Trading Symbol: WDG - (TSX.V)
VANCOUVER, Jan. 4 /CNW/ - 99 Capital Corporation (the "Company") is
pleased to provide a status report on the Giyani property acquisition,
an update on the Company's corporate development advancements and a
preview of the Company's objectives for 2011.
President Alexander Helmel was quoted, "With 2010 ending, we undertook
to evaluate our progress against our strategic plan; we began 2010 with
an aggressive and opportunistic approach and stayed on that pace
throughout the year. As a result of this executed strategy, the Company
begins 2011 strongly positioned as a well capitalized, multi-project
resource company, with proven management and conditional approval from
the TSX-V to acquire transformational world class gold assets in
Giyani. I am delighted and encouraged by our achievements in such a
short period, and very much look forward to 2011."
Giyani Gold Project
On October 6th, 2010, the Company announced its intent to acquire the Giyani Gold
project in South Africa. Management continues its due diligence
process, and the Company is working towards finalizing partnership and
operating agreements as well as the overall completion of this
transaction. As at December 31, 2010, the Company and vendor have
agreed to extend the deadline for the closing of the transaction until
January 31, 2011. The Company endeavors to close the transaction in
January of 2011.
This strategically positioned land package is located within a key
geologically prospective and historically prolific gold producing
region in the northeast part of South Africa in the Limpopo province.
The "Giyani Greenstone Belt" represents a historically under-explored
region of the country and a key industry development initiative for
both the Chamber of Mines of South Africa and the Geological Society of
South Africa. The properties are all located within a 13 km long
corridor of the highly prospective Giyani Greenstones that host
considerable past production and exploration potential.
Once the transaction is completed the Company's geologists will compile
and review all of the available historical information on the Giyani
gold properties and will commence preliminary exploration programs to
prepare for subsequent extensive drilling campaigns. As stated
previously, US$5 million will be used towards payments to the Giyani
property vendors and the remaining $3 million will be allocated towards
the Giyani project once the transaction is complete.
2010 Corporate Development Initiatives
On November 3rd, 2010, the Company welcomed significant additions to its management
team, namely Mr. Duane Parnham, Mr. Mark Monaghan, and Mr. Knowledge
Katti. In October of 2010, the Company raised CAD$9 million in a
non-brokered transaction which included CAD$1 million of flow through
funds. CAD$8 million of proceeds from this transaction will be
allocated towards the Giyani Gold project of which CAD$6 million are
currently in escrow pending the closing of the transaction. The Company
is in the process of allocating the CAD$1 million of flow through funds
for the 2011 exploration programs at its Canadian projects.
Objectives for 2011
Finalize Giyani Gold partnership and operating agreements
Implement Giyani development strategy including rig acquisition and
aggressive drilling program
Increase land position within the Giyani greenstone belt
Increase corporate visibility and exposure to the investment community
on a global scale
Utilize managerial expertise developed with proven success
Enhance technical management capabilities with additional hires
Evaluate and implement corporate strategies to improve overall
performance by implementing sound management practices and corporate
Significantly increase exploration activity
Build compliant resources/reserves
Growth by capitalizing on new opportunities presented from industry and
Evaluate corporate strategies to increase exposure to Rare Earth Element
Chairman Duane Parnham commented, "With great strides made to build the
asset portfolio, the Company begins 2011 with the strategic plan, the
team, and the financial strength to capitalize on global opportunities
already identified. Beyond the great potential of Giyani, these
opportunities include our assets here in Canada". The Chair further
stated, "Combining generative geological abilities, proven corporate
development strengths, and access to capital, 99 Capital has firmly set
the foundation for a unique and highly prospective resource development
2010 began with the Baska-Eldorado project (located in Saskatchewan,
Canada) followed by the addition of the Skead Gold Project (located in
Ontario, Canada) and the Shaw Gold Project (located in Ontario, Canada)
to the Company's portfolio of projects. Preliminary exploration and
compilation work was initiated in 2010 and is described below in
Skead Project (Gold)
The 972 Ha Skead Gold Project is located within the Archean Abitibi
Greenstone Belt of the Superior Province of the Canadian Shield
approximately 120 km southeast of Timmins and approximately 15 km South
of Larder Lake Ontario. The project includes the past producing New
Telluride gold mine, which last saw production in 1932. Reference to
past non NI 43-101 compliant production reports gold values from trace
to 1 oz/ton from underground workings.
