VICTORIA, Oct. 5, 2012 /CNW/ - Celtic Minerals Ltd. ("Celtic" or the "Corporation") announced today that it has entered into a Purchase and Sale Agreement (Transaction) with Zephyr Minerals Ltd. (Zephyr) to sell a 100% interest in the Dawson Project located in Colorado, U.S.A.. The sale price is $220,000.00 cash payable on or before November 3, 2012. The transaction is subject to due dilligence by Zephyr and regulatory approval.
Weak capital markets coupled with weak market interest in junior explorers has resulted in an inability to raise equity capital. As such, Celtic will focus on its Canadian assets, especially the Great Burnt Lake copper-gold property (Great Burnt Lake) in Newfoundland and utilize the proceeds of the Dawson sale to improve its balance sheet. A corporate re-structuring including an up to 10 for 1 consolidation of shares approved at the recent annual meeting may be undertaken should markets not improve.
Great Burnt Lake is a large property comprising 5,850 ha covering favourable geology over a strike length of 20 km. It hosts 2 known copper deposits - Great Burnt Lake and South Pond, with historic resources of 724,000 t @ 2.6% Cu and 293,000 t @ 1.33% Cu respectively. These historic resources have not been verified therefore cannot be treated as NI 43-101 defined resources verified by a qualified person. As such the historic estimates should not be relied upon. To-date over 10,000 metres of diamond drilling in 150 drill holes has been completed at Great Burnt Lake.
Great Burnt Lake is highly permissive for both copper and gold mineralization as evidenced by the End Zone prospect which boasts un-sourced boulders with up to 13% Cu and 2.5% Zn and the South Pond Gold Zone, where a drill intercept graded 1.5g/t gold over 29 metres.
The Great Burnt Lake property is approximately 20 km SE of Teck Corporation's Duck Pond Mine.
The estimates provided are not necessarily in compliance with National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101") and the Corporation provides no assurance that such estimates should be relied upon. Moreover, work required to verify and classify the resource and reserve estimates as current mineral resources or minerals reserves in accordance with NI 43-101 has not been carried out by the Corporation and the Corporation is not treating these estimates as current mineral resources or mineral reserves as defined in sections 1.2 and 1.3 of NI 43-101. Finally, the Corporation does not make any representation or warranties as to the accuracy of such estimates. Dr. Wayne Ewert, Ph.D., P.Geo is the qualified person who has reviewed the technical contents of this news release. Dr. Ewert has not verified the data disclosed, including sampling, analytical and test data underlying the information or opinions contained in the written disclosure. Dr. Wayne Ewert is a qualified person who is not independent as Dr. Ewert is a director of the Company.
SOURCE: Celtic Minerals Ltd.
For further information:
David Grand, Interim President and Chief Executive Officer
Celtic Minerals Ltd.
Phone: (416) 561-1007
Fax: 1 (888) 678-7396
Additional information regarding Celtic Minerals Ltd. is available on the company's website at www.celticminerals.com.