VANCOUVER, Nov. 14, 2013 /CNW/ - Discovery Harbour Resources Corp. (TSXV:DHR) ("Discovery" or the "Company") announces that its joint venture partner, Northern Shield Resources Inc. ("Northern Shield") (TSXV:NRN), has entered into an option agreement (the "Option Agreement") with Great Lakes Resources LLC ("Great Lakes"), a private US based company, whereby Northern Shield granted Great Lakes an option (the "Option") to acquire a 24% interest in the Wabassi Joint Venture (the "Interest") by paying $400,000 to Northern Shield on signing of the Option Agreement, incurring $1.5 million in exploration expenditures by December 31, 2014, and paying a further $600,000 to Northern Shield on exercise of the Option. Upon Great Lakes exercising the Option, the Wabassi Joint Venture will be jointly held by the Company (51%), Northern Shield (25%) and Great Lakes (24%), and it is expected that Northern Shield will continue as contracted provider of logistics and staff to the Wabassi joint venture (the "JV").
Concurrent with entry into the Option Agreement, Great Lakes entered into an option agreement (the "Re-Option Agreement") with the Company whereby Great Lakes granted the Company an option to acquire the Interest (the "Re-Option"). The Re-Option is exercisable until February 28, 2014 by the Company paying Great Lakes the aggregate amount Great Lakes has paid Northern Shield under the Option Agreement up to the date on which the Re-Option is exercised.
The Company, Great Lakes and Northern Shield also entered into a tri-partite agreement which sets out the terms and conditions on which the parties will operate the Wabassi Joint Venture. If the Re-Option is exercised such that the Company holds a 75% interest in the Wabassi Joint Venture and Northern Shield holds a 25% interest, the parties will revert to the terms of the option and joint venture agreement between the Company and Northern Shield dated as of March 16, 2010.
A 10 to 11 hole drill program totaling 2,800 meters is underway at Wabassi; up to four of these holes will test the extension of the copper-zinc-silver mineralization at Anomaly E while the remaining holes will test regional targets with similar geophysical signatures to Anomalies E and A2, the two volcanogenic massive sulfide discoveries from 2011 and 2010, respectively. In particular the program has completed ground geophysical surveys at Anomaly Q that define and support the initial drill tests of that very compelling target. Anomaly Q is located in the area previously affected by a claims dispute (see the Company's News Release dated August 23, 2013. A favorable decision for the Company, from the Ministry of Northern Development and Mines following a claims dispute hearing in Sudbury was announced in that release).
"The Option Agreement ensures that Discovery and Northern can execute on a robust fall/winter ground geophysical and drilling program, whilst the Re-Option Agreement provides an avenue for Discovery to increase its participating interest at Wabassi in the event of compelling results and successful financing: the Re-Option is a very generous opportunity provided to the Company by Great Lakes," stated Ian Graham, President and CEO of the Company.
The exploration program at Wabassi is being overseen by Christine Vaillancourt, a Qualified Person under National Instrument 43-101.
Samples are being analyzed by ALS Global in Vancouver, BC, for Au by Fire Assay with ICP-AES finish and base metals by four acid digestion and ICP-AES.
Michael J. Senn, a licensed professional geologist and director of Discovery, is a Qualified Person as defined in National Instrument 43-101 and has reviewed, approved and is responsible for the scientific and technical information in this news release.
Great Lakes is a private US company controlled by Richard B. Gilliam, a director and significant shareholder of the Company. The Company's exercise of the Re-Option remains subject to approval of the TSX Venture Exchange.
ON BEHALF OF THE BOARD OF DISCOVERY HARBOUR RESOURCES CORP.
President, CEO, Corporate Secretary and Director
Disclaimer for Forward-Looking Information
Except for statements of historical fact, this news release contains certain "forward-looking information" within the meaning of applicable securities law. Forward-looking information is frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may" occur. Forward-looking information in this press release includes, but is not limited to, statements regarding expectations of management regarding: (i) the Option and Re-Option and TSX Venture Exchange approval thereof, (ii) the operations of the Wabassi Joint Venture, (iii) the planned exploration program, (iv) the mobilization of crews for the proposed work program, (v) the timing and duration of the proposed work program, (vi) the budget for the proposed work program, (vii) the geophysical surveys, magnetic surveys and drilling expected to be completed at the Wabassi property, (viii) the mineralization at the various high priority targets on the Wabassi property and elsewhere on the Wabassi property, (ix) the interpretations of prior exploration results, and * the expected results from the proposed work program. Although the Company believes that the expectations reflected in the forward-looking information are reasonable, there can be no assurance that such expectations will prove to be correct. Such forward-looking statements are subject to risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in the statements including, without limitation, the risks that: (1) the Company may not obtain required permits, (2) the Company may not have sufficient financing to carry out its plans, (3) the Company may run into drilling difficulties or other difficulties in carrying out the proposed work program, (4) the Company may not have sufficient experienced labour, (5) despite encouraging results there may be no commercial mineralization on the Company's projects, (6) Great Lakes may not be able to exercise the Option for any reason whatsoever, (7) the Company may not be able to exercise the Re-Option for any reason whatsoever, and (8) the TSX Venture Exchange may not approve the Re-Option for any reason whatsoever. Except as required by law, the Company does not intend to update these forward-looking statements.
Neither 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 release.
SOURCE: Discovery Harbour Resources Corp.
For further information:
Ian Graham by telephone at (604) 689-1799 or by fax at (604) 689-8199.