Archive for category Corporate Updates

NORTHERN TIGER RESOURCES REPURCHASES BACK-IN RIGHTS ON SONORA GULCH PROPERTY, YUKON

Northern Tiger Resources Inc. has reached an agreement with Capstone Mining Corp.’s wholly owned subsidiary, into Explorations Ltd., to extinguish the back-in rights MintoEx holds on the Sonora Gulch property.”

With a nine square kilometre gold-in-soil anomaly, multiple gold intercepts in drill holes and a recent independent NI 43-101 Report recommending 16,400 metres of drilling, we believe that Sonora Gulch has significant exploration potential for intrusion related gold mineralization and porphyry copper-gold,” says Greg Hayes, President of Northern Tiger. “This transaction with MintoEx eliminates any uncertainty as to the future ownership of Sonora Gulch and unencumbers this key asset for future business opportunities or development.”

When Northern Tiger was formed in 2008 it acquired five Dawson Range properties from MintoEx that covered copper mineralization and exploration targets thought to be similar to those found at Capstone’s Minto Mine. At that time Northern Tiger and MintoEx entered into a Regional Exploration Alliance Agreement and MintoEx was granted certain back-in rights to Northern Tiger properties within a 50 kilometre radius of the Minto Mill. Now, at the request of Northern Tiger, and in order to unencumber the Sonora Gulch property, MintoEx has agreed to sell the its back-in rights in that property in consideration of $200,000. Northern Tiger shall satisfy this payment through the issuance of 421,052 common shares at a deemed issuance price of $0.475 per common share. The Regional Exploration Alliance remains intact, and MintoEx retains their back-in rights on other projects within 50 kilometres of the Minto Mill. The transaction is subject to approval of the TSX Venture Exchange.

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Castillian Provides update on Cariboo Rose’s Canadian Creek Property

Castillian Resources Corporation (“Castillian” or the “Company”) announces that pursuant to a letter agreement (the “Letter Agreement”) entered into with Alder Resources Ltd. (“Alder”) to acquire the right to earn a 60% interest in the Canadian Creek Gold property located in the Whitehorse Mining District, Yukon (the “Property”) (See Press Release dated October 18, 2010), the parties have clarified the terms of the previously entered into assignment agreement among Castillian, Alder and Cariboo Rose Ltd. Alder acquired its interest in the Property pursuant to an option agreement (the “Option Agreement”) dated June 11, 2009 entered into between Alder and Cariboo Rose Resources Ltd. (the “Optionor”) under which Alder had an option to acquire a 60% interest.

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Goodbye Underworld: KINROSS COMPLETES ACQUISITION OF UNDERWORLD RESOURCES

Kinross Gold Corp.’s acquisition of Underworld Resources Inc. has been completed, pursuant to the plan of arrangement described in the Underworld management information circular dated June 2, 2010. Under the plan of arrangement, each Underworld share will be exchanged for 0.141 of a Kinross common share plus one cent in cash, subject to adjustment with respect to fractional shares.

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NORTHERN TIGER RESOURCES COMMENCES $2.6 MILLION YUKON EXPLORATION PROGRAM

Northern Tiger Resources Inc. has commenced a $2.6-million exploration program on its Yukon projects.

“The Yukon is continuing to gain attention as a great place to invest and explore and we are excited to see our 2010 exploration program ramping up,” says Greg Hayes, president of Northern Tiger Resources. “From Sonora Gulch (copper-moly porphyry and epithermal gold potential) to our Minto-style projects (high-grade copper targets) and our new 3Ace property (abundant visible gold in an exposed quartz vein) we have a suite of projects with significant discovery potential.”

Sonora Gulch

The Sonora Gulch project is owned 100 per cent by Northern Tiger.  The property hosts a large gold geochemical anomaly covering approximately nine square kilometres with gold-in-soil values ranging from trace to 2,340 parts per billion (average grade of 56 parts per billion over 1,971 samples). Contained within the broad gold anomaly is a two-kilometre-by-one-kilometre copper-molybdenum anomaly that the company is evaluating as a copper-molybdenum porphyry system.

