Archive for June, 2009

Underworld Resouces Grants Stock Options

Underworld Resources Inc. has granted a total of 1.35 million incentive stock options to officers, directors, consultants and employees of the company, at an exercise price of $1.55 per share. The options are exercisable for 10 years from the date of grant and are subject to the policies of the TSX Venture Exchange.

, ,

No Comments

Stina in Talks for a Second Yukon Gold Property

Stina Resources Ltd. has entered into preliminary negotiations for a potential gold property in the Dawson mining district of the Yukon Territory.

On June 19, 2009, the company announced that it had entered into an option agreement with Ryanwood Exploration Inc. for a 100-per-cent interest in the Kodiak gold property, also in the Dawson mining district.

The company expects to announce further details pertaining to this second property in the near future as negotiations progress.

, , , ,

No Comments

Taipan Capital Enters into Option Agreement on Yukon Copper Gold Property for QT

Taipan Capital Corp. has entered into an option agreement dated for reference June 26, 2009, with Copper Ridge Explorations Inc. Under the agreement, Taipan has obtained the exclusive option to acquire up to an undivided 65-per-cent interest in the Lucky Joe properties held by Copper Ridge. Taipan is a capital pool company (CPC) and intends the transaction to constitute its qualifying transaction under the policies of the TSX Venture Exchange. The transaction is an arm’s-length transaction, and as such, the qualifying transaction will not be subject to approval of the shareholders of Taipan.

Pursuant to the agreement, Taipan has an option to acquire up to an undivided 65-per-cent interest in Copper Ridge’s Lucky Joe mineral claims as described below.

About the property

The Lucky Joe copper-gold property is located in the Yukon approximately 40 kilometres northeast of Underworld Resources Inc.’s recent discovery. The property consists of 548 claims with a total area of approximately 11,000 hectares. The property is located 50 kilometres south of Dawson City, with access by helicopter.

The property hosts a unique style of copper-gold mineralization that has similarities to Capstone’s Minto mine, approximately 150 kilometres to the southeast. Total recent exploration expenditures on the property are approximately $2.9-million, of which over $1.5-million was spent by Kennecott.

In the late 1970s, drilling of a small part on the fringe of this potentially mineralized area by Riocanex gave values of 0.3 per cent copper to 0.6 per cent copper over thicknesses of 20 to 30 metres, with values up to 0.95 per cent copper over 5.2 m. Gold was shown to have close to a 1:1 correlation with copper. When copper assays are in the 0.9-per-cent range, gold values are in the 0.8-gram-per-tonne to 0.9-per-tonne gold range.

Drilling in 2005 and 2006 encountered a broad area in the core of the 13-kilometre-long Bear Cub soil anomaly with low-grade, porphyry-style copper-gold alteration and mineralization to depths of in excess of 300 m. Late in 2006, Copper Ridge drilled a hole (LJ06-09) at the south end of the seven-kilometre-long Ryan’s Creek trend, on a coincident induced polarization chargeability and soil copper-gold anomaly. A mineralized zone consisting of trace to 2 per cent chalcopyrite and trace to 2 per cent pyrite was encountered between 48 and 91 m. Within this zone, copper assayed 0.75 per cent over three metres and gold assayed three grams per tonne over 2.4 m. Additional drilling in 2007 consisting of 2,000 to 3,500 m north of the initial intersection, encountered 7.3 m at 0.905 per cent Cu and 0.5 g/t gold in hole LJ07-19, 26.6 m at 0.152 per cent Cu in hole LJ07-18 and 15.3 m at 0.176 per cent Cu in hole LJ07-22.

J. Greg Dawson, PGeo, vice-president of exploration for Copper Ridge, is the qualified person for the Lucky Joe project, and is responsible for the technical content of this news release.

Proposed financing

Concurrent with the qualifying transaction, Taipan will conduct a non-brokered private placement of units for up to $345,000 in gross proceeds. The financing will consist of up to 1.5 million flow-through units and up to one million non-flow-through units. Each flow-through unit will consist of one flow-through common share in the capital of the company and one non-transferable share purchase warrant, offered at a price of 15 cents per flow-through unit. Each non-flow-through unit will consist of one non-flow-through common share in the capital of the company and one non-transferable share purchase warrant, offered at a price of 12 cents per non-flow-through unit. Each share purchase warrant forming a part of the flow-through units and non-flow-through units will entitle the holder thereof to acquire one additional non-flow-through common share of the company at a price of 15 cents per share at any time prior to the date that is 24 months from the date of issuance. Net proceeds from the private placement will be used to finance the proposed work program on the property and for working capital. Finders’ fees may be payable in connection with the private placement as permitted under the policies of the exchange.

