VAL-D'OR, QC, Nov. 6 - Hinterland Metals Inc. (TSXV:HMI) is pleased to announce that it has reached an arms-length agreement to acquire the “Raney” gold property located some 130km southwest of Timmins, Ontario. Hinterland has secured a drill that will be mobilized to the property in mid-November to test two known surface showings as well as several geophysical targets.
The property is located in the Archean Swayze Greenstone Belt and is underlain by felsic to intermediate volcanic and feldspar porphyry intrusive rocks. Two surface showings have been identified to date. The first showing has returned grab samples up to 8.6g/t Au from quartz veins and up to 1.0 g/t Au from altered rock adjacent to the quartz veins. A single drill hole completed in 1999 by the property vendor returned 3.4g/t Au over 6.8m. Re-sampling of this drill intersection returned a similar result of 3.9g/t over 5.9m. The second showing is found roughly 250m southwest of the first and is marked by strongly sheared feldspar porphyry. Historical values up to 27g/t Au have been reported from quartz veins at this showing but no significant gold values have been returned from the adjacent altered, sheared wall rock.
Under the terms of the agreement Hinterland has the option to earn a 100% interest in the property for $90,000 cash and 300,000 treasury shares scheduled over a two year period subject to a two-part production royalty (the “Royalty”) consisting of a 2.5% Net Smelter Returns royalty on smeltable materials and a 2.5% Gross Overriding Receipts royalty on diamonds. Hinterland will have the right to buy back the first 1.5% of the Royalty for $1,500,000 and will have the right of first refusal on the remaining 1.0%. The agreement is subject to approval by the Hinterland’s Board of Directors and by regulatory authorities in compliance with applicable securities legislation.
Investors are invited to visit the Hinterland IR Hub at www.agoracom.com/IR/Hinterland where they can post questions and receive answers or review questions and answers already posted by other investors. Alternatively, investors are able to e-mail all questions and correspondence to HMI@agoracom.com where they can also request to be added to the investor e-mail list in order to receive all future press releases and updates in real time. Mark Fekete, P.Geo is the designated “qualified person” as defined in Section 1.2 in and for the purposes of National Instrument 43-101 responsible for the preparation of this release.
For more information please contact:
Mark Fekete, President at Toll Free 1-877-874-8182
E-mail: info@hinterlandmetals.com
Website: www.hinterlandmetals.com
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release. This release contains forward-looking statements reflecting the Company’s objectives, estimates and expectations for its projects. These statements are identified by the use of verbs such as "estimate", "believe", "anticipate", "intend", "expect", "plan", "may", "should", "will", and the negative thereof or other variations thereon or comparable terminology. By their very nature, these types of statements involve risk and uncertainty. Consequently, results could differ materially from the Company’s projections or expectations.
