Ocean Park Ventures Corp. (TSX VENTURE:OCP) has announced that it has signed an option agreement with Constantine Metal Resources Ltd. dated November 29, 2010, to acquire a 50% interest in CMR's Trapper Gold Project.
Pursuant to the terms of the Option Agreement, the Company will pay $100,000 and issue 100,000 common shares to CMR upon receipt of applicable regulatory approvals.
The Trapper Gold Project comprises 9 contiguous mining claims (3,756 hectares) that make up the Trapper Gold property (the "Property"), located in the Atlin Mining Division in northern British Columbia. The Property lies 45 kilometres north of the Golden Bear mine road, accessed from Dease Lake and 200 kilometres south of the Yukon-BC border. The Property covers a very large gold-in-soil anomaly that has not yet been drill tested. The gold anomaly has been established with more than 900 soil samples defining a greater than two kilometre long zone that averages 200 metres in width and remains open ended along strike. The gold anomaly is associated with mafic volcanic rocks assigned to the Triassic aged Stuhinni Group that are intruded by diorite and dacitic feldspar porphyry stocks. Extensive iron carbonate-silica alteration suggests that the soil anomaly is associated with a robust large scale hydrothermal system.
In order to maintain the Option and earn a 50% interest in the Property, the Company must make cumulative exploration expenditures on the Property totalling $4.75 million as follows: $750,000 by December 15, 2011, $1,250,000 by second anniversary, $2,250,000 by the third anniversary and $4,750,000 by December 15, 2014. In addition, the Company must issue an additional 900,000 common shares to CMR as follows: 200,000 by the second anniversary, 300,000 shares by third anniversary and 400,000 shares by December 15, 2014.
After completing $4.75 million in exploration expenditures and issuing the share consideration to CMR to earn the 50% interest, the Company may elect to extend the Option and earn an additional 20% interest, for a total interest of 70%. To earn the additional 20% interest the Company must issue an additional 500,000 common shares by December 15, 2015 and spend an additional $5 million in exploration expenditures on the Property within three (3) years, with a minimum annual expenditure of $1,000,000.
In the event that the Company exercises the Option, Ocean Park and CMR will enter into a joint venture to further develop the Property, with each party contributing to their pro rata portion of the approved exploration program. If, at any time, a party's interest in the joint venture is reduced to below ten per cent, it shall be deemed to have conveyed its interest proportionately to the other party in consideration of the right to receive a 2% net smelter royalty ("NSR") for gold below US$1,000/oz, and 3% if above. One-half of the NSR and a right of first refusal on the other half can be repurchased by the other party for $2,500,000.
The parties may also jointly purchase 1% of the 2.5% NSR that currently exists on the Property in favour of its previous owner, by contributing that portion of $500,000 that equals each party's relative interest in the Property at the time of the NSR purchase, with a first right of refusal on the remaining 1.5% NSR.
The acquisition is subject to regulatory approval.
Trapper Gold Project Background
Historical work in the early 1980's by Chevron Minerals of Canada, outlined a large-scale, high-tenor gold-in-soil geochemical anomaly with initial reconnaissance soil sampling followed by 700 grid controlled soil samples that is now known as the Trapper Gold property (previously referred to as the Inlaw property by Chevron). Within the greater than one kilometre long anomaly, 13 individual soil samples yielded gold values greater than 1000 ppb gold (1.0 g/t), and two sites yielded >8000 ppb (8.0 g/t) gold. Reconnaissance sampling by CMR in 2010 extended the anomaly 1000 metres along trend for a total length in excess of two kilometres. The anomaly, which encompasses numerous supportive +100 ppb Au values, occurs with elevated arsenic and antimony, and is associated with pervasive iron carbonate-silica+/-clay alteration that can be traced on surface for a distance of five kilometres. A 1984 Chevron follow-up program carried out prospecting and preliminary mapping with more than 30 grab samples and 11 channel samples. One grab sample assayed greater than 10,000 ppb (10 g/t) gold and 11 one meter channel samples averaged 1.9 g/t gold and 9 g/t silver with a range of 0.3 g/t gold to 6.2 g/t gold. Further work recommended by Chevron geologists was apparently not carried out.
Mr. Chris Taylor, M.Sc. P.Geo, is a Senior Geologist with Ocean Park and is the Qualified Person as defined by National Instrument 43-101, who supervised the preparation of the above information. The information was obtained from previous public disclosure by CMR.
Source: Ocean Park Ventures Corp.