Manson Creek Acquires Gold Project Adjacent to 7 Million Ounce Gold Producer
January 24 2012 - 10:24AM
Marketwired Canada
Manson Creek Resources Ltd. ('Manson Creek') (TSX VENTURE:MCK) is pleased to
report that it has entered into an option with Panarc Resources to acquire a
100% interest in the Up Town Gold project located adjacent to the historic Giant
mine in the Northwest Territories.
The 3,388 hectare property has 5 known gold bearing zones hosted in an Archean
granodiorite adjacent to the Yellowknife greenstone belt which boasts over 12
million ounces of gold production from the nearby Giant and Con mines. Historic
work on the Up Town Gold property, done primarily in the 1960's, focused on the
narrow quartz filled shears and associated quartz veins while largely ignoring
the larger zones of hydrothermally altered host granodiorite. The shear zones,
associated fractures and quartz veins vary from millimeter widths to well over
3.0 meters and they commonly are surrounded by a broader alteration halo.
Alteration consists of silicification and sericitization with hematite
alteration present as well. Mineralization is exposed at surface with exposures
of tens of meters common with many stretching for hundreds of meters.
Until recently, gold exploration has focused primarily on volcano-sedimentary
greenstone belts, seeking structurally controlled mesothermal lode-gold deposits
while the adjacent granitoid rocks have been largely ignored as hosts for gold
mineralization. A growing number of significant bulk minable lode-gold deposits
have been found in Archean granitic rocks and there is a growing awareness that
they constitute a separate deposit class - referred to as Granitoid Hosted Lode
Gold deposits.
Several of the gold bearing zones on the Up Town Gold property had historical
estimates completed in the 1960's with over 2,500 meters of diamond drilling
completed. In many of the historic assessment reports there is mention of
hydrothermally altered host rock but no systematic sampling was ever conducted
on these altered zones.
Table 1. Historic Gold Zones - Selected Significant Results
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Gold Grades(i)
Zone Historic Work grams/tonne (g/t)
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Rod Multiple trenches 28.0 g/t to 93.9 g/t
greater than 2,300 m diamond drilling
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J Group Multiple trenches 2.0 g/t - 61.0 g/t
Minor diamond drilling
----------------------------------------------------------------------------
C4 Multiple trenches 53.0 g/t to 77.0 g/t
----------------------------------------------------------------------------
Fox South Multiple trenches 0.5 g/t - 3.94 g/t
----------------------------------------------------------------------------
Rose Multiple trenches 17.1 g/t
----------------------------------------------------------------------------
(i) NOTE: Historical reported assays submitted in assessment reports
A due diligence visit conducted by Company personnel in December located many of
the historical areas of trenching. Shovelling of snow allowed for limited
exposure of the located Rod and J Group trenches and thirteen rock samples were
collected from silicified shear and vein material as well as altered wall rock.
Nine grab samples were taken at various trenches in the Rod zone and four
samples were taken from a trench in the J Group zone with the results summarized
below. The Rod samples returned an average of 11.2 g/t gold with two of the grab
samples returning high grade gold grades of 49.6 g/t and 19.2 g/t gold. The J
Group samples averaged 0.13 g/t gold with trace silver in the limited sampling.
The assays show high grade zones occur within broader halos of lower grade
mineralization and are consistent with the Granitoid Hosted Lode Gold deposit
exploration model.
Table 2. Due Diligence Sampling Summary
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Number of Samples Gold Silver
Zone Collected and Type grams/tonne grams/tonne
----------------------------------------------------------------------------
Rod 9 Grab Samples 0.008 g/t to 46.6 g/t less than 0.1 g/t to
greater than 100 g/t
----------------------------------------------------------------------------
----------------------------------------------------------------------------
J Group 4 Grab Samples 0.004 g/t to 0.45 g/t less than 0.1 g/t to
0.3 g/t
----------------------------------------------------------------------------
Samples were forwarded to Acme Labs in Yellowknife, Northwest Territories for
analysis with all of the rock samples analyzed using inductively coupled plasma
(ICP) together with mass spectrometry (MS) finish. Gold was analyzed by a fire
assay preparation with an atomic absorption spectroscopy finish.
Manson Creek may acquire a 100% interest in the Up Town Gold property over a
four-year period by expending $500,000 in exploration and making staged cash
payments and common share issuances totaling $300,000 and 400,000 common shares
of the Company respectively. Panarc Resources will retain a 2.5% NSR (Net
Smelter Royalty), of which 60% (1.5% NSR) may be purchased at Manson Creek's
election for $1,500,000. An advance payment on royalties totaling $120,000 would
be payable monthly in $20,000 increments upon acceptance by Manson Creek or its
successors of a bankable feasibility study.
The President of Manson Creek Resources Ltd., Regan Chernish P.Geol., is the
Qualified Person responsible for the preparation of this news release.
Regan Chernish, P. Geol., President and Director
Except for the historical and present factual information contained herein, the
matters set forth in this news release, including words such as "expects",
"projects", "plans", "anticipates" and similar expressions, are forward-looking
information that represents management of Manson Creek's internal projections,
expectations or beliefs concerning, among other things, future operating results
and various components thereof or the economic performance of Manson Creek. The
projections, estimates and beliefs contained in such forward-looking statements
necessarily involve known and unknown risks and uncertainties, which may cause
Manson Creek's actual performance and financial results in future periods to
differ materially from any projections of future performance or results
expressed or implied by such forward-looking statements. These risks and
uncertainties include, among other things, those described in Manson Creek's
filings with the Canadian securities authorities. Accordingly, holders of Manson
Creek shares and potential investors are cautioned that events or circumstances
could cause results to differ materially from those predicted. Manson Creek
disclaims any responsibility to update these forward-looking statements.
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