ARCUS ACQUIRES PROJECT ADJACENT TO UNDERWORLD’S WHITE GOLD DISCOVERY


Arcus Development Group Inc. has been granted by Atac Resources Ltd. an option to acquire a 50-per-cent interest in the Green Gulch, Touleary, Dan Man and Shamrock gold prospects, collectively referred to as the Dawson gold project. The four claim blocks cover an area of approximately 7,000 hectares and are located in west-central Yukon.

The Green Gulch claims are wholly surrounded by Underworld Resources Inc.’s White Gold discovery property. The Touleary claims are immediately adjacent to the western boundary of Underworld’s Black Fox property.

Arcus Claim Map

Arcus Claim Map

The exploration target at the Dawson gold project is orogenic gold mineralization within highly strained metamorphic rocks of the Yukon Tanana terrane. The project lies within a northwest trending belt of gold rich mineral deposits that extends from the Mount Nansen and Freegold Mountain areas, through the Sonora Gulch and Casino deposit areas and toward the Pogo mine in Alaska.

The focus of the 2009 exploration program will be geological mapping, prospecting and auger soil sampling of areas of geological interest. Follow-up work will include trenching of anomalous areas to identify potential drill targets. Atac is mobilizing crews and by starting the program as early as possible, the parties have maintained the option of drilling later in the 2009 field season.

Eric Tweedie, the Arcus vice-president of exploration, stated: “The Dawson gold project represents an excellent exploration opportunity for Arcus based on the geological setting and the proximity of the claim blocks to Underworld’s White Gold discovery. Atac was able to assemble a prospective land package in the area relatively early and cost effectively.”

To exercise the option and acquire a 50-per-cent interest in the project, Arcus is required to make aggregate payments to Atac of $185,000 cash and one million shares and incur exploration expenditures of $3.5-million prior to Dec. 31, 2011. The option is subject to Arcus completing a financing of not less than $1-million prior to Aug. 1, 2009. The terms of the financing have not been finalized and will be announced at a later date.

Upon the completion of its financing, Arcus will reimburse Atac for costs incurred by Atac as part of the 2009 program. All reimbursement costs and Arcus expenditures following the closing of the financing will be applied against the Arcus expenditure requirements.

If Arcus does not complete the financing by Aug. 1, 2009, the option will terminate and Atac will complete the 2009 program on its own behalf. Prior to completing its financing, Arcus will not have access to exploration results from the 2009 work program at the Dawson gold project.

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