ATW Gold Corp. (TSX VENTURE:ATW), announces signing of a Letter of Intent (LOI) with 0857796 B.C. Ltd., a private company for the purchase of a 100% interest in 64 unpatented lode claims in western Utah.
The lode claims comprise the Honey1-5 and the HC claims. These claims are collectively known as the Honey Comb Hills Project (the "Property"). The project area of the Property covers approximately 2 square kilometers and is located in the Fish Creek District, Juab County approximately 2.5 hours southwest of Salt Lake City.
The Property is in close proximity to Great Western Minerals Group's (GWMG) Deep Sands REE project.
The Property comprises an alkalic rhyolite flow dome complex which exhibits highly anomalous rare earth elements, lithium, beryllium, and rubidium. Mineralization occurs throughout the dome but appears to be higher in grade within a flat to gently dipping sequence of rhyolite tuffs and breccias. Initial surface sampling report assays of up to 1043 ppm total rare earth oxides (TREO), 1690 ppm lithium, greater then 1000 ppm beryllium and 1270 ppm rubidium. Detailed mapping shows an anomalous area of roughly 500 by 1000 meters with a satellite anomalous area of 500 by 500 meters. In addition, both anomalies are flanked by quaternary alluvium and could extend substantially under shallow cover.
The Property is still in an early exploration stage. However, higher grade material could be present at feeder zones at or near the contact with underlying basement limestones.
The Honey Comb Hills Project is in the same county, and hosts a similar geologic environment, to nearby Spor Mountain Mine. Spor Mountain Mine is owned by Brush Engineered Metals and produces approximately 48,000 tonnes of bertrandite ore annually grading 0.35% beryllium representing nearly 60% of world production. Studies conducted by the U.S. geological survey and by the U.S. Bureau of Mines in the 1960's confirm the extent and grade of the beryllium deposits in this area.
An article in Economic Geology in 1964 referencing Dow Chemical's exploration work in the area states that the discovery of beryllium mineralization in 1961 around the Honey Comb Hills Project led to a geological and exploration project by the Dow Chemical Company. Chemical and mineralogical studies of samples from shallow excavations and drill holes revealed abnormal quantities of cesium, rubidium and lithium in the beryllium-bearing tuffs.
ATW plans to proceed with a detailed mapping and sampling program immediately.
The terms of the LOI call for ATW to pay $250,000 cash and issue 7,500,000 common shares to the Vendor.
A finder's fee is payable in connection to the LOI. The LOI and the associated finder's fee are subject to approval from the TSX Venture Exchange.
The Company also wishes to announce it is conducting a non-brokered private placement (the "Private Placement") of up to 20,000,000 units (the "Units") at a price of $0.10 per unit, for gross proceeds of up to $2,000,000.
Each Unit will consist of one common share and one half non-transferrable share purchase warrant (the "Warrant") exercisable for a one year term from the closing of the Private Placement at an exercise price of $0.15 per whole warrant.
A finder's fee of the maximum allowed under the policies of the TSX Venture Exchange will be paid in cash or in units in connection to the Private Placement.
All securities issued pursuant to this financing are subject to a four month hold period from the date of issuance. The Private Placement is subject to approval from the TSX Venture Exchange.
Proceeds of this private placement will be used to fund exploration of the Honey Comb Hills and for general working capital including work on the Company's Gullewa Mine Project and any work that it may undertake on the Cobra Property.
The content of this news release was reviewed by Brent Butler, a Qualified Person as that term is defined in NI 43-101.
Source: ATW Gold Corp.