SUDBURY, ON, June 14, 2012 /CNW/ - Transition Metals Corp. (XTM - TSX.V) today announced it has acquired by staking a 100% interest in approximately 6,840 ha (68 km2), covering the Janice Lake, Jansem1, Jansem2, Kaz Lake, Rafuse Lake, Genie Lake, Juno and Sunshine copper occurrences, located about 190 km north of La Ronge, and 55 km southeast of Key Lake, in north-central Saskatchewan (see map below).
"This is an exciting addition to our growing portfolio of projects" said Scott McLean, CEO of Transition Metals. "While the company's core focus continues to be on gold, this project provides shareholders with exposure to copper. The geological environment and mineralization suggests the property is capable of hosting a sizable sediment-hosted stratiform copper deposit. As a project generator, our priority is to now find a suitable partner to help further advance exploration on this project."
Mineralization on the property was initially discovered in the early 1950's. Exploration was sporadic until 1993 when Noranda intersected significant copper mineralization, consisting of native copper and chalcopyrite-chalcocite in 10 of the 14 holes with the best mineralization being 0.54% Cu over 39.2 m and 0.77% Cu over 33.0 m in two separate holes along the southwest of the Janice occurrence. Work conducted by the Saskatchewan Geological Survey in 1995 further confirmed and helped document the presence of sediment-hosted stratiform copper mineralization in the Janice Lake area. In 2003, a hole drilled by Phelps Dodge in the Jansem 1 occurrence, located 2.5 km south of the Janice occurrence, intersected 0.64% Cu and 2.5 g/t Ag over 24.01 m at 38 m down the hole, including 0.9% Cu and 3.6 g/t Ag over 15.8 m, and a lower zone of 0.51% Cu and 1.2 g/t Ag over 8.3 m at 78 m. Both intervals are associated with native copper, chalcocite, chalcopyrite and minor bornite. In 2004, Phelps Dodge proposed additional work programs to test new mineralized occurrences identified on the property and to further define the extent of mineralization intersected by the 2003 diamond drilling program. However, these programs were never implemented because of a shift in corporate focus.
The Janice property is located near the southeast margin of the Wollaston Domain, and is underlain by a thick succession of tightly folded, northeast-trending, variably deformed and metamorphosed clastic metasediments. This succession has been intruded by, and interfolded with, remobilized Archean granite, pegmatite and granitoid veins. The northeast-trending Burbidge Lake Shear Zone passes through the south portion of the property. The property is situated approximately 55 km southeast of the Athabasca Basin and also hosts unevaluated uranium mineralization. The George Lake deposit, which is also within the Wollaston Domain, about 100 km northeast of the Janice Property, contains 13 million tons grading 3.86% Zn.
Subsequent to a resolution of the Board of Directors following the company's annual general meeting held in Toronto on May 1, 2012, the company has granted incentive stock options to key employees and consultants to purchase up to a total of 100,000 common shares in the capital stock of the Company, at an exercise price of 40 cents pursuant to the company's stock option plan and subject to TSX-V approval.
About Transition Metals Corp
Transition Metals Corp (XTM -TSX.V) is a Canadian-based, gold-focused project generator that specializes in converting new exploration ideas into Canadian discoveries. The team has over 60 years of collective exploration experience in the established, emerging and historic mining camps of northern Ontario, and actively develops and tests new ideas for discovering gold mineralization in places that others have not looked, which often allows the company to acquire properties inexpensively. The team is rigorous in its fieldwork, and combines traditional techniques with newer ones to help unearth compelling prospects and drill targets. Transition's business model is to acquire and advance multiple grassroots exploration projects simultaneously, thereby maximizing shareholder exposure to discovery and capital gain. Joint venture partners fund a significant portion of higher-risk drilling and exploration, allowing Transition to conserve capital and minimize shareholder dilution. The company, which was founded in 2011, has an expanding portfolio that currently includes six early stage gold projects, and two additional ones that are being explored by partners.
Qualified Person / Quality Control Procedures
This press release has been reviewed by Mr. Thomas Hart, P.Geo (APGO), a Qualified Person under the National Instrument 43-101 guidelines.
Cautionary Note on Forward-Looking Information
Except for statements of historical fact contained herein, the information in this news release constitutes "forward-looking information" within the meaning of Canadian securities law. Such forward-looking information may be identified by words such as "plans", "proposes", "estimates", "intends", "expects", "believes", "may", "will" and include without limitation, statements regarding estimated capital and operating costs, expected production timeline, benefits of updated development plans, foreign exchange assumptions and regulatory approvals. There can be no assurance that such statements will prove to be accurate; actual results and future events could differ materially from such statements. Factors that could cause actual results to differ materially include, among others, metal prices, competition, risks inherent in the mining industry, and regulatory risks. Most of these factors are outside the control of the Company. Investors are cautioned not to put undue reliance on forward-looking information. Except as otherwise required by applicable securities statutes or regulation, the Company expressly disclaims any intent or obligation to update publicly forward-looking information, whether as a result of new information, future events or otherwise.
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.
Image with caption: "Location Map for the Janice Lake Project in Northern Saskatchewan, Canada (CNW Group/Transition Metals Corp.)". Image available at: http://photos.newswire.ca/images/download/20120614_C8842_PHOTO_EN_15150.jpg
For further information:
Further information is available on the Company's website at: www.transitionmetalscorp.com or by contacting:
President and CEO
Transition Metals Corp.
Tel: (705) 669-0590
VP Investor Relations and Marketing
Transition Metals Corp.
Tel: (705) 669-0590