a binding Letter of
Intent ("LOI") with Cornerstone Capital Resources Inc.
("Cornerstone") to acquire up to a 75% interest in Cornerstone's
Windowglass Hill ("WGH") and the 51 Zone deposit (collectively the
"Property"), located approximately 25 km northeast of the town of
Port aux Basques in southwestern Newfoundland. The Property
consists of a single 183-claim mineral license which covers an area
of 4,575 ha including a 22 km-long strike length of the Cape Ray
Fault Zone, a significant gold-bearing structure, which in addition
to the WGH and 51 Zones, is associated with Tenacity Holdings
Inc.'s 04 and 41 deposits and Marathon Gold's Leprechaun Deposit,
which recently announced a 43-101 resource including of 424,000
ounces Au (M&I) and 305,000 ounces Au (Inferred). Cornerstone
recently announced the results of an initial National Instrument
43-101 compliant mineral resource estimate for the WGH and 51 Zone
deposits (see Cornerstone PR dated July 18, 2012). The
mineral resource estimate was prepared by Mercator Geological
Services Limited of Dartmouth, Nova Scotia and was completed on the
two separate mineralized zones. The estimate is based on
three-dimensional block models developed for the 51 Zone and WGH
using Gemcom Surpac(r) 6.1.4 modeling software and the validated
results of 26,480 metres of historical diamond drilling from 197
drill holes completed between 1977 and 1996, with an additional
2,520 metres of diamond drilling in 28 holes completed by
Cornerstone between 2004 and 2006. Mineral resources for the
51 Zone and WGH are reported, respectively, on the basis of an
assumed underground (2.5 grams per tonne ("g/t") gold ("Au")
cut-off) and open pit (0.5 g/t gold cut-off) development potential.
Highlights: -- 51 Zone -- Inferred resources of 530,000 tonnes
grading 6.10 g/t Au and 15.86 g/t Ag containing 103,943 ounces of
gold and 270,253 ounces of silver -- Windowglass Hill - Inferred
resources of 1,810,000 tonnes grading 1.77 g/t Au and 11.28 g/t Ag
containing 103,001 ounces of gold and 656,415 ounces of silver --
Mineralization is relatively shallow at a maximum of 270 metres
vertically below surface for the 51 Zone and 140 m for Windowglass
Hill -- Opportunities exist to upgrade and expand the mineral
resources Summary of Mineral Resources for the 51 Zone and
Windowglass Hill, Cape Ray Project (Mercator, July 16, 2012).
_____________________________________________________________________
| | Resource | | | | | | | | Category | |Gold |Silver| | | | |
(Cut-off | Tonnes |Grade|Grade |Contained| Contained | | Deposit |
Grade) |(Rounded)|(g/t)|(g/t) |Gold (oz)|Silver (oz)|
|___________|____________|_________|_____|______|_________|___________|
| | Inferred | | | | | | | 51 Zone |(2.5 g/t Au)| 530,000 | 6.1
|15.86 | 103,943 | 270,253 |
|___________|____________|_________|_____|______|_________|___________|
|Windowglass| Inferred | | | | | | | Hill |(0.5 g/t
Au)|1,810,000|1.77 |11.28 | 103,001 | 656,415 |
|___________|____________|_________|_____|______|_________|___________|
To earn the initial 70% interest in the Property, the Company must
make the following cash and share payments, and complete the
following exploration expenditures:
___________________________________________________________________
| | Cash |Shares |Work Commitment|
|__________________________________|________|_______|_______________|
|On signing |$20,000 |25,000 | -- |
|__________________________________|________|_______|_______________|
|On or before 1st Anniversary (Year| | | | |1) |$25,000 |30,000 |
$250,000 |
|__________________________________|________|_______|_______________|
|On or before 2nd Anniversary (Year| | | | |2) |$30,000 |40,000 |
$400,000 |
|__________________________________|________|_______|_______________|
|On or before 3rd Anniversary (Year| | | | |3) |$50,000 |60,000 |
$600,000 |
|__________________________________|________|_______|_______________|
|On or before 4th Anniversary (Year| | | | |4) | -- | -- | $750,000
|
|__________________________________|________|_______|_______________|
|TOTAL |$125,000|155,000| $2,000,000 |
|__________________________________|________|_______|_______________|
Benton can earn an additional 5% (taking their interest to 75%) by
incurring an additional $1 million in exploration expenditures at
its sole election but such election must be made within a period
that is 18 months from the date that the Company's interest vests
at 70%. Stephen Stares, Company President and CEO commented "After
reviewing the data on the WGH and 51 Zone deposits, we feel there
is potential to expand the current resources and potentially
discover additional economic zones within Cornerstone's claim
group. With companies such as Marathon Gold working along the
trend and consistently discovering new mineralization, we feel that
Benton's Cape Ray project has the size and geology to potentially
host economic resources on trend with the known deposits in the
area. Benton is well funded with approximately $14 million in
combined cash and equity positions but with a market cap of only $7
- $8 million, there is excellent upside potential for shareholders
as we advance these deposits and search for new discoveries in this
well mineralized trend". Results from recently completed
prospecting activities by Benton personnel on the Company's 100%
owned Cape Ray East Property to the northeast of the adjoining
Cornerstone property, have identified abundant mineralized quartz
vein material containing trace to several percent sulphides and
assaying from 5 ppb Au up to 191.2 g/t Au and 888.0 g/t Ag in large
angular float samples. In addition, Benton currently has multiple
exploration programs underway and provides the following update.
