Archive for April, 2010

Update on Kinross Offer – Kinross Now Owns 81.6% of Underworld Shares

Underworld Resources Inc. (“Underworld”) (TSX-V: UW) is pleased to announce that pursuant to the news release of Kinross Gold Corporation (“Kinross”) issued on April 26th, Kinross has taken up and paid for an additional 38,744,878 common shares of Underworld (“Underworld Shares”) under its offer to acquire all of the outstanding Underworld Shares. As a result of this acquisition, Kinross now beneficially owns a total of 42,663,059 Underworld Shares, or 81.6% of the issued and outstanding Underworld Shares on a fully diluted basis. Following completion of the exchange of the outstanding Underworld employee stock options for replacement Kinross stock options in the manner contemplated by the terms of the Kinross offer, a process that is expected to be completed shortly, this will represent approximately 87.0% of the issued and outstanding common shares on a fully-diluted basis.

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Pacific Ridge Announces Exploration Plans for Klondike Gold Projects

Pacific Ridge Exploration Ltd. will commence a second year of gold exploration on its Klondike Kate project comprising four properties held within the Yukon’s South Klondike region. Exploration interest was first seen in the region in late 2008 after reports of Underworld Resource’s White Gold discovery. Recently, Underworld accepted a takeover offer from Kinross valued at approximately $118-million for acquisition of its 1.4-million-ounce White Gold deposit. With a major gold company now in the South Klondike, coupled with 30 junior exploration companies reporting activity, additional gold discovery is anticipated. Pacific Ridge acquired its South Klondike holdings through a combination of the company’s principals having prior exploration experience and historic exploration data in the region as well as contacts with Yukon prospectors.

Pacific Ridge, encouraged by its 2009 exploration results and overall discovery success reported in the South Klondike, plans an initial exploration expenditure of $1.3-million for its Mariposa, Gold Cap, Polar/Stewart and Eureka Dome properties.

Mariposa, comprising 246 mineral claims and covering 50 square kilometres, is located 50 kilometres southeast of White Gold. Pacific Ridge holds an option to earn a 100-per-cent interest subject to a 2-per-cent royalty from the Tintina syndicate. The Pacific Ridge 2009 exploration program included prospecting, historic data compilation, geologic mapping and initial soils geochemical surveys. Mariposa covers a 14-kilometre length of geological and aeromagnetic signatures bearing similarities to the White Gold and Kaminak’s Coffee Creek discovery.

Mariposa has seen a 100-year history of placer gold mining, which in one area, has produced hackly nuggets suggesting proximity to potential lode gold sources. The property contains a seven-kilometre (open-ended) zone of quartz mica schist rocks hosting sulphide mineralization with grab samples assaying to three grams per tonne (g/t) gold. Yet to be more fully defined this season, geochemical anomalies in soils range from 20 parts per billion (ppb) to 1,300 ppb gold.

The 2010 exploration program, budgeted at $1.0-million, will include expanding geochemical sampling grids to delineate the ultimate dimensions of gold anomalies. Trenching will then be directed to expose bedrock and the facilitation of sampling. Drilling of selected gold targets is proposed during the later part of the season.

The 56-claim Gold Cap property covers 12 square kilometres and adjoins the northeast boundary of Underworld’s White Gold property. Gold Cap is 100 per cent owned and was staked by Pacific Ridge on the basis of an anomalous gold silt sample reported by the Geological Survey of Canada. The Pacific Ridge 2009 exploration program saw soil sampling within a two- by four-kilometre grid, flanking an aeromagnetic anomaly. An open-ended gold, nickel and arsenic anomaly includes gold in soils ranging to 290 ppb gold, indicating stronger values building toward its open-ended northerly trend. The 2010 exploration program, budgeted at $100,000, will extend the geochemical survey three kilometres to the northwest. Trenching will be contingent on additional geochemical results.

Polar/Stewart, consisting of 149 mineral claims, covers 31 square kilometres adjoining Gold Cap to the west and claims held by Underworld to the south. Pacific Ridge holds an option to earn a 100-per-cent interest subject to a 2-per-cent royalty, from prospector Shawn Ryan. The property was acquired on the basis of favourable geology, an aeromagnetic anomaly and reconnaissance soil sampling yielding gold values reaching 634 ppb gold. The 2010 exploration program, budgeted at $100,000, will include grid-controlled geochemical soil sampling followed by trenching where warranted.

