THUNDER BAY, ON, Jan. 10 /CNW/ - Benton Resources Corp. ("Benton" or the
"Company") is pleased to report that the Company has acquired by option and
staking a large land package that includes the past producing Hope Brook Gold
Mine located on the southwest coast of Newfoundland. The Company has staked
the favourable gold-bearing trend that hosts the Hope Brook deposit for
approximately 30 kilometres and has entered into an option agreement with
Quinlan Prospecting (Q.P.) of Newfoundland to acquire 3 separate claim blocks,
one of which includes the Hope Brook gold deposit. To earn a 100% interest in
the 3 claim blocks Benton will make cash payments to Q.P. totaling $170,000
and issue 200,000 shares over 4 years. The Company will pay a finder's fee to
a third party for being introduced to the project of 25,000 shares and 25,000
warrants exercisable for 24 months at a price of $1.00. The optioned claim
blocks and the staked claims are subject to a 2% NSR payable to Q.P. (the
"NSR") with an advance royalty payment of $10,000 owing per year to a maximum
of $100,000 commencing upon Benton having exercised the option to acquire the
3 claim blocks. Benton has the right to purchase 50% of the NSR for $1
The Company's management is excited about this unique opportunity as the
Hope Brook deposit was the Province of Newfoundland's largest gold deposit and
it is management's view that there is significant potential to discover
additional deposits in the area. The Hope Brook deposit operated from 1987 to
1997 and produced 752,826 ounces of gold plus a copper concentrate from 1993
to 1997. Previous exploration by Royal Oak Mines near the mine during the last
few years of mining operations resulted in the discovery of several areas of
significant gold mineralization. Significant occurrences include the 240 zone,
located approximately 1km southwest and on strike of the Hope Brook deposit.
Historical drilling returned grades of up to 3.88gpt over 41 metres and
6.98gpt over 5.8 metres and shallow drilling along strike from the former open
pit area intersected up to 14.3 meters of 4.64gpt (NL Gov assessment files).
Since the closure of mining operations in 1997 little or no exploration has
been carried out for gold in the area.
The Company is planning an aggressive and extensive exploration program,
and has begun an extensive regional compilation of the entire belt which will
incorporate all existing drill holes, mine workings, geology and assay results
of the mine area. A large airborne survey will be flown over the entire
project as soon as possible, to be followed up with ground exploration
programs including geological mapping, prospecting and diamond drilling. The
company will keep their shareholders informed as this project moves along.
Clinton Barr (P.Geo.), V.P. Exploration for Benton Resources Corp., is
the qualified person responsible for this release.
On behalf of the Board of Directors of Benton Resources Corp.
Stephen Stares, President
THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT
RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
Forward-looking statements in this release are made pursuant to the safe
harbor provisions of the Private Securities Litigation Reform act of 1995.
Investors are cautioned that such forward-looking statements involve risks and
For further information:
For further information: Stephen Stares @ 3290 Willard Ave, Thunder Bay,
Ont. P7E 6J7, Phone (807) 475-7474, Fax (807) 475-7200,
www.bentonresources.ca; Investor relations: In Canada: First Canadian Capital,
Daniel Boase, Phone (416) 742-5600, Fax (416) 742-6410; In U.S.A: The Windward
Agency, Kelly Boatright, Phone (704) 588-8600