New Dimension Joins Forces with Strategic Metals: Acquires Gold Project Within the Significant Rackla (Rau) Gold Belt
November 03 2010 - 8:00AM
Marketwired
New Dimension Resources Ltd. (TSX VENTURE: NDR) (the "Company" or
"New Dimension") is pleased to report that it has executed a
binding option agreement (the "Agreement") with Strategic Metals
Ltd. (TSX VENTURE: SMD) ("Strategic Metals") to earn up to a 100%
interest in Strategic Metals' Gild gold property ("the Property").
The Property is located within a geological belt that the Company
& Strategic Metals believes has the same characteristics as
recent discoveries by ATAC Resources Ltd. ("ATAC") in the
Yukon,which ATAC have named the Rackla (Rau) Gold Belt (please
click to view map: http://media3.marketwire.com/docs/ndr-gild.pdf).
"New Dimension is very pleased to join forces with Strategic
Metals an aggressive exploration company with a significant land
package in the Yukon and Northwest Territories ("NWT")," said Fred
Hewett, President & CEO of New Dimension. "Strategic Metals'
association with geological consultants Archer Cathro has provided
New Dimension with an excellent opportunity to gain access to an
area with one of the most promising new mineral discoveries in
recent years. The Gild gold property is an exciting project that
gives our shareholders significant exposure to the mineral
potential in this area of Canada and it is an excellent complement
to the Company's Cenepa gold project in northern Peru."
Background:
The 44 square kilometre Gild Property is situated in the NWT
approximately 90 kilometres to the east of ATAC's Osiris Target,
which is located on ATAC's 1,500 square kilometre Rau gold property
in central Yukon. ATAC's exploration success on the Rau Property
includes announced drill intercepts of 9.26 g/t gold over 31.1
metres and 24.07 g/t gold over 28.4 metres from over 25,000 metres
of diamond drilling in over 130 holes. New Dimension and Strategic
Metals believe the Gild gold property shares many of the same
geological features (tectonic setting, host rocks, faulting and
associated metals) as the Tiger Zone on the Rau Property.
The Gild Property:
The Gild Property was staked by Strategic Metals as a result of
their search for projects hosting similar geological
characteristics to ATAC's Rau discoveries. An assessment report
filed with DIAND describes surface rock chip sampling carried out
on what is now the Gild property in 1973, which returned
significant gold, lead and zinc values. Readers are cautioned that
the values described are not NI 43-101 compliant and have not been
verified by Strategic Metals or the Company. Four of twelve chip
channel samples described in the referenced assessment report were
gold rich with values reported as follows:
-- 11.5 feet (3.5 metres) of 0.28 oz/t (9.65 g/t) gold;
-- 8.0 feet (2.4 metres) of 0.38 oz/t (13.10 g/t) gold;
-- 19.0 feet (5.8 metres) of 0.18 oz/t (6.21 g/t) gold; and
-- 8.7 feet (2.7 metres) of 0.16 oz/t (5.52 g/t) gold.
Some of the samples taken from the mineralized zone also
returned significant values in lead and zinc. All of the
mineralized samples were taken along a structure reportedly
developed within dolomites forming the footwall of a major thrust
fault. The horizontal distance between the 0.16 oz/t gold and 0.28
oz/t gold samples is reported as 1,600 feet (487.7 metres).
An initial exploration program is scheduled to be carried out by
the Company on the Property as soon as spring weather conditions
allow. Favourable results, subject to the receipt of all necessary
permits, could result in a drill program in the fall of 2011.
The Agreement:
New Dimension can earn an initial 50% property interest by
spending $3.5 million in exploration expenditures and making
payments totaling $600,000 to Strategic Metals over a four year
period. Of the $600,000, up to $250,000 in value can be issued in
the Company's stock at the election of the Company.
The Company can also elect to earn an additional 15% (aggregate
65% property interest), by spending $15 million (total exploration
to date), by issuing to Strategic Metals 19.9% of the outstanding
shares of NDR, and by completing a pre-feasibility study. The
Company can then elect to earn a further 35% (aggregate 100%
interest) by making a decision to commence the construction of a
mine within 12 years from the signing of the agreement and by
maintaining Strategic Metals' equity interest in the Company. Upon
NDR earning 100%, Strategic Metals would retain a 2.5% net smelter
return (NSR) production royalty and receive certain minimum advance
royalties prior to production commencing.
The Agreement is subject to regulatory approval, including
approval of the TSX Venture Exchange.
About New Dimension Resources Ltd.:
New Dimension is engaged in the acquisition, exploration and
development of quality mineral resource properties throughout the
Americas with a focus on potentially significant bulk tonnage gold
and silver deposits. The Company's exploration activities are
presently focused on its Cenepa gold project, which covers one of
the most attractive geological terrains within the highly
prospective Cordillera del Condor mineral belt in northern Peru and
southern Ecuador (please click to view map:
http://media3.marketwire.com/docs/ndr-cenepa.jpg). This belt is
host to Kinross Gold's FDN deposit, a NI 43-101 compliant Inferred
Mineral Resource consisting of 58.9 million tonnes grading 7.2 g/t
gold and 11.8 g/t silver and containing 13.7 million ounces of gold
and 22.4 million ounces of silver, respectively.
The information in this news release has been prepared in
accordance with Canadian regulatory requirements set out in
National Instrument 43-101 and reviewed by Fred Hewett the
Company's President & CEO, a director and a Qualified Person
under NI 43-101. The Company cautions that ATAC's results at the
Rau Property are not necessarily indicative of possible future
results on the Gild Property.
ON BEHALF OF THE BOARD
NEW DIMENSION RESOURCES LTD.
Fred G. Hewett, P.Eng., President & CEO
This news release may contain forward looking statements which
are not historical facts, such as statements of belief of
similarity of geological characteristics or features, statements of
unverified drilling and sampling results and expectations of
receipt of permits and plans for future work. Forward looking
statements involve a number of risks and uncertainties that could
cause actual results to differ materially from those projected.
These risks and uncertainties include, but are not limited to,
unexpected geological factors, exploration results, results of
verification work and unanticipated regulatory obstacles. See New
Dimension's filings for a more detailed discussion of factors that
may impact expected results.
This news release does not constitute an offer to sell or
solicitation of an offer to sell any securities in the United
States. The securities have not been and will not be registered
under the United States Securities Act of 1933, as amended (the
"U.S. Securities Act") or any state securities laws and may not be
offered or sold within the United States or to U.S. Persons unless
registered under the U.S. Securities Act and applicable state
securities laws or an exemption from such registration is
available.
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 news release.
Contacts: New Dimension Resources Ltd. Fred Hewett (604)
687-7545 or (888) 338-2200 New Dimension Resources Ltd. Chris
Curran (604) 687-7545 or (888) 338-2200 (604) 689-5041 (FAX)
info@northair.com www.newdimensionresources.com
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