A crew has been mobilized to the company’s Sonora Gulch camp to begin line cutting in preparation for a deep penetrating geophysical survey by Quantec Geosciences Ltd. The survey is scheduled for mid-June, and will measure direct current resistivity and induced polarization to depths up to 750 metres. The primary target for the Titan 24 survey is copper-molybdenum porphyry mineralization.

Following completion of the Titan 24 survey, Northern Tiger is planning 12 to 15 diamond drill holes (3,000 metres) on the Sonora Gulch property. The drill program is being planned to test the property’s porphyry potential as well as one or two of the high-priority gold targets contained within the broader nine-square-kilometre gold-in-soil anomaly identified on the property. The drill program is anticipated to begin in late June.

Additional surface exploration, including mapping, prospecting and geochemical surveys will also be completed to expand and further delineate the mineralized zones at Sonora Gulch.

Minto-style targets

Northern Tiger acquired five properties from Capstone Mining Corp. covering exploration targets where previous prospecting encountered copper mineralization similar to that found at Capstone’s Minto mine. In addition, Northern Tiger and Capstone have a regional exploration alliance agreement (through Capstone’s wholly owned subsidiary Minto Explorations Ltd.), which provides for input and co-operation on planning and executing exploration programs and long-term strategies for the area, sharing of technical expertise to assist in exploration and project advancement, and access to Capstone’s infrastructure to facilitate area exploration.

Two diamond drill holes (500 metres) are planned to test a gradient array induced polarization anomaly coincident with a copper-in-soil geochemical anomaly located on the DAD property. The distinct chargeability high anomaly is suggestive of disseminated sulphide mineralization. It is 350 metres wide on the eastern end and 200 metres wide on the western end. The anomaly is in excess of 300 metres long and open to both the east and west. The DAD drill program is anticipated to occur in early September upon completion of the Sonora Gulch drilling.

A surface exploration program is planned to investigate a number of airborne geophysical targets identified on the MEL property, which is located immediately to the north of Capstone’s Minto mine. Additional surface exploration work is also planned to follow up on targets identified on the DEL and LED properties. This work is expected to occur in June, and if results warrant, ground geophysics surveys will be conducted over specific targets later in the season.

3Ace

Northern Tiger recently optioned the 3Ace property from Alex McMillan, a long-standing Yukon prospector who discovered a quartz vein containing abundant quantities of visible gold on the property. Historic work on the property has also identified a number of large gold-in-soil anomalies that warrant additional exploration (see news release in Stockwatch dated March 5, 2010).

A six-week surface exploration program is planned for the property, commencing in early July. In addition to thoroughly investigating the existing high-grade occurrence, a detailed mapping, prospecting and sampling program will be used to identify similar geological and structural environments with potential to host additional high-grade gold occurrences on the property.

This news release has been reviewed and approved by Dennis Ouellette, BSC, PGeol, a qualified person as defined by National Instrument 43-101.

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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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KINROSS GOLD CORPORATION ANNOUNCES PROPOSED ACQUISITION OF UNDERWORLD RESOURCES INC.

Underworld Resources Inc. and Kinross Gold Corp. have approved a business combination by way of a friendly offer by Kinross to acquire 100 per cent of the outstanding common shares of Underworld not already owned by Kinross. Subject to the execution of definitive agreements, the board of directors of Underworld unanimously recommends the offer to its shareholders and the directors and management team have agreed to tender their shares to the offer. Pursuant to the terms of the letter agreement, Underworld has agreed to work exclusively with Kinross toward the conclusion of a definitive support agreement which is anticipated to be executed and delivered by the parties by March 15, 2010.

Elements of the transaction include:

– For each common share of Underworld, Kinross will offer 0.141 of a Kinross common share, plus one cent in cash. The offer represents an implied offer price of approximately $2.62 per common share, based on the March 10, 2010, closing price of $18.54 per Kinross common share on the Toronto Stock Exchange. The transaction values the fully diluted share capital of Underworld at approximately $139.2-million.

– The offer represents an attractive and immediate premium of 36 per cent over the closing price of the common shares on the TSX Venture Exchange on March 10, 2010, the last day of trading prior to announcement of the offer, and a premium of approximately 50.2 per cent based on the volume-weighted average prices of the common shares and Kinross’s common shares, for the 20 trading days ended March 10, 2010.

