With us today is Frank C. Smeenk President & Chief Executive Officer of KWG Resources Inc. Mr. Smeenk discusses recent conversation with Noront Resources after proposed acquisition of Cliffs Chromite was announced.
Wildcat Reports Option Renewal With San Gold, and Further Drill Results on Jeep Property
WINNIPEG, MANITOBA--(Marketwire -08/30/12)- Wildcat Exploration Ltd. (WEL.V) is pleased to announce that the option of three properties in the Rice Lake gold camp to San Gold Corporation has been continued for a second year. The optioned properties are located east and west of San Gold's mining operations at Bissett, Manitoba, within the Rice Lake greenstone belt. To date, San Gold has drilled 15 holes on the Mike Power property and 12 holes on the Jeep property. Drill logs and assays results for the first 10 Jeep drill holes totaling 6,074.7 metres have been received, and two holes are pending results. Drilling is now complete, and the drill has been removed from the property.
Wildcat's Jeep, Mike Power and Poundmaker properties are under option to San Gold (see news release dated August 10, 2011) whereby San Gold can earn an 80% interest in the properties by carrying out $5.1 million of exploration expenditures over 4 years and making cash payments of $1 million in total and subscribing to $1 million of Wildcat shares.
San Gold has made the agreed cash payment of $250,000 and has advised Wildcat that it will subscribe for $250,000 of Wildcat shares at a price not less than market, in accordance with the terms of the option agreement. In addition exploration expenditures exceeding $1 million have been made during the first year of the option. During 2011 San Gold made a similar cash payment and subscription for shares.
The current program is designed to test the Jeep quartz vein system deeper and down plunge of previous drill programs, and new gold horizons parallel to the Jeep trend. Significant results (core length) are as follows:
JP- 12 - 004 0.267 opt Au over 3.5 feet (8.3 g/t Au over 1.07 m)
JP -12 - 007 0.312 opt Au over 1.3 feet (9.7 g/t Au over 0.40 m)
The historic Jeep gold mine produced approximately 14,000 ounces of gold at an average grade of 0.78 ounces per ton of ore (non-NI 43-101 compliant) from 1948 through 1950.
Tom Lewis, Wildcat's VP of Exploration commented, "The Jeep property produced gold from several veins 60 years ago. Shallow drilling by Wildcat along strike, and more recent deeper drilling by San Gold, has demonstrated the potential for further discoveries. I am pleased San Gold has sufficient encouragement to continue the drilling on Wildcat properties into the future, and I look forward to the assay results from JP-12-011 and JP-12-12."
Wildcat's exploration program is managed by Tom Lewis, P.Eng., a Qualified Person as defined by NI 43-101, who has reviewed all technical information in this release.