VANCOUVER, Oct. 15 /PRNewswire-FirstCall/ - GREENLIGHT RESOURCES INC. (TSXV.GR), is pleased to announce the Company has executed a letter of intent dated October 12, 2010 with Frank Ross and Ole Kristiansen ("the Vendors") to earn up to a 100% undivided interest in the Porcupine-Upper Miramichi Rare Earth Property ("Property") located fifty kilometers west of Newcastle, New Brunswick. Final approval for the Property agreement is subject to the Company's due diligence and to the acceptance of the TSX Venture Exchange.
Porcupine-Upper Miramichi Property
The Property consists of 86 claims held in three separate claim blocks covering 3,440 acres. The property is underlain by Ordovician intrusives, metavolcanics and metasedimentary rocks. The common lithologies present are porphyritic (quartz-feldspar) felsic volcanics, highly contorted quartzite and phyllitic metasediments gneissic granite and minor mafic volcanics. All lithologies have undergone greenshist metamorphism. Two exploration plays occur on the property. The south claim block contains a REE exploration target while the North claim block contains gold, silver and base metal targets.
Rare Earth Elements - South Claim Block
The primary target is the various rare earth elements (REE) that were discovered in soil samples on the property in 2007. Subsequent geochemical surveys confirmed very high values for REE mineralization over an area 100 meters square with individual assays showing the presence of several important heavy rare metals ("HREE"). A total of 300 soil samples were taken over an area covering approximately 200 meters square.
Assays for REE's include Samarium (Sm) which is increasingly used for high power magnets, is reported with grades of up to 218 ppm (g/t) and Dysprosium (Dy) with grades of up to 98.6 ppm (g/t), Neodymium (Nd) with grades of up to 1190 ppm (g/t), Ytterbium (Yb) with grades of up to 31.3 ppm (g/t) and Yttrium (Y) with grades of up to 472 ppm (g/t) . Reported assays for HREE's include Terbium (Tb) with grades up to 20.3 ppm (g/t) and Ytterbium (Yb) with grades up to 31.3 ppm (g/t) while reported light rare earth metals include Cerium (Ce) with grades up to 459 ppm (g/t) and Lanthanum (La) with grades up to 1,300 ppm (g/t).
Based on soil geochemistry to date, the source of the REE's is believed to be directly under the area with the high anomalous values or upstream to the south west. The next phase of exploration is to conduct shallow exploratory drilling to determine the nature of the bedrock in the anomalous area.
Copper and Base Metals - North Claim Block
The North Claim Block is believed to lie within an extension of the belt of rocks hosting the Chester deposit and mineralization on the property may be favourable for the occurrence of Bathurst-type massive sulphide mineralization. In 1995 BHP Minerals Canada carried out a geochemical survey and a statistical review of geochemical data. A total of 652, soil, stream sediment and seep sediment samples were collected. This survey documents highly anomalous samples with values as high as 7175 ppm Cu (g/t), 3894 ppm Zn (g/t), 18360 ppm Pb (g/t).
In 1998, Eastmain Resources Inc. acquired the property from BHP and carried out an evaluation of the mineral exploration potential and a geochemical survey. Previous anomalies were confirmed. Follow up work was recommended but not carried out.
In 2007 two packsack drill holes, P-07-01 and P-07-02 were drilled. Hole P-07-01 was collared on the mineralized outcrop found in 2006 and P-07-02 was collared 20 meters to the northeast. Hole P-07-01 for the most part cut a section of tuffaceous volcanic sediments with strong sericite and chlorite alteration throughout. Several sections were silicified. One ten inch silicified section ran Ag 9.1 oz/ton. Cuttings samples analyzed, show elevated Cu, Pb, Zn and W (Tungsten) throughout the hole. The hole was stopped at 78 feet in a feldspar porphyry when a drill rod broke.
DDH P-07-02 intersected the same tuffaceous volcanic sediment package as in hole one and ended in a granite. Of note in hole two was a fluorite vein cutting the tuffaceous mineralized horizon. One 4 inch section of core returned values of Pb 2100 ppm (g/t), Zn >10,000 ppm (g/t) and W 192 ppm (g/t).
Cuttings samples analyzed from both holes show elevated Ag, Cu, Pb , Zn and 408 ppm W. Of 20 samples analyzed, 15 samples ran greater than 100 ppm W.
In 2009 a pole dipole IP survey was carried out on over the mineralized outcrop drilled in 2007 and the surrounding area. The IP survey shows that hole P-07-01 barely penetrated the top of an IP anomaly. Extension of hole P-07-01 would be a priority target.
Patrick Forseille, P. Geo., a Qualified Person as defined by NI 43-101 is responsible for the technical information contained in this release.
In consideration of the acquisition, the Company will pay the vendors, $6,000 cash option payments and upon acceptance by the TSX Venture Exchange issue common shares of the Company to the vendors for consideration of $6,000. The Company will also spend total minimum work commitments on the Property of $120,000 over the next five years. The Company will also make payments to the Vendors of $110,000 over the next five years. Upon completion of the minimum work commitments and payments above, the Company will earn a 100% undivided ownership interest in the Property.
Upon completion of due diligence and TSX acceptance, the Company intends to implement a work program on the property which includes a drill program to test the REE soil anomalies.
About Greenlight Resources Inc.:
Greenlight Resources Inc. is a Canadian exploration company focused on the discovery and development of Lithium and rare metal deposits. The Company is currently focused on the 8,520 acre Brazil Lake property is located approximately 30 kilometres north of Yarmouth, Nova Scotia, and 12 kilometres west of the Avalon Rare Metals (AVL) East Kemptville Project. Drilling to date has successfully revealed two Lithium bearing pegmatite dikes. In addition to Lithium, the dikes host several other rare metals such as tantalum, niobium, beryllium, tungsten tin and rubidium. Metallurgical bench testing to date has also revealed other potential economic targets, including cosmetic grade mica, silica chloride, aluminum chloride and rubidium enriched potassium feldspar.
On Behalf of the board of directors
Ron Bourgeois, President
Ron Bourgeois, President
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Tel: (604) 488-3900, email: info@GreenLightResources.ca
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Forward-looking statements relating to future events or future performance and reflecting Green Light Resources management's expectations or beliefs regarding future events include, but are not limited to, statements with respect to completion of the private placement and related matters. In certain cases, forward-looking statements can be identified by the use of words such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved" or the negative of these terms or comparable terminology. By nature, forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Green Light Resources to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such factors include, among others, risks related to actual results of current exploration activities; changes in project parameters as plans continue to be refined; future prices of resources; possible variations in ore reserves, grade or recovery rates; accidents, labour disputes and other risks of the mining industry; delays in obtaining governmental approvals or financing or in the completion of development or construction activities; as well as those factors detailed from time to time in Green Light Resources interim and annual financial statements and management's discussion and analysis of those statements, all of which are filed and available for review on SEDAR at www.sedar.com. Although Green Light Resources has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward looking statements.
SOURCE Greenlight Resources Inc.