VANCOUVER, Sept. 15, 2011 /PRNewswire/ - Revolution Resources Corp. TSX: RV ("Revolution" or the "Company") is pleased to announce that it has entered into a binding letter agreement with Lake Shore Gold to acquire up to 100% of Lake Shore Gold's interest in four large property groups formally held by West Timmins Mining Inc. (Lake Shore Gold acquired West Timmins Mining in November 2009). The projects are located within two of Mexico's most prolific mining districts, near to Goldcorp's Penasquito and Camino Rojo Mines, and have multiple drill ready targets that Revolution intends to begin work on this year. Revolution and Lake Shore Gold will look to enter into a formal agreement with respect to the transaction by October 31, 2011.
The four acquisition properties are combined and titled under "Universo" and "Montaña de Oro" (Montaña de Oro includes: La Bufa, Lluvia de Oro and Montana de Oro). The portfolio is host to multiple discoveries and several past-producing regions.
Highlights from several prospects at Universo and Montana de Oro include:
- Historic drilling encountered: 1.5m of 121 g/t Au, within 21.3m of 11.7 g/t Au and 37 g/t Ag.
- Multiple new drill-ready targets from previous exploration. (Sampling produced over 25 samples greater than 1.0 g/t Au, including 7.76 g/t Au and 7,756 g/t Ag).
- Historic production includes: 47,000 tons averaging 16 g/t Au, 900 g/t Ag at one target.
Montana de Oro: (including La Bufa and Lluvia de Oro)
- Historic drilling encountered: 4.80m of 9.58 g/t Au and 121.8 g/t Ag, including 1.45m of 35.6 g/t Au and 93.0 g/t Ag.
- La Bufa historically produced 1,000,000 tons at 2.9 g/t Au and 2.5% copper.
- Lluvia de Oro historically produced 100,000 tons at 95 g/t Au and 865 g/t Au.
President and CEO of Revolution, Aaron Keay, states "The Lake Shore Gold Mexico portfolio becomes the Company's second flagship portfolio, in addition to the existing discoveries at Revolution's Champion Hills District in North Carolina."
"These properties represented an opportunity to acquire highly-prospective gold and silver properties that have not had recent drill testing - we could not pass up this opportunity. As we prepare for the exploration program on our newly-acquired Mexican portfolio, we will also continue to advance our Champion Hills gold properties in North Carolina" concluded Aaron Keay.
For Mexican property maps and corporate presentation, please visit our website at www.revolutionresourcescorp.com.
Previous production tonnage and grades at the various Properties is cited from government and mining company records. These figures are historic in nature, have not been independently verified and should not be relied upon.
The 315,000 hectare property is allocated in the middle of a 300 kilometer long trend of significant precious and base metal mines and deposits. Universo is located 30 kilometers south of the Camino Rojo gold-silver discovery (Canplats Resources, recently purchased by Goldcorp) and 80 kilometers south of Goldcorp's giant Penasquito gold-silver-lead-zinc mine. Twenty kilometers to the southeast of Universo, the Charcas mine is Grupo Mexico's largest Ag-Pb-Zn-Au-Cu mine. New Gold's Cerro San Pedro gold-silver mine is located 140 kilometers south of Universo. Despite the property's strategic location, limited modern exploration, particularly drilling has been performed.
Universo hosts a 24 kilometer long trend of gold-silver occurrences with multiple styles of mineralization including epithermal, sediment hosted/Carlin style and polymetallic epigenetic. Gold mineralization occurs within jasperoid silicified limestone sequences along regional scale fault structures, as well as within low sulphidation epithermal quartz vein systems.
This trend includes several small, historic producers. In the Navarro area, the Cinco Estrellas mine produced 47,000 tons averaging 16.0 g/t Au and 900 g/t Ag according to historic reports. A historic drill hole completed by Minera Kennecott encountered 1.5 meters averaging 121.0 g/t Au within 21.3 meters averaging 11.7 g/t Au and 37 g/t Ag, southeast of the Cinco Estrella mine.
Multiple greenfield gold and silver occurrences have been identified throughout the Universo area. Revolution plans to advance the highest priority target areas through surface sampling, mapping and ground geophysics to the drill stage during the next several months, as well as to commence drilling on ready targets.
