RT Minerals Corp. (CNSX: RTM) announces that the Company has settled the terms of an agreement with Lake Shore Gold Corp. (TSX: LSG) whereby RTM will acquire from LSG 100% of the advanced staged Bazooka gold property, Quebec, and the McWatters gold property, Quebec.
RTM will acquire these properties by issuing an aggregate of 10,000,000 RTM shares to LSG. In addition, as further consideration, RTM will transfer its interest in the Golden Property near Timmins, Ontario and will transfer 50% of RTM's earned interest in the Meunier JV property to LSG. Completion of the transactions described herein remains subject to the approval of underlying property vendors and the shareholders of RTM.
The Bazooka property is a great acquisition for the Company as it provides a 100% vested title interest in an advanced staged property that hosts known gold zones in the Noranda-Val D'Or mining region.
BAZOOKA GOLD PROPERTY, QUEBEC
The Bazooka property to be acquired by RTM is an advanced gold prospect consisting of 15 mining claims in Beauchastel Township, 7 km southwest of Rouyn Noranda, Quebec and contiguous with the west boundary of properties owned and being actively explored by Yorbeau Resources. The property is situated about 45 km southwest of Agnico Eagles Laronde mine and about 40 km west of Osisko's Malartic project.
Geologically, the property overlies 1.8 km of the Cadillac-Larder Lake Deformation Zone (CLDZ) a major structural zone near the south margin of the Abitibi Greenstone Belt hosting numerous gold occurrences and deposits including the Val d'Or, Cadillac, Kirkland Lake, Larder Lake and Matachewan gold camps. Most significant gold mineralization identified to date at Bazooka is located near the east boundary with Yorbeau and hosted by strongly altered sedimentary and volcanic rocks surrounding a distinct northeast trending flexure in the CLDZ. This mineralization is in the direct westward extension of the CLDZ from Augmitto and Cinderella Blocks of the Yorbeau Property where past mining has been conducted to a depth of 250m from surface and recent drilling has yielded results such as 3.35 gpt over 33.0m, including 9.59gpt over 7.0m and 74.67 gpt over 10.35m (Yorbeau releases, May 26, 2010 and September 23, 2009, respectively). Yorbeau Resources has also recently announced the commencement of a 43-101 study to evaluate the resource potential at the Augmitto deposit.
The first significant exploration at the Bazooka property was conducted by Siscoe Mines in 1946 and included completion of 26 holes and development from an exploration shaft at 120 m below surface to evaluate the main mineralized showing. Significant historic drill intersections from this program include 8.8 gpt Au over 9.1 m, 3.8 gpt Au over 5.4 m, 10.7 gpt Au over 3.0 m, and 4.1 gpt Au over 3.0 m.
Soquem evaluated the property in 1981 and 1982 drilling 16 holes. The program identified four distinct mineralized zones (A,B,C and D) and obtained significant intercepts of 42.5 gpt Au over 4.5 m, 2.9 gpt Au over 9.0 m, 12.3 gpt Au over 7.5 m, and 21.1 gpt Au over 2.05 m. The above historic intercepts are from a 250m long portion of the (CLDZ) surrounding the Siscoe Shaft and at depths less than 220m below surface.
The most recent work at the property includes drilling by Lake Shore Gold Corp. in 2003 and 2004 which tested gaps in previous drilling by Soquem as well as areas up to 250 metres west of the Siscoe shaft with good success. In total, 23 holes and 7676m were drilled and obtaining several significant gold intersections at shallow depths from surface including:
The best results from the Lake Shore drilling are closely associated with strongly deformed and altered sections of the CLDZ near the northeast trending flexure containing quartz and tourmaline veins with disseminated arsenopyrite, pyrite, chalcopyrite and arsenopyrite. The drill results indicate excellent potential to extend the known deposit along strike and to depth as well as to define new deposits surrounding other northeast trending flexures west of the shaft. Further drilling is recommended.
MCWATTERS PROPERTY, QUEBEC
This is a 12 claim property (404 Ha) located 8 km southeast of the town of Rouyn-Noranda. The property is just north of the Cadillac Larder Lake Fault Zone.
The McWatters property is contiguous with the east boundary of the Yourbeau Astoria Property where past mining has extended a shaft to 515 meters below surface and Yourbeau has been evaluating the potential for open pit mining. The McWatters property has seen limited past exploration but several gold showings have been identified both within and in the surrounding area.
The mineralization at McWatters consists of gold, pyrite and arsenopyrite. The Lac La Bruere-Bischoff showing is located by past drilling (Lake Shore Gold 2003), which crosscut quartz veins with pyrite and arsenopyrite in a silicified wacke. These historic results returned up to 1.02 g/t Au over 0.91 meters and 7.79 g/t Au over 3 meters.
As different parts of the property remain covered by overburden mineralized zones could be present at such locations. A compilation of past geophysical work and newly proposed geophysics should be undertaken on the property.
THE MEUNIER JV PROPERTY, WEST TIMMINS, ONTARIO
The current initial deep drill hole onto the Meunier JV property is ongoing and when completed is estimated to provide a deep cut on the projected target area at about a vertical depth of 2600m. This will enable shallower wedge cuts to be considered if significant mineralization is found to be present in this area. The initial deep hole was collared on LSG's Timmins Mine property in August 2010 and is now about 1700m in depth.
This hole is targeting potential zones down plunge and on strike to mineralization at LSG's 100% owned Timmins Mine gold deposit where LSG has recently announced intercepts of up to 13.55 gpt Au over 50.80m and 61.35 gpt Au over 15m (LSG - August 10, 2010 News Release).
The Timmins Mine deposit straddles a volcanic/sedimentary/ultramafic contact zone, within a folded sequence that plunges about 54 degrees to the west-northwest towards the RTM - Adventure Gold (TSX.V: AGE) Meunier JV Property in which RTM may earn up to a 50% interest and LSG may now earn at least half of RTM's interest when vested. LSG may also earn a further 5% in the Meunier JV Property by carrying out an Economic Assessment Study on the property within the next 3 years.
LSG's Timmins Mine ore body has demonstrated vertical persistence as it can be traced down-plunge for a distance of approximately 1500m from surface, and remains open at depth. Newly emerging and significant fold structures and complexities are now becoming apparent on the deepest sections of the Timmins mine from LSG drilling. Overall, the gross geometry of the structure has remained surprisingly consistent from surface to a 1300m vertical depth and it is apparent that this geometry and structure continues to depth toward and potentially onto the Meunier JV Property.
In connection with the transfer of the Meunier JV Property, RTM and LSG will form a 50/50 joint venture and will share RTM's obligations under the Meunier JV with Adventure Gold Inc. (TSX.V: AGE). The terms of the RTM/LSG joint venture will provide that, in the event that a party does not contribute its pro-rata share of expenditures on the Meunier JV property and a party's interest in the Meunier JV property falls below 10%, then such party will transfer its remaining interest to the non-diluting party being either LSG or RTM.
Quality Control
Mr. Robert Laakso, P.Eng., is the Independent Qualified Person who has prepared or supervised the preparation of the information that forms the basis for the scientific and technical disclosure in this news release.
Source: RT Minerals Corp.