TSX: SPD
VANCOUVER, April 14 /PRNewswire-FirstCall/ - Silver Predator Corp. (TSX: SPD) (the "Company") is pleased to announce that it has entered into agreements with Strategic Metals Ltd. (TSX-V: SMD) ("Strategic") and ATAC Resources Ltd. (TSX-V: ATC) ("ATAC") whereby it can earn a 100% interest in the Hy, Flip and Rusty Silver Properties.
Exploration Plans
The Company plans to complete a program of detailed mapping and further geochemical surveying on the Hy, Flip and Rusty properties in order to select specific targets to be tested for drilling later in the 2011 season or early in the 2012 season.
Rusty Property
The Rusty Property is adjacent to the northern edge of ATAC's Rackla (RAU) Gold project where numerous carbonate replacement showings as well as the newly identified Carlin-style mineralization at Osiris occur. The Property is located 110 km northeast of Mayo, Yukon and comprises 344 quartz claims optioned from Strategic and 73 quartz claims optioned from ATAC, encompassing a total of 8,779 ha. The claims cover Upper Proterozoic to Devonian quartzites, carbonates and siltstones of the MacKenzie Platform and the Selwyn Basin which host silver, lead, and zinc vein and carbonate replacement styles of mineralization.
Historical work at the Rusty Property includes mapping, prospecting, geochemistry, geophysical surveys, trenching and diamond drilling. This work identified eleven showings within the current boundaries of the Property. Chip and float samples collected from these showings have returned maximum results of 8,854.7 g/t silver and 76.36% lead from veins within limey siltstones, and 542.7 g/t silver, 43.8% lead and 5.83% zinc from veins within dolomite. Where in contact with mafic sills, the veins carry significant chalcopyrite and tetrahedrite with values up to 5.32% copper.(1)
Drilling in 1983 by Prism Resources Ltd. established the potential of the Property with sixteen diamond drill holes at the Siltstone Showing, a northeasterly trending fracture system. Prism estimated a block of 19,954 t grading 1,027.4 g/t silver, 26.7% lead and 7.3% zinc over an average width of 2.04 m.(2)
Resource estimates quoted herein are based upon reports prepared by previous operators. The Company has not completed the work necessary to verify the classification as mineral resource estimates. While the Company believes the resource estimate to be relevant, it is not treating the mineral resource estimates as NI 43-101 defined resources verified by a qualified person and they should not be relied upon.
Hy and Flip Properties
The road accessible Hy Property consists of 347 contiguous quartz claims covering 7,250 ha located 130 km north of the town of Watson Lake, Yukon. Numerous showings host silver, lead, zinc +/- tungsten mineralization in skarnified sediments near intrusive contacts. Surface sampling from trenching has returned values as high as 684.0 g/t silver, 9.20% zinc and 11.01% lead over 1.83 m.(3)
The most recent work, completed in 2007 for Strategic, involved a helicopter borne VTEM/Magnetic survey over the entire Property, property-wide rock sampling of mineralized zones, and a soil geochemical grid over the underexplored Elsa Zone. The VTEM/Magnetic survey outlined four areas for ground follow-up, and the soil geochemical grid outlined a 1.5 km long coincident silver, lead and zinc anomaly open along trend to the northwest and several smaller clusters of silver, lead and zinc anomalies that are open along trend to the southeast.(3)
The Flip Property consists of 20 contiguous quartz claims covering 418 ha located 120 km north of Watson Lake, Yukon. Silver, lead, zinc +/- copper +/- tungsten mineralization has been located in bulldozer trenches and in diamond drill holes in skarnified quartzite. Strategic staked the Property in July 2009 to cover the known and potential extension to this mineralization. Sampling of mineralization in the trenches by Cominco in 1976 returned grades of 476.6 g/t silver, 20.50% lead, 19.60% zinc, 3.04% copper and 0.73% tungsten over a width of 1.3m.(4)
Geology mapped on the two properties consists of Cambrian to Mississippian carbonates, siltstones and quartzites of the Selwyn Basin, which are intruded by Cretaceous Selwyn Suite plutons. The Hy and Flip Properties host skarn and vein mineralization that is similar to mineralization found at the Sa Dena Hes mine near Watson Lake.
Intermittent exploration since the 1960's on the Hy and Flip Properties includes geophysical surveys, trenching, soil geochemistry, petrographic studies and drilling.
Transaction Terms
As consideration for the grant of the Rusty option, the Company is paying $100,000 and issuing 200,000 common shares. To exercise the Rusty option and earn a 100% interest in the Rusty Property, the Company will pay an additional $1,450,000 and issue up to an additional 1,800,000 common shares, in stages over a 6 year period, with a value cap of $2.00 per share on the third year share issuance of 200,000 shares and a value cap of $2.50 per share on the fourth year share issuance of 300,000 shares. Of the payments and issuances required to exercise the Rusty option, $100,000 and 200,000 shares are firm commitments. Payments for the Rusty option are split 60/40 between Strategic and ATAC.
As consideration for the grant of the Hy option, the Company is paying $25,000 and issuing 50,000 common shares. To exercise the Hy option and earn a 100% interest in the Hy Property, the Company will pay an additional $775,000 and issue up to an additional 700,000 common shares, in stages over a 6 year period, with a value cap of $2.00 per share on the third year share issuance of 100,000 shares and a value cap of $2.50 per share on the fourth year share issuance of 150,000 shares. Of the payments and issuances required to exercise the Hy option, $100,000 and 100,000 shares are firm commitments.
As consideration for the grant of the Flip option, the Company is paying $15,000 and issuing 50,000 common shares. To exercise the Flip option and earn a 100% interest in the Flip Property, the Company will pay an additional $305,000 and issue up to an additional 750,000 common shares, in stages over a 6 year period, with value caps of $2.00 and $2.50 per share, respectively, on the third and fourth year share issuances of 150,000 shares each. Of the payments and issuances required to exercise the Flip option, $15,000 and 100,000 shares are firm commitments.
All properties are subject to a 2% NSR royalty. The agreements are subject to several conditions precedent, including regulatory approval.
The technical content contained in this news release has been reviewed and approved by Corwin (Cor) Coe, A.Sc.T., B.Sc., P.Geo., the Company's President and Chief Executive Officer and a Qualified Person as defined by NI 43-101.
Endnotes:
(1) Yukon assessment report 093968 by J. Eaton, P. Geo., 1999.
(2) Yukon assessment Report 062146 by AJ Sinclair, P. Eng., 1982-Note
tonnage conversion assumes report states the block estimate in short
tons and silver grade in troy ounces.
(3) Assessment report describing Geophysical Surveys, Geochemical
Sampling and Prospecting at the Hy Property (S. Eaton, May 2008).
(4) Assessment Report describing Geological, Logistical and Environmental
Orientation at the Flip Property by H. Smith, P. Geo, 2010).
About Silver Predator Corp.
Silver Predator Corp.'s corporate mandate is to explore and develop commercially viable silver resources in the leading silver districts of Yukon, Canada and Nevada, USA. Working within stable geopolitical jurisdictions, Silver Predator is focused on silver-dominant bulk tonnage and/or high grade opportunities. Proven management plus access to unparalleled geological talent in the Yukon and extensive experience in Nevada provide the ability to maximize shareholder value from the quality asset base. For more information on Silver Predator Corp. please visit our website at www.silverpredator.com.
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 Silver Predator's 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, Silver Predator assumes no obligation to update forward-looking information should circumstances or management's estimates or opinions change.
SOURCE Silver Predator Corp.
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