CBR Gold Corp. (TSX VENTURE:CBG) ("CBG") is pleased to announce that it has
entered an agreement with the Hunter Dickinson group ("HD") to form a joint
venture on its 100%-owned Niblack copper-gold-silver-zinc project on Prince of
Wales Island in Southeast Alaska (the "Niblack Project"), subject to completion
of satisfactory due diligence by HD on or before June 30, 2009.
"We are very pleased to be initiating a partnership with CBR Gold to advance
exploration of the Niblack copper-gold-silver-zinc deposit," said Hunter
Dickinson Chairman Robert A. Dickinson. "Based on the most recent exploration
results from the 2008 drill program, in particular, we believe this property
presents potential for delineating significant volumes of high-grade
mineralization."
"Hunter Dickinson's track record speaks for itself," said John Williamson,
President and CEO of CBR Gold Corp. "We are pleased to have joined forces with a
group that shares our vision for advancing the Niblack Project through
feasibility and development."
CBG and its wholly-owned subsidiary, Abacus Alaska Inc. ("AAI"), have agreed
with HD to form and operate a limited liability company under the Delaware
Limited Liability Company Act that is registered to carry on business in the
State of Alaska (the "Company"), to hold the joint venture assets and construct
facilities in order to explore, evaluate and, if justified, mine the subject
properties.
Under the terms of agreement, Heatherdale Resources Ltd., a private company
affiliated with HD, will retain a 51% interest in the Company by funding
exploration and development expenditures on the Niblack Project totaling in
aggregate at least fifteen million dollars (US $15,000,000) within three years
(the "Initial Contribution"). Upon completion of its Initial Contribution, HD
shall have additional earn-in options to increase its ownership interest in the
Company to 60% by funding additional expenditures of ten million dollars (US
$10,000,000) and to 70% by funding completion of a positive bankable feasibility
study within an additional three (3) year period. This period may be extended to
complete technical works programs for the bankable feasibility study if
necessary, but will not exceed six (6) years in any event. All spending
requirements are subject to minimum annual expenditure of five million dollars
(US $5,000,000).
If HD does not complete its Initial Contribution, it shall be deemed to have
resigned and withdrawn from the joint venture, returning its 51% ownership
interest in the Company to CBG. If HD exercises, but does not complete, the
additional earn-in options, its ownership interest will remain at the last
milestone earned.
The Company will be principally managed by HD in collaboration with CBG. HD will
have overall responsibility for operations and reporting and shall implement
decisions of the management committee, which is to be chaired by HD and
comprised of three representatives from each party. Decisions of the management
committee will be determined in proportion to ownership interest, with certain
decisions requiring a vote of more than 60%. Once a program and budget are
approved by the management committee, if either party declines to fund its share
of a cash call, the other party can elect to cover those costs and standard
straight-line dilution will apply.
If HD does not exercise either of its additional earn-in options, AAI shall be
deemed to be the successor manager and shall propose a one year program and
budget of at least five million dollars (US $5,000,000) or such other amount as
deemed appropriate by the management committee. If HD does not elect to fund the
proposed program and budget, AAI shall fund the proposed expenditures and HD's
ownership interest shall be subject to accelerated dilution with a factor of
150% being applied to HD's share of expenditures that are covered by AAI.
If the ownership interest of either party is reduced below ten percent (10%),
the interest is converted to a 2% net smelter royalty ("NSR") and the Company
has a buy-out option to reduce the NSR to 1% by making a payment of one million
dollars (US $1,000,000). The withdrawing party shall be deemed to have resigned
and withdrawn from the joint venture with their interest accruing free and clear
to the other party.
If either party receives a bona fide written third-party offer to sell their
ownership interest, the other party is entitled to receive notice and a right of
first refusal, prior to acceptance of the third party offer.
HUNTER DICKINSON is a private company based in Vancouver, B.C., and associated
with a suite of publicly-traded companies engaged in mineral exploration,
development and mine operations around the world. HD's multi-disciplinary team
of 120 financial and technical specialists provides professional services to
successful mine operators and developers on four continents, with interests in
gold, copper, platinum group metals, zinc, molybdenum, zinc and silver.
HD-managed companies have a successful track record for identifying, acquiring,
developing, permitting and mining globally significant mineral deposits.
THE NIBLACK PROJECT encompasses six VMS target zones within 4,550 acres of
mineral claims (including some 250 acres of patented lands), including a
volcanogenic massive sulphide ("VMS") deposit. VMS mineralization at the Niblack
property is hosted within a thick sequence of rhyolite and includes six known
targets - the Niblack deposit, Dama Zone, Lindsy Zone, Trio Zone, Mammoth Zone
and Lookout Zone. Mineralization is controlled by fold repetition of the
rhyolite sequence, with the Lookout and Trio zones located on the overturned
limb of a property-scale synclinal fold.