The focus of the Skead Gold Project is its three primary zones, which
trend northeast of the New Telluride shaft area: the Telluride,
Denique, and Northern zones. The Northern zone is located approximately
800 meters north of Telluride and has reported historical non NI 43-101
compliant gold values of up to 3 oz/ton from channel samplings. Since
1932 there has been very little geological investigation due in part to
gold market conditions and the inability of previous operators to have
assembled the claims into one complete and comprehensive package.
In the summer of 2010 the Company completed a line cutting program at
the Skead Gold Project. This was used as the basis for the Company's IP
and magnetics survey which was completed in the fall of 2010. Initial
results from this program revealed several anomalous areas. The final
results are expected early in 2011.
Having now assembled these claims and associated data, the Company's
geologists are in the process of compiling all the available data to
create an appropriate model from which to determine exploration
activities for the upcoming 2011 field season.
The Company expects to commence a 3,500 meter drill program on the Skead
Gold Project in 2011.
Baska-Eldorado Project (Uranium and Rare Earth Element, "REE")
The Baska-Eldorado uranium and REE property is located near Chatwin Lake
in northern Saskatchewan and covers an area of approximately 140 km2 approximately 200 km north of La Ronge, Saskatchewan, and approximately
55 km southeast of Cameco's Key Lake Uranium Mine.
On January 19th, 2010, the Company announced results of its initial prospecting,
line-cutting, geological mapping, soil geochemistry and ground
geophysics program with the following highlights:
Baska showing with Uranium assays up to 1220 ppm U (0.113% U3O8 assay) from a pegmatite alteration selvedge
Three samples (AGKJR 001 to 003) taken from trenchwork returned
exceptional TREO assays of 55.9%, 30.6% and 18.9%, respectively. (Sample AGKJR003 is a 0.7 m chip sample.)
Individual rare earth element contents for grab sample AGKJR001 are as
follows: Ce2O3 - 28.1%, Nd2O3 - 9.57%, Eu2O3 - 0.086%, and Tb2O3 -
The Company has now completed its 2010 field program conducted by
TerraLogic Exploration Services. This program consisted of trenching,
mapping and prospecting, which expanded the previous exploration
campaign. The Company awaits the final report from this program and
will announce results once reviewed by the Company's geologists.
The Company's geologists are currently evaluating the best path for the
further development of the Baska Eldorado uranium and REE project.
Shaw Project (Gold)
The Shaw Gold Project consists of 73 claim units located in northwestern
Ontario approximately 8 km east of the town of Timmins and
approximately 5 km south of the Dome Mine.
Company geologists are compiling available historical data to determine
its options for the upcoming exploration season.
All technical information contained in this release is of historical
nature and has not or could not be verified by the Company. Readers are
cautioned to not rely on this information.
The Company's director, Mr. James A. Turner, a Qualified Person as
defined by National Instrument 43-101, has read and approved the
information contained herein.
Neither 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 news
On behalf of the Board of
99 Capital Corporation,
This news release contains forward-looking statements regarding the
future success of the business of the Company that is subject to risk
and uncertainties. Examples of such forward-looking statements
including, but are not limited to, statements concerning the Company's
acquisition of the interest in the Giyani Gold Project, expectations
concerning timing and success of exploration activities generally,
government regulation of exploration and mining operations, indications
and benefits of exploration, drilling test work and engineering
assessments, environmental risks, tile disputes or claims, and the
Company's intention to raise additional capital and financing. These
forward-looking statements involve known and unknown risk and
uncertainties that may cause the Company's actual results, performance
or achievements to be materially different from any future results,
performance or achievements expressed or implied in these
forward-looking statements. These risks include risks related to
whether or not investors will agree to the escrow release extension, or
that the Company will achieve closing of the transaction by the
extended deadline of January 31, 2011, or at all, dependence on key
personnel, competition, risks related to newly acquired businesses,
uncertainty and dilution of additional financing and ability to service
debt, as well as the risk factors described in the Company's Management
Discussion and Analysis filed on SEDAR at www.sedar.com, and the risks to be described in any Management Information Circular.
The forward-looking statements contained herein are made as of the date
of this news release and are expressly qualified in their entirety by
this cautionary statement. Except as required by law, the Company
undertakes no obligation to publicly update or revise any such
forward-looking statements to reflect any change in its expectations or
in events, conditions or circumstances on which any such
forward-looking statements may be based, or that may affect the
likelihood that actual results will differ from those set forth in the
SOURCE 99 Capital Corporation
For further information:
Alexander Helmel, President at 604-676-4133.