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Message: Sniper Resources Ltd.: Exploration Program Update and
New Property Acquisition
VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 14, 2011) - Sniper Resources Ltd. (TSX VENTURE:SIP)(FRANKFURT:A1H38M) ("Sniper" or the "Company") is pleased to provide the following corporate update:
Holes GI-20 and GI-21 were drilled to test an outlying window of poorly exposed Paleozoic sedimentary rocks surrounded by Tertiary volcanic rocks, located near the northwestern edge of the property. Despite nearby surface grab samples returning up to 610 ppb Au (0.018 oz Au/ton), no significant gold intercepts were encountered in the two holes.
Selected samples from Sniper's 21-hole drill program are being delivered to American Assay Labs in Sparks NV for verifying the initial assays.
Results reported earlier by Sniper from three holes drilled in the Trench Zone at Guild (GI-11, GI-16, and GI-17) were very encouraging, with significant coherent gold zones starting at surface. Bulldozer trenching and further drilling is being planned for this area, designed to allow more detailed mapping and sampling as well as extending the known mineralization to the northwest and southeast. Moreover, Sniper has recently obtained assay results from a program of seven reverse circulation (r.c.) holes drilled in the 1980's by another company, located just northwest of the present claim block. Two of these holes reported significant intercepts of shallow, potentially leach grade gold mineralization which will be tested by Sniper's continued work program on the Guild property. Sniper also has encountered anomalous gold and strong alteration in random grab sampling conducted during the recent drill program. Seven additional claims have been staked to cover the area of this historic drilling, and an initial r.c. drill program is being planned for the area.
Option on Laura claims:
Sniper, through its wholly-owned subsidiary Sniper Resources (U.S.) Inc. ("Sniper US"), has entered into an option agreement (the "Option Agreement") with Columbus Gold (U.S.) Corporation (a subsidiary of Columbus Gold Corporation (TSX VENTURE:CGT)) ("Columbus") whereby Sniper US is granted an exclusive option to earn a 70% interest in the lease interest of Columbus over the Laura and Laura 1-12 claims, located in Lander County, NV, approximately 3 miles southwest of Barrick's Cortez Hills Mine and 7 miles south of its Pipeline Mine.
Columbus holds its interest in the Laura claims by a lease agreement with Acquarian Mining Exploration, Inc. (the "Lease") which provides a initial 10 year lease term expiring on November 7, 2014, subject to renewal for three additional 10 year terms. Under the Option Agreement, Columbus will assign 70% of its interest in the Lease upon and in consideration of: (i) the payment of $10,000 cash and issuance of 100,000 common shares of Sniper to Columbus, in each case within five business days following receipt of all necessary approvals of the Option Agreement from the TSX Venture Exchange (the "Exchange"); and (ii) Sniper US fulfilling all of the obligations of Columbus under the Lease, including lease payments totalling approximately US$12,000 and maintenance of the Laura claims in good standing, during the period commencing May 7, 2011 to and including August 7, 2012.
If Sniper exercises the option to acquire 70% of Columbus' interest in the Lease as set forth above, Sniper US will have a further option to acquire the remaining 30% interest of Columbus in the Lease, for a period of 30 days, in consideration for: (i) payment of an additional US$200,000 in cash or common shares of Sniper, at the election of Sniper (the number of shares to be issued will be determined on the basis of an issue price equal to the average closing price of Sniper's shares on the Exchange for the twenty days preceding the date of issuance of the shares to Columbus); and (ii) a 1.5% net smelter returns royalty (NSR) granted to Columbus on production from the property, which shall be in addition to the existing 3% NSR on the property held by the lessor under the Lease.
The Option Agreement remains subject to receipt of all necessary approvals from the Exchange.
In the early 1990's, six holes were drilled on the Laura claims in rocks described as heterolithic jasperoid breccia, with a best intercept of 30 feet at 0.020 oz Au/ton (0.686 grams/tonne) reported. The property is located approximately on the margin of the Caetano Caldera, a large Tertiary volcanic feature, and has potential for both epithermal volcanic-hosted, and Carlin-type sediment-hosted gold. Sniper is encouraged by the proximity of the Laura property to the Pipeline-Gold Acres and Cortez-Pediment-Cortez Hills mine complexes, which have an over 14 million ounce reserve reported.
Frankfurt Stock Exchange:
Sniper is pleased to report that it has been listed on the Open Market segment of the Frankfurt Stock Exchange under the trading symbol A1H38M.
All scientific and technical information contained in this new release has been reviewed and approved by Douglas H. McGibbon, a director and the Vice-President, Exploration of the Company, who is a "qualified person" within the meaning of National Instrument 43-101.
Sniper Resources Ltd.
Scott Baxter, Chief Executive Officer
This news release includes certain forward-looking statements or information. All statements other than statements of historical fact included in this release, including, without limitation, statements relating to the potential mineralization and geological merits of the Guild and Laura properties, and other future plans, objectives or expectations of the Company are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's plans or expectations include risks relating to the actual results of current and planned exploration activities; the geology, grade and continuity of any mineral deposits; fluctuating gold prices; risks associated with property option agreements, leases, joint ventures and the ability to conclude joint venture agreements on favourable terms; possibility of accidents, equipment breakdowns and delays during exploration; exploration cost overruns or unanticipated costs and expenses; availability of capital and financing required to continue the Company's exploration programs; general economic, market or business conditions; regulatory changes and restrictions including in relation to environmental liability; timeliness of government or regulatory approvals and other risks detailed herein and from time to time in the filings made by the Company with securities regulators. The Company 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 except as otherwise required by applicable securities legislation.
FOR FURTHER INFORMATION PLEASE CONTACT: Scott Baxter
Sniper Resources Ltd.
(604) 263-8415 (FAX)
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