Insiders of Taipan

Upon completion of the transaction, it is anticipated that there will be no change in the officers and directors of Taipan, except for the addition of Gerald G. Carlson to the board. Mr. Carlson will provide Taipan with geological expertise. Please refer to Taipan’s prospectus filed on SEDAR for detailed backgrounds on Harry Chew (president and proposed chief financial officer and secretary), Trent S. Hunter (proposed chief executive officer) and Sonny Chew, who will also remain as directors of Taipan upon the completion of the transaction. A brief biography of Mr. Carlson, a proposed nominee to the board, is highlighted below.

Proposed qualifying transaction

Under the terms of the agreement, the company can acquire an initial 51-per-cent interest in the property by incurring a total of $2-million in exploration expenditures on the property as follows: a minimum $200,000 in expenditures on the property to be incurred by the first year following exchange acceptance of the agreement, a minimum $400,000 in expenditures by the second year, a minimum $600,000 in expenditures by the third year and a minimum $800,000 in expenditures by the fourth year. In addition, the company must make cash payments to Copper Ridge of $25,000 on signing of the agreement, $25,000 on the first year following exchange acceptance, $30,000 on the second year, $35,000 on the third year and $40,000 on the fourth year, as well as issue to Copper Ridge 100,000 shares of the company on exchange acceptance and 100,000 shares on each of the first year, second year, third year and fourth year following exchange acceptance.

The company has a further option to acquire an additional 14-per-cent interest (for a total undivided 65-per-cent interest) in the property by incurring an additional $2.5-million in exploration expenditures on the property as follows: a minimum of $1-million in expenditures on the property to be incurred by the fifth year following exchange acceptance and a minimum $1.5-million in expenditures by the sixth year. In addition, the company must make cash payments to Copper Ridge of $50,000 by the fifth year following exchange acceptance and $50,000 by the sixth year, as well as issue to Copper Ridge 250,000 shares of the company by each of the fifth year and sixth year following exchange acceptance. The property is subject to a 1.5-per-cent net smelter return, of which one-half of the NSR (0.75 per cent) may be purchased for $2-million on a pro rata basis by Taipan and Copper Ridge, and the issuance of up to 500,000 bonus shares upon certain criteria being met to an arm’s-length third party, of which 200,000 shares are to issued by Copper Ridge and the balance of 300,000 will be split pro rata by Taipan and Copper Ridge depending on Taipan’s interest earned pursuant to the agreement. Completion of any and all transactions contemplated by the agreement is subject to, among other things, acceptance by the exchange and all other necessary regulatory approvals. The completion of the transaction is also subject to completion of the private placement.

Sponsorship of a qualifying transaction of a CPC is required by the exchange unless exempt in accordance with exchange policies or waived by the exchange. Taipan intends to apply for an exemption or waiver from sponsorship requirements; however, there is no assurance that Taipan will be able to obtain this waiver. Upon completion of the qualifying transaction, the company will be considered a Tier 2 mining issuer under the policies of the exchange.

Taipan will, subject to exchange acceptance, pay a finder’s fee consisting of 260,000 common shares to Voelpel Gold Medal Investments Ltd. in connection with the transaction.

Completion of the transaction is subject to a number of conditions, including, but not limited to, exchange acceptance and if applicable pursuant to exchange requirements, majority of the minority shareholder approval. Where applicable, the transaction cannot close until the required shareholder approval is obtained. There can be no assurance that the transaction will be completed as proposed or at all.

Investors are cautioned that, except as disclosed in the management information circular or filing statement to be prepared in connection with the transaction, any information released or received with respect to the transaction may not be accurate or complete and should not be relied upon. Trading in the securities of a CPC should be considered highly speculative. The exchange has in no way passed upon the merits of the proposed transaction and has neither approved nor disapproved the contents of this press release.

