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 governance policies
  • Significantly increase exploration activity
  • Build compliant resources/reserves
  • Growth by capitalizing on new opportunities presented from industry and government relationships
  • Evaluate corporate strategies to increase exposure to Rare Earth Element ("REE") markets

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 company".

Canadian Properties

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 greater detail. 

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 - 0.051%.

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 release.

On behalf of the Board of
99 Capital Corporation,

"Duane Parnham"
Duane Parnham,

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 forward-looking statements.

SOURCE 99 Capital Corporation

For further information:

Alexander Helmel, President at 604-676-4133.

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99 Capital Corporation

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