THUNDER BAY, ON, Oct. 24, 2012 /CNW/ - Benton Resources Inc. (TSXV: BEX) ("Benton" or the "Company") announces that the Company has applied for regulatory approval for a Normal Course Issuer Bid (the "Bid") to purchase, through the facilities of the TSX Venture Exchange, up to 5,000,000 shares of its issued and outstanding common shares. The actual number of shares that may be purchased and the timing of such purchases will be determined by Benton and purchases pursuant to the Bid will be conducted through BMO Nesbitt Burns. The Company currently has approximately $12.9 million in combined cash and investments but a market capitalization of only $7.25 million (based on the October 23, 2012 closing market price). In addition to the large discount to its cash and investments, the Company has an excellent portfolio of prospective exploration projects.
Benton recently announced an option agreement with Cornerstone Capital Resources Inc (TSXV: CGP) ("Cornerstone") to acquire up to a 75% interest in Cornerstone's Windowglass Hill (WGH) and the 51 Zone ("51") deposits located on the west coast of Newfoundland (see Benton N.R. dated September 20, 2012). Benton has recently completed a compilation of all available historical data and has identified several high priority targets. This includes a new zone approximately 1.2km east northeast from the WGH deposit and may represent a possible extension of the deposit itself. From 1979 to 1986, only four historical drill holes were completed in this area which covered a strike length of 250 metres and included intercepts grading 1.74gpt gold over 27.4m (including 5.12gpt gold over 6.1m) and a second zone grading 1.37gpt gold over 18.3m in hole PB79-128. Drill hole PB79-133, located 125m along strike, returned 1.38gpt gold over 20.7m and included 7.88gpt gold over 2.4m. The historical drill logs indicate that the gold mineralization is associated with a granitic intrusive unit similar to that hosting the WGH zone. The other two drill holes also had highly anomalous gold over large widths, but only partial sampling was completed. The Company plans to immediately re-log and re-sample as much of the old core as possible from this area. In addition, distinct plunges on the known mineralization at the 51 and WGH deposits may assist with drill targeting efforts in the first diamond drill program with the objective of increasing current resources. The Company is also planning to refurbish the access road to the project which is scheduled to begin by the end of the October or in early November and will provide easier and more cost effective access for exploration. The deposits are situated on or near the Cape Ray Fault and contiguous to Benton's large 100% owned Cape Ray East project.
On July 18, 2012, Cornerstone announced the results of an initial National Instrument 43-101 ("NI 43-101") compliant mineral resource estimate for the WGH and 51 deposits. The mineral resource estimate was prepared by Mercator Geological Services Limited of Dartmouth, Nova Scotia and was completed on the two separate mineralized zones. The estimate is based on three-dimensional block models developed for the 51 Zone and Windowglass Hill using Gemcom Surpac(r) 6.1.4 modeling software and the validated results of 26,480 metres of historical diamond drilling from 197 drill holes completed between 1977 and 1996, plus 2,520 metres of diamond drilling in 28 holes completed by Cornerstone between 2004 and 2006.
Mineral resources for the 51 Zone and Windowglass Hill are reported, respectively, on the basis of assumed underground (2.5 gpt gold cut-off) and open pit (0.5 gpt gold cut-off) development potential.
- 51 Zone -- Inferred resources of 530,000 tonnes grading 6.10 gpt gold and 15.86 gpt silver containing 103,943 ounces of gold and 270,253 ounces of silver
- Windowglass Hill - Inferred resources of 1,810,000 tonnes grading 1.77 gpt gold and 11.28 gpt silver containing 103,001 ounces of gold and 656,415 ounces of silver
- Mineralization is relatively shallow at a maximum of 270 metres vertically below surface for the 51 Zone and 140 metres for Windowglass Hill
- Opportunities exist to upgrade and expand the mineral resources
| Table 1. Summary of Mineral Resources for the 51 Zone and Windowglass Hill, Cape Ray Project
(Mercator, July 16, 2012).
|51 Zone|| Inferred
(2.5 gpt gold)
(0.5 gpt gold)
Clinton Barr (P.Geo.), V.P. Exploration for Benton Resources Inc., is the qualified person responsible for this release.
On behalf of the Board of Directors of Benton Resources Inc.
Stephen Stares, President
THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
The information contained herein contains "forward-looking statements" within the meaning of applicable securities legislation. Forward-looking statements relate to information that is based on assumptions of management, forecasts of future results, and estimates of amounts not yet determinable. Any statements that express predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance are not statements of historical fact and may be "forward-looking statements."
Forward-looking statements are subject to a variety of risks and uncertainties which could cause actual events or results to differ from those reflected in the forward-looking statements, including, without limitation: risks related to failure to obtain adequate financing on a timely basis and on acceptable terms; risks related to the outcome of legal proceedings; political and regulatory risks associated with mining and exploration; risks related to the maintenance of stock exchange listings; risks related to environmental regulation and liability; the potential for delays in exploration or development activities or the completion of feasibility studies; the uncertainty of profitability; risks and uncertainties relating to the interpretation of drill results, the geology, grade and continuity of mineral deposits; risks related to the inherent uncertainty of production and cost estimates and the potential for unexpected costs and expenses; results of prefeasibility and feasibility studies, and the possibility that future exploration, development or mining results will not be consistent with the Company's expectations; risks related to gold price and other commodity price fluctuations; and other risks and uncertainties related to the Company's prospects, properties and business detailed elsewhere in the Company's disclosure record. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking statements. Investors are cautioned against attributing undue certainty to forward-looking statements. These forward looking statements are made as of the date hereof and the Company does not assume any obligation to update or revise them to reflect new events or circumstances. Actual events or results could differ materially from the Company's expectations or projections.
SOURCE: Benton Resources Corp.
For further information:
Stephen Stares @:
3250 Highway 130,
Rosslyn, ON P7K 0B1
Clair Calvert: @ 204-799-2086