VANCOUVER, Aug. 31 /CNW/ - Golden Harp Resources Inc. (GHR:TSX-V) ("Golden Harp" or the "Company") is pleased to report that it has signed a definitive Option Agreement with Mineral Mountain Resources Ltd. (MMV.TSX-V) ("Mineral Mountain") on its Main Block Gold Property in the Shining Tree Mining Camp.
Pursuant to the Agreement, Mineral Mountain can earn a 60% interest in the Company's 100%-owned, 90 km(2) Main Block gold property situated in Macmurchy Township, Ontario adjoining the western boundary of Tyrrell Township in the Shining Tree Mining Camp by:
1. making total cash payments of $650,000 to Golden Harp over a three
2. issuing a total of 3,500,000 shares to Golden Harp over a three year
3. making exploration expenditures of $6,000,000 by August 26, 2014.
When Mineral Mountain has earned its 60% interest, the Main Block will be subject to a joint venture agreement between Mineral Mountain and Golden Harp, with Mineral Mountain as the initial operator. The participating interests of Mineral Mountain and Golden Harp will be 60% and 40%, respectively. If a party's interest is at any time diluted to below 10%, then such party's interest shall be converted to a two (2%) percent net smelter return royalty.
For details on the requirements under the Agreement please see the Company's press release dated August 17, 2010.
Mineral Mountain is currently reviewing and compiling historical data generated on the Main Block and have implemented plans to aggressively pursue exploration on the project under the supervision of Wally Rayner, the Company's VP of Exploration and C.J. Baker, its regional exploration Manager. Mineral Mountain has informed Golden Harp that it will begin a program of line cutting, geological mapping and re-logging of core from the Golden Sylvia Gold Zone within the next two weeks.
Main Block Gold Property
The Main Block covers two historic gold occurrences including the Golden Sylvia Gold Zone and the North Foley Lake Gold Zone and represents one of the largest prospective land packages in the Shining Tree Mining Camp including a total of approximately 504 claims units (91 claims). The property is located approximately 100 km south of Timmins, Ontario, along Highway 560 between Shining Tree and Gowganda within the southern Abitibi greenstone belt, along what is believed by many geoscientists to represent the western extension of the Cadillac-Larder Lake Break.
The Main Block gold property encompasses a north-westerly trending package of Archean rocks that host a variety of favourable geological settings prospective for gold and base metals. Significant regional gold bearing faults up to 20 km in strike length trend through the project and are interpreted to represent the western extension of the Cadillac-Larder Lake Break. The Golden Sylvia Gold Zone, which lies near the eastern limits of the project area, is a partially defined, gold-rich banded iron formation that is open in all directions and represents a near surface bulk tonnage gold zone measuring 450 m in length by 200 m in width to a depth of 100 m. Some of the better intersections include 2.57 grams per tonne gold over 14.23 metres (Hole DDHGS12) and 3.56 grams per tonne gold over 12.24 metres (Hole RCGS23). The "Main Zone" near the central part of the property occurs within an extensively altered rhyolite package with a known strike length of 5 km that hosts chalcopyrite, malachite, bornite and gold mineralization.
The Company previously entered into an option agreement with Benton Resources in March, 2008 (the "Benton Option") on the Block A portion of the Project which contains 351 of the total 855 claim units. With the announcement of the Mineral Mountain LOI, Golden Harp is now in a position to receive up to $700,000 in cash, additional shares in Benton Resources and shares in Mineral Mountain, and will see up to $8 million in expenditures on its Shining Tree Project over the next four years.
The transactions with Mineral Mountain are subject to certain conditions including, but not limited to, the receipt of applicable regulatory approvals including approval of the TSXV and entering into a definitive option agreement. Nelson W. Baker, P.Eng., is the qualified person for this news release.
Statements contained in this news release that are not historical facts are forward looking statements, which are subject to a number of known and unknown risks, uncertainness and other factors that may cause the actual results to differ materially from those anticipated in the forward looking statements. Although we believe that the expectations in the forward looking statements are reasonable, actual results may vary, and future results, levels of activity, performance or achievements cannot be guaranteed.
The information contained in the press release is a verbatim extract of the press release issued by Benton Resources Corp. Although Golden Harp believes the information included in the press release to be generally reliable, the data has not been independently verified and Golden Harp does not assume any liability for the accuracy or completeness of such information. either the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE GOLDEN HARP RESOURCES INC.
For further information: For further information: about Golden Harp Resources Inc., please visit www.goldenharpresources.com, or contact: Seamus Young, President and CEO, Tel: 604-688-4277