Lakeland Resources Inc. and GTA Resources Announce Option / Joint Venture
Agreement on the "Hannah Property"
VANCOUVER, Oct. 18 /CNW/ - Lakeland Resources Inc. (TSXv: LK) (the "Company" or "Lakeland") announces that the Company has executed a Letter of Intent ("LOI") with GTA Resources and Mining Inc. ("GTA") which outlines the terms for an Option / Joint Venture agreement on the Hannah Property, located near Hearst, Ontario.
Pursuant to the terms of the proposed Option Agreement, Lakeland can earn an undivided 60% interest in the property (subject to any underlying royalties) by making cash payments totaling $15,000, issuing 300,000 common shares, and incurring exploration expenditures of at least $250,000 within a two year period. Lakeland is committed to incurring at least $125,000 in exploration expenses within the first year of the agreement. Lakeland can earn an additional 10% interest for a total of a 70% interest in the property by making additional cash and share payments, and incurring $250,000 of additional exploration expenditures (up to $500,000 cumulative within three years). Once Lakeland has earned its interest in the property, an industry standard Joint Venture agreement between GTA and Lakeland will be formed. GTA will be the operator of the project during the option portion of the agreement.
About the Hannah Property:
The Hannah Property consists of 5 claims (72 units) covering an area of approximately 11.5 km², and is located approximately 75 km west northwest of Hearst, Ontario. The property is easily accessed by several area logging roads. The claims represent a small portion of GTA's Auden Property, an extremely large land package located northwest of Hearst, Ontario. The Auden Property virtually covers an entire greenstone belt with a strike length of approximately 80 km. Being predominately overburden covered and under explored, this belt is poorly understood and has been interpreted to represent the easterly extension of the Beardmore - Geraldton Greenstone belt located approximately 110 km to the west. Shell Canada Resources Ltd. was the first to interpret that a major regional structural and magnetic break strikes across the Auden Property in a general east - west direction in 1978.
Interpretation from a helicopter airborne geophysical survey completed in 2008 indicates that the Hannah Property covers the western part of a broad area of "magnetic destruction", a very complex area, geologically and structurally. The airborne survey also identified several untested EM anomalies, and according to historical records, only one hole has ever been drilled on the property. In 1978, Shell Canada, in drill hole 78-14, intersected deformation and alteration including green mica (fuchsite), sericite, carbonate, pyrite and arsenopyrite; all key features favourable for gold mineralization. According to the Shell data, only two samples were collected from the 102 metre hole, both returning weakly anomalous gold values.
Near term exploration plans on the Hannah Property include line cutting and I.P. (induced polarization) surveying which will be followed by diamond drilling. Exploration is expected to commence later this fall.
"This is a great start for Lakeland in this early stage of value creation," stated Lakeland President Jonathan Armes. "Given the relative mystery due to overburden and the general lack of exploration in this greenstone belt, we are very excited about laying out plans for exploration and development of the Hannah Property."
NI 43-101 Disclosure
Robert (Bob) Duess, P. Geo (APGO), is the Qualified Person, as that term is defined in National Instrument 43-101, who has reviewed and approved this press release and is responsible for the technical information reported herein.
About Lakeland Resources Inc.
Lakeland Resources Inc. is focused on gold exploration in Canada. The company commenced trading on the TSX Venture Exchange on August 19, 2010 after completing its Qualifying Transaction.
For more information please visit the corporate website at http://www.lakelandresources.com
On Behalf of the Board of Directors
LAKELAND RESOURCES INC.
"Jonathan Armes"
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Statements in this document which are not purely historical are forward-looking statements, including any statements regarding beliefs, plans, expectations or intentions regarding the future. Forward looking statements in this news release include that an option agreement is to be entered into between Lakeland and GTA; that under the terms of an option agreement, Lakeland will be able to earn an undivided 60% interest in the Hannah Property (subject to any underlying royalties) by making cash payments totaling $15,000, issuing 300,000 common shares, and incurring exploration expenditures of at least $250,000 within a two year period; that Lakeland is committed to incurring at least $125,000 in exploration expenses within the first year of the agreement; that Lakeland can earn an additional 10% interest for a total of a 70% interest in the property by making additional cash and share payments and incurring $250,000 of additional exploration expenditures; that an industry standard Joint Venture agreement between GTA and Lakeland will be formed once Lakeland has earned its interest; that GTA will be the operator of the project during the Option portion of the agreement; that exploration plans on the property include line cutting and I.P. (induced polarization) surveying which will be followed by diamond drilling; and that exploration is expected to commence later this fall.
It is important to note that actual outcomes and the Company's actual results could differ materially from those in such forward-looking statements. Risks and uncertainties include economic, competitive, governmental, environmental and technological factors that may affect the Company's operations, markets, products and prices. Factors that could cause actual results to differ materially may include misinterpretation of data; that we may not be able to get equipment or labour as we need it; that we may not be able to raise sufficient funds to complete our intended exploration and development; that our applications to drill may be denied; that weather, logistical problems or hazards may prevent us from exploration; that equipment may not work as well as expected; that analysis of data may not be possible accurately and at depth; that results which we or others have found in any particular location are not necessarily indicative of larger areas of our properties; that we may not complete environmental programs in a timely manner or at all; that market prices may not justify commercial production costs; and that despite encouraging data there may be no commercially exploitable mineralization on our properties.
For further information:
Jonathan Armes
President, CEO and Director
Cell: 416.708.0243
Ph: 604.681.1568
TF: 1.877.377.6222
Email: [email protected]
Web: http://www.lakelandresources.com
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