Posts Tagged Central Resources

CENTRAL RESOURCES CORP.: SELWYN CREEK EXPLORATION RESULTS; ROCK SAMPLES RETURN UP TO 14.15 G/T GOLD

Central Resources Corp. has released results of the 2011 surface exploration program conducted at its LLL property located in the Dawson Range gold belt of southwestern Yukon. Highlights from the program include:

  • Discovery of highly prospective rocks grading between 0.697 and 14.15 grams per tonne gold from quartz veined samples;
  • Expansion of a 2010 soil geochemical anomaly — resulting in a 1,200-by-1,000-metre area of coincident, strongly elevated gold and arsenic values;
  • Identification of three new moderately to strongly anomalous areas of gold and arsenic soil geochemistry.

In 2011, prospecting at the LLL property identified a breccia zone that lies on the western edge of a broad ridge. This zone appears to be oriented subparallel to a geological contact between quartzite and gneiss, in an area where a porphyry dike cuts both units. Geologically favourable material typically ranges from weakly silicified fault breccia to strongly silicified hydrothermal crackle breccia. Visual mineralization includes arsenopyrite, minor stibnite and alteration minerals — scorodite, limonite and jarosite. This breccia zone has never been drilled or trenched and contains no outcrops. Limited sampling of mostly grass-covered talus returned encouraging values, including 0.697 g/t, 1.125 g/t and 14.15 g/t gold.

“These results are very exciting because we have discovered significant gold mineralization in rock samples located within a large gold-arsenic soil anomaly,” said Paul Reynolds, president and chief executive officer of Central. “These rock sample results range from anomalous to 14.15 g/t gold.”

Soil sampling expanded a zone of coincident, strongly anomalous gold and arsenic soil geochemistry, which encompasses the breccia zone and covers an area 1,200 metres long and 1,000 metres wide. Values from 2011 sampling in this anomaly range from 20 to 502 parts per billion gold in soil and 100 to 810 parts per million arsenic in soil. Antimony values within this zone were weak to strongly anomalous (five to 23 ppm). Gold and arsenic soil geochemical maps are posted on the company’s website.

Three additional soil geochemical targets comprising clusters of moderately to strongly anomalous gold and arsenic values have been identified elsewhere on the property. Values within these anomalies range from 20 to 391 ppb gold and 100 to 301 ppm arsenic. No follow-up prospecting has been done in the vicinity of these anomalies. The highest soil result on the property is an isolated gold value of 1,060 ppb.

Most of the LLL property is underlain by brittle graphitic quartzite, hornblende-biotite granite gneiss and two whitehorse suite granitic plutons. Quartz-feldspar porphyry dike swarms intrude all of these units. This geological setting resembles the setting at the nearby Coffee property of Kaminak Gold Corp.

Analytical work was done by ALS Chemex with sample preparation in Whitehorse, Yukon, and assays and geochemical analyses in North Vancouver, B.C. All rock samples were initially analyzed for gold by fire assay followed by atomic absorption and 35 other elements by inductively coupled plasma — atomic emission spectroscopy. Overlimit values for gold were determined by fire assay and gravimetric finish. All soil samples were analyzed for gold by inductively coupled plasma and atomic emission spectrometry, and the multielement analysis was done by ME-ICP41.

The 2011 program was conducted by Archer, Cathro & Associates (1981) Ltd. under the supervision of Heather Smith, PGeo. The technical information in this release has been reviewed by Ms. Smith, PGeo, and Mr. Reynolds, PGeo, president of Central, both of whom are qualified persons as defined by National Instrument 43-101.

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CENTRAL COMMENCES WORK ON SELWYN CREEK PROJECT, DAWSON RANGE, YUKON

Central Resources Corp. has begun the 2011 exploration program on its Selwyn Creek properties located in the Dawson Range area of the White Gold district, Yukon.