, , , ,

No Comments

About Whitegolddistrict.com

This site is about the developing Area Play in the vicinity of Underworld Resources and their new discovery at the White Gold Property. Significant thicknesses of gold mineralization were discovered by Underworld including 3.39 g/t Au over 104.0 meters. This has sparked the largest land rush in the Yukon in years and now more than twenty companies have announced new claims in the area. To make everyone’s life easier this site will be updated daily with news releases from all the players involved in the White Gold Area Play. Unlike other sites who specialize in a particular commodity or are a newsletter writers ramblings, this site will focus on the White Gold Area Play itself. Check out the Player Profile page for a quick summary of all involved so far. Please bookmark this site or check back daily!

, , , ,

No Comments

VALLEY HIGH OPTIONS FLUME PROPERTY, WHITE GOLD DISTRICT, YUKON

Valley High Ventures Ltd. has entered into an option agreement with Phelps Dodge Corp. of Canada Ltd., a wholly owned subsidiary of Freeport-McMoRan Copper & Gold Inc. to acquire a 100-per-cent interest in the Flume property located in Yukon Territory.

Valley High Copper Flume Property Map

Valley High Copper Property Map

The Flume property is located 60 kilometres southwest of Dawson City, Yukon, and 30 kilometres northwest of Underworld Resources Inc.’s white gold discovery and comprises 191 mineral claims totaling approximately 3900 hectares. It covers the headwaters of Ten Mile creek, a well known placer mining location, as well as the headwaters of Sestak creek, a drainage with reported historical placer mining activity.

The Flume property was staked by PDC in 1998, to cover drainages with anomalous gold and arsenic in government stream sediment samples. PDC subsequently completed property wide soil sampling, geological mapping, prospecting and limited trenching that defined two main target areas primarily characterized by elevated gold and arsenic soil anomalies with minor anomalous antimony (Sb) and molybdenum (Mo). The most recent exploration done on the property was a small mechanical augur program completed in 2007.

The northern Flume target has dimensions of 3.5 kilometres by three kilometres with gold in soil values ranging from 10 ppb to a high of 615 ppb. The best rock sample collected from this area returned 2.7 grams per tonne gold from quartz stockwork-bearing intrusive float. The southern Sestak target has dimensions of 3.7 kilometres by one kilometre as defined by a combined arsenic and gold soil anomaly (max gold value 1,317 ppb). Rock samples collected from this area include 10 samples that assayed greater than 1000 ppb with the best sample returning 3.5 g/t Au from a lead- and zinc-rich skarn developed in a limestone horizon within meta-sediments.

Valley High may earn a 100-per-cent interest in the Flume property from PDC by making cash payments totalling $225,000 and by completing $500,000 worth of work over four years. The initial payment of $10,000 is due on the six-month anniversary of the option and Valley High commits to completing a $200,000 work program by the second anniversary. PDC retains a 2-per-cent NSR royalty of which one-half can be repurchased by Valley High for a sum of $1-million. PDC also retains the right to share in the proceeds derived from the sale or option of the property to a third party in the amount of 50 per cent of proceeds received during the first year and 25 per cent of the proceeds in any subsequent year.

Robert Cameron states, “Having been involved from the staking and initial exploration of this exciting property for PDC, I am pleased to be able to continue with its advancement on behalf of Valley High. The recent gold discovery by Underworld at their White Gold project and the historical gold production from this placer mining region certainly supports the bedrock gold potential of this newly recognised and under explored area. Valley High continues to implement its business model of acquiring high-calibre exploration projects and may seek a joint venture partner to rapidly advance the exploration of this large promising target.”

Robert Cameron, PGeo, who is a qualified person within the context of National Instrument 43-101 has prepared and takes responsibility for this news release.

, , ,

No Comments

NETWORK ACQUIRES MINERAL CLAIMS NEAR UNDERWORLD’S NEW GOLD DISCOVERY

Network Exploration Ltd. has acquired mineral claims representing over 1,000 hectares (or 10 square kilometres) of explorable land in the Yukon Territory, Canada. These claims lie east of Underworld Resources Inc.’s Golden Saddle zone on its White gold property where gold assay values of 4.8 grams per tonne (g/t) and 3.59 g/t have been intercepted over 10.5 and 98.3 metres, respectively.

