THUNDER BAY,
ON, Oct. 24, 2012 /CNW/ -
Benton Resources Inc. (TSXV: BEX) ("Benton" or the
"Company") announces that the Company has applied for regulatory
approval for a Normal Course Issuer Bid (the "Bid") to purchase,
through the facilities of the TSX Venture Exchange, up to 5,000,000
shares of its issued and outstanding common shares. The
actual number of shares that may be purchased and the timing of
such purchases will be determined by Benton and purchases pursuant to the Bid will
be conducted through BMO Nesbitt Burns. The Company currently
has approximately $12.9 million in
combined cash and investments but a market capitalization of only
$7.25 million (based on the
October 23, 2012 closing market
price). In addition to the large discount to its cash and
investments, the Company has an excellent portfolio of prospective
exploration projects.
Benton recently
announced an option agreement with Cornerstone Capital Resources
Inc (TSXV: CGP) ("Cornerstone") to acquire up to a 75% interest in
Cornerstone's Windowglass Hill (WGH) and the 51 Zone ("51")
deposits located on the west coast of Newfoundland (see Benton N.R. dated
September 20, 2012).
Benton has recently completed a
compilation of all available historical data and has identified
several high priority targets. This includes a new zone
approximately 1.2km east northeast from the WGH deposit and may
represent a possible extension of the deposit itself. From 1979 to
1986, only four historical drill holes were completed in this area
which covered a strike length of 250 metres and included intercepts
grading 1.74gpt gold over 27.4m (including 5.12gpt gold over 6.1m)
and a second zone grading 1.37gpt gold over 18.3m in hole
PB79-128. Drill hole PB79-133, located 125m along strike,
returned 1.38gpt gold over 20.7m and included 7.88gpt gold over
2.4m. The historical drill logs indicate that the gold
mineralization is associated with a granitic intrusive unit similar
to that hosting the WGH zone. The other two drill holes also had
highly anomalous gold over large widths, but only partial sampling
was completed. The Company plans to immediately re-log and
re-sample as much of the old core as possible from this area.
In addition, distinct plunges on the known mineralization at the 51
and WGH deposits may assist with drill targeting efforts in the
first diamond drill program with the objective of increasing
current resources. The Company is also planning to refurbish
the access road to the project which is scheduled to begin by the
end of the October or in early November and will provide easier and
more cost effective access for exploration. The deposits are
situated on or near the Cape Ray Fault and contiguous to
Benton's large 100% owned Cape Ray
East project.
On July 18, 2012,
Cornerstone announced the results of an initial National Instrument
43-101 ("NI 43-101") compliant mineral resource estimate for the
WGH and 51 deposits. 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
Windowglass Hill 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, plus
2,520 metres of diamond drilling in 28 holes completed by
Cornerstone between 2004 and 2006.
Mineral resources for the 51 Zone and
Windowglass Hill are reported, respectively, on the basis of
assumed underground (2.5 gpt gold cut-off) and open pit (0.5 gpt
gold cut-off) development potential.
Highlights:
- 51 Zone -- Inferred resources of 530,000 tonnes grading 6.10
gpt gold and 15.86 gpt silver containing 103,943 ounces of gold and
270,253 ounces of silver
- Windowglass Hill - Inferred resources of 1,810,000 tonnes
grading 1.77 gpt gold and 11.28 gpt silver 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 metres for
Windowglass Hill
- Opportunities exist to upgrade and expand the mineral
resources
Table 1. Summary of Mineral
Resources for the 51 Zone and Windowglass Hill, Cape Ray
Project
(Mercator, July 16, 2012). |
Deposit |
Resource
Category
(Cut-Off
Grade) |
Tonnes
(Rounded) |
Gold
Grade
(gpt) |
Silver
Grade
(gpt) |
Contained
Gold
(oz) |
Contained
Silver
(oz) |
51 Zone |
Inferred
(2.5 gpt gold) |
530,000 |
6.10 |
15.86 |
103,943 |
270,253 |
Windowglass
Hill |
Inferred
(0.5 gpt gold) |
1,810,000 |
1.77 |
11.28 |
103,001 |
656,415 |
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.
SOURCE Benton Resources Corp.