Initial work consisting of wide-spaced and detailed soil sampling, prospecting, geological mapping and trenching will be focused on the L block to identify potential drill targets for subsequent testing. The detailed soil sampling will follow up soil anomalies generated last year, the largest of which defined a roughly linear northeast-trending, greater-than-20-parts-per-billion gold anomaly, at least 1,000 metres long and up to 500 metres wide. This anomaly remains open to the northeast and southwest. Within this anomaly, 16 samples ran greater than 50 ppb gold, and six samples ran better than 100 ppb gold, with the highest sample running 470 ppb gold (see news release dated Oct. 13, 2010).

The L block consists of 777 claims with an area of 16,250 hectares. The properties were staked on the basis of historic sampling conducted by Archer Cathro & Associates (1981) Ltd. Central has the right to earn a 100-per-cent interest in the properties from Strategic Metals Ltd.

The 2011 fieldwork will be carried out by Archer Cathro and Associates and will be supervised by Heather Smith, PGeo. Ms. Smith is responsible for all aspects of the work including the quality control/quality assurance program.

Paul Reynolds, PGeo, president of Central, and a qualified person as defined by National Instrument 43-101, has reviewed and approved the technical disclosure made in this press release.

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CENTRAL ANNOUNCES $750,000 FINANCING

Central Resources Corp. has negotiated a non-brokered private placement of $750,000 through the sale of 3.75 million flow-through units at a price of 20 cents per unit.

Each flow through unit will consist of one flow-through common share and one-half of one non-flow-through share purchase warrant. Each whole warrant will entitle the holder to purchase one additional non-flow-through common share of the company for a period of 12 months from closing at an exercise price of 40 cents. The company may accelerate the expiry of the warrants (following the expiry of the four-month hold period) if the 20-day volume-weighted average trading price of the shares on the TSX Venture Exchange (or such other exchange on which the shares may be listed) exceeds 60 cents in which event the warrant will expire 30 calendar days after the date that the company provides notice to the holders.

The company will pay a cash finder’s fee equal to 6 per cent of the gross proceeds raised in the private placement. The company will also issue that number of finder’s warrants equal to 10 per cent of the number of units sold under the private placement. Each finder’s warrant will entitle the holder to purchase one non-flow-through common share of the company for a period of 12 months from closing at an exercise price of 40 cents. The finder’s warrant will be subject to the same acceleration provisions as the flow-through units sold in the private placement.

The proceeds from the private placement will be used for exploration work on the company’s Yukon mineral properties. The 2011 exploration program is planned to consist of soil sampling and trenching to follow up gold soil anomalies identified last year. A follow-up diamond drill program is planned for fall.

Closing is subject to a due diligence condition and the acceptance of the TSX-V. All securities issued under the private placement will be subject to a four-month hold period.

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Central Resources Announces Additional Results from Phase 1 Soil Sampling Program at Selwyn Creek Gold Project, Yukon

Central ResourcesĀ is pleased to announce additional results from the initial program of soil sampling at the Company’s 522-claim (10,917 hectares) Selwyn Creek Gold project in the White Gold Area of central Yukon. The latest results for the East Zone of the “L” Block extend the existing gold anomaly by approximately 400m, defining a roughly linear, greater than 20 ppb gold anomaly, at least 1,000 metres in strike length.

As previously reported, results of up to 470 ppb gold and 1,045 ppm arsenic were obtained from soil samples collected over a 900 metre by 1,700 metre grid in the East Zone of the “L” claim block, and a roughly 500 metre by 500 metre greater than 20 ppb gold anomaly was outlined which extended off the grid to northeast.

The grid was subsequently expanded by 300 metres to the north and east, and an additional 74 samples collected. These results now define a roughly linear northeast trending, greater than 20 ppb gold anomaly, at least 1,000 metres long and up to 500 metres wide, which remains open to the northeast and southwest. Within this anomaly, 16 samples ran greater than 50 ppb gold and 6 samples ran better than 100 ppb gold. A map showing the latest results will be available on the Company’s website shortly.

