VACAVILLE, Calif., April 9, 2012 /PRNewswire/ -- Goldspan Resources, Inc. ("Goldspan"; the "Company") (GSPN-OTC BB) and Alix Resources Corp ("Alix) (AIX-TSX:V) (37N–FRANKFURT) signed a Letter of Intent ("LOI") on April 5, 2012. The LOI will allow Goldspan to obtain up to a sixty (60%) ownership interest in the 24,500 acre Golden Zone property in Alaska. The LOI requires Goldspan to spend $3.5 million over the next three years for exploration and development, repayment to Alix of $1,000,000 as well as an estimated $250,000 for ongoing maintenance fees. The property is located along the south flank of the Alaska Range 15 miles west of the Parks Highway, approximately halfway between the cities of Anchorage and Fairbanks.
Alix has the existing option on the property which was entered into in September of 2010 with Hidefield Gold Inc. and Mines Trust Company (collectively the "Owners") whereby Alix can earn up to 70% interest in the Golden Zone property. Alix has expended over $1.5 million since the inception of their option for exploration and development.
Goldspan and Alix will enter into a Definitive Option Agreement which, inter alia, will require Goldspan and Alix to obtain the Owners' consent to the assignment of the Alix Option to allow for a direct transfer to Goldspan Resources, Inc.
Once the additional funds being committed by Goldspan have been paid as directed, the option that Alix has with the Owners will allow for an ownership change to Goldspan and Alix for 60% and 10%, respectively.
Alix received a NI 43-101, dated January 14, 2011, Technical Report from Norwest Corporation which provided a resource estimate for the Golden Zone property. Measured, Indicated and Inferred resources at cutoff grades for gold of 0.5 g/T to 4.0 g/T is included in Norwest's report which is included in Alix's public documents with Sedar (http://www.sedar.com). Several other mineralized prospects are also known to be present on the property.
At a 1.0 g/T Au cut-off, the Golden Zone Breccia Pipe and immediate environs contain an estimated resources as follows:
279,166 ounces of gold
1,523,657 ounces of silver
7,112,00 lbs of copper
in 3,486,250 tons of measured and indicated material averaging 3.02 g/T Au.
At a 0.5 g/T Au cut-off the measured, indicated and inferred resource of the Breccia Pipe and immediate environs is 11,294,060 tons of measured, indicated and inferred material averaging 1.44 g/T Au and containing:
431,389 ounces of gold
2,214,517 ounces of silver
13,284,003 lbs of copper
Once Goldspan obtains its ownership position after satisfying all the terms of the Definitive Option Agreement, the Company expects to raise the necessary capital to complete its mining plan and enter into mining production at which time a capital raise is anticipated.
Technical information contained in this release has been reviewed and approved by David Hedderly-Smith, Ph.D., P.G., and Goldspan's CEO and Chairman, who is a Qualified Person as defined by NI 43-101. Dr. Hedderly-Smith is also an Alix Director.
No stock exchange or Securities Commission has approved nor disapproved the statements in this release. Any statements that are not strictly historical are "forward-looking statements" made pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995 and within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct. These statements are subject to a number of risks and uncertainties that may affect actual events or results materially. These include, but are not limited to the Company's ability to obtain adequate financing to further its current and future business strategies; the Company's historical lack of profitability; the effects of business and economic conditions generally; and, other risks associated with a development stage company. All such forward-looking statements, whether written or oral, and whether made by or on behalf of the Company are expressly qualified by these cautionary statements. In addition, the Company disclaims any obligation to update any forward-looking statements to reflect events or circumstances after the date hereof.
SOURCE Goldspan Resources, Inc.