Under the acquisition agreement Network has agreed to pay $75,000 cash and to issue two million common shares of Network. The vendor will retain a 3-per-cent net smelter return (NSR) of which 1 per cent will be purchasable by the company for $1-million (leaving a 2-per-cent NSR).

Network’s work commitment on the newly acquired land is $25,000 by June 1, 2010, and an additional $225,000 by Sept. 1, 2010.

In an effort to increase shareholder value, Network continues to be on the lookout for strategic property acquisitions near emerging discoveries as well as for historical finds such as the company’s Caldera project in Chile.

Specifically, Network is actively seeking to acquire additional land in the emerging Yukon gold rush to complement its current portfolio and continuing work program in South America. “This acquisition is part of a strategy to maximize our exposure to new gold discoveries,” stated Richard Schnoor, director of international operations. “We will mobilize a field crew to begin a systematic geological work program as soon as reasonably possible,” added Mr. Schnoor.

This transaction is subject to TSX Venture Exchange approval.

, , ,

No Comments

Underworld agreement for Bear and Cub claims

The TSX Venture Exchange has accepted for expedited filing documentation of a letter agreement dated April 10, 2009, between Underworld Resources Inc. and 16406 Yukon Inc. (Tom Organ) whereby the issuer has acquired a 100-per-cent right, title and interest in and to the Bear and Cub claims at Thistle Creek located in the Dawson mining district in the Yukon.

The consideration payable to the vendor consists of cash payments totalling $135,000; total share issuances of 200,000 shares; and exploration or work commitments on the property in the amount of $1-million all payable over a four-year period.

The property is subject to a 2-per-cent net smelter return royalty upon commencement of commercial production.

, , ,

No Comments

White Gold Area Play Heating Up

Not a single day goes by in the past two weeks without a news release of another company staking claims and citing recent drill results from Underworld Resources in the Yukon as the reason.

This is exactly what happened with Noront Resources in 2007 and with Goldsource Mines in 2008 and their subsequent more than 10-fold share price increase. Area plays can do very well and some of these juniors may end up with results that rival that of Underworld. This is a likely scenario in this case because the White Gold district is in a northwest trending belt of gold rich mineral deposits which include Western Copper’s Casino deposit and Capstone’s Minto mine.  

The White Gold area play has the potential to go for even longer, since it is gold and gold has a long way to go….UP. The Noront and Goldsource plays were effectively killed by the crash in the nickel price and coal price respectively. This area play will go on for a year or even more as field crews are mobilized to the Yukon and news will be flowing constantly over the next year from all the companies involved. The media will report more and more on it, newsletter writers will be hired to promote it, and investors will put more and more money into it. We are still in the very early stages of this area play so it is not too late to get in. Check out the list of White Gold District players on the right sidebar and move your cursor over the price change to see a price chart for each stock from Yahoo Finance.

, , , ,

No Comments

NEWCASTLE ACQUIRES YUKON PROPERTY NEAR UNDERWORLD’S WHITE GOLD PROJECT

Newcastle Minerals Ltd. has, subject to regulatory acceptance, acquired 25 lode quartz mineral claims located near Underworld Resources’ White Gold property in the Yukon. The claims cover approximately 1,000 hectares and are located about 15 kilometres east of Underworld’s recently announced discovery of 103 metres of 3.4 grams of gold per tonne. 

Newcastle will pay or issue to the vendor, Blair Naughty, $75,000 cash, three million shares of Newcastle and a 3-per-cent net smelter returns royalty. The company may repurchase 1 per cent of the royalty for $1-million. Newcastle also agreed to spend $25,000 to explore the property by June 1, 2010, and $225,000 by Sept. 1, 2010.

In conjunction with this acquisition, Newcastle Minerals has negotiated, subject to regulatory approval, a non-brokered private placement consisting of up to six million units at a price of three cents per unit, to qualified investors.

Each unit will consist of one common share and one warrant. Each warrant will, in turn, entitle the holder to purchase an additional common share for a period of two years following the closing date at a price of seven cents per share during the first 12 months and 10 cents per share thereafter.

The proceeds from the private placement will be used for exploration of the Yukon claims and working capital.