Montaña de Oro
The Montaña de Oro Project is located at the junction of the states of Sonora, Sinaloa and Chihuahua in northwestern Mexico. The 36,500 hectare Property is located 25 kilometres south of Coeur D'Alene's newly-commissioned Palmarejo mine and 20 kilometres north of Pan American Silver's Alamo Dorado mine, in addition to several other advanced precious metal projects. To date, 17 areas of gold mineralization have been identified on the property, as well as four undrilled copper porphyry centers.
Highlights of historic drill results include: 4.80 meters averaging 9.58 g/t Au and 121.8 g/t Ag at the El Rodeo and Violeta vein target, 3.05 meters averaging 3.1 g/t Au and 108.28 g/t Ag at the Don Pancho vein target, and 4.47 meters averaging 30.3 g/t Ag, 16.5% Zn and 0.97% Cu at the La Concepcion carbonate replacement discovery.
The section of the Montana de Oro project known as "La Violeta" is held under a 70%/30% joint venture relationship with a third party.
The Carmen deposit on the La Bufa Property produced approximately one million tonnes of ore grading 2.5% copper, 2.9 g/t Au and 2.8 g/t Ag between 1947 and 1958 from a vertical vein system developed on the property. Multiple mineralized veins have been identified near the historic workings and can be traced on surface. The veins appear to be vertically zoned with greater gold-silver values in the upper levels of the mine grading progressively deeper into high grade copper mineralization. Individual veins are subvertical and typically 1 to 3 metres in width and developed in an en echelon fashion within the host structure. The property was not drilled by the previous operator.
Lluvia de Oro is located 30 kilometres east of the Montaña de Oro Property and 20 kilometres west of Goldcorp's El Sauzal gold mine. The Lluvia de Oro deposit produced between 1898 and 1915 and again in the early 1950's. Historic records indicate that approximately 100,000 tonnes was mined at an average production grade of 95 g/t Au and 865 g/t Ag. Gold-silver mineralization at Lluvia de Oro occurs both as broad disseminated zones up to 35 metres in width developed as mantos in silicified limestone and in discrete veins up to 12 metres in width in limestone, dacite porphyry and andesite.
Property Acquisition Terms
Revolution has the option to acquire a 100% interest in both the Universo Gold and Montana de Oro (including Lluvia de Oro and La Bufa) property portfolios. In order to acquire an initial 60% interest, Revolution will be required to issue to Lake Shore Gold common shares equal in number to 9.9% of Revolution's issued and outstanding common shares on a date within five business days of entering into a formal agreement for the transaction, incur $35 million in expenditures on the properties by August 31, 2016 and, within 30 days of incurring $15 million in expenditures, issue to Lake Shore Gold $1 million in common shares of Revolution valued at a price per share equal to the volume weighted average trading price of the common shares of Revolution for the five trading days (the "5 Day VWAP Price") ending on the trading date that is five trading days prior to the date of issuance of such common shares.
Revolution can acquire a 100% interest in either or both of the Universo Gold property segment and the segment comprised of the Montana de Oro, Lluvia de Oro and La Bufa properties by completing the following on or before August 31, 2017:
|(a)||with respect to the Universo Gold property segment, producing a National Instrument 43-101 technical report showing an aggregate resource of all categories of at least 2,000,000 gold equivalent ounces, and paying Lake Shore Gold $20 per gold equivalent ounces of resources defined in such report in cash or in common shares of Revolution (at the election of Lake Shore Gold), the common shares being valued at a price per share equal to the 5 Day VWAP Price ending on the trading date that is five trading days prior to the date of issuance of such common shares or, in the event shareholder approval is required for the issuance of such common shares, ending on the trading date that is 60 days prior to the date of issuance of such common shares; and|
|(b)||with respect to the segment comprised of the Montana de Oro, Lluvia de Oro and La Bufa properties, producing a National Instrument 43-101 technical report showing an aggregate resource of all categories of at least 1,000,000 gold equivalent ounces, and paying Lake Shore Gold $20 per gold equivalent ounces of resources defined in such report in cash or in common shares of Revolution (at the election of Lake Shore Gold), the common shares being valued at a price per share equal to the 5 Day VWAP Price ending on the trading date that is five trading days prior to the date of issuance of such common shares or, in the event shareholder approval is required for the issuance of such common shares, ending on the trading date that is 60 days prior to the date of issuance of such common shares.|
The option to acquire a 100% interest with respect to a particular segment may be exercised prior to the exercise of the option to acquire a 60% interest, provided that Revolution will be required to increase the value of the cash payable or common shares issuable under the applicable paragraph (a) or (b) above by an amount equal to the amount of the $35 million in expenditures under the 60% option not yet incurred by Revolution to the date of completion of the applicable technical report.
