Grande Portage Resources Ltd. Signs Agreement to explore the Herbert Glacier
High Grade Gold Project in Alaska
VANCOUVER, June 17 /CNW/ - Grande Portage Resources Ltd. (TSX-V GPG) ("Grande Portage" or "the Company") is pleased to announce that it has entered into an agreement with Quaterra Resources Inc. (TSX-V: "QTA", NYSE Amex: "QMM") to explore the Herbert Glacier gold property located 20 miles north of Juneau, Alaska.
GPG has the right to earn a 51% interest in the Property and the Lease by incurring Expenditures on the Property of not less than USD$750,000 on or before June 15, 2011. The Company can earn an additional 14% interest in the Property and the Lease for an aggregate 65% interest in the Property and the Lease by incurring Expenditures on the Property of not less than an additional USD$500,000 on or before June 15, 2012. If Grande Portage acquires an interest, then Grande Portage and Quaterra will form a joint venture for the further exploration and development of the project, with each party bearing their proportionate share of costs, and a dilution formula will be applicable to any non-contributing party to reduce such party's joint venture interest. If either party is reduced to 10% or less, then such party's joint venture interest will be reduced to a 1% net smelter returns royalty, which may be acquired by the other party for USD$1 million.
The Herbert Glacier Property comprises 1,880 acres, and consists of 74 Federal unpatented mining claims and 17 leased mining claims, which host six main composite vein-fault structures that contain ribbon structure quartz-sulfide veins. The structures strike east-west and dip steeply, mostly to the north. Only one of the six known vein systems was drilled in 1986 and 1988. Sampling in 2007 shows that all six structures locally have high-grade gold-quartz mineralization and should be drill tested.
The Herbert Glacier property is subject to a mining lease dated November 1, 2007 with the underlying property owners for a term of 20 years, with a right of renewal. During the option period, Grande Portage will assume the annual lease minimum work commitments of USD$50,000 on the property, and pay annual advance royalties of USD$12,000 until October 31, 2011, increasing to USD$20,000 thereafter until October 31, 2017, and thereafter increasing to USD$30,000 per annum for the term of the lease. All advance royalties will be credited towards and offset the underlying net smelter returns royalty of 3% to 5% on a sliding scale based on the price of gold, and being 5% where gold exceeds USD$601 per oz.
The vein systems are strongly enriched in gold (Au): Of 199 rock chip samples collected during a reconnaissance mapping and sampling program in the summer of 2007, almost half (94 samples) contained more than 1 g/t Au; 33 samples contained more than 10 g/t; and 12 contained more than one ounce of Au/ton. (1) One 1.5 ft. (about 46 cm) banded quartz vein with visible gold assayed 81.9 g/t (about 2.39 oz/ton) Au. Veins typically pinch and swell, but individual veins are as much as 14 feet thick and composite veins up to more than 20 feet across. The veins are competent, but occur within halos of altered quartz diorite, and are generally marked on surface by deep trenches eroded from the incompetent altered host rocks. Gold is accompanied, in approximate decreasing order by arsenopyrite, pyrite, and galena with lesser amounts of scheelite, chalcopyrite, and sphalerite. The Herbert Glacier property lies within the 100-mile long Juneau gold belt, which has produced nearly seven million ounces of gold through a total depth range of thousands of feet. Trace elements typical of the gold belt and the mesothermal aspect of the ribboned quartz veins suggest that the veins of the Herbert Glacier property could be persistent in both strike and depth.
The Summit vein, part of the southernmost of the six vein systems, was known in the early days of the Juneau district. Much of the area now known to be mineralized was, however, covered by glacial ice. Veins were exposed as the ice receded and discoveries were made in the 1980s. The next system to the north, called the Herbert Vein, was drilled in 1986 and 1988 respectively by Tenneco Minerals and its successor Echo Bay Mining Co. The structure was explored on approximate 200 foot intervals along a 2,000 foot strike length with 5,272 feet of drilling in 19 core holes. Shallow angle holes established continuity of gold mineralization in the vein system and found intercepts of up to 12.84 oz Au/ton. Highlights of this drilling are shown in the table below:
HIGHLIGHTS OF HISTORIC (1986 & 1988) DRILLING AT THE HERBERT GLACIER PROSPECT
Drill holes are listed below in order west to east over about 2000 feet strike length. All intercepts(greater than)1-ft of 0.3 oz/ton Au are shown. The data is from reports by George A. Moerlein for Tenneco Minerals (1986) and Echo Bay Mining Co (1988)
-------------------------------------------------------------------------
Hole From (ft) To (ft) Interval (3) oz/ton Au
-------------------------------------------------------------------------
H-9 88.0 89.2 1.2 0.38
-------------------------------------------------------------------------
H-6 190.0 191.0 1.0 3.85
-------------------------------------------------------------------------
H-5 165.5 168.1 2.6 0.93
-------------------------------------------------------------------------
H-2 147.0 149.0 2.0 0.99
-------------------------------------------------------------------------
H-1 78.0 84.0 6.0 0.93
-------------------------------------------------------------------------
H-13 286.5 300.5 14.0 0.98
-------------------------------------------------------------------------
Includes 296.8 297.8 1.0 12.64
-------------------------------------------------------------------------
H-12 160.4 162.0 1.6 0.31
-------------------------------------------------------------------------
H-12 165.5 168.4 2.9 0.31
-------------------------------------------------------------------------
All drilling was NQ core with excellent recovery.
A metallurgical study on a 240 pound composite sample by the US Bureau of Mines indicated that 88% of the gold was free milling and could be recovered by gravity methods (Herbert Glacier - No. JU097, ARDF file, Juneau Quadrangle, U.S. Geological Survey).
On signing the agreement, Ian Klassen, President of Grande Portage remarked, "We are delighted to be working along side Quattera on the Herbert Glacier. This high-grade gold project has all the makings of a significant asset. We intend to drill approximately 4,000 ft this summer and hope to demonstrate similar grades and tonnages at depth and in the other parallel veins. We believe that this project could represent a significant gold deposit for the Company."
Wes Raven, P. Geo. a qualified person as that term is defined under NI 43-101, has reviewed the technical information contained in this news release.
(1) Thickness of veins at the surface are reported as true thickness.
(2) Rock chip samples are selective in nature and are notindicative of
either grade or continuity of mineralization.
(3) Drill hole intercepts reported as drilled thickness.
ON BEHALF OF THE BOARD OF DIRECTORS
-----------------------------------
Ian Klassen, President
Statements about the Company's future expectations and all other statements in this press release other than historical facts are "forward looking statements". Such forward-looking statements are based on numerous assumptions, and involve known and unknown risks, uncertainties and other factors, including risks inherent in mineral exploration and development, which may cause the actual results, performance, or achievements of the Company to be materially different from any projected future results, performance, or achievements expressed or implied by such forward-looking statements.
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICE PROVIDER (AS THAT TERM IS DEFINED UNDER THE POLICIES OF THE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS NEWS RELEASE
For further information: Mr. Ian Klassen, Phone: (604) 899-0106, Email: [email protected], Website: www.grandeportage.com
Share this article