, , ,

No Comments

UNDERWORLD INTERSECTS 3.2 G/T AU OVER 44.5 METERS AT WHITE GOLD PROPERTY

Underworld Resources Inc. has received results from nine additional holes drilled during the phase 1 campaign at the White Gold property. At Golden Saddle, extensions to gold mineralization down dip and along strike to the northeast have been confirmed. Two additional holes at the Arc zone demonstrate continuity of mineralization discovered in 2008. Drill hole location plans and cross-sections are available on the company’s website. The table provides further details.

Golden Saddle

Highlight of the Golden Saddle results is WD09-32 which returned 3.16 grams per tonne gold over 44.5 metres from 179.5 metres and extends the Golden Saddle upper zone farther down dip. WD09-32 is located 60 metres down dip from WD08-21, which returned 3.2 g/t Au over 50.7 metres.

WD09-34, which returned 1.4 g/t Au over 29.50 metres, demonstrates extension of the mineralized zone farther to the northeast. WD09-38 intersected 0.95 g/t Au over 153.0 metres, including higher-grade upper and lower intervals, including over 3.1 g/t Au over 17.2 metres and 4.1 g/t Au over 16.0 metres. WD09-38 intersected the Golden Saddle zone 60 metres up dip from WD09-34.

WD09-30 was drilled up dip from the same collar location as WD09-31, which intersected 3.4 g/t Au over 104.0 metres. WD09-30 returned 0.6 g/t Au over 70.9 metres, including 2.1 g/t Au over seven metres, but the zone was truncated by an altered and sheared ultramafic unit or dike, which is interpreted to be a poor host rock to the gold mineralization within the Golden Saddle zone.

Two drills are currently working on the 6,000-metre 2009 phase 2 program. Assays are pending for four additional holes at Golden Saddle including WD09-44, 45 and 47, which tested for further extensions to the northeast spanning an additional 120 metres of strike length.

Arc zone

At the Arc zone, located two kilometres southeast of Golden Saddle, assays for two of five holes drilled in the 2009 phase 1 drill campaign have been received. WD09-37 and 39 are located between holes WD08-14 and 17 drilled in 2008. WD09-37 returned 1.32 g/t Au over 31.5 metres from 123.5 metres while WD09-39 returned 1.51 g/t Au over 14.5 metres from 78 metres. These holes complement WD08-14 and WD08-17 and confirm continuity of mineralization over a strike distance of 600 metres. Two of the three additional holes at Arc with assays pending were tested extensions to the zone farther south of hole WD08-14, while hole WD09-42 was located north of WD09-37 and 39 to test for extension to the north and a possible link between Arc zone and Golden Saddle.

 The upper zone mineralization at Golden Saddle is preferentially hosted within a deformed intrusive unit (augen gneiss), and to a lesser degree within schists and amphibolites. Gold mineralization is associated with quartz breccias, veins and stockworks, as well as silica, sericite, K feldspar and ankerite alteration. Sulphide mineralization is dominated by disseminated and stockwork pyrite, with local visible gold, chalcopyrite and molybdenite.

The 2009 phase 2 drill program is continuing with two drills. Fourteen holes have been completed at Golden Saddle in 2009 with holes 47 and 48 in progress. The current focus of drilling is to extend the Golden Saddle mineralization. Additional step-out drill holes are being planned in all directions.

Upon receipt of assays from the remaining three Arc zone holes drilled in the 2009 phase 1 program, additional infill and step-out drill holes will be planned.

Exploration work including mechanical trenching is continuing on several other targets at the White Gold property prior to drill testing during the summer of 2009. Underworld intends to complete a National Instrument 43-101 resource estimate on the Arc and Golden Saddle zones in the third quarter of 2009.

Quality assurance

Underworld has implemented a rigorous quality-assurance/quality-control program at the White Gold property using best industry practice. Elements of the program include chain of custody of samples, standard and blank samples are submitted, with drill core sawn in half and shipped in sealed bags to ALS Chemex Laboratories in Vancouver. The continuing 2009 exploration program is directed by Adrian Fleming, MAIG, RPGeo, MAusIMM, president of Underworld Resources and a qualified person as defined by NI 43-101. Mr. Fleming prepared and approves of the content of this release.

, , , , ,

No Comments