Nov 10 2010
Savant Explorations Ltd. (TSX VENTURE:SVT) has announced it will commence diamond drilling on the McWatters Gold Property during the week of November 14, 2010.
With environmental permitting secured, Savant will mobilize the contractor's drill rig onto the first drill site on or about November 18 to initiate its planned 2,000 metre program on the McWatters Gold Property.
Savant's initial 2010 drill program will focus on testing extensions of the known gold mineralized zones referred to as the JKL and 702 Zones. Past drilling show both zones remain open at depth.
McWatters Property
The McWatters Property covers 4.0 km of strike length along the Cadillac-Larder Lake Break and includes the past producing McWatters Mine (reported past production of 334,500 tonnes grading 10.8 grams/t gold), and two diluted historical resources of 235,000 tonnes grading 6.6 grams/t gold and 170,000 tonnes grading 5.0 grams/t gold referred to as the JKL and 702 Zones. A Qualified Person has not done sufficient work to classify these historical estimates as current mineral resources, Savant is not treating the historical estimates as current mineral resources and the historical estimates should not be relied upon. The historical resources were shallowly tested to depths less than 225 metres and remain open at depth. One of the historical resources occurs within a broad zone of alteration in mafic volcanic rocks along the main Cadillac-Larder Lake Break. The style and setting of the mineralization in this historical resource is similar to that in the high-grade, deep seated gold deposits in the Kirkland Lake District including the Kerr Addison Mine (39.5 Mt grading 8.5 grams/t gold).
Little exploration has occurred on the property away from the McWatters Mine and the historical resources. In these areas, testing of the main Cadillac-Larder Lake Break and secondary parallel structures, which host the gold mineralization on the property, is generally limited to depths in the order of 100 metres. The historical records note encouraging drill intercepts of 2 to 6 grams/t gold over narrow intervals in a parallel structure located north of the main Cadillac-Larder Break which warrants additional drilling.
Acquisition Terms
Savant will acquire a 100% interest in the McWatters Property through cash payments totalling $690,000 payable over a 4 year period, work commitments totalling $5,000,000 over 4 years and the staged issuance of 1.3 million Savant common shares to the vendors over this same period. A gross metal royalty (GMR) on gold production will be payable to the vendor as follows: 1.0% GMR when gold is US$1,000 per ounce or less;1.5% GMR when gold is greater than US$1,000 per ounce but less than US$1,200 per ounce, 2.0% GMR when gold is greater than US$1,200 per ounce but less than US$1,800 per ounce and 2.5% GMR when gold is greater than US$1,800 per ounce. The initial cash payment on signing is $30,000 and the issuance of 150,000 shares.
John McClintock P.Eng., Vice President of Savant Explorations Ltd. is the Qualified Person, as defined by National Instrument 43-101, responsible for the technical data in this news release.
Source: Savant Explorations Ltd.