Remstar Resources Ltd. has entered into an agreement with Anstag Mining Inc. dated Jan. 8, 2014, pursuant to which the company has been granted an option to acquire a 100-per-cent interest in the Rushton Lake gold project. The property covers an area of approximately 1,889 hectares and is situated approximately 6.7 kilometres southwest of Remstar's Wildnest gold project in central Saskatchewan. Under the terms of the agreement, Remstar can earn a 100-per-cent interest by issuing four million common shares, paying a total of $300,000 over 42 months and incurring $3.5-million in exploration expenditures over the next four years. The claim is subject to a 1-per-cent net smelter returns royalty, which can be purchased at any time by the company for $1-million. This transaction is subject to acceptance for filing by the TSX Venture Exchange.
In 2008, Murgor Resources Inc. completed a VTEM (versatile time-domain electromagnetic) survey of the Rushton Lake project (as part of the Flin D project) and 30-hertz electromagnetic data were subsequently interpreted by Condor Consulting Inc. (Daniel Sattel, PhD, geophysics, and Ken Witherly, AIPG.) The 2,063-line survey was performed with 200-metre line spacing and with an average electromagnetic bird height of 40 metres. The magnetometer was mounted in a separate bird flown at an average height of 62 metres above ground. The Rushton Lake block warranted particular scrutiny and was surveyed with a perpendicular grid. The principal task of the survey was to identify targets that could be zones of polymetallic volcanogenic-massive-sulphide-style mineralization analogous to the Flin Flon or Triple 7 deposits. The expected geophysical target based on knowledge of the local deposits in the Flin Flon district (the Fon and Abbott Lake deposits) would be features of moderate to strong conductance with possible magnetic association. Based on local examples, zones of economic mineralization may also be found as discrete zones or as part of longer, formational-style trends. The Condor interpretation identified no less than eight discrete anomalies, seven high and one medium priority, as summarized in the attached table.
CONDOR INTERPRETATION TARGET ZONES, 2008, SATTEL AND WITHERLY
Target zone Strike Mag high Formational Comments Priority
2 Short Yes Partly Discrete conductors next to and part High
of formational conductors
3 Short Yes No Discrete, strong conductors High
4 Short Partial No Discrete conductors High
6 Short No No Discrete, strong conductors possibly High
extension of formational conductor
7 Long Partial Partly Discrete, strong conductors possibly High
extension of formational conductor
8 Short No Possibly Discrete, strong conductors High
9 Long Yes Discrete, strong conductors High
10 Short Yes Yes conductors within formational Medium
Marc Levy, president and chief executive officer of Remstar, commented: "With this acquisition, the company has expanded its Wildnest land position and added eight new potential drill targets in this highly prospective corridor and now controls over 7,000 hectares. We look forward to advancing this project in the near term and increasing shareholder value."
The company is currently designing an aggressive drill program to confirm and expand known mineralization at Wildnest. Evaluation of preliminary drilling by Hudson Bay Exploration and Development Co. Ltd. (now HudBay Minerals Inc.) and Mingold Resources Inc. in the mid-1980s defined a historical reserve of 660,000 tons grading 0.10 ounce per ton gold to a depth of 400 feet (down dip), this being equivalent to roughly 66,000 ounces gold, with the best drill hole grading 0.619 ounce per ton gold over 21 feet (285 to 30 feet), including an interval grading 1.36 ounces per ton gold over 10 feet.
Peter Born, PGeo, the company's qualified person, has neither reviewed the original Wildnest drilling data nor reserve calculations. A qualified person has not done sufficient work to classify the historical estimate as current mineral resources, and the issuer is not treating the historical estimate as current mineral resources. Geological and exploration information contained in this release is derived from sources believed to be credible.
We seek Safe Harbor.