Cavan Ventures Inc. Announces Crown King Silver Option of Arizona With Q-Gold Resources Ltd.
May 05 2011 - 4:07PM
Marketwired
Cavan Ventures Inc. (TSX VENTURE: CVN)
(http://www.cavanventures.com) (the "Company") is pleased to
announce it has entered into a Mining Option Agreement with Q-Gold
Resources Ltd. (TSX VENTURE: QGR) ("Q-Gold")
(http://www.qgoldresources.com) whereby Cavan has obtained an
18-month option to earn a 65% participating interest in a
prospective Arizona silver joint venture with Q-Gold.
The joint venture will contain Q-Gold's holdings of 3 patented
historic silver mines and 22 adjoining U.S. Bureau of Land
Management ("BLM") mining claims in the Peck Mining District of
Yavapai County, Arizona, totalling 484 acres. The Peck District is
famous for its historic high-grade silver production, having
produced an "official" 1,374,000 ounces from 1875 to 1910.
Q-Gold's holdings include the historic "Black Warrior", "Isis"
and a portion of the "Silver Prince" silver mines, all of which
produced high-grade silver ores during the above period, using
primitive mining methods.
As Arizona only became a state in 1912, production records are
scarce and difficult to obtain. High-grade ore, occurring in ore
shoots, went directly to the smelter, with "milling grade" ore
production assaying at 12-16 ounces of silver per ton being crushed
and concentrated on site. The mines were closed early in the 20th
Century due to the "Silver Price Depression" and the advent of
World War I and have never been re-opened.
By meeting its obligations in U.S. Dollars during the 18-month
Option Period, including cash payments to Q-Gold of $275,000, work
expenditures of $1,000,000 and issuance of Cavan shares to Q-Gold
worth $300,000, Cavan will earn a 65% participating interest in the
Joint Venture. During the Option Period, Q-Gold will be Operator
for the undertaking.
The known silver mineralization in the Black Warrior and Silver
Prince Mines occurs in "saddle reef" or lenticular deposits in host
granites and schists, along vein structures from 50 to 250 feet in
width and from 2 to 18 feet in thickness. These occur at depths
between 200 and 400 feet. On the property are 5 veins, only two of
which have been worked to any extent. Two adits and one shaft were
entered and inspected by Q-Gold's geologist, and all contained
silver and antimony mineralization. The deposits contain the
important silver ore minerals, argentite and pyrargyrite, as well
as argentiferous galena and antimonial silver minerals, the latter
in their deeper portions. The secondarily leached silver minerals
miargyrite, iodargyrite and bromargyrite, were also encountered in
the adits.
As noted above, the area contains 3 high grade historic silver
mines and a number of BLM claims highly prospective for silver, yet
it has never experienced modern mining exploration techniques.
Therefore, the venture will initially launch a helicopter-based
VTEM / Magnetic airborne geophysical survey which will attempt to
delineate anomalies which will indicate potential remaining ore
bodies and possible drilling sites within the complex.
Mr. Andrew Mah remarked, "With silver prices at recent record
highs, I look forward to initiating modern joint exploration
activities this summer with Q-Gold in the historic silver-producing
Peck Mining District of Arizona."
The historical references contained in this release have not
been verified by a qualified person under NI 43-101 and therefore
cannot be relied on for any purpose. Brian A. Beck, PG a qualified
person under NI 43-101 has reviewed and approved the technical
content of this release.
The Option Agreement is subject to the approval of the
TSX-Venture Exchange.
On behalf of the Board of Directors:
Andrew Mah, President & Director
Patrick Brandreth, Director, Corporate communication
This news release contains certain forward-looking statements
that reflect the current views and/or expectations of Cavan with
respect to its performance, business and future events. Such
statements are subject to a number of risks, uncertainties and
assumptions. Actual results and events may vary significantly.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
Contacts: Cavan Ventures Inc. Andrew Mah President &
Director (604)763 7748 (cell) or (604)288 2756
andrew.mah@cavanventures.com Cavan Ventures Inc. Patrick Brandreth
Director, Corporate Communication (604)809 3527
patrick@cavanventures.com www.cavanventures.com