TSXv: LK FSE: 6LL
VANCOUVER, Sept. 16, 2013 /CNW/ - Lakeland Resources Inc. (TSXv: LK) (FSE: 6LL) (the "Company" or "Lakeland") announces that, in keeping with its focus on uranium exploration in the Athabasca Basin, it has entered into an option agreement (the "Agreement") with New Dimension Resources Ltd. ("New Dimension") whereby the Company has granted New Dimension the option to acquire a 70% interest in the Midas Gold Property (the "Property") located near Wawa in north central Ontario.
New Dimension can earn the 70% interest by spending C$1.2 million in exploration (including a firm commitment of C$300,000 no later than December 31, 2013), issuing 1.5 million shares of New Dimension and paying C$100,000 to the Company on or before December 31, 2016. Once New Dimension has earned its 70% interest, Lakeland will be free carried on further costs until New Dimension completes an initial NI 43-101 complaint resource estimate for the Property. The Property is subject to a 2% NSR to the underlying optionors, a portion of which can be purchased.
"This is an excellent agreement for our shareholders," stated Jon Armes, President and CEO of Lakeland. "Our shareholders will be exposed to a fully funded drill program at Midas before the end of this year and further project advancement by New Dimension. We are happy to be working with the New Dimension team and look forward to the results from their drilling and exploration at Midas as we focus on advancing our uranium business."
The Midas Gold Project
The Midas Project consists of 12 claims (139 units) covering 2,112 hectares and is situated approximately 50 kilometres northeast of the town of Wawa in northern Ontario. The Property is road accessible and lies 20 kilometres southeast of Richmont Mines' Island Gold Mine complex and Argonaut Gold's Magino Gold Project.
During the winter of 2011, Lakeland carried out ground magnetics and induced polarization in the southwestern area of the Property. To follow up this program the Company completed sixteen (16) diamond drill holes totaling 2,353 metres. The drilling was designed to test induced polarization anomalies and surface gold showings. Drilling partially defined two gold bearing zones (zones M-11 and M-16) with fourteen (14) of the holes reporting gold mineralization.
Highlights of the drilling included:
- 4.7 metres of 5.92 g/t Au; including 8.88 g/t Au over 2.6 metres in drill hole M-11-04 and;
- 7.03 g/t Au over 2.0 metres in drill hole M-11-05.
The drilling identified a broad gold bearing structure, which can be traced for over 500 metres in strike length. Work to date indicates that the gold system lies along the southern limb of a broad anticlinal fold structure and is associated with widespread silicification and carbonization. Gold mineralization remains open on strike and down dip.
Property maps and additional information will be available on the New Dimension website.
New Dimension is currently finalizing a budget for the Property with an upcoming diamond drill program anticipated shortly.
NI 43-101 Disclosure
The technical information in this news release has been prepared in accordance with the Canadian regulatory requirements set out in National Instrument 43-101 and reviewed on behalf of the Company by Mr. Garry Clark (P.Geo), a Director of Lakeland.
About Lakeland Resources Inc.
Lakeland Resources Inc. is a pure play uranium exploration company focused on the Athabasca Basin in Saskatchewan, Canada. The Company's common shares trade on the TSX Venture Exchange under the symbol "LK" and on the Frankfurt Stock Exchange under the symbol "6LL".
On Behalf of the Board of Directors
LAKELAND RESOURCES INC.
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.
Statements in this document which are not purely historical are forward-looking statements, including any statements regarding beliefs, plans, expectations or intentions regarding the future. Forward looking statements in this news release include that Lakeland shareholders will be exposed to a fully funded drill program at Midas before the end of this year and that an upcoming diamond drill program is anticipated shortly.
It is important to note that actual outcomes and the Company's actual results could differ materially from those in such forward-looking statements. Risks and uncertainties include economic, competitive, governmental, environmental and technological factors that may affect the Company's operations, markets, products and prices. Factors that could cause actual results to differ materially may include misinterpretation of data; that we may not be able to get equipment or labour as we need it; that we may not be able to raise sufficient funds to complete our intended exploration and development; that our applications to drill may be denied; that weather, logistical problems or hazards may prevent us from exploration; that equipment may not work as well as expected; that analysis of data may not be possible accurately and at depth; that results which we or others have found in any particular location are not necessarily indicative of larger areas of our properties; that we may not complete environmental programs in a timely manner or at all; that market prices may not justify commercial production costs; and that despite encouraging data there may be no commercially exploitable mineralization on our properties.
SOURCE: Lakeland Resources Inc.
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