EDMONTON, ALBERTA--(March 5, 2010) - Northern Tiger Resources Inc. (TSX VENTURE:NTR) is pleased to announce the signing of a Letter of Intent to acquire the 3Ace property located in southeastern Yukon. Recent prospecting on the property has discovered a quartz vein containing abundant quantities of free gold (see picture here:http://media3.marketwire.com/docs/305ntr.pdf). Historic work on the property has also identified a number of large gold-in-soil anomalies that warrant further exploration.
"The presence of so much visible gold makes this one of the most exciting new prospects in the Yukon," says Greg Hayes, President of Northern Tiger Resources. "The widespread gold-in-soil anomalies and discovery of additional visible gold in a vein 500 metres to the north of the main showing further demonstrate the potential of the property."
Recent prospecting by the vendor discovered a vein containing abundant visible or 'free' gold on the property. The steeply dipping vein, located on a steep side slope, is up to two meters in width and is exposed on surface for approximately five meters along strike. The vein and vein float located immediately below the exposure was found to contain abundant visible gold over narrow widths. Other vein material located further down slope contains abundant arsenopyrite, a common gold pathfinder. The main vein does not contain arsenopyrite indicting that there are several veins in the immediate area. Another vein, located some 500 meters to the north, consists of quartz containing abundant coarse arsenopyrite and minor galena. A late fracture through the vein was found to contain minor free gold.
The property was initially explored by Hudson Bay Exploration in the late 1990's, resulting in the delineation of several large anomalies (up to 400 metres by 400 metres) with gold-in-soil values ranging up to 1,300 ppb. These anomalies are contained within a broader area of anomalous arsenic and gold measuring about two kilometers by two kilometers. Quartz vein swarms and vein stockworks are located within brittle quartz pebble conglomerate units and frequently contain variable amounts of fine to coarse crystalline arsenopyrite and occasional blebs of galena with sphalerite and pyrite.
The Letter of Intent contemplates the completion of a Definitive Option Agreement whereby Northern Tiger will acquire an option to earn a 100% interest in the property from Mr. Alex McMillan (the "Vendor"), a long standing Yukon prospector. Under the terms of the proposed agreement, Northern Tiger will be required to make cash payments of $500,000, issue 2,000,000 shares and incur $700,000 in exploration expenditures over a four year period. An annual advance royalty payment of $45,000 will commence on the 5th anniversary of the agreement and continue until the commencement of commercial production.
Mr. McMillan will retain a 2% net smelter return interest (NSR) on the property. If a National Instrument 43-101 compliant resource estimate in excess of 500,000 ounces at a grade greater than 5 g/t is defined on the property, the Vendor's NSR will increase to 2.5% and the vendor will receive a bonus payment of $300,000 (in cash or equivalent Northern Tiger shares). If a National Instrument 43-101 compliant resource estimate in excess of 1,000,000 ounces at a grade greater than 5 g/t is defined on the property, the Vendor's NSR will increase to 3.0% and the vendor will receive an additional bonus payment of $300,000 (in cash or equivalent Northern Tiger shares). Each 1% of the NSR can be purchased by Northern Tiger for $2,000,000.
The Definitive Option Agreement will be subject to acceptance by the TSX Venture Exchange and approval by Northern Tiger's Board of Directors.
This News Release has been reviewed and approved by Dennis Ouellette, BSc, PGeol, a Qualified Person as defined by NI 43-101.
Northern Tiger Resources Inc. is a Canadian-based resource exploration company focused on gold and copper exploration in the Yukon. Through its exploration alliance with Capstone Mining Corp.'s wholly owned subsidiary, Minto Explorations Ltd., Northern Tiger benefits from a wide range of experience, knowledge and capabilities from early exploration to mine production.
This news release may contain forward looking statements, being statements which are not historical facts, including, without limitation, statements regarding potential mineralization, exploration results, resource or reserve estimates, anticipated production or results, sales, revenues, costs, "best-efforts" financings or discussions of future plans and objectives. There can be no assurance that such statements will prove accurate. Such statements are necessarily based upon a number of estimates and assumptions that are subject to numerous risks and uncertainties that could cause actual results and future events to differ materially from those anticipated or projected. Important factors that could cause actual results to differ materially from the Company's expectations are in Company documents filed from time to time with the TSX Venture Exchange and provincial securities regulators, most of which are available at www.sedar.com. The Company disclaims any intention or obligation to revise or update such statements.
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.