The Niblack deposit supported historic underground mining operations from 1905
to 1908, producing approx. 20,000 tons of ore grading 4.9% copper, 2.2 g/t gold
and 30 g/t silver. The deposit has been the focus of extensive exploration
activity over the past 34 years, including 59,289 meters (194,518 feet) of
drilling in 246 holes. In 2007, an 880-meter exploration drift was constructed
to facilitate cost-effective underground drilling of the Niblack deposit. The
last two holes drilled at the Niblack Project in 2008 returned grades
significantly higher than the historic average, including U28 which intersected
78.66 meters grading 1.89% copper, 4.83 g/t gold, 85.31 g/t silver and 4.93%
zinc.
CBG released an updated mineral resource estimate on March 26, 2009 (see table
below) and positive metallurgical results on June 10, 2009. This subsequent
metallurgical work demonstrated high metal recoveries with excellent concentrate
grades, showing significant improvement of metal recoveries over the historic
preliminary testing work conducted in 1990 and 1997. As the current Niblack
resource is based upon a Net Smelter Return (NSR) block-cut-off which
incorporates historic metal recoveries in the formula, the updated recoveries
are expected to positively impact the current resource estimate.
THE POTENTIAL of the Niblack Project is believed to be excellent for delineating
additional areas of high-grade copper-gold-silver-zinc mineralization. Core
drilling and other geological investigations to be undertaken in 2009 are being
designed to expand known mineral resources. Given its geological endowment and
proximity to tidewater in a stable jurisdiction with a long-tradition of mineral
development, Niblack property has the potential to support a low volume,
high-grade underground mining operation in the future.
Personnel from Hunter Dickinson and CBR Gold Corp are collaborating on the
planning of an exploratory drill program for execution at Niblack in 2009.
Specific goals, targets, budgets and timelines for the 2009 exploration program
will be finalized within the next few weeks. All State of Alaska permits
required to undertake an exploratory drill program at the Niblack Project site
in 2009 are already in place.
CBR GOLD CORP. is a Canadian-based exploration and development company focused
on the advancement of two wholly-owned resource projects; the Niblack
copper-gold-silver-zinc project in southeastern Alaska and the Three Bluffs gold
resource project in Nunavut, Canada. The company also has several generative to
early stage projects globally and is continuing to search for and evaluate
undervalued gold and copper projects worldwide.
Table 1. CBG Resource Inventory(i)
--------------------------------------------------------------------------
Au Au Ag Ag
Project Tonnes (g/t) (oz) (g/t) (oz)
--------------------------------------------------------------------------
Indicated
Three Bluffs (ii) 2,700,000 5.85 508,000 - -
Niblack (iii) 2,272,000 2.42 177,000 34.66 2,532,000
--------------------------------------------------------------------------
Total Indicated 685,000 2,532,000
--------------------------------------------------------------------------
Inferred
Three Bluffs (ii) 1,270,000 5.98 244,000 - -
Niblack (iii) 1,502,000 2.22 107,000 34.62 1,672,000
--------------------------------------------------------------------------
Total Inferred 351,000 1,672,000
--------------------------------------------------------------------------
--------------------------------------------------------------------------
Cu Cu Zn Zn
Project Tonnes (%) (lbs) (%) (lbs)
--------------------------------------------------------------------------
Indicated
Three Bluffs (ii) 2,700,000 - - - -
Niblack (iii) 2,272,000 1.27 63,595,000 2.36 118,177,000
--------------------------------------------------------------------------
Total Indicated 63,595,000 118,177,000
--------------------------------------------------------------------------
Inferred
Three Bluffs (ii) 1,270,000 - - - -
Niblack (iii) 1,502,000 1.68 55,630,000 3.43 113,578,000
--------------------------------------------------------------------------
Total Inferred 55,630,000 113,578,000
--------------------------------------------------------------------------
(i) tonnes, ounces and pounds rounded to nearest thousand
(ii) using a 2 g/t Au block cut-off grade
(iii) using a US$50/tonne cut-off value
For further information on the Three Bluffs resource see CBG press release dated
March 2, 2009, and Technical Report filed on Sedar April 28, 2008. For further
information on the Niblack resource see Technical Report filed on Sedar October
27, 2008.
CBR Gold Corp. maintains an extensive quality control program in the
preparation, shipping and checking of all samples from the property. The program
is supervised by Peter Kleespies, M.Sc., P. Geol. who is the Qualified Person as
defined by NI 43-101. A detailed description of CBR Gold Corp.'s QA/QC program
is provided on the Company's website at www.cbrgoldcorp.com.
CBR Gold Corp. is a member of the Discovery Group of companies, for more
information on the group visit www.discoveryexp.com.
On behalf of the Board
CBR Gold Corp.
John Williamson, P.Geol., President, CEO & Director
Certain disclosures in this release, including management's assessment of CBR
Gold Corp.'s plans and projects, constitute forward-looking statements that are
subject to numerous risks, uncertainties and other factors relating to CBR Gold
Corp.'s operation as a mineral exploration company that may cause future results
to differ materially from those expressed or implied in such forward-looking
statements. Readers are cautioned not to place undue reliance on forward-looking
statements. CBR Gold Corp. expressly disclaims any intention or obligation to
update or revise any forward-looking statements whether as a result of new
information, future events or otherwise.
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