Dec 16 2010
First Gold Exploration Inc. (TSX VENTURE:EFG)(FRANKFURT:F12)(OTCQX:FGEXF) has announced that the Company has signed an agreement with Zimtu Capital Corp., Cathro Resources Corp. and Cazador Resources Ltd. to acquire a 100% interest in seven rare earth element and niobium properties in southeastern British Columbia.
The seven properties: the Kin, Trident, IRC, Munroe, Hiren, Claire, and Lindmark were acquired by the Vendors in 2009 after a detailed review of government lake sediment geochemistry databases and an assessment of geological environments prospective for REEs and rare metals. Targets were then refined using geology, airborne magnetics, known mineral prospects, access, and land use considerations. The projects cover some of the highest and most significant regional government geochemical results for REEs.
In 2010, the Vendors retained TerraLogic Exploration Inc. to complete a first pass exploration assessment of the properties for their REE and niobium potential.
Trident
Prospecting verified the presence of widespread syenite intrusions over 10 km long by up to 1 km wide at Trident Mountain. Most importantly, a total of eight rock and boulder samples collected in 2010 returned greater than 0.10% Nb2O5 (niobium oxide) with one grab sample from outcrop returning 2.82% Nb2O5 and 500 g/t Ta2O5 (tantalum oxide). Four boulder samples also returned greater than 0.30% TREO (total rare earth oxides) with one mafic intrusive boulder sample returning 2.81% TREO.
Kin
Prospecting results to date at the Kin property are very encouraging with four syenite boulder samples over a 700 x 700 meter area returning up to 5.26% TREO(total rare earth oxides) and 2.7% Nb2O5. Silt samples from the property are also exceedingly anomalous. Out of 102 silt samples collected from all seven of the Vendor's rare metal projects in 2010, the single highest value of 2622 ppm TREE (total rare earth elements) was returned from this drainage. The sum of the boulder and silt anomalies indicates excellent prospective regions up-hill and up-ice within underexplored areas proximal to and/or on strike with- the Trident Property, located 10 kilometers to the northwest.
IRC
Nine rock samples were collected in 2010 with three of the samples returning greater than 0.20% TREO. The best sample, a zeolite altered syenite, returned 0.30% TREO (total rare earth oxide) and 0.52% Nb2O5. This sample was a more anomalous version typical of 0.3-2m wide syenite dykes that crisscross through the mafic alkaline host rocks in this and other parts of the Ice River Complex. This project is immediately adjacent to the Ice River REE-Nb-Base Metals Project operated by Eagle Plains Resources Ltd. (TSX.V: EPL).
All seven properties acquired were initially staked based on highly anomalous RGS stream-silt anomalies and prospective regional geology. Four of the properties, the Trident, Kin, IRC, and Hiren are part of, or proximal to, large alkaline intrusive complexes with established potential for REE and niobium mineralization.
In British Columbia, carbonatites, nepheline and sodalite syenites gneisses and related alkaline rocks are found in a broad zone which is parallel to, and on either side of the Rocky Mountain Trench (Pell, 1989). This belt has been labeled the "Rocky Mountain Rare Metal Belt." Together the seven properties encompass 20,600 hectares.
First Gold has the option to earn a 100% interest in the seven properties by making the following cash and share payments to the Vendors: (i) $25,000 on signing; (ii) $100,000 and 2,000,000 common shares on TSX Venture Exchange ("TSX.V") acceptance; (iii) 1,000,000 common shares on the first anniversary; and (iv)1,000,000 common shares on the second anniversary. During the term of the agreement First Gold shall ensure that the claims are maintained in good standing. The Vendors will retain a 2% Net Smelter Royalty ("NSR") on the properties; 1% of which can be purchased by First Gold for C$1 million and the second 1% of which can be purchased by First Gold for C$5 million. The transaction is subject to acceptance by the TSX.V.
The technical information in this news release has been reviewed by Jarrod Brown, P.Geo of Terralogic Exploration Inc., consultant to First Gold and a qualified person as defined by National Instrument 43-101.
Source: First Gold Exploration Inc.