The board of directors of Underworld, after receiving the recommendation of a special committee of independent directors created by Underworld to oversee the transaction process, has unanimously determined that the offer is in the best interests of Underworld and Underworld’s shareholders, and unanimously recommends that Underworld shareholders tender their common shares to the offer. The directors and senior officers of Underworld will enter into customary lock-up agreements with Kinross to tender all of their common shares to the offer.

Underworld’s key asset is the White gold project, located in the Tintina gold belt, approximately 95 kilometres south of Dawson City, Yukon territory, Canada. Underworld chairman Michael Williams commented: “The Kinross offer brings substantial technical and financial resources to the White gold property which will further rapidly advance the project. We feel the Kinross offer provides immediate value to our shareholders.”

Underworld’s financial adviser Canaccord Financial Ltd. has provided an oral opinion to the Underworld board of directors that the consideration offered is fair, from a financial point of view, to Underworld’s shareholders.

Full details of the offer will be included in the formal offer and takeover bid circular to be mailed to Underworld shareholders shortly. The offer will be open for acceptance for at least 35 days following the commencement of the offer. The offer is subject to several conditions, including acceptance of the offer by the holders of at least two-thirds of the outstanding common shares (calculated on a fully diluted basis) and the receipt of all necessary regulatory approvals. If Kinross acquires at least two-thirds of the outstanding common shares, Kinross intends to take steps to acquire all outstanding common shares not acquired pursuant to the offer. If 100 per cent of the common shares are tendered, Kinross will issue approximately 6.8 million common shares pursuant to the transaction (based on the fully diluted share capital of Underworld), representing approximately 1 per cent of Kinross’s current outstanding common shares.

Underworld’s legal counsel is DuMoulin Black LLP. Kinross’s financial adviser is RBC Capital Markets, its strategic adviser is BMO Capital Markets and its legal counsel is Osler, Hoskin & Harcourt LLP.

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Underworld Resources Identifies New Drill Targets

Underworld Resources Inc. has identified a 40-kilometre-long trend of gold prospects and anomalous gold in soil geochemistry at the JP Ross and Maisy May property. This trend exhibits similar geologic and geochemical characteristics to the White Gold trend, which hosts the Golden Saddle and Arc Deposits. Within the trend, Underworld has identified a Golden Saddle-style geochemical signature that is underlain by similar host rocks. The company intends to aggressively drill test this area.

Underworld recently announced the initial resource estimation for the Golden Saddle and Arc deposits. The resource at Golden Saddle includes 1,004,570 ounces at a grade of 3.2 grams per tonne Au in an indicated category, with an additional 407,413 ounces of inferred resources at an average grade of 2.5 g/t Au. At the Arc zone, the initial resource includes 170,470 ounces at an average grade of 1.2 g/t Au in the inferred category.

The JP Ross trend is road-accessible, located approximately 65 km south of Dawson City, Yukon, and 35 km north of the White Gold trend. Underworld recently completed additional claim staking, expanding this claim group to 312 square km. JP Ross includes the headwaters to multiple active, past-producing placer operations, including Henderson, Maisy May and Black Hills creeks. Production records from the Yukon Geological Survey (2009) report over 177,689 ounces of gold mined from these operations.

During 2009, Underworld collected over 6,200 soil samples on the property, primarily “ridge and spur” reconnaissance lines. Four soil grids were completed over select target areas, including the Frenzy, Marnie, Vertigo and Spellbound prospects. This work has identified a 40-kilometer-long and 12-kilometre-wide area of anomalous gold and pathfinder elements. The northwest trend at JP Ross is a parallel orientation to the 9.5-kilometre-by3.5-kilometre trend at White Gold.

The Frenzy gold-in-soil anomaly measures 2.7-by-one-kilometres and consists of 459 samples with an average grade of 18 parts per billion Au, ranging from trace to 1,142 ppb Au. The prospect is underlain by similar host rocks to the Golden Saddle deposit, with a similar geochemical signature. The Golden Saddle soil anomaly, 1.8-by-0.9-kilometre in area, consists of 348 samples which outline an “u”-shaped anomaly with an average grade of 22 ppb Au, ranging from trace to 364 ppb Au.

