ATW Gold Corp. (TSX VENTURE:ATW), has announced that its subsidiary, ATW Gold Corp Australia Pty Ltd has entered into a Farm-In agreement with the owner, James Arthur Millar, whereby ATW Australia can earn an 80% interest in the Cobra Gold Project located in Western Australia.
The Property is located in the Gasgoyne Region some 850km northeast of Perth and 500km north of ATW's Gullewa Gold Project. The area of the Property covers the historic Cobra-Bangemall and McCarthy's gold workings, from the years 1897-1916, where 356 tonnes of ore was mined from several shafts yielding 8.9kg gold at an average grade of 25g/t.
From 1916 to 1960, there was very little activity on the Property due to its remote location. From the 1960's onward, various companies have explored the Property for diamonds, base metals, uranium, and to a lesser extent, gold. Rockchip samples undertaken by previous explorers at the Property have returned up to 60g/t gold and up to 166g/t gold at the McCarthys historic gold workings. The historic production figures and rockchip samples noted above cannot be independently verified.
The gold mineralization appears to be developed within folded, sheared and altered dolerites, shales and carbonate sediments along the axial region at the core of a regional anticlinal fold. Dry-blowings for alluvial gold in the vicinity of the historic workings are common and are currently being treated on a smaller scale.
In order to define drill targets for early next year, ATW plans to undertake mapping and sampling of the Property. As well, ATW will review the recent gravity survey completed by the Australian Government on the area of the Property.
The Agreement, dated October 5, 2010 (the "Commencement Date") calls for ATW Australia to earn an 80% interest in the Cobra Gold Project by making exploration expenditures of AUD$800,000 on the Property over a two year period and by paying Millar, a total of AUD$100,000 as follows:
By making the following cash payments (the "Payments") to Millar:
i.) Payment of AUD$25,000 on the Commencement Date; and
ii.) Payment of AUD$25,000 on the date which is 12 months after the Commencement Date; and
iii) Payment of $50,000 on the date which is 24 months after the Commencement Date.
Brent Butler, Chief Executive Officer and President, commented: "This historic gold mining camp has been largely ignored due to its location and offers an opportunity for ATW to explore its potential from first principles. There are very few historic goldfields left almost untouched today. This presents a unique opportunity to apply modern exploration techniques in an under explored area".
Brent Butler, President and CEO of ATW Gold Corp. is the qualified person under National Instrument 43-101 and has reviewed the contents of this news release.
The Agreement is subject to its acceptance by the TSX Venture Exchange.
A finder's fee (the "Finder's Fee") is payable to 0857796 BC Ltd. The Finder's Fee is subject to final approval from the TSX Venture Exchange.
The Company would also like to report the grant of 5,500,000 incentive stock options to certain directors, officers, employees and consultants of the Company at a price of $0.10 per common share, exercisable for a 5 year period.
Source: ATW Gold Corp.