Posted in | Gold | Mining Business

Sanatana Resources Signs Agreement to Acquire Jackfish Property

Sanatana Resources Inc. ("Sanatana" or the "Company": TSX-V: STA) has entered into three option agreements that allow Sanatana to acquire a 100% contiguous interest in the Jackfish property, located in Ontario (the "Property").


The Property is located on the northern shores of Lake Superior, 20 km east of Terrace Bay via Highway 17, Ontario. The Property comprises 34 mining claims covering 3,664 hectares (9,054 acres). Geologically, the Property lies within the Wawa subprovince of the Superior province of the Canadian Shield, specifically the metavolcano-sedimentary Schreiber-Hemlo greenstone belt. The belt is known for its namesake Hemlo gold mine and, although similar geological and structural targets analogous to Hemlo exist in the greenstone rocks of the northern parts of the Property, the focus is an area containing high-grade gold bearing veins within the granitic rocks on the eastern margin of the Terrace Bay Batholith, that underlie the Property. There is also an interesting copper-in-soil anomaly located on the northeastern part of the Property.

Peter Miles, President and CEO of Sanatana, commented, "Sanatana is pleased to be back in the mineral exploration business and the Company's board of directors and management are looking forward to starting exploration on the Jackfish property."

Mr. Miles further stated, "Critical to Sanatana is the geological prospectivity of the Property with 35 recent grab samples from mineralized quartz veins returning assay results from .35 to 44 g/t gold with an average of 7.58 g/t gold; its location in the mining friendly jurisdiction of Ontario; and its proximity to infrastructure and major roadways, making exploration and any potential development far more cost effective. In addition, the three option agreements all have terms that help to lever Sanatana's corporate structure and expertise."

Buddy Doyle, Vice-President Exploration of Sanatana, commented, "We are pleased to be working alongside the Ontario Geological Survey ("OGS"), a division of the Ministry of Northern Development and Mines, which is actively mapping and sampling the Jackfish area, corroborating the high-grade gold occurrences that led Sanatana to the Jackfish acquisition. Sanatana intends to aggressively explore the Jackfish property as soon as all approvals are received. Exploration permits are in hand for the Wahl property and in process for the Richards and Alto properties."

Principal Agreement Terms

The Jackfish options agreements, which are subject to TSX Venture Exchange approval, allow Sanatana to acquire a 100% interest in the Property from three vendor groups: (1) Alto Ventures Ltd. ("Alto"); (2) Rudolf Wahl ("Wahl"); and (3) Wayne Richards, Francine Richards and James Hamel (referred to for convenience as "Richards").

To earn a 100% interest in the Property under the option agreements, Sanatana must, in aggregate:

  1. pay cash consideration of $375,000 over a 24-month period;
  2. issue 10,500,000 of the Company's common shares over a 24-month period;
  3. reimburse exploration expenditures of $20,000 on closing;
  4. incur exploration expenditures of $600,000 over a 24-month period;
  5. pay cash of $1,000,000 following receipt of a positive feasibility study;
  6. pay a net smelter return ("NSR") royalties on metals of 2% to Wahl and Richards, and a gross overriding royalty on diamonds of 2% to Wahl, all of which have an option to reduce these royalties to 1% for cash payments of $1,000,000 to each party;
  7. pay an NSR royalty on metals of 1% to Alto, for which a 2% NSR royalty already exists in a previous assignment agreement and which royalty has an option to be reduced to 1% for cash payment of $1,000,000; and
  8. pay an additional NSR royalty to Alto of 0.33%, to Wahl of 0.33% and to Richards of 0.34% on any new property acquired within the area of interest contemplated in the option agreements.

The Property

As noted above, the Property is located on the northern shores of Lake Superior, 20 km east of Terrace Bay, Ontario and is on Highway 17. The Property covers 3,664 hectares (9,054 acres); the following map shows the location of the Property within the province of Ontario:

The following table shows the best gold assay results achieved by the OGS in its grab sampling program over a four-year period and the below map shows the location of the grab samples.

Table of Best Gold Assay Results from OGS Grab Samples

Sample ID Au (g/t) Location
16DCJF002B 34.71 North Zone
MPWR1304 2.38 North Zone
12DCWR007 43.89 Cliff Zone
MPWR1306 27.77 Cliff Zone
16DCJF006 4.73 Lakeview Vein
15DCJS001 0.98 John's Showing
999016 6.05 Rudy's Site 4
999019 12.32 Rudy's Site 4
14DCRW004 1.71 Rudy's Site 4
999026 12.63 Rudy's Site 5
999027 16.56 Rudy's Site 5
999029 38.96 Rudy's Site 5
999030 9.37 Rudy's Site 5
14DCRW005A 9.02 Rudy's Site 5

Note that grab samples are selective by nature and do not represent intervals of mineralization hosted on the property.

The information in this news release was prepared under the supervisions of Troy Gill, BSc. MAIG, Exploration Manager for Sanatana. Mr. Gill is a Qualified Person for the purposes of National Instrument 43-101 -- Standards of Disclosure for Technical Projects and has reviewed and approved the technical information disclosed in this news release.


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