VANCOUVER, Aug. 23, 2012 /PRNewswire/ - Redtail Metals Corp. (TSX-V:RTZ) (the "Company") is pleased to announce that is has signed an Option Agreement with Kaska Minerals Corporation to acquire the R15 Project located in the Finlayson Lake District (FLD) 120 km south of Ross River, Yukon, and has also entered into an Exploration Memorandum of Understanding and Traditional Knowledge Protocol with the Ross River Dena Council governing the R-15 Project. The R15 project centers around a massive sulfide discovery made by Teck in 2004, no further work was conducted on the R15 property subsequent to the discovery.
"On behalf of the Kaska Nation, Ross River Dena Council is pleased to enter into this agreement with the Predator Group's Redtail Metals Corp." said Chief Jack Caesar. "This agreement, allowing for exploration on our R15 land block, provides for benefits including infrastructure, employment, training and economic opportunities for our Kaska communities from the development of exploration and mining in our traditional territory. These agreements are important for the health and development of our communities."
We are very pleased to enter into this innovative agreement and to work in partnership with the Kaska Nation to explore the R15 block, " said Blair Shilleto, Chairman. "The full participation and involvement of First Nation communities is essential for the development of projects on their lands. We are honoured that the Ross River Dena Council and the Kaska Nation have afforded us this opportunity to work together. I also want to thank the Predator Group team for their assistance in getting this deal done."
The R15 Project consists of a Yukon Government Lease of Mining Rights to the Kaska Minerals Corp oration covering 4,304 hectares of land set aside for the Ross River Dena Council. It is located approximately 120 km ESE of Ross River and approximately 25 km southwest of the Robert Campbell Highway within the prolific Finlayson Lake District; a crescent-shaped portion of the Yukon Tanana Terrane (YTT) located in the south-eastern part of the Yukon Territory that hosts numerous other volcanic-hosted massive sulphide deposits including the high-grade, poly-metallic Wolverine deposit, the Kudz Ze Kayah deposit, and the GP4F deposit.
In 2004, Teck Cominco Limited optioned the R15 Property from Kaska Minerals and drilled 7 diamond drill holes on the property (1). Four of the drill holes outlined a new discovery by intersecting a mineralized horizon highlighted by 3.4m of 15.84% Zn, 7.09% Pb, 0.2% Cu, 68 g/t Ag, 0.268 g/t Au in R04-006.
The mineralized horizon is relatively flat lying (approximately 15o dip) and is open in all directions. Several other mineralized horizons have been identified in the area through geophysics and limited diamond drilling including a 1.9m intersection of 6.3% Zn, 4.15% Pb, and 43 g/t Ag in drill hole R04-002.
|Significant intersections from the 2004 Diamond Drilling Program (1)|
No follow up drilling has been conducted since the initial discovery by Teck. The Company plans to commence a follow up offset drilling campaign in September 2012.
The R15 Project is adjacent to, and along strike with, Teck's GP4F project (historical resource estimate of 1.5 million tonnes of 6.4% Zn, 3.1% Pb, 90 g/t Ag, 2 g/t Au (1)) and hosts massive sulphide mineralization that is geologically similar to the GP4F. The R-15 mineralization may represent the continuation of the GP4F horizon along strike.
The R15 mineralization consists of a 1-3m thick horizon of massive sulphide hosted within Mississippian-aged felsic metavolcanic and metasediments of the Kudz Ze Kayah Formation within the Grass Lakes Succession. The horizon consists of massive to brecciated and recrystallized sphalerite, galena, magnetite, pyrrhotite, and chalcopyrite with minor silica, plagioclase, + chlorite and biotite gangue. The immediate footwall consists of variably altered chlorite, biotite, quartz, muscovite altered crystal tuff with strong sulphide disseminations and veins.
The Company also announces that it will conduct a non-brokered private placement of up to 12,000,000 units of the Company at $0.10 per unit (the "Units") to raise gross proceeds of up to $1,200,000. Each Unit will consist of one common share of the Company and one half of one share purchase warrant, each full warrant entitling the holder to acquire one additional common share of the Company at a price of $0.15 per share, for a term of one year from the date of issuance.
