Auracle Resources Options Golden Ridge Property

VANCOUVER, Dec. 28, 2012 /CNW/ - Auracle Resources Ltd. (the "Company" or "Auracle") is pleased to report that it has entered into an option agreement with Electra Gold Ltd. ("Electra") to acquire the Golden Ridge Property, located in southwestern British Columbia.  The Golden Ridge Property is situated approximately 80 km northeast of Vancouver, BC.  Auracle has also entered into a subsequent agreement with J.T. Shearer on surrounding claims.

Property Details

The combined 7,595 ha property covers four anomalous areas and showings with highly favourable geology.  Gold mineralization has been known in the area of Golden Ridge for over a century.  Gold panning by Native Indians dates back to the 1850's.  In the 1940's, Cominco undertook initial exploration, and more recent modern explorations were conducted between the early 1980's and 2010.  Recent programs included rock and soil geochemical sampling, geophysical programs,  trenching, and two limited diamond drill programs in 1990 and 1997 of 1,251 m (seven holes) and 1,800 m (eleven holes) respectively. Previous drilling and trenching programs concentrated on an area known as the Southridge Zone, which measures approximately 500m x 1,400m. Highlights from the drill programs are as follows:

  • Noranda/Aranlee Resources (1990) completed a 7 NQ drill hole, 1251m program:
  • NQ90-2:
119 m 0.584 g/t Au
  • NQ90-4:
66 m 0.615 g/t Au
  • Mount Hope Resources (1997) completed a program totalling 1,800m in 11 holes:
  • HS97-01:
34.96m 1.29 g/t Au, 42.26 g/t Ag
  • HS97-02:
24.83m 0.90 g/t Au, 16.22 g/t Ag
  • HS97-03:
22.34m 1.16 g/t Au, 32.96 g/t Ag
    16.55m 1.30 g/t Au, 14.81 g/t Ag
    36.50m 0.57 g/t Au, 10.87 g/t Ag

The Southridge Zone is part of a 4 km long mineralized target which has multiple targets along it.  Approximately 2,000m west of the Southridge Zone is a second priority mineralized target named Dan's Showing, where well mineralized rock is exposed in outcrop measuring 35m x 55m, but otherwise covered on all sides by overburden.   A 1988 hand trenching program on this outcrop returned values up to 5.97 g/t Au over 2m, 1.78 g/t Au over 8m, and 514.29 g/t Ag over 1m.

The results of these programs suggest a significant gold/silver target spanning 500m by 4 km.  Planning of the upcoming exploration program will commence immediately, which will include digitizing previous geology and drill hole data, and incorporating the known data into a comprehensive program.

Auracle is also pleased to announce that it has engaged Mr. J.T. Shearer (M. Sc., P. Geo.) to act as project manager on the Golden Ridge property.  Mr. Shearer will oversee all exploration programs and logistics on Auracle's activity.  Mr. Shearer has close to 40 years involvement with the property and will provide invaluable insight in developing Auracle's multiple stage exploration programs.  Mr. Shearer also has extensive exploration experience throughout Canada, and particularly in various regions of British Columbia.  He is a Fellow of the Geological Association of Canada, the Geological Society (London), the Canadian Institute of Mining and Metallurgy, and the Society of Economic Geologists.

Option Terms

According to the terms of the Option Agreement, Auracle can earn an initial 70% interest from Electra by incurring $600,000 in exploration expenditures over three years, making option payments of $900,000 and issuing one million shares over five years.  Dilution clauses allow the potential for Auracle to increase its interest to 80% and then 100%, subject to a net profits interest.  On the additional surrounding claims, Auracle can earn a 100% interest therein, subject to a $7,500 payment, issuing 200,000 shares and incurring $150,000 of exploration expenditures over two years.  The additional claims are subject to a 2% Net Smelter Royalty ("NSR").


Auracle also announces a non-brokered private placement to raise gross proceeds of up to $3,000,000 through a combination of flow through shares (for proceeds up to $2.4 million) and non-flow through units.  Flow through shares are priced at $0.15.  Each non-flow through unit is priced at $0.10 and is comprised of one common share and one share purchase warrant.  Each warrant will be exercisable to purchase one common share at $0.15 for a period of 18 months from the close of the private placement.  Proceeds will be used to advance the Golden Ridge property and for general working capital, including further assessment of Auracle's Mexican Hat property.

The Company may pay finders' fees in connection with the private placement, subject to compliance with the policies of the TSX Venture Exchange (the "Exchange").  Completion of the private placement and the payment of any finders' fees are subject to the receipt of necessary regulatory and Exchange approvals.  Securities issued under this private placement will be subject to a four month hold period commencing from the date of closing.

Mexican Hat Update

Auracle was generally pleased with a number of assays resulting from the late 2011 drill program.  However, poor core recovery significantly reduced the overall grade values from most of the holes.  Auracle was not satisfied with these results and is addressing core recovery issues before any subsequent programs are initiated.  As a result, Auracle has engaged Geominex Consultants to undertake an independent audit of the drilling, drill hole locations, core recovery and assays.  Geominex will then compare the generated data with previously reported drill data and report back with findings and recommendations. The process is anticipated to take up to three months to complete.

About Auracle Resources

Auracle Resources Ltd. is a publicly traded exploration company focused on developing precious metal assets.  Auracle has an option to earn a 100% interest in the Mexican Hat project, located in Cochise County, Arizona, USA.  The Mexican Hat property contains an historic gold resource, which was initially explored by Placer Dome in the late 1980's to early 1990's.  Auracle is focused on developing the asset by confirming the presence of the historic resources and realizing the full mineral potential of the property.

On Behalf of the Board of Directors,

Jason Leikam

VP Corporate Development, Director


This News Release includes forward-looking information and statements, which may include, but are not limited to, information and statements regarding or inferring the future business, operations, financial performance, prospects and other plans, intentions, expectations, estimates, and beliefs of the Company, information and statements which are not purely historical fact are forward-looking statements. Forward-looking information and statements involve and are subject to assumptions and known and unknown risks, uncertainties, and other factors which may cause actual events, results, performance, or achievements of the Company to be materially different from future events, results, performance, and achievements expressed or implied by forward-looking information and statements herein. Although the Company believes that any forward-looking information and statements herein are reasonable, in light of the use of assumptions and the significant risks and uncertainties inherent in such information and statements, there can be no assurance that any such forward-looking information and statements will prove to be accurate, and accordingly readers are advised to rely on their own evaluation of such risks and uncertainties and should not place undue reliance upon such forward-looking information and statements. Any forward-looking information and statements herein are made as of the date hereof, and the Company assumes no obligation and disclaims any intention to update or revise any forward-looking information and statements herein, or to update the reasons that actual events or results could or do differ from those projected in any forward-looking information and statements herein, whether as a result of new information, future events or results, or otherwise.

This news release and the information contained herein does not constitute an offer of securities for sale in the United States and securities may not be offered or sold in the United States absent registration or exemption from registration.

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.


SOURCE: Auracle Resources Ltd.

For further information:

Auracle Resources Ltd.

Organization Profile

Auracle Resources Ltd.

More on this organization

Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890