In the event Revolution acquires a 60% interest, but not a 100% interest, in respect of the property segments, Revolution and Lake Shore Gold will enter into a joint venture relationship with respect to each of such property segments. Revolution and Lake Shore Gold will each have a right of first refusal on the transfer of the other party's interest in the joint venture.
Lake Shore Gold will have the right to appoint one nominee of Lake Shore Gold to the board of directors of Revolution following the execution of the formal agreement for the transaction, during the period of Revolution's option to acquire a 60% interest described above and subsequently so long as Lake Shore Gold holds at least 5% of the issued and outstanding common shares of Revolution.
The transaction is subject to standard conditions, including obtaining all necessary regulatory approvals and entering into a formal agreement (which Revolution and Lake Shore Gold have covenanted to use best efforts to enter into on or before October 31, 2011).
Revolution Resources Corp. is a TSX-listed gold exploration company (TSX: RV) based in Vancouver, BC, Canada. Well-funded and with no long-term debt, the Company's current exploration activities are focused on two flagship projects located in the Champion Hills district of North Carolina and the newly-optioned Mexican property portfolio of Lake Shore Gold, previously owned by West Timmins Mining.
The Company has made multiple discoveries in the Champion Hills District in the Carolina Slate Belt of North Carolina, where drilling has encountered: 104.0 m of 1.27 g/t Au, including 40.0m of 2.33 g/t, 54.0m of 1.56 g/t Au, including 28.0m of 3.01 g/t Au, and 22.53m of 6.10 g/t Au and 258.65 g/t Ag (see Revolution news release dated June 22, 2011). The Slate Belt hosts most of the area's past producing gold mines, most notably the Ridgeway Mine, and the Haile Mine currently awaiting permits to commence production.
Revolution's newly-acquired Mexican property portfolio of Lake Shore Gold contains land totaling over 900,000 acres. The properties cover two distinct districts situate in regions which host current- and past-producing mines. Companies currently operating in the regions include: Goldcorp: Penasquito and New Gold: Cerro San Pedro.
Revolution's exploration programs are performed under the supervision of Robert McLeod, P.Geo, Director of Revolution and a Qualified Person as defined by National Instrument 43-101. Drill cores are cut in half using a diamond saw, with one half placed in sealed bags, and delivered to ALS-Chemex facilities in Reno, Nevada. A sample quality control/quality assurance program utilizing standards and blanks, as well as third-party check labs has been implemented. Scientific and technical contents of this release were prepared by and approved for release by Mr. McLeod.
ON BEHALF OF THE BOARD
of Revolution Resources
President, CEO and Director
Forward-Looking Statements: Some statements in this news release contain forward-looking information or forward-looking statements for the purposes of applicable securities laws. These statements include, among others, statements with respect to proposed exploration, development and production activities and their timing, potential mineralization and the anticipated acquisition of property interests. These statements address future events and conditions and, as such, involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the statements. Such factors include, among others, receipt of regulatory approvals, completion of anticipated transactions, the timing and success of future exploration, development and production activities, exploration and development risks, expenditure and financing requirements, title matters, third party consents, operating hazards, metal prices, political and economic factors, competitive factors, general economic conditions, relationships with vendors and strategic partners, governmental regulation and supervision, seasonality, technological change, industry practices and one-time events. In making the forward-looking statements, the Company has applied several material assumptions including, but not limited to, the assumptions that: (1) the proposed exploration and development of mineral projects will proceed as planned; (2) market fundamentals will result in sustained metals and minerals prices and (3) any additional financing needed will be available on reasonable terms. The Company expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise except as otherwise required by applicable securities legislation.
SOURCE Revolution Resources Corp.
Image with caption: "Universo Regional Deposits and Trend (CNW Group/Revolution Resources Corp.)". Image available at: http://photos.newswire.ca/images/download/20110915_C3564_PHOTO_EN_3312.jpg
Image with caption: "Montana de Oro Claim Map (CNW Group/Revolution Resources Corp.)". Image available at: http://photos.newswire.ca/images/download/20110915_C3564_PHOTO_EN_3311.jpg