GREENLIGHT RESOURCES INC. (TSXV.GR), announces that it has retained Eastern Geophysics Limited of West Pubnico, Nova Scotia, to conduct a geophysical survey over its newly acquired Kemptville high grade gold prospect in Nova Scotia.
The gold property, located north of the village of Kemptville, encompasses one of Nova Scotia's historic gold mining districts, and is less than a 20 minute drive along a paved highway from the Company's Brazil Lake Lithium and rare metal property.
The survey, which has just been initiated, is a pole-dipole induced polarization/resistivity (IP) survey with an electrode spacing of 25 meters and 50 meters. The survey is to be carried out on 12 to 17 recently cut lines at a length of approximately 1200 meters each for a total of 14 to 19 line kilometres. The lines are currently spaced at 100 meters. The Company plans to initiate a drill program based on the results of this survey.
The Company further announces that the TSX Venture Exchange has accepted for filing, documentation with respect to the second and final tranche of a non-brokered private placement, announced on November 9, 2010, consisting of 385,000 flow-through units at a price of $0.25 per unit for gross proceeds of $96,250. Each unit consists of one common flow-through share and one flow-through share purchase warrant. Each share purchase warrant will entitle the holder thereof to purchase one additional flow-through common share of the Company at a price of $0.30 per share for a period of up to twelve months from the closing date of the private placement. The shares are subject to a four month hold period. Finder's fees of $31,700 were paid to Canaccord Genuity Corp.
The Kemptville property is comprised of 127 claims for a total of 5,080 acres. These claims control a strike length of over 8 kilometres along the potentially mineralized Kemptville Shear Zone. High grade gold was discovered on the property over 100 years ago and was produced primarily in the late 1800's from two underground mines, the Kempt and the Cowan. Following property acquisition by the present owners, AYARCO Gold Corporation Ltd. (AYARCO), a privately owned Nova Scotia company, modern exploration techniques were used to identify a target area between the two former producers featuring numerous high grade angular float boulders, several of which have assayed over 300 g/t (grams per tonne) (about 9 ounces/ton) Au. These boulders occur across the glacial trend for over 300 meters. The target area is further defined by a strong B-horizon soil anomaly just down ice from the float area with values of up to 450 ppb/t Au (parts per billion per tonne).
Recent exploration by AYARCO in 2006 to 2008, included taking over 250 bulk till samples over an area approximately three square kilometres. The survey has identified a very large "gold in till" anomaly measuring approximately 800 meters in width and extending 2,000 meters down ice. It is centered in an area between the two former mines, coincident with the area of high grade float. The analysis revealed gold grain counts up to about 1,000 grains in a standard 10 kilogram basal till sample. Analysis of the morphology of the gold grains indicates that they have travelled only about 100 meters from source. This technique played an important part in identifying some of the zones in the very large Rainey River gold property in Ontario. However, float samples are selective by nature and are unlikely to represent average grades on the property.
GreenLight may acquire up to a 80% undivided interest in the property from AYARCO by making cash option payments of $170,000 over the next three years and conducting exploration work of $1,300,000 over the next twenty-six months.
Lithium and Rare Metals Project
Greenlight Resources Inc. is a Canadian exploration company focused on the discovery and development of Lithium and rare metal deposits. The Company is currently focused on the 8,520 acre Brazil Lake property is located approximately 30 kilometres north of Yarmouth, Nova Scotia, and 12 kilometres west of the Avalon Rare Metals (AVL) East Kemptville Project. Drilling to date has successfully revealed two Lithium bearing pegmatite dikes. In addition to Lithium, the dikes host several other rare metals such as tantalum, niobium, beryllium, tungsten tin and rubidium. Metallurgical bench testing to date has also revealed other potential economic targets, including cosmetic grade mica, silica chloride, aluminum chloride and rubidium enriched potassium feldspar.
Rare Earth Element Project
On October 15th, the Company announced the signing of a letter of intent to earn up to a 100% undivided interest in the Porcupine-Upper Miramichi Rare Earth Property in New Brunswick. The primary target is the various rare earth elements (REE) that were discovered in soil samples on the property in 2007. Soil assays for REE's include Samarium (Sm), with reported with grades of up to 218 ppm (g/t) and Dysprosium (Dy) with grades of up to 98.6 ppm (g/t), Neodymium (Nd) with grades of up to 1190 ppm (g/t), Ytterbium (Yb) with grades of up to 31.3 ppm (g/t) and Yttrium (Y) with grades of up to 472 ppm (g/t). Reported assays for Heavy REE's include Terbium (Tb) with grades up to 20.3 ppm (g/t) and Ytterbium (Yb) with grades up to 31.3 ppm (g/t) while reported light rare earth metals include Cerium (Ce) with grades up to 459 ppm (g/t) and Lanthanum (La) with grades up to 1,300 ppm (g/t).
Patrick Forseille, P. Geo., a Qualified Person as defined by NI 43-101 is responsible for the technical information contained in this release.
Source: GREENLIGHT RESOURCES INC.