The ridge and spur sampling has identified numerous areas for additional grid soil sampling, including Sabotage Ridge, 1,600 metres long, which is a single ridge line gold with soil samples ranging from trace to 132 ppb Au, averaging 23 ppb. Samples for the entire property range from trace to 2,200 ppb Au, averaging five ppb.

The JP Ross and Maisy May area is underlain by a similar rock types and structures to White Gold, including metamorphosed mafic volcanic, intermediate intrusive and sedimentary rocks, as well as mid-Cretaceous to Early Tertiary plutons and volcanics. At White Gold, Golden Saddle is hosted within a metavolcanic sequence and Arc is hosted with sedimentary rocks.

Adrian Fleming, president, said: “The new soil geochemical results for JP Ross vindicate the exploration approach we have used, are similar or of larger magnitude to the footprint of the Golden Saddle deposit and confirm the potential of the White Gold district to host multiple occurrences of gold mineralization. We look forward to the results of our proposed aggressive 2010 regional drill program.”

Due to poor exposure of bedrock in White Gold, soil sampling is the primary reconnaissance exploration tool utilized by Underworld. It plans to set up an additional exploration camp at JP Ross to complete further soil sampling, trenching and diamond drilling during the 2010 field season.

SRK Consulting (Canada) Inc. was engaged by Underworld in September, 2009, to evaluate the mineral resources for White Gold discovered and identified by drill programs carried out in 2008, and 2009.

Underworld has implemented a rigorous quality control and quality assurance program at White Gold using best industry practice. Elements of the program include chain of custody of samples, insertion of standard and blank samples, and check assays. Soil and rock samples were collected by experienced, trained geologists and geological technicians, and shipped in sealed bags to Acme Laboratories in Vancouver, B.C.

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Underworld’s Initial Resource Estimate at Golden Saddle: Indicated Resources of 1,004,570 Oz. at 3.2 g/t Au and Inferred Resources of 407,413 oz at 2.5 g/t Au

Underworld Resources Inc. has released the initial resource estimation for the Golden Saddle and Arc deposits at the White gold property, Yukon. The resource at Golden Saddle includes 1,004,570 ounces at a grade of 3.2 grams per tonne gold in an indicated category, with an additional 407,413 ounces of inferred resources at an average grade of 2.5 grams per tonne gold. At the Arc zone, the initial resource includes 170,470 ounces at an average grade of 1.2 grams per tonne gold in the inferred category.

The resource estimates were undertaken by SRK Consulting (Canada) Inc. and are reported in accordance with the guidelines of the Canadian Securities Administration National Instrument 43-101. SRK carried out database verification, grade shell geometry, variography and ordinary kriging exercises. A database with a total of 13,260 samples from 96 drill holes was used for the Golden Saddle and Arc areas. The indicated and inferred mineral resources were classified according to the CIM definition Standards for Mineral Resources and Mineral Reserves (December, 2005) by Marek Nowak, PEng, of SRK Consulting, a qualified person as defined by NI 43-101.

Indicated and inferred resources were categorized as open pit or underground using 10-metre-by-10-metre-by-10-metre blocks at 0.5 gram per tonne gold and 2.0 grams per tonne gold cut-off grades, respectively, and using a Whittle shell model. Resources were estimated from a total mineral inventory of 1,480,870 ounces averaging 2.71 grams per tonne gold at the Golden Saddle deposit, and 170,470 ounces averaging 1.21 grams per tonne gold at the Arc deposit. It should be cautioned that the mineral inventory estimates should not be misconstrued as mineral resources.

 

          GRADE TONNAGE REPORT USING AN ORDINARY KRIGING ESTIMATE

Area           Type         Classification  Tonnes       Gold       Contained
                                            (000s)       (g/t)       gold (oz)

Golden Saddle  Open Pit     Indicated        9,665       3.19         990,840
                            Inferred         4,104       2.33         307,820
               Underground  Indicated          132       3.23          13,730
                            Inferred           918       3.38          99,590
Arc            Open Pit     Inferred         4,369       1.21         170,470

(i)Reported at a cut-off of 0.5 gram per tonne gold for open pit and 2.0
grams per tonne gold for underground. Mineral resources are not mineral
reserves and do not have demonstrated economic viability. All numbers have
been rounded to reflect the relative accuracy of the estimates.

