SUDBURY, ON, April 5, 2012 /CNW/ - Transition Metals Corp. (XTM - TSX.V) announced it has optioned a 100% interest in six staked claims (336 ha) in Doon Township, Larder Lake Mining District Ontario from Ashley Gold Mines Ltd. ("Ashley"). The optioned claims (see map below) are adjacent to property staked by Transition in Q1 2011 and form a combined land package approximately 1,472 ha in size. The property covers Archean metavolcanics and Temiskaming metasediments along the interpreted extension of the Cadillac-Larder Lake fault zone, approximately 15 km southwest of AuRico Gold's Young-Davidson mine (3.83 Moz*), near Matachewan. Previous work conducted on the property by Western Mining Corp. identified a number of high quality untested gold in till anomalies and geophysical targets along strike from a bedrock showing on the Ashley property that returned gold assays between trace and 2.34 g/t gold (MNDM assessment file number 41P15NW0014).
"We're excited to have consolidated such a favourable property position near the Young-Davidson mine," said Scott McLean, CEO of Transition Metals. "We've had success exploring greenstone belts along prospective trends in this area, including our recent discovery on the Haultain property near Gowganda."
Under the terms of the Option Agreement with Ashley, Transition has the right to earn a 100% interest in the claims subject to a 2% Net Smelter Royalty (NSR) by making cash payments of $30,000, issuing 30,000 common shares to Ashley, and incurring $250,000 in work expenditures by the third anniversary of the agreement. Transition retains the right to purchase up to 1% of the NSR for $1.0 million.
Other Recent Transactions
On January 9, 2012, Transition entered into an option agreement with Marko Moudrak, an individual residing in Toronto, to acquire a 100% interest in 5 claims (224 ha) located near Espanola in Mongowin Township, Sudbury Mining District Ontario, subject to a 2% NSR (see press release dated March 26, 2012). To earn its interest, Transition must make cash payments of $15,000 and issue 25,000 common shares to the property vendor and incur $15,000 worth of work expenditures on the property by the second anniversary of the agreement. Transition retains the right to purchase up to 1% of the NSR for $1.0 million.
On February 10, 2012, Transition entered into an option agreement with John and Josiah Payne, registered title holders of patented surface and mining rights in Tudhope Township, in the district of Timiskaming, Ontario. Under the terms of the agreement, Transition can earn a 100% interest in the mining rights subject to a 2% NSR by making cash payments totalling $25,000 and issuing 60,000 common shares to the property holders. Transition retains the right to purchase up to 1% of the NSR for $1.0 million.
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 five 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. Greg Collins, 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.
* Young-Davidson Reserves: 0.756 Moz Proven (9.972 Mt @ 2.36 g/t gold) and 3.075 Moz Probable (36.653 Mt @ 2.61 g/t gold) for a total of 3.831 Moz Proven and Probable gold reserves (Source: AuRico Gold Web Site - March 6, 2012 - 2011 Summary of Reserves and Resources). Mineralization on the Young-Davidson mine may not be representative of mineralization on Transition Metals' newly acquired property.
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: "Transition Metals - West Matachewan Property Location Map - April 2012 (CNW Group/Transition Metals Corp.)". Image available at: http://photos.newswire.ca/images/download/20120405_C3523_PHOTO_EN_12037.jpg
For further information:
Further information is available on the Company's website at: www.transitionmetalscorp.com or contact:
President and CEO
Transition Metals Corp.
Tel: (705) 669-0590