“Geochemical sampling on the “L” Block has identified a kilometre scale, coincident gold/arsenic soil anomaly similar to those observed on Kaminak’s Coffee project, where subsequent trenching and drilling led to the discovery of several zones of bedrock mineralization” said Paul Reynolds, President and CEO of Central Resources. “It is important to note that our Selwyn Creek properties are located in the same belt of highly prospective host rocks as the Coffee Project and that only a small portion our properties have been soil sampled to date. Obviously, this area warrants further work and we look forward to getting back on the ground for more detailed work as soon as possible next year.”

 
The Selwyn Creek Gold project consists of 6 separate claim blocks (J, K, L, M, N, O) located in the Dawson Range, south of the Yukon River and centred on Selwyn Creek. The properties were staked on the basis of historic anomalous soil and sediment sampling conducted by Archer Cathro & Associates Ltd. in the mid 1980’s. Central has the right to earn a 100% interest in the properties from Strategic Metals Ltd., by making payments of $300,000 cash and 3,000,000 shares by February 15, 2012.

Recent soil and rock sample analyses were conducted at ALS Chemex in North Vancouver, BC. Samples were initially analyzed for gold by fire assay followed by inductively coupled plasma-atomic emission spectroscopy (Au-ICP21) and for 35 other elements by inductively coupled plasma-atomic emission spectroscopy (ME-ICP41). Field work was supervised by Heather Smith, P.Geo., of Archer, Cathro, who is a Qualified Person under the definition of National Instrument 43-101. Ms. Smith is responsible for all aspects of the work including the quality control/quality assurance program, which includes the use of international and in-house standards. Peter Thiersch, M.Sc., P.Geo., the Qualified Person and Vice President of Corporate Development for Central Resources, has reviewed and approved the technical disclosure made in this press release.

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Central Resources Acquires Properties in White Gold District

Central Resources Corp. is pleased to announce that is has entered into an option agreement with Strategic Metals Ltd., (“Strategic Metals”) to purchase a 100% interest in six separate groups of mineral claims (the “Properties”) located within the White Gold District, Yukon.

The Properties consist of 522 mineral claims in six separate groups, all of which are located within the Dawson Range, in the west-central portion of the Yukon-Tanana terrane. This area is underlain predominantly by metasedimentary and metavolcanic rocks of inferred Devonian to Mississippian age, which are intruded by numerous Mesozoic granitic plutons hosting copper, molybdenum and gold mineralization.

The Properties were staked by Strategic Metals to cover areas of anomalous stream sediment and soil geochemical surveys. Kaminak Gold Corp. has had recent success drilling geochemical anomalies at their Coffee project, which is underlain by similar rocks of the same terrane. A map showing the property locations can be found on the Company’s website www.centralres.ca.

Option Terms

Under the terms of the option agreement, Central can earn a 100% interest in the Properties, subject to a 3% Net Smelter Royalty (“NSR”), by making staged payments to Strategic Metals of $300,000 cash and 3,000,000 shares by February 15, 2012, as described in the table below. Central has the right to purchase 1% of the NSR at any time for a cash payment of $1,000,000. A finder’s fee is payable to Axeman Resource Capital Inc., an exempt market dealer. The agreement is subject to acceptance by the TSX Venture Exchange.

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Detailed Option Terms
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Date Cash Payment Share Issuance
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Upon Exchange Acceptance $115,000 500,000
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February 15, 2011 $35,000 1,000,000
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February 15, 2012 $150,000 1,500,000
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Peter Thiersch, M.Sc., P.Geo., a “Qualified Person” as defined by National Instrument 43-101, has reviewed and approved the technical disclosure in this news release.

About Central Resources

Central Resources Corp., is a junior mineral exploration company created to leverage the extensive knowledge and expertise of an experienced team of financial and resource industry professionals.

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