 

At Golden Saddle, drill holes completed on approximately 50-metre-by-50-metre collar spacing were used to establish the resource. Wireframes were constructed to enclose mineralized zones with composited assays greater than 0.5 gram per tonne gold. The wireframes are therefore grade shells guided by the geology and modelled on vertical sections with closed polygons. Composited lengths of three metres and 10 metres were used to further guide the width of the wireframe mineralized zones, with the understanding that parts of the resource would be considered for open-pit mining as well as underground mining. The mineralization was split into four distinct zones for Golden Saddle. The primary mineralized zone is coded as the 110 zone. The 120, 130 and 140 zones have less continuity along strike and are slightly shallower in dip. The 120 zone is modelled intersecting the 110 zone downdip, while the other zones are presumed to intersect the 110 zone at some depth below the current model extents. An overall deposit 580 metres in strike length and up to 560 metres in downdip length has been defined.

The Golden Saddle deposit remains open to expansion along strike to the northeast and downdip to the northwest. Strength of alteration and mineralization increases in intensity to the northeast. The most northeasterly and deepest holes completed to date include holes WD09-101, which intersected 4.86 grams per tonne gold over 23.38 metres and WD09-103 which intersected 5.07 grams per tonne gold over 25.38 metres. For a complete list of drill hole intercepts and location maps, please see Underworld’s website.

At Golden Saddle, gold mineralization is preferentially hosted within metamorphosed felsic intrusive units, as well as felsic and mafic metavolcanic rocks, and is associated with quartz veins, stockworks and breccia zones, as well as pyrite disseminations that form northeast-striking and moderately northwest-dipping (plus/minus-50-degree) tabular bodies of gold mineralization. Comprehensive metallurgical testing indicates that a 92-per-cent-or-better gold recovery can be expected with a conventional plant at Golden Saddle, with 6 per cent to 9 per cent of contained gold reporting to a gravity concentrator prior to cyanidation.

At Arc, a total of 15 holes at approximately 100-metre-by-100-metre collar spacing and a single wireframe were used to establish the resource. Gold mineralization is preferentially hosted within metamorphosed sedimentary rocks in a broad zone ranging from to 10 to 30 metres in thickness and dipping 34 degrees to the north-northeast. Mineralization is associated with pyrite and arsenopyrite within silicified breccia and shear zones. The zone extends from the surface, has a strike length of 600 metres and extends 230 metres downdip, and is still open along strike and downdip.

Underworld is currently planning an aggressive drill program for 2010 to further expand the Golden Saddle and Arc deposits, and to drill test several new regional targets at the company’s extensive land position in the White gold district.

Quality assurance

SRK Consulting (Canada) Inc. was engaged by Underworld in September, 2009, to evaluate the mineral resources for the White gold project discovered and identified by drill program carried out in 2008 and 2009.

These mineral resource estimates represent the first resource evaluation on the White gold project. The resource evaluation incorporates all drilling completed by Underworld to date. In the opinion of SRK, the block model resource estimates reported herein are a reasonable representation of the global gold mineral resources found in the Golden Saddle and Arc zones at the current level of sampling. Mineral resources for the White gold project are reported in accordance with the guidelines of the Canadian Securities Administrators National Instrument 43-101, and have been estimated in conformity with generally accepted CIM Estimation and Mineral Resource and Mineral Reserve Best Practices guidelines. Mineral resources are not mineral reserves and do not have demonstrated economic viability. There is no certainty that all or any part of the mineral resource will be converted into mineral reserves. The resource estimate was completed by Marek Nowak, PEng (APEGBC No. 16985), a qualified person as defined by NI 43-101.

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, insertion of standard and blank samples, and check assays. Drill core is sawn in half and shipped in sealed bags to ALS Chemex Laboratories in Vancouver, B.C. Check assays are being undertaken by Acme Laboratories, Vancouver. Optimized metallurgical testing is being undertaken by Inspectorate PRA laboratories, Vancouver, under the guidance of JDS Energy & Mining Inc.

The company’s exploration program is being directed by Adrian Fleming, MAIG, RPGeo, MgoldsIMM, 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.

We seek Safe Harbor.

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