VANCOUVER, April 2, 2012 /CNW/ - Rackla Metals Inc. (TSX-V: RAK) is pleased to announce that it has signed a binding letter of intent with Strategic Metals Ltd. granting Strategic the option to acquire an undivided 60% interest in the Scarlet East claim block. Strategic can exercise the option by making $5,000,000 in exploration expenditures on the property as follows:
- $500,000 on or before December 31, 2013;
- an additional $1,000,000 on or before December 31, 2014;
- an additional $1,500,000 on or before December 31, 2015; and
- an additional $2,000,000 on or before December 31, 2016.
Strategic is also required to complete not less than 1,000 meters of drilling on or before December 31, 2012. Upon exercising the option, Strategic and Rackla will respectively hold 60% and 40% interests in the property.
The Scarlet East Claims
The Scarlet East property consists of 230 claims (47.8 sq km) covering prospective stratigraphy in the newly-defined Nadaleen Trend, an emerging district of Carlin-type gold prospects located in east-central Yukon. The property directly abuts claims held by ATAC Resources and lies approximately 10 km southeast of its major Osiris, Conrad and Isis East discoveries.
Soil geochemical surveys and first pass geological mapping done by Rackla Metals in 2011 have confirmed a favourable setting for Carlin-type gold mineralization at the Scarlet East property. Soils collected from the eastern portion of the claim group returned encouraging gold-arsenic-antimony-mercury values with a distinct Carlin-type signature. A series of north-northwest-trending anomalies, measuring up to 1,500 m long by 500 m wide, contains arsenic values from 100 to 8,468 ppm together with gold values from 20 to 221 ppb. The anomalous areas are underlain by favourable off-shelf carbonate stratigraphy, including gossanous silty limestone, within a prominent southeast-trending antiform.
Rackla's 2012 Programs
Rackla anticipates three active drill programs for the coming season, operated by joint venture partners:
- Strategic has committed to a program of not less than 1,000m meters of drilling at Scarlet East before the end of the year, testing the high priority targets described above.
- Solomon Resources Limited has announced a comprehensive 3,000-metre diamond drilling and reverse circulation drilling program in the 2012 field season at the Ten Mile Creek property near Dawson City.
- Voyager Gold Corp., a private company, has optioned Rackla's Rivier project and is planning to a 2 stage, 2,500m drill program this year.
Roger Hulstein, BSc, P.Geo., is a member of the Association of Professional Engineers and Geoscientists of British Columbia and is the Company's Qualified Person as defined by National Instrument 43-101. Mr. Hulstein is responsible for the accuracy of the technical information in this news release.
Rackla Metals controls a portfolio of promising gold projects across Yukon Territory, including two extensive claim blocks in the Rackla belt -an emerging trend of Carlin type gold systems in east-central Yukon- and the Sixty Mile project near Dawson City. The Company anticipates drilling on three of its projects during 2012.
ON BEHALF OF THE BOARD
President and CEO
Neither the TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy of this release.
Some of the statements in this news release contain forward-looking information that involves inherent risk and uncertainty affecting the business of the Company. Actual results may differ materially from those currently anticipated in such statement.
For further information:
Jaclyn Ruptash, 604.801.5432, [email protected]