Trading Symbol: CME:TSX-VEN
Shares Outstanding: 59,952,626
CALGARY, April 25 /CNW/ - Celtic Minerals Ltd., (CME:TSX-VEN) is pleased
to announce that it has entered into an option agreement with a consortium of
prospectors and a private Newfoundland based mineral exploration company, to
acquire a 100% interest in the Budgell's Harbour Copper Project, near Notre
Dame Bay, Newfoundland. Geophysical surveys consisting of Gravity and Induced
Polarization (IP) are currently underway and drilling is planned for the
summer of 2007.
Barry Greene, Celtic's Vice President of Exploration, stated "The
Budgell's Harbour property contains one of the strongest and most consistent
copper soil anomalies I have seen. The geological environment is fairly unique
for Newfoundland and given the association of diatreme breccias and
lamprophyre dykes with such a large copper anomaly, represents an exciting
Budgell's Harbour Copper
The Budgell's Harbour project contains strongly anomalous copper soil
anomalies over an area measuring 1.5 km x 2.5km, located along the margin of a
differentiated alkaline ultramafic intrusion. Noranda assessed the Budgell's
Harbour intrusion for base metals in 1973-74 and again in 1987-88. Noranda's
exploration revealed strong copper soil anomalies but attempts were not made
to trench or drill the anomalous area. The bedrock source of the anomalies
remains unexplained. The large soil anomaly contains copper values ranging
from 50 ppm to 1500 ppm and two distinct regions within the larger anomalous
zone measuring 750m x 750m and 500m x 700m, contain values mostly ranging from
200 to 1500 ppm copper.
The Jurassic stratigraphic unit known as the Budgell's Harbour intrusion
consists of olivine gabbro, peridotite, diorite, diatreme breccias and
lamprophyre dykes. The Budgell's Harbour intrusion is interpreted to be
related to a major fault system which can be considered a part of the St.
Lawrence rift system.
The magnetic anomaly of the Budgell's Harbour intrusion is the most
striking feature of the airborne magnetic pattern in west central Notre Dame
Bay. The anomaly over the intrusion reaches a maximum of 60,000 gammas (25,000
gammas above background). A profile of the anomaly shows that the gradient is
extremely steep indicating that the walls of the Budgell's Harbour intrusion
are very steeply dipping - the overall shape is thus grossly cylindrical.
Key features of the Budgell's Harbour intrusion, which includes the
apparent cylindrical shape, the tectonic setting, the suggested mechanism of
magma generation, and the high volatile content, support the hypothesis that
the emplacement was forceful. A very forceful emplacement can produce a radial
fracture pattern which offers an explanation of the observed radial
distribution of lamprophyre dykes about the intrusion.
Lamprophyre dykes and/or diatremes associated with alkaline intrusions
are commonly the focus of gold exploration such as the Springpole gold project
in Ontario and the Cripple Creek deposit in Colorado. The Budgell's Harbour
area has seen limited exploration for precious metals although lake sediment
samples indicate anomalous gold along the north side of the Budgell's Harbour
intrusion and in the adjacent volcanic and sedimentary rocks.
Terms of Deal
The Budgell's Harbour property covers 1650 hectares and the agreement
grants Celtic the right to earn a 100% interest over three years by incurring
aggregate expenditures of $600,000 on the Property; and by making payments to
the optionors totaling $120,000, and an aggregate 300,000 share payment from
Celtic. In the first year of the agreement, Celtic has a firm commitment for
exploration expenditures of $100,000 and a cash payment of $20,000. The
optionors will retain a 2% NSR of which 1% can be purchased by Celtic for
$1.5 million. Celtic also has a right of first refusal to purchase the
remaining 1% NSR interest in the property. Additionally, Celtic has staked a
contiguous parcel of ground containing 2,250 hectares that will be included in
the area of influence covering the agreement.
Paul Delaney, P.Geo., project geologist for Celtic Minerals Ltd. is the
qualified person who has reviewed the content of this news release.
Celtic encourages the public to visit its website at
www.celticminerals.com for updated information on the Budgell's Harbour
property or to email us at email@example.com to be added to the
Company's e-mail list for press releases and updates.
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release.
For further information:
For further information: Paul Lipoth, Corporate Relations, Celtic
Minerals Ltd., Phone: (403) 261-2890 x233, Fax: (403) 265-2223; Barry Greene,
Vice President, Exploration Celtic Minerals Ltd., Phone: (709) 489-6480, Fax: