VANCOUVER, Sept. 10 /CNW Telbec/ - ANDOVER VENTURES ("Andover" or the
"Company") (AOX: TSX-V; R2X - FRANKFURT) is pleased to announce today that
Anglo American US (Utah) Inc. ("Anglo"), (NASD:AAUK), an indirect wholly-owned
subsidiary of Anglo American plc, a major internationally diversified mining
company and Chief Consolidated Mining Company ("Chief"), (CFCM-OTC.BB) have
executed and delivered a Limited Liability Company Agreement ("The LLC
Agreement") in order to form the Big Hill LLC ("The Company"). The Big Hill
LLC is a limited liability company to be incorporated under the laws of the
State of Delaware in order to explore for and, if justified, develop a
porphyry copper-gold-molybdenum target located on claims in Utah, USA,
presently owned by Chief or its wholly or partially owned subsidiaries
(collectively the Company Property).
The porphyry target is located in the Tintic Mining District near Provo,
Utah. A stockwork of quartz veinlets occupies the core zone of the target area
with a lithocap superimposed on the stockwork, a process termed telescoping.
Lithocaps usually define the shallow parts of porphyry copper systems
typically above the main Cu-Au+/- Mo zone. Anglo will become, upon
incorporation of the Company, the owner of a 55% membership interest in the
Company, in return for its covenant to fund all costs and expenditures of a
program to complete a Pre-Feasibility Study on or before the third anniversary
of the execution of the LLC Agreement and a Full Feasibility Study acceptable
for senior financing, on or before the fifth anniversary of the execution of
the LLC Agreement.
Chief, upon incorporation of the Company, will have a 45% membership
interest in the Company in return for its assignment of the Company Property
to the Company. Mr. Brian Mountford, a director of Chief, and Dr. Richard
Sillitoe are responsible for identifying the porphyry target. Mr. Mountford
was responsible for negotiating the terms of the LLC Agreement with Anglo and
will have a 5% beneficial interest in the Company held in Trust by Chief.
Anglo, in its capacity after incorporation of the Company, as the Manager of
the Company, proposes to commence drilling on the Company Property as soon as
possible and anticipates a September 2008 start.
Whilst Chief directly owns some of the Chief property, the bulk of the
Company Property is owned by Tintic Utah Metals Joint Venture ("TUMJV")
(approximately 75% Chief and 25% Korea Zinc). Korea Zinc, Chief and Andover
Ventures (TSX-V-AOX) have reached an Agreement whereby Andover/Chief will
purchase outright all of Korea Zinc's interest in the TUMJV for $3,000,000.
Separate and excluded from the Anglo Agreement, Chief owns additional
property in the District that it proposes to develop. The immediate plans for
this land package will be described in a press release following the
dissemination of this release.
Brian Mountford., P. Eng., and Director of Andover a qualified person
under NI-43-101 has reviewed the content of this news release.
For more information we invite you to visit us at
ON BEHALF OF THE BOARD
Signed "Gordon Blankstein"
The TSX Venture Exchange has not reviewed nor does it accept
responsibility for the adequacy or accuracy of this press release.
For further information:
For further information: Investor Relations: Richard Martens, (604)
682-2168, Int'l Toll Free: 1-800-266-4484, Facsimile: (604) 682-2169; Renmark
Financial Communications Inc.: Jen Power, firstname.lastname@example.org; Neil
Murray-Lyon, email@example.com; (514) 939-3989, Fax: (514)