Berkwood acquires new properties near recent gold discovery by Visible Gold Mines in Quebec along the newly constructed road
ACCESS Newswire
VANCOUVER, BC / ACCESSWIRE / March 3, 2015 / Berkwood Resources Ltd. (TSX-V:BKR.V - News) (the "Company" or "Berkwood") is pleased to announce that it has signed a Mineral Property Option Agreement (the "Option Agreement") with a group of prospectors (the "Vendors") pursuant to which Berkwood has been granted an option (the "Option") to earn a 100%-interest in the Toco and Takwa River Properties (the "Properties") located in north-central Quebec. The Properties (totalling 45 claims and 2400 Ha.) have been acquired for their gold-bearing potential.
The Properties are adjacent and to the south of Visible Gold Mines 167 Project, where Visible Gold Mines recently discovered high-grade Au-Ag-Cu-Zn boulders of up to 142.5 grams per tonne gold, along the newly constructed 243-kilometre-long all-season road to Stornoway's Renard diamond mine (see the Visible Gold Mines Inc. news release dated Nov. 4, 2014).
In regard to the mineralised boulders, of which several were discovered 5km and 7km to the north of Berkwood's Toco and Takwa River Properties, Visible Gold Mines recently reported "These positive early indications underscore the potential of this entire area, which has clearly been underexplored and is now all-season accessible by vehicle" 1.
Several other exploration companies including Eloro Resources, Stellar Afrigold, Anthem Resources, Canada Strategic Metals and Walker River have also recently acquired claims in the vicinity of Visible Gold's 167 Project. Eloro Resources recently reported "The upgrade to Route 167 and the recent discoveries by Visible Gold Mines Inc. have re-awakened interest in the area, which remains highly prospective for gold, base-metal and platinum group elements, as well as diamondiferous kimberlites." 2. Stella Afrigold reported "We are confident that this area will soon become an active mining camp. The recent opening of that territory by the Quebec Plan Nord initiative will attract more companies interested in this perspective area. Soquem's Lac Harbour gold showing, as well as the Eastmain gold mine project nearby Stellar's acquisition, are both located within the volcanic belt that already demonstrate an excellent potential for some new discoveries." 3
Berkwood plans to do compilation work on the project and a work program for the summer of 2015, as may be recommended.
Brian Buchanan, CEO and Director of the Company states: "This acquisition expands Berkwood's presence in the mining friendly jurisdiction of Quebec. Adding a potential gold asset to our portfolio in this new discovery-active region compliments our graphite projects in the province. We are looking forward to starting exploration work this season."
Pursuant to the terms of the Option Agreement, Berkwood has the option to acquire a 100% -interest in the Toco and Takwa River Properties by issuing Berkwood securities as follows: On acceptance by the TSX Venture Exchange 900,000 units. Each unit consists of one common share and one common share purchase warrant, with each warrant exercisable for 24 months for an additional common share at a price of $0.10.
An aggregate net smelter royalty ("NSR") of 2% shall be payable to the Vendors on all minerals produced from the Property. The Company shall have the right at any time to buy back one per cent (1%) of the NSR from the Vendors for an aggregate payment of one million dollars ($1,000,000).
About Berkwood Resources:
Berkwood's other projects include an option to earn a 100%-interest in the 5,788 ha Lac Gueret South Graphite Property, located in northeastern Quebec. The property borders the southern boundary of Mason Graphite's Lac Gueret Project which has a NI 43-101 compliant mineral resource estimate with measured & indicated mineral resources of 65.7 million tonnes grading 17.2% Cgr (including 9.7 million tonnes grading 31.2% Cgr)*. Berkwood also holds a 100% interest in the Lac Gueret East Graphite Property which is adjacent to the eastern boundary of Mason Graphite's Lac Gueret Property. Berkwood's Lac Gueret East and South Graphite Properties share a similar geological environment to Mason Graphite`s Lac Gueret Property including along strike stratigraphic units and structures.
Berkwood also holds a 100% interest in the Prospect Valley Gold Property near Merritt, BC. Several areas of gold mineralization have been identified on the 10,871 Ha property. The majority of historic drilling has taken place in the centre of the claim block along the Discovery Trend. This drilling has outlined an extensive low grade epithermal gold system with indications of potential for additional and higher grade mineralization. The system remains open for expansion and other known zones of gold mineralization have yet to be drilled (see Berkwood news release dated January 25, 2012, for details).
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This Berkwood News Release contains certain "forward-looking" statements and information relating to Berkwood that are based on the beliefs of Berkwood's management as well as assumptions made by and information currently available to Berkwood's management. Such statements reflect the current risks, uncertainties and assumptions related to certain factors including, without limitation, competitive factors, general economic conditions, relationships with strategic partners, governmental regulation and supervision, seasonality, technological change, changes in industry practices, and one-time events. Should any one or more of these risks or uncertainties materialize, or should any underlying assumptions prove incorrect, actual results and forward-looking statements may vary materially from those described herein. Except as required by law, Berkwood does not assume the obligation to update any forward-looking statement.
*The Mason Graphite NI 43-101 mineral resource estimate was sourced from the Mason Graphite news release dated December 15, 2014. The Qualified Person has been unable to verify the information contained within the Mason Graphite news release and the mineralization on the Mason Graphite property is not necessarily indicative of the mineralization on the Company's property.
Excerpts from the following news releases were referenced in this news release:
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