Apr 11 2014
NEVADO RESOURCES CORPORATION ("NEVADO" or the "Company") is pleased to announce the acquisition of a high-profile zinc-copper-silver-gold VMS property in the Schreiber-Hemlo greenstone belt. The Bozema Lake property, comprising 175 claim units, is located 240 km east of Thunder Bay, Ontario.
The Schreiber-Hemlo greenstone belt is host to the Hemlo gold deposit, approximately 75 km to the east, and the Winston Lake base metal mine, 80 km to the west of the property.
The limited work that has taken place on the property to date has turned up very promising results:
- In 1981, Gulf Minerals drilled four holes at Bozema Lake, with one hole intersecting 10 m of 8.6% zinc, including 4.9 m of 16.8% zinc.
- In 2002, RJK Explorations uncovered a new showing, the Starhill showing, where grab sampling returned 7.1% zinc, 1.5% copper, 101.0 g/t silver and 0.87 g/t gold from a partially exposed outcropping zone approximately 400 m long and up to 25 m wide.
- In 2005-2008, Phoenix Matachewan Mines identified an extensive folded chert horizon using geophysics, mapping, geochemical methods and 39 diamond drill holes (~3,700 m). In the 2007-08 diamond drill program, 618 samples were sent for analysis, with 14% of the samples returning over 0.1% zinc. One drill hole returned 7% zinc over 1.2 m within an extensive zone of strongly zinc-mineralized rock that averaged 0.58% zinc over 39 m. Drill hole BZW-08-05 retested the area Gulf Minerals drilled and returned an intercept of 11.09% zinc over 3.75 m within a recrystallized chert horizon. In addition, surface grab sampling of the target horizon returned 23.5% zinc and 3.1% copper in outcrops.
Grab samples are selective by nature and are unlikely to represent average grades on the property.
In addition to the known base metal zones on the Bozema Lake property, there are a number of EM conductors associated with the northern contact of the quartz feldspar, coincident with a zone of strong sodium depletion and silica enrichment that remains untested. These features make the Bozema Lake property a very attractive exploration target.
Michael Curtis, President and Chief Executive Officer of NEVADO, said that: "We believe that supplementing our La Blache titanium-vanadium-iron and Fermont graphite projects with zinc projects will enhance the value of our assets, as zinc prices are expected to rise because of increasing demand and a supply shortfall. The area we have chosen is close to large producing mines, while being clearly underworked and very promising. We will first assess the data from the property and then plan an exploration program in the coming months."
In consideration for the property, NEVADO will issue 200,000 common shares per year to the sellers for a total of 600,000 common shares, plus expenditures of $150,000 over the last two years. All common shares issued will be subject to a holding period of four months and one day. In addition, the property is subject to a 2% NSR on smeltable minerals or metals extracted from the property, payable in cash or in kind to the sellers. The Company will have the right to purchase half of the 2% NSR at any time for a cash payment of $1,000,000 to the sellers.
The transaction is subject to the approval of the TSX Venture Exchange and other regulatory approvals. All parties are dealing at arm's length.
The technical content of this news release was reviewed and approved by Garry Clark, P.Geo, a qualified person under National Instrument 43-101.
Source: http://www.nevadoresources.com/