The proceeds from the private placement will be used for expenditures under the R15 agreements, exploration of the Company's mineral properties, the final payment for the Company's Marg Property, and for general working capital purposes.
Pursuant to the Option Agreement, the Company may acquire a 95% participating interest in the R15 Project by paying $1,000,000 in cash and issuing 2,000,000 of the Company's shares, in stages, over a four year period, incurring exploration expenditures totalling $3,500,000 on the R15 Project over a six year period and delivering a prefeasibility study on or before March 31, 2020. To retain its 5%, interest KMC must pay the Company 1.5 times the proportionate share of exploration costs incurred prior to the exercise of the option, which sum will be paid from KMC's share of proceeds from production.
KMC will also retain a 25% non-participating carried interest in the R15 Project, which will convert into a 25% participating interest following recovery by the Company of all expenditures following exercise of the Option Agreement. From production, KMW will receive an annual payment of $1,000,000 ($500,000 if the price of Zinc is less than $0.55/lb) which is also recoverable by the Company as set forth above.
Pursuant to the Exploration Memorandum of Understating, the Company has agreed to pay to Ross River Dena Council an annual supplement of $70,000 during the currency of the Option Agreement, as well as, annually, to contribute to a Community Development Fund 6% of the exploration expenditures incurred under the Option Agreement. The Exploration Memorandum of Understating also provides that the parties will negotiate in good faith a Socio Economic Participation Agreement ensuring equitable participation in the economic benefits of the R15 Project and continues stable funding of the Community Development Fund. The Option Agreement and the private placement are subject to all required regulatory approvals.
Appointment of Vice-President, Exploration
The Company is also pleased to announce the appointment of Gilles Dessureau, MSc, PGeo as the Company's Vice-President, Exploration. Mr. Dessureau is a Professional Geologist with over 10 years of exploration and development experience in the Yukon and British Columbia as well as other locations including Nevada, Ontario and Quebec. Mr. Dessureau has served as a Senior Geologist with the Predator Group since late 2009.
Mr. Dessureau has significant experience focused on volcanic hosted massive sulphide (VMS) deposits and has worked on a variety of projects ranging from grass roots exploration through mine development. Mr. Dessureau was instrumental in advancing through feasibility the Wolverine polymetallic VMS deposit in the Yukon, which began commercial production in 2010.
Mr. Dessureau is a Professional Geologist registered with the Association of Professional Engineers and Geoscientists of British Columbia and the Association of Professional Geologists of Ontario. Mr. Dessureau holds a MSc from Laurentian University in Sudbury and a BSc (Geology) from St. Mary's University in Halifax.
The technical contents of this release have been reviewed and approved by Gilles Dessureau, MSc, PGeo. Mr. Dessureau is the Company's Vice-President, Exploration and a Qualified Person as defined by National Instrument 43-101.
About Redtail Metals Corp.
Redtail Metals specializes in identifying, acquiring and developing quality precious metal enriched copper, lead and zinc mineral deposits in Yukon, Canada. The Company currently controls the Marg and Clear Lake massive sulfide deposits, both with 43-101 compliant mineral resources, along with a number of other quality exploration properties in Yukon. Redtail Metals, a member of the Predator Group of Companies, has a committed management team with extensive experience in the Yukon.
(1) MacRobbie, P.A., and Holroyd, R.W., 2004. 2004 Summary Report, R-15 Option (KZK Project) Canada, Linecutting, Grid Ground Geophysical Surveys (UTEM/MAG), Diamond Drilling, and Minor Geological Mapping. Exploration Report for Kaska Minerals Corporation and Yukon Territorial Government.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. This press release contains projections and forward-looking information that involve various risks and uncertainties regarding future events. Such forward-looking information can include without limitation statements based on current expectations involving a number of risks and uncertainties and are not guarantees of future performance. There are numerous risks and uncertainties that could cause actual results and Redtail Metals' plans and objectives to differ materially from those expressed in the forward-looking information. Actual results and future events could differ materially from those anticipated in such information. These and all subsequent written and oral forward-looking information are based on estimates and opinions of management on the dates they are made and are expressly qualified in their entirety by this notice. Except as required by law, Redtail Metals' assumes no obligation to update forward-looking information should circumstances or management's estimates or opinions change.
SOURCE Redtail Metals Corp.