Duncastle to Acquire PGM-Ni-Cu Properties in Southwestern Yukon
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Jun 23, 2014) -
Duncastle Gold Corp. ("Duncastle" or the "Company")
(TSX-VENTURE:DUN) (FRANKFURT:5D3) has signed a binding Letter of
Intent (the "LOI") with Ashburton Ventures Inc. ("Ashburton")
(ABR.TSX.V) and Denali Resources Ltd. ("Denali") to acquire a 100%
interest in three PGM-Ni-Cu mineral properties located in the
southwestern Yukon. The Spy, Ultra and Catalyst/CKR properties
total over 262 square kilometers in the Kluane Ultramafic Belt, a
600km-long sequence of igneous and sedimentary rocks extending from
northern British Columbia through the Yukon and into Alaska. Within
the belt, mineralization occurs at the contact between ultramafic
and sedimentary rocks, with the most notable being the Wellgreen
deposit. Wellgreen Platinum Ltd. is currently completing a
prefeasibility study at the Wellgreen deposit and has previously
reported an Indicated Resource of 14.4 Mt at 0.68% Ni, 0.62% Cu,
with 2.23 g/t Pt+Pd+Au grade, and an Inferred Resource of 446.6 Mt
at 0.31% Ni, 0.25% Cu, with 0.87 g/t Pt+Pd+Au grade at a 0.22% NiEq
cut-off (see Wellgreen Platinum Ltd. news release, June 18,
2012).
Duncastle President Michael Rowley comments: "We are very
pleased to be in a position to acquire such excellent properties in
an emerging district for platinum group elements plus nickel and
copper at a time when forecasts for these metals - in particular
platinum, palladium and nickel - are very positive. The properties
have substantial exploration potential based on their size and
location in the Kluane belt and, in the case of Catalyst/CKR, their
position directly adjacent to the Wellgreen Project. Additionally,
we are expanding the Board of Directors to include professionals
with experience in these metals as well as in exploration in the
Yukon. In addition, with all three properties less than 20
kilometers from the Alaska Highway, we have a logistical advantage
which we will benefit from as we advance them through well-planned
exploration programs."
Project
Summary
The Catalyst/CKR Project covers 16,310 hectares that are
positioned northwest and southeast of the Wellgreen deposit. On the
northwest claims adjacent to Wellgreen, altered carbonate at the
contact with a serpentinized peridotite sill, historic assays
returned 0.11 g/t Pt, 0.11 g/t Pd, 0.14 g/t Au, 0.07% Cu and 0.16%
Ni. Additional historic magnetic and VLF anomalies are present on
the property that require follow-up prospecting and sampling
(from Yukon Geological Survey Minfile Nos. 115G-026, -033, and
-088, Assessment Report Nos. 094396, 093662, 017513, 092578,
092575, 092744, 094253, 094250, 094466, 094217, 017459).
The Spy Project covers 1,250 hectares and encompasses much of
the ultramafic Spy Sill, which is 75-100m thick and intrudes the
Hasen Creek siltstone for six kilometers along a northwest strike.
Mineralization along the contact varies from disseminated sulfides
to massive sulfide lenses, with historic grab samples assaying as
high as 75.8 g/t Pt, 7.9 g/t Pd, 7.0 g/t Au, 2.6% Ni and 10.45% Cu
(Bell, C. 1996. Report on 1995 geological and geochemical
surveys on the Klu property. Yukon Dept. of Energy, Mines and
Resources, Assessment Report #093371, 244p.).
The Ultra Project covers 8,650 hectares and includes the
Frohberg PGM-Ni-Cu showing, which was explored by trenching in 2002
and returned 5.54 g/t Pt, 13.46 g/t Pd, 4.07% Cu and 1.73% Ni.
Numerous ultramafic occurrences elsewhere on the property have not
been assessed for PGM-Ni-Cu potential. (Pautler, J. 2012,
Geological and geochemical assessment report on the Ultra Project,
Whitehorse Mining District, Yukon, 47p.).
Deal
Structure
Duncastle may acquire a 100% interest in the Spy, Ultra and
Catalyst/CKR properties by completing the following:
- Paying $50,000 and issuing an aggregate 8.5 million shares to
Denali over 3 years for the Catalyst project;
- assuming the requirements of existing property agreements now
in place for the Spy and Ultra properties by assignment from
Ashburton, including the completion of $500,000 in exploration
work, $85,000 in cash payments, and the issuance of 650,000 shares
over 5 years;
- paying $5,000 to Ashburton for the Ultra property and a further
$5,000 to the underlying vendor of the Ultra property; and
- Issuing 350,000 shares to Ashburton for purchase of the CKR
claims and a further 150,000 shares to Ashburton for assignment of
the Spy and Ultra claims.
