Dec 3 2010
Hilltown Resources Inc. (CNSX:HLT) has signed a letter of intent dated November 29, 2010 with Tecstones Geologia Ltda and Rubens Favarato of Brazil to option 11 mineral claims comprising 13,085 hectares located in Bahia State, Brazil.
Hilltown can acquire the Claims by (i) incurring expenditure expenditures of US $1,600,000 in three years: year 1 - $200,000, year 2 - $400,000 and year 3 - $1,000,000. (ii) paying approximately $2,455 to keep the Claims in good standing to 2012 and (ii) reimbursement of the Owners acquisition and exploration costs to a maximum of approximately $89,100.
The Claims are subject to royalties which can be purchased by the Company.
Iron Ore Royalty: 2.5% of net sales proceeds (minus freight costs). The Iron Ore Royalty can be purchased by the payment of either: (i) prior to drilling, US $2,000,000, or (ii) after drilling, an amount equal to US$1.00 per ton of iron ore above 60% grade iron ore measured resource, with phosphorus levels of less than, 0.06%.
Manganese Royalty: 2.5% of net sales less freight which can be purchased for US $1,000,000 per percentage point for a total of $2,500,000.
Base Metals Royalty: 2% net smelter return which can be purchased for US $1,000,000 per percentage point for a total of $2,000,000.
The Claims are on Proterozoic-age marine meta-volcanic ("greenstones") and meta-sedimentary stratigraphic sequences that include significant segments of banded iron formation (BIF). Exploration targets on the Claims include small- to medium-sized (approximately 100,000 to 2,000,000 tonnes), high-grade (approximately 40%-50% Mn) submarine exhalative manganese deposits associated with submarine sediments and volcanics, and small- to medium-sized (10 to 50 million tonnes) high-grade (=50% Fe) BIF iron deposits. Strike lengths of prospective BIF covered by the claim blocks range up to 12-kilometers. Access and potential ore-transport logistics are considered good throughout most of the areas of interest.
The technical information disclosed in this press release has been reviewed, verified and compiled by Dr. Kent Ausburn, P. Geo. Dr. Ausburn is a qualified person as defined by National Instrument 43-101 (NI 43-101). Dr. Ausburn has over 29 years of mineral exploration experience and holds the following degrees and professional memberships:
- PhD. Economic Geology – University of North Carolin a - Chapel Hill
- M.S. Economic Geology – Florida State University - Tallahassee
- B.S. Geology – Florida State University - Tallahassee
- Member - Society of Economic Geologists – 28 Years
- Registered Professional Geologist – State of Califo rnia, USA – Since 1992
Hilltown is terminating its Option of the Jackson Manion Claims located in the Red Lake Mining Division of Ontario. The results of this summer's exploration program were reported in Hilltown's news release dated September 7, 2010.
Source: Hilltown Resources Inc.