The Company has now completed approximately 2900 meters of diamond
drilling on the Elizabeth Anne project in San Bernardino County,
California and expects assay results in the near future which will
be released as soon as they are received and compiled. In
addition, Company personnel have completed a soil geochemical
survey and prospecting at Benton's 100% owned Saganaga gold project
located approximately 120 km west of Thunder Bay, Ontario with work
ongoing to evaluate several well defined gold soil anomalies.
Finally, a trenching and channel sampling program will commence
immediately at the Turtlepond gold project located 23 km southeast
of Dryden, Ontario. Soil geochemistry and prospecting has
provided Benton with 4 gold targets (ranging from trace to 161g/t
gold) over nearly 4km. The Company would also like to announce that
it has disposed of its 782,500 shares of Marathon Gold Corporation
for $0.85 per share for gross proceeds of $665,125. The
Company felt that the timing, price and availability of an
opportunity to sell the entire block of shares was
beneficial. The proceeds will be used to further explore the
Company's projects, particularly on the Cape Ray trend. In addition
the Company has granted First Canadian Capital ("FCC") 200,000
options exercisable at $0.15 for two years for investor relations
and consulting services that FCC will provide to the Company.
Clinton Barr (P.Geo.), V.P. Exploration for Benton Resources Inc.,
is the qualified person responsible for this release. On behalf of
the Board of Directors of Benton Resources Inc., "Stephen Stares"
Stephen Stares, President THE TSX VENTURE EXCHANGE HAS NOT REVIEWED
AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF
THIS RELEASE. The information contained herein contains
"forward-looking statements" within the meaning of applicable
securities legislation. Forward-looking statements relate to
information that is based on assumptions of management, forecasts
of future results, and estimates of amounts not yet determinable.
Any statements that express predictions, expectations, beliefs,
plans, projections, objectives, assumptions or future events or
performance are not statements of historical fact and may be
"forward-looking statements." Forward-looking statements are
subject to a variety of risks and uncertainties which could cause
actual events or results to differ from those reflected in the
forward-looking statements, including, without limitation: risks
related to failure to obtain adequate financing on a timely basis
and on acceptable terms; risks related to the outcome of legal
proceedings; political and regulatory risks associated with mining
and exploration; risks related to the maintenance of stock exchange
listings; risks related to environmental regulation and liability;
the potential for delays in exploration or development activities
or the completion of feasibility studies; the uncertainty of
profitability; risks and uncertainties relating to the
interpretation of drill results, the geology, grade and continuity
of mineral deposits; risks related to the inherent uncertainty of
production and cost estimates and the potential for unexpected
costs and expenses; results of prefeasibility and feasibility
studies, and the possibility that future exploration, development
or mining results will not be consistent with the Company's
expectations; risks related to gold price and other commodity price
fluctuations; and other risks and uncertainties related to the
Company's prospects, properties and business detailed elsewhere in
the Company's disclosure record. Should one or more of these risks
and uncertainties materialize, or should underlying assumptions
prove incorrect, actual results may vary materially from those
described in forward-looking statements. Investors are cautioned
against attributing undue certainty to forward-looking
statements. These forward looking statements are made as of
the date hereof and the Company does not assume any obligation to
update or revise them to reflect new events or circumstances.
Actual events or results could differ materially from the Company's
expectations or projections Benton Resources Corp. CONTACT: contact
Stephen Stares @:3250 Highway 130,Rosslyn, ON P7K 0B1Phone
(807)475-7474Fax (807)475-7200www.bentonresources.caInvestor
RelationsClair Calvert: @ 204-219-4546
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