TORONTO, ONTARIO--(Marketwire - Dec. 14, 2009) - White Pine Resources Inc. (TSX VENTURE:WPR - News; "White Pine"), is pleased to announce it has signed a letter of agreement for the acquisition of an option to acquire the MZ Gold Property located in the Boston Creek gold mining district south of Kirkland Lake, Ontario. Recent grab samples from a newly discovered silicified-pyritized gold-bearing zone on the property have yielded gold values from 0.014 g/t Au to as high as 67.1 g/t Au (1.96 oz/t) and 49.4 g/t Ag. The six grab samples were taken from a trenched area measuring approximately 10x20m by Mike Kilbourne, P.Geo, President of White Pine Resources.
To view a Property Map and a Location Map of the MZ Gold Property, please visit the following link: http://media3.marketwire.com/docs/property_location_maps_white_pine.pdf
The MZ Gold Property, consisting of 608 hectares, can be acquired from two local prospectors for consideration of cash, shares and exploration expenditures in the following timetable:
TO ACQUIRE AN INITIAL 50% INTEREST IN THE PROPERTY:
On Signing $20,000 cash plus 50,000 shares, $100,000 in
exploration
Year 1 Anniversary $20,000 cash plus 100,000 shares, $150,000 in
exploration
Year 2 Anniversary $20,000 cash plus 100,000 shares, $150,000 in
exploration (earns 50%)
AT THE OPTION OF WHITE PINE, TO ACQUIRE AN ADDITIONAL 50% INTEREST IN THE
PROPERTY (FOR AN AGGREGATE 100% INTEREST):
Year 3 Anniversary $20,000 cash plus 100,000 shares, $500,000 in
exploration
Year 4 Anniversary $120,000 cash plus 400,000 shares, $500,000 in
exploration (earns 100%)
Total $200,000 plus 750,000 shares, $1.4 million in
exploration
A 2% net smelter return royalty has been retained by the prospectors with the option of 1% being purchased by White Pine for $1 million. The acquisition remains subject to the approval of the TSX Venture Exchange.
The Boston Creek gold mining district has had sporadic gold production from 5 gold mines dating back to 1918. The MZ Gold Property lies adjacent to and in between two former producers, the Cathroy-Larder Mine and the Gold Hill Mine. The Cathroy-Larder Mine, now owned by Mirado Nickel, has extensive underground workings to the 500 vertical foot level and has had open pit production in the past.
'The Boston Creek gold mining district is poorly understood and has had limited exploration over the years' stated Mike Kilbourne, P.Geo and White Pine's President. "White Pine has been looking to acquire a promising gold property in a historic mining district for the last 6 months. Exploration programs of line-cutting, ground geo-physics, trenching and drilling are planned to commence immediately upon receipt of all applicable regulatory approvals."
Mike Kilbourne, P.Geo and President of White Pine, is a qualified person and is responsible for the technical content of this release.
Potential quantity and grade is conceptual in nature. There has been insufficient exploration to define a mineral resource on the MZ Gold Property and it is uncertain if further exploration will result in the target being delineated as a mineral resource. All scientific and technical disclosure contained in this press release has been prepared under the supervision of, and verified by Mike Kilbourne, President White Pine Resources Inc., a "qualified person" within the meaning of National Instrument 43-101 of the Canadian Securities Administrators.
Forward looking statements: Certain information set forth in this news release may contain forward-looking statements that involve substantial known and unknown risks and uncertainties. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond the control of White Pine, including but not limited to the impact of risks associated with mineral exploration activities, general economic conditions, industry conditions, volatility of commodity prices, risks associated with the uncertainty of resource and reserve estimates, currency fluctuations, dependence upon regulatory approvals, the unavailability of future financing and exploration risk. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and as such, undue reliance should not be placed on forward-looking statements.
Shares Outstanding: 17,592,660
NEITHER THE 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.
