VANCOUVER, Aug. 4, 2011 /PRNewswire/ - Ralph Rushton, the President of Emerick Resources Corp. (TSXV: ERC) is pleased to announce that the Company has negotiated an option to acquire a 75% interest in an extensive claim package in the Northwest Territories controlled by GGL Resources Corp. ("GGL"), subject to TSX Venture Exchange approval.
A finder's fee is payable to Axemen Resource Capital Ltd., an Exempt Market Dealer.
The Providence Greenstone Belt ("PGB") project covers an area roughly 120 kilometers long and 30 kilometers wide over an under-explored Archean greenstone belt. Emerick's management sees the transaction as a unique opportunity for the Company to explore essentially an entire greenstone belt that has seen only limited modern exploration, and which includes known occurrences of gold and base metals.
To complete its option:
- Emerick will invest $1.0 million in GGL by way of a private placement of 20 million Units at $0.05 per Unit. The warrant will be exercisable for 3 years at $0.10.
- Upon expenditure of $10.0 million over 5 years Emerick will have earned a 75% interest in the PGB. Of these expenditures not less than $600,000 will be a commitment to carry out an agreed program in 2011 and 2012 designed to advance as many targets as possible to a drilling stage and to cover the costs of legal surveys required to bring certain claims to lease in 2011 and 2012. Upon Emerick having earned the 75% interest in the PGB, the parties will form a joint venture with standard JV and dilution provisions.
- Except with respect to the assets of GGL that are subject to agreements with Rio Tinto Exploration Canada Inc. and De Beers Canada Inc. which provide for mutual right to first offer, Emerick will have a right of first offer with respect to all assets of GGL outside the PGB.
$2 Million Private Placement
Emerick has also arranged a $2 million non-brokered private placement consisting of 7 million flow-through shares at $0.22 per share, and 3 million non flow-through shares at $0.20 per share. The $1.4 million flow-through proceeds will be used to fund the initial work commitments under the option agreement, and the $600,000 hard cash will be used for general working capital.
The Providence Greenstone Belt
Emerick is earning in to 75% of GL's Providence Greenstone Belt (PGB) project, an area 120 kilometers long and 30 kilometers wide. The PGB is Archean in age, and forms part of the Winter Lake Supracrustal Belt. It lies between Yellowknife and High Lake along a major north-south trending structural feature, thought to be an Archean rift zone. A prominent splay off this feature contains the Yellowknife Gold Belt, while the Lupin Mine gold deposit, and the Izok Lake and High Lake VMS deposits lie along easterly trending faults off the main structure. The age, geology, and size of the PGB is similar to other greenstone belts of the Superior craton such as the Timmins belt which is 120 km by 10 to 40 km. The Timmins belt is also marked by crustal-scale faults and noted for its gold, VMS and nickel deposits. The early stage discoveries at the PGB reflect this type of mineral potential.
Despite the fact that Greenstone belts throughout the world are known for their economic potential including gold, nickel, and VMS deposits, the PGB has seen only limited exploration, with most programs completed during the 1960s and 1980s. The discovery of nickel, copper-zinc-lead-silver-gold VMS, and gold within the PGB confirms the potential of this greenstone belt which is considered prospective for high grade, world class gold deposits such as the Timmins and Red Lake types, and also for Kidd Creek or Noranda-style VMS systems.
A brief summary of the potential of the PGB for specific commodities is given below.
Multiple outcrops of gold-bearing banded iron formation have been identified on the PGB claims, locally up to 25 to 40 meters wide, and traceable as shallow conductivity VTEM geophysical anomalies for up to 3 km. Samples collected by Noranda in the 1980s returned up to 3.7 g/t Au over 1 meter, and selected grab samples of up to 16.2 g/t Au. Some 40 km south of the gold discovery mentioned above, GGL collected selected grab samples from two poorly-exposed rusty sulfide zones separated by 300 m and containing arsenopyrite that assayed 22.62 g/t and 27.77 g/t Au, within a quartz-filled shear zone in mafic volcanics adjacent to a banded iron formation. A selected grab sample taken 15 km to the east in an area obscured by overburden assayed 42.68 g/t Au and an adjacent selected grab sample returned 19.88 g/t Au.
Volcanogenic Massive Sulfide Deposits (VMS)
East of the komatiite belt in the western part of the property, a 15 km long "figure eight" EM conductivity anomaly is thought to indicate an area of VMS potential. Along the entire 15 km length of the geophysical anomaly, massive to semi-massive sulphides, containing pyrrhotite and pyrite along with sphalerite and chalcopyrite, are found wherever rock exposures are seen. Selected grab sampling of outcrop has returned zinc values of up to 1.2% and up to 0.5% copper as well as anomalous silver values. A high grade zinc-rich boulder (25% zinc) has been traced to a potential bedrock source on the property where a selected grab sample assayed 6% zinc.
Exploration work by GGL has identified a number of belts of komatiite volcanics across their claims. Detailed sampling of the komatiite lavas carried out by GGL found that the PGB komatiites are geochemically similar to rocks from the Kambalda in western Australia, and there may potentially be sites of sulfide accumulation within the lavas. Several conductivity anomalies 2 km or more in length have also been identified associated with the komatiites, indicating potential for sulfide zones.
Harmen Keyser, P.Geol. (NWT), a Qualified Person in accordance with NI 43-101, is responsible for the accuracy of this news release. Mr. Keyser has verified that it is an accurate summary of the reports provided to Emerick by GGL and contained within reports by historic workers. Emerick, however, has not independently verified GGL's exploration results or those of historic workers.
ON BEHALF OF THE BOARD
Simon Ridgway, Chairman of the Board
Shares Issued: 20.1-million
Neither the TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy of this release.
Some of the statements in this news release contain forward-looking information that involves inherent risk and uncertainty affecting the business of Emerick Resources Corp. Actual results may differ materially from those currently anticipated in such statements.
SOURCE Emerick Resources Corp.