Oct 19 2010
GTA Resources and Mining Inc. (TSX VENTURE:GTA) announces that it has executed a Letter of Intent with Lakeland Resources Inc. which outlines the terms for an Option / Joint Venture agreement on the "Hannah Property", located near Hearst, Ontario.
Pursuant to the terms of the proposed Option agreement, Lakeland can earn an undivided 60% interest in the property (subject to any underlying royalties) by making cash payments totaling $15,000, issuing 300,000 common shares, and incurring exploration expenditures of at least $250,000 within a 2 year period. Lakeland is committed to incur at least $125,000 in exploration expenses within the first year of the agreement. Lakeland can earn an additional 10% interest (up to 70% interest overall in the Hannah Property) by making additional cash and share payments, and incurring $250,000 of additional exploration expenditures (up to $500,000 cumulative within 3 years). Once Lakeland has earned an interest, an industry standard Joint Venture between GTA and Lakeland will be formed. GTA will be the operator of the project during the Option portion of the agreement.
About the property:
The "Hannah Property" consists of 5 claims (72 units) covering an area of approximately 11.5 km². The property is located approximately 75 km west northwest of Hearst, Ontario and is easily accessed by several area logging roads. The Hannah Property represents a small portion of GTA's Auden Project, an extremely large land package located northwest of Hearst, Ontario. The Auden Property covers almost an entire Archean greenstone belt with a strike length of approximately 80 km. Being predominately overburden covered and under-explored, this belt is poorly understood and has been interpreted to represent the easterly extension of the Beardmore – Geraldton Greenstone belt located approximately 110 km to the west. Shell Canada Resources Ltd. in 1978 was the first to interpret that a major regional structural and magnetic break strikes across the Auden Property in a general east – west direction.
Interpretation from a helicopter airborne geophysical survey completed in 2008 indicates that the Hannah Property covers the western part of a broad area of "magnetic destruction". This zone of magnetic destruction represents a geologically complex area and occurs within a regional scale sequence of iron formation, a geological setting favourable for gold mineralization. The airborne survey also identified several untested EM anomalies, and according to historical records, only one hole has ever been drilled on the property. In 1978, Shell Canada, in drill hole 78-14, intersected deformation and alteration including green mica (fuchsite), sericite, carbonate, pyrite and arsenopyrite; all key features favourable for gold mineralization. According to the Shell data, only two samples were collected, both returning weakly anomalous gold values.
Near term exploration plans on the Hannah Property include line cutting and I.P (induced polarization) surveying which will be followed by diamond drilling. Exploration is expected to commence later this fall.
"Our 100% owned Auden Property uniquely positions GTA as one of only a few companies controlling the entirety of an Archean greenstone belt in Canada," stated GTA president Peter M. Clausi. "Bringing quality partners like Lakeland to help move specific targets forward is part of our corporate strategy while we prepare to begin our own programs this fall."
Robert (Bob) Duess, P. Geo (APGO), Vice President Exploration for the Company, is the Qualified Person, as that term defined in National Instrument 43-101, who has reviewed and approved this press release and is responsible for the technical information reported herein.
Source: GTA Resources and Mining Inc.