VANCOUVER, Aug. 17 /CNW/ - Golden Harp Resources Inc. (GHR:TSX-V) ("Golden Harp or the "Company") is pleased to report that it has entered into a Letter of Intent with Mineral Mountain Resources Ltd. (MMV.TSX-V) ("Mineral Mountain") whereby Mineral Mountain can earn a 60% interest in the Company's 100%-owned, 90 km(2) Copper Hill "Main Block" gold property situated in Macmurchy Township, Ontario in the Shining Tree Mining Camp.
Copper Hill "Main Block" Gold Property
The Copper Hill "Main Block" gold property adjoins the western boundaries of Goldeye Explorations' (GGY.TSX-V) Tyrrell Township gold property and the Block A property which Golden Harp has optioned to Benton Resources' (BTC.TSX-V), and is physically located approximately 7 km southwest of Creso Exploration's (CST.TSX-V) Minto Gold Project. The Copper Hill "Main Block" covers two historic gold occurrences including the Copper Hill Zone and the Golden Sylvia Gold Zone and represents one of the largest prospective land packages in the Shining Tree Mining Camp including a total of approximately 504 claims units (91 claims). The property is located approximately 100 km south of Timmins, Ontario, along Highway 560 between Shining Tree and Gowganda within the southern Abitibi greenstone belt, along what is believed by many geoscientists to represent the western extension the Cadillac Break.
The Copper Hill "Main Block" gold property encompasses a north-westerly trending package of Archean rocks that host a variety of favourable geological settings prospective for gold and base metals. Significant regional gold bearing faults up to 20 km in strike length trend through the project and are interpreted to represent the western extension of the Cadillac-Larder Lake Break. The Golden Sylvia Gold Zone, which lies near the eastern limits of the project area, is a partially defined, gold-rich banded iron formation that is open in all directions and represents a near surface bulk tonnage gold zone measuring 450 m in length by 200 m in width to a depth of 100 m. Some of the better intersections include 2.57 grams per tonne over 14.23 metres (Hole DDHGS12) and 3.56 grams per tonne over 12.24 metres (Hole RCGS23). The Copper Hill "Main Zone" near the central part of the property occurs within an extensively altered rhyolite package with a known strike length of 5 km that hosts chalcopyrite, malachite, bornite and gold mineralization.
Recently, the Shining Tree Mining Camp has experienced a resurgence in exploration activity with the important new gold discovery associated with wide intervals of mineralized breccia recently announced by Creso Exploration Inc. on its Minto Gold Project. The Shining Tree area is considered to be underexplored compared to other gold mining camps due the multi-year Temagami Land Caution preventing explorers from systematically evaluating the mineral potential of the district.
Mineral Mountain may earn a 60% interest in Golden Harp's 100% interest in the 504 claim units, known as the Copper Hill "Main Block" by spending $6 million over a four year period, expended annually as follows: $1,500,000 within 12 months; $1,500,000 within 24 months; $1,500,000 within 36 months; and, $1,500,000 within 48 months.
In addition to the work commitments above, Mineral Mountain will make the following cash payments to Golden Harp: $100,000 upon receipt of necessary approvals of the TSX Venture Exchange ("TSXV"); $150,000 within 12 months; $200,000 within 24 months; and, $200,000 within 36 months.
In addition to both the work commitments and cash payments above, Mineral Mountain will issue a total of 3,500,000 common shares to Golden Harp as follows: 750,000 common shares upon receipt of all necessary approvals from the TSXV; 750,000 common shares within 12 months; 1,000,000 common shares within 24 months; and 1,000,000 common shares within 36 months.
Once Mineral Mountain has earned its 60% interest, the Copper Hill "Main Block" will be subject to a joint venture agreement between Mineral Mountain and Golden Harp, with Mineral Mountain as the initial operator. The participating interests of Mineral Mountain shall be 60% and Golden Harp shall be 40%. If a party's interest is at any time diluted to below 10%, then such party's interest shall be converted to a two (2%) percent net smelter return royalty.
The Company is very pleased with this, the second option agreement, on its Shining Tree Project. The option agreement with Mineral Mountain brings with it an exceptionally strong and proven exploration team led by Nelson Baker. Mr. Baker played an important role in the discovery of the Rainy River gold deposit in Northwestern Ontario. He brought the Rainy River project to Rainy River Resources in 2005 and served as that company's President and CEO until June, 2009. During that time, Mr. Baker led the project from grassroots exploration to a project with indicated resources of 2.225 million ounces of gold and 3.375 million ounces of silver as well as inferred resources of 1.8 million ounces of gold and 4.548 million ounces of silver.
The Company entered into an option agreement with Benton Resources in March, 2008 (the "Benton Option") on the Block A portion of the Project which contains 351 of the total 855 claim units. Under the terms of the Benton Option, Benton may earn up to a 70% interest in these 351 claims by spending $3 million in exploration on those claims, paying Golden Harp $125,000 and issuing Golden Harp 550,000 shares. To date, Benton has incurred exploration expenditures of approximately $1 million.
With the announcement of the Mineral Mountain LOI, Golden Harp is now in a position to receive up to $700,000 in cash, additional shares in Benton Resources and shares in Mineral Mountain, and will see up to $8 million in expenditures on its Shining Tree Project over the next four years.
Seamus Young, President and CEO of Golden Harp said "Golden Harp has now optioned its entire property out to two excellent companies with strong, proven exploration capabilities. I am excited to see the exploration results as both options progress."
The transactions with Mineral Mountain are subject to certain conditions including, but not limited to, the receipt of applicable regulatory approvals including approval of the TSXV and entering into a definitive option agreement. Nelson W. Baker, P.Eng., is the qualified person for this news release.
Statements contained in this news release that are not historical facts are forward-looking statements, which are subject to a number of known and unknown risks, uncertainness and other factors that may cause the actual results to differ materially from those anticipated in the forward looking statements. Although we believe that the expectations in the forward-looking statements are reasonable, actual results may vary, and future results, levels of activity, performance or achievements cannot be guaranteed.
The information contained in the press release is a verbatim extract of the press release issued by Benton Resources Corp. Although Golden Harp believes the information included in the press release to be generally reliable, the data has not been independently verified and Golden Harp does not assume any liability for the accuracy or completeness of such information.
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 release.
SOURCE GOLDEN HARP RESOURCES INC.
For further information: For further information: about Golden Harp Resources Inc., please visit www.goldenharpresources.com or contact: Seamus Young, President and CEO, Tel: 604-688-4277