VANCOUVER, Aug. 12 /CNW/ - Nanika Resources Inc. (TSX-V: NKA and FSE: C7X) today announced results from the first ever phase of exploration conducted on its newly acquired, 100% owned Bulldog Creek property. Nanika's "Bulldog" property is located approximately 10 kilometres south of Stewart, BC, on Bulldog Creek and consists of seven contiguous claims totaling 4,219.5 acres, or 1,707.5 hectares. There are no underlying crown grants to any of these claims.
During the program a total of 86 rock samples and 96 soil samples in 4 soil lines were collected. Rock samples included 11 chip, 11 grab and 64 float samples. The bulk of the samples were collected on the west side of Bulldog Creek where Nanika's exploration crew encountered diverse mineralization occurring on the contact between Jurassic volcanic rocks and the Coast Plutonic Complex.
The highest gold value came from a grab sample from a 5 cm wide quartz vein with 3-5% pyrite sampled on the northeast side of Bulldog creek. Sample AB-93 collected from this vein yielded 9.98 g/t gold and 50.3 g/t silver.
"These initial results are particularly inspiring because the Bulldog Creek property has never before been the subject of mineral exploration, not even on the mineral outcroppings, according to all the historic Government of British Columbia Minfile reports we've examined," pointed out James D. Jacuta, Nanika's CEO.
Mineralization discovered by Nanika's crew is associated with quartz veins, quartz cemented breccias, stockwork and skarn. Sulphides include pyrite with lesser sphalerite, galena and chalcopyrite. Traced along a 1.5 km long section of the Bulldog Creek valley, the mineralized zone is open on both ends.
Several samples collected during the program recorded highly anomalous values in gold, silver and base metals. Sample AB-37A returned 6.75 g/t gold, 221.3 g/t silver, 0.066% copper, 0.81% lead and 0.44% zinc. This sample came from angular float 30 by 10 cm in size of quartz vein with 3-5% pyrite and minor chalcopyrite, galena and sphalerite. In another area located 1.5 km to the northwest from sample AB-37A, float sample AB-104J assayed 2.78 g/t gold, 400.6 g/t silver and 1.81% copper. The sample came from angular float 20 by 10 cm in size of aphanitic andesite mineralized with 3-5% chalcopyrite and 1-2% sphalerite and galena. Another float sample from the same area (sample AB-104D) returned 5.06 g/t gold, 564.9 g/t silver and 3.5% copper. That float is angular, 15 by 15 cm in size, composed of 60-70% coarse grained pyrite and 5-10% chalcopyrite. All of these highly anomalous float samples are of local origin collected in subsidiary creeks on the southwest side of Bulldog creek. Their source is located in the upper portions of these creeks.
Subsequent to receiving the assay results on the Bulldog Creek property Nanika has acquired further property to the immediate east, comprising two contiguous claims totaling 1886.6 acres or 763.49 hectares. These two claims were acquired for $5,000 and the issuance of 50,000 shares which is subject to exchange approval. Nanika's nine contiguous claims at Bulldog Creek will now total 6,106.10 acres or 2,471.0 hectares.
Nanika's management is currently reviewing work plans to evaluate the next phase of work that can be undertaken on Bulldog Creek.
All samples were analysed by Assayers Canada, an experienced, and ISO- 9001 certified lab based in Vancouver, BC.
Alex Walus, P. Geo., a qualified person under National Instrument 43-101 is supervising Nanika's work program on the Bulldog Creek property and has reviewed and approved the technical disclosure in this news release.
Nanika also announces that the grant of incentive stock options announced on July 9, 2010 will be at $0.10 cents per share in accordance with exchange policies.
About Nanika Resources Inc.
Nanika Resources Inc. is a TSX Venture listed mineral exploration and development company focusing on the advancement of its mineral properties, all of which are located within Canada.
On Behalf of the Board,
James D. Jacuta,
Chairman, President and CEO.
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SOURCE NANIKA RESOURCES INC.
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