The Company will appoint Dr. Tom E. McCandless, P.Geo., as a
director and Chief Operating Officer, Mr. Eugene D. Spiering as a
director and Vice President Exploration, and Mr. Bill Harris as
director. Dr. McCandless is President of MCC Geoscience Inc. and an
adjunct professor at the University of Arizona, where for ten years
he conducted research on PGM mineralization in the world-class
Bushveld igneous province. Mr. Spiering is presently VP Exploration
for Quaterra Resources Inc. and has over 30 years of experience in
the mining and exploration industry. He was formerly VP Exploration
with Rio Narcea Mines Ltd., where he managed the team that
discovered and developed the Aguablanca nickel mine as well as the
El Valle and Carles gold mines in Spain. Mr. Harris is a
second-generation prospector and miner, born and raised in the
Yukon. He is the founder and a director of Northern Freegold
Resources Ltd. with several significant gold-copper-silver deposits
at Freegold Mountain in the Yukon. Mr. Harris' experience ranges
from project generation through acquisition, exploration
management, permitting, and mining. Bill was awarded the Yukon
Prospectors Association prospector of the year in 1994.
Duncastle will enter into a debt settlement agreement with its
two largest creditors, both of whom are insiders of the Company,
and will effect a corporate name change to reflect the
acquisition.
The LOI is subject to approval by the TSX Venture Exchange of a
formal agreement to conclude the transaction by July 30, 2014, and
to completion of a financing to fund exploration work during the
2014 season as well as acquisition costs and general and
administrative requirements.
Other
Properties
Duncastle also reported today that it has negotiated an
assignment of the Black Lake property agreement in Northwestern
Ontario from the underlying vendor of the current agreement,
effectively removing Fortune Tiger Resources Ltd as the
intermediate Optionor by issuing two million shares to Fortune
Tiger Resources Ltd. for the assignment. By doing so Duncastle
eliminates work requirements totaling $1.35 million and gains the
potential to earn 100% of the project instead of the 80% it can
currently earn.
The Company further reported that Armex Mining Corp. has
received its exploration permit at the Yankee-Dundee project in
Southeast BC. By the terms of the sale agreement announced January
21, 2013, the next advance royalty payment of $50,000 is therefore
due from Armex Mining Corp. on or about August 28, 2015 and will
continue annually from that date until the start of commercial
production at which time production payments commence which may
total about $4 million or more by way of cash and royalty payments
depending on mine performance, commodity markets and other
factors.
Duncastle also reported that, subject to approval by the TSX
Venture exchange, it has amended two property agreements in light
of current market conditions. The Company has negotiated
postponement of a cash payment for the Black Lake claims by
agreeing to a payment of $2,000 cash and 300,000 shares to Rubicon
Minerals Corp. The Company also amended an agreement in order to
postpone a $60,000 payment for the Porphyry Creek project from
January 1, 2014 until May 30, 2014. Optionors of the Porphyry Creek
property include Michael Rowley, President and director, and
Crucible Resources Limited, a company owned by director Douglas
Warkentin, and a third party. Duncastle is now in default of the
amended agreement and has received a notice of default from the
Optionor.
The technical contents of this release have been reviewed by Tom
E. McCandless, Ph.D., P. Geo., independent consultant to Duncastle
and qualified person as defined by National Instrument 43-101. The
properties have not been the subject of a National Instrument
43-101 report, and Dr. McCandless has not verified the technical
data disclosed in this release.
On behalf of the Board of Directors,
Michael Rowley, President, Director, Duncastle Gold Corp.
This News Release may contain forward-looking statements
including but not limited to comments regarding the timing and
content of upcoming work programs, geological interpretations,
receipt of property titles, potential mineral recovery processes,
etc. Forward-looking statements address future events and
conditions and therefore involve inherent risks and uncertainties.
Actual results may differ materially from those currently
anticipated in such statements. These statements are based on a
number of assumptions, including, but not limited to, assumptions
regarding general economic conditions, interest rates, commodity
markets, regulatory and governmental approvals for the company's
projects, and the availability of financing for the company's
development projects on reasonable terms. Factors that could cause
actual results to differ materially from those in forward looking
statements include market prices, exploitation and exploration
successes, the timing and receipt of government and regulatory
approvals, and continued availability of capital and financing and
general economic, market or business conditions. Duncastle Gold
Corp. does not assume any obligation to update or revise its
forward-looking statements, whether as a result of new information,
future events or otherwise, except to the extent required by
applicable law.
Neither 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.
Duncastle Gold Corp.Michael RowleyPresident,
Director1.888.456.1112 or
604.641.2742mrowley@duncastlegoldcorp.comwww.duncastlegoldcorp.com