Eureka Dome, 100 per cent owned by Pacific Ridge, with the 156 Eureka and Moose claims covers 33 square kilometres. Eureka Dome can be partially accessed by road and joins the eastern boundary of claims held under option by Golden Predator.

Notable are placer gold occurrences reported in most creeks draining the property coupled with geochemical anomalies indicating the presence of a high-level epithermal style alteration system. Anomalous arsenic (3,000 ppb) and mercury (17 parts per million (ppm)) occur within silicified and brecciated rocks. Prior workers reported breccia float samples grading to 14 grams gold, and silt samples running to 900 ppb on immediately adjacent properties. The 2010 exploration program, budgeted at $100,000, will include geochemical sampling within a by four-kilometre grid covering the anomalous areas of brecciated rocks to then be followed by trenching and sampling.

Elsewhere, Pacific Ridge continues to maintain its interests in the Baker Lake uranium project in Nunavut and the Fyre Lake copper, gold project in southeast Yukon as well as the Tumbler phosphate project in northeastern British Columbia.

Pacific Ridge’s disclosure of a technical or scientific nature has been reviewed by George Norman, PGeo, exploration manger for Pacific Ridge and a qualified person under the definition of National Instrument 43-101.

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Kaminak Mobilizes to the Coffee Property and Outlines Drill Strategy

Kaminak Gold Corp.’s field crews have been mobilized to the company’s 100-per-cent-owned Coffee gold property in preparation for an early May phase I diamond drill program consisting of a minimum of 5,000 metres. Initial work at Coffee will include camp construction, drill mobilization, ground geophysics and infill trenching at the Supremo gold zone.

Drill strategy

The Coffee property is located in the White gold district of the Yukon and 30 kilometres south of Underworld Resources Inc.’s Golden Saddle deposit, presently subject to a friendly takeover offer from Kinross Gold Corp. The Coffee property has never been drilled in the past and work to date suggests the presence of Golden Saddle-style mineralization at Coffee.

The initial phase I 5,000-metre diamond drill program is designed to test high-grade surface gold discoveries at the Supremo and Latte gold zones. The first series of shallow holes (less than 200 metres) will be drilled at Supremo directly below trench results of 11.7 grams per tonne gold over 10 metres and 8.6 grams per tonne gold over 15 metres (trench No. 3). The Supremo zone consists of a 2.5-kilometre-long-by-two-kilometre-wide gold-in-soil anomaly containing several distinct drill targets identified through trenching. Recent technical work by Kaminak’s team suggests the Supremo gold occurrences are associated with extensive structural corridors that are interpreted as significant regional features.

The second series of shallow drill holes will test the Latte gold zone, which occurs one kilometre south of the Supremo zone and is located on an entirely different structure. The Latte zone is defined by a one-kilometre-long-by-up-to-100-metre-wide gold-in-soil anomaly averaging 600 parts per billion gold (0.6 gram per tonne gold). Once drilling has begun, Kaminak expects to be reporting its first assays several weeks after.

Surface exploration strategy

Soil sampling and trenching over the entire Coffee property are expected to commence in early June and will complement the drill program. In 2009, Kaminak identified through soil sampling eight distinct gold zones, some of which are still open for expansion, spanning an 11-kilometre strike length. With the recent increase in property size, soil samples have only been collected on 7 per cent of the property. A widespread soil sampling program consisting of a minimum of 2,000 soil samples will be collected throughout the property. Done in tandem to the soil sampling program will be an extensive trenching program over highly anomalous soils.

Kaminak’s disclosure of a technical or scientific nature in this press release has been reviewed and approved by Dr. Rob Carpenter, PhD, PGeo, Kaminak’s president and chief executive officer, who serves as a qualified person under the definition of National Instrument 43-101. The Coffee property represents an early stage exploration property and does not contain any mineral resources as defined by National Instrument 43-101.

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