Benton Resources Signs Letter of Intent to Acquire up to 75% Interest in Cape Ray Gold Deposits and Provides Update
THUNDER BAY, ON, Sept. 20, 2012 /CNW/ - Benton Resources Inc. (TSXV: BEX) ("Benton" or the "Company") is pleased to announce that the Company, subject to TSX-V approval, has signed a binding Letter of Intent ("LOI") with Cornerstone Capital Resources Inc. ("Cornerstone") to acquire up to a 75% interest in Cornerstone's Windowglass Hill ("WGH") and the 51 Zone deposit (collectively the "Property"), located approximately 25 km northeast of the town of Port aux Basques in southwestern Newfoundland.
The Property consists of a single 183-claim mineral license which covers an area of 4,575 ha including a 22 km-long strike length of the Cape Ray Fault Zone, a significant gold-bearing structure, which in addition to the WGH and 51 Zones, is associated with Tenacity Holdings Inc.'s 04 and 41 deposits and Marathon Gold's Leprechaun Deposit, which recently announced a 43-101 resource including of 424,000 ounces Au (M&I) and 305,000 ounces Au (Inferred).
Cornerstone recently announced the results of an initial National Instrument 43-101 compliant mineral resource estimate for the WGH and 51 Zone deposits (see Cornerstone PR dated July 18, 2012). The mineral resource estimate was prepared by Mercator Geological Services Limited of Dartmouth, Nova Scotia and was completed on the two separate mineralized zones. The estimate is based on three-dimensional block models developed for the 51 Zone and WGH using Gemcom Surpac(r) 6.1.4 modeling software and the validated results of 26,480 metres of historical diamond drilling from 197 drill holes completed between 1977 and 1996, with an additional 2,520 metres of diamond drilling in 28 holes completed by Cornerstone between 2004 and 2006. Mineral resources for the 51 Zone and WGH are reported, respectively, on the basis of an assumed underground (2.5 grams per tonne ("g/t") gold ("Au") cut-off) and open pit (0.5 g/t gold cut-off) development potential.
- 51 Zone -- Inferred resources of 530,000 tonnes grading 6.10 g/t Au and 15.86 g/t Ag containing 103,943 ounces of gold and 270,253 ounces of silver
- Windowglass Hill - Inferred resources of 1,810,000 tonnes grading 1.77 g/t Au and 11.28 g/t Ag containing 103,001 ounces of gold and 656,415 ounces of silver
- Mineralization is relatively shallow at a maximum of 270 metres vertically below surface for the 51 Zone and 140 m for Windowglass Hill
- Opportunities exist to upgrade and expand the mineral resources
Summary of Mineral Resources for the 51 Zone and Windowglass Hill, Cape
(Mercator, July 16, 2012).
(2.5 g/t Au)
(0.5 g/t Au)
To earn the initial 70% interest in the Property, the Company must make the following cash and share payments, and complete the following exploration expenditures:
|On or before 1st Anniversary (Year 1)||$25,000||30,000||$250,000|
|On or before 2nd Anniversary (Year 2)||$30,000||40,000||$400,000|
|On or before 3rd Anniversary (Year 3)||$50,000||60,000||$600,000|
|On or before 4th Anniversary (Year 4)||--||--||$750,000|
Benton can earn an additional 5% (taking their interest to 75%) by incurring an additional $1 million in exploration expenditures at its sole election but such election must be made within a period that is 18 months from the date that the Company's interest vests at 70%.
Stephen Stares, Company President and CEO commented "After reviewing the data on the WGH and 51 Zone deposits, we feel there is potential to expand the current resources and potentially discover additional economic zones within Cornerstone's claim group. With companies such as Marathon Gold working along the trend and consistently discovering new mineralization, we feel that Benton's Cape Ray project has the size and geology to potentially host economic resources on trend with the known deposits in the area. Benton is well funded with approximately $14 million in combined cash and equity positions but with a market cap of only $7 - $8 million, there is excellent upside potential for shareholders as we advance these deposits and search for new discoveries in this well mineralized trend".
Results from recently completed prospecting activities by Benton personnel on the Company's 100% owned Cape Ray East Property to the northeast of the adjoining Cornerstone property, have identified abundant mineralized quartz vein material containing trace to several percent sulphides and assaying from 5 ppb Au up to 191.2 g/t Au and 888.0 g/t Ag in large angular float samples.
In addition, Benton currently has multiple exploration programs underway and provides the following update. The Company has now completed approximately 2900 meters of diamond drilling on the Elizabeth Anne project in San Bernardino County, California and expects assay results in the near future which will be released as soon as they are received and compiled. In addition, Company personnel have completed a soil geochemical survey and prospecting at Benton's 100% owned Saganaga gold project located approximately 120 km west of Thunder Bay, Ontario with work ongoing to evaluate several well defined gold soil anomalies. Finally, a trenching and channel sampling program will commence immediately at the Turtlepond gold project located 23 km southeast of Dryden, Ontario. Soil geochemistry and prospecting has provided Benton with 4 gold targets (ranging from trace to 161g/t gold) over nearly 4km.
The Company would also like to announce that it has disposed of its 782,500 shares of Marathon Gold Corporation (TSX: MOZ) for $0.85 per share for gross proceeds of $665,125. The Company felt that the timing, price and availability of an opportunity to sell the entire block of shares was beneficial. The proceeds will be used to further explore the Company's projects, particularly on the Cape Ray trend.
In addition the Company has granted First Canadian Capital ("FCC") 200,000 options exercisable at $0.15 for two years for investor relations and consulting services that FCC will provide to the Company.
Clinton Barr (P.Geo.), V.P. Exploration for Benton Resources Inc., is the qualified person responsible for this release.
On behalf of the Board of Directors of Benton Resources Inc.,
Stephen Stares, President
THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
The information contained herein contains "forward-looking statements" within the meaning of applicable securities legislation. Forward-looking statements relate to information that is based on assumptions of management, forecasts of future results, and estimates of amounts not yet determinable. Any statements that express predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance are not statements of historical fact and may be "forward-looking statements."
Forward-looking statements are subject to a variety of risks and uncertainties which could cause actual events or results to differ from those reflected in the forward-looking statements, including, without limitation: risks related to failure to obtain adequate financing on a timely basis and on acceptable terms; risks related to the outcome of legal proceedings; political and regulatory risks associated with mining and exploration; risks related to the maintenance of stock exchange listings; risks related to environmental regulation and liability; the potential for delays in exploration or development activities or the completion of feasibility studies; the uncertainty of profitability; risks and uncertainties relating to the interpretation of drill results, the geology, grade and continuity of mineral deposits; risks related to the inherent uncertainty of production and cost estimates and the potential for unexpected costs and expenses; results of prefeasibility and feasibility studies, and the possibility that future exploration, development or mining results will not be consistent with the Company's expectations; risks related to gold price and other commodity price fluctuations; and other risks and uncertainties related to the Company's prospects, properties and business detailed elsewhere in the Company's disclosure record. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking statements. Investors are cautioned against attributing undue certainty to forward-looking statements. These forward looking statements are made as of the date hereof and the Company does not assume any obligation to update or revise them to reflect new events or circumstances. Actual events or results could differ materially from the Company's expectations or projections
SOURCE: Benton Resources Corp.For further information:
contact Stephen Stares @:
3250 Highway 130,
Rosslyn, ON P7K 0B1
Clair Calvert: @ 204-219-4546