Laurentian Goldfields Ltd. has signed an option agreement with Teck Resources Limited (“Teck”) to acquire 100% of Teck’s interest in the Thundercloud gold property (“Thundercloud”), 50 kilometres southeast of Dryden, Ontario. Recent drilling by Teck (2007 and 2008), combined with historic exploration on the property suggest that Thundercloud has the potential to host a bulk-tonnage gold deposit with local high grade zones. Highlight drill results from historic work and the 2007 and 2008 Teck programs include:
113.0 metres @ 1.72 grams/tonne gold (Noranda drill hole 88-10 (1988))
60.30 metres @ 1.46 grams/tonne gold (Noranda drill hole 88-05 (1988))
55.25 metres @ 2.19 grams/tonne gold, including 21.73 metres @ 4.63 grams/tonne gold (Teck drill hole TC08-11 (2008))
29.66 metres @ 0.77 grams/tonne gold, including 9.04 metres @ 2.2
grams/tonne gold (Teck drill hole TC08-09 (2008))
The Thundercloud property is located 50 kilometres southeast of Dryden, Ontario, in the Archean Manitou-Stormy Lakes Greenstone belt, within the Wabigoon geological Subprovince. Gold-bearing mineralized zones at Thundercloud appear to be focused in a corridor between the Taylor Lake stock to the west of the property and the Thundercloud quartz-feldspar porphyry to the east. Host rocks comprise basalts overlain by a suite of clastic metasedimentary rocks of the Stormy Lake Group, including conglomerates, breccias and sandstones. Property geology can be viewed on the Laurentian Goldfields Ltd website at www.laurentiangoldfields.com.
Historic exploration activities at Thundercloud extend over 80 years with the most significant work, conducted in the 1980s by Teck, Esso and Noranda. Teck acquired an option on the Thundercloud property in December 2006, which it subsequently exercised.
The 2,160 hectare Thundercloud property consists of 135 units in 15 claim blocks (100% of 14 claim blocks and 70% of one claim block) subject to net smelter return (“NSR”) royalties of 2.0 to 2.5%. At any time prior to the fifth anniversary of the development of any mine on the property, 1% of the NSR may be repurchased from the underlying prospectors for $1,000,000.
2011 Exploration Program
Laurentian intends to complete a 2011 exploration program on Thundercloud consisting of approximately 4000 metres of diamond drilling, coupled with a comprehensive surface program of rock and soil geochemical sampling and structural mapping, in order to better understand the nature and distribution of gold mineralization across the property. The objective of the program will be to expand the areas of known gold mineralization defined by Teck’s recent exploration success.
“This is a fantastic new opportunity for Laurentian shareholders,” said Andrew Brown, President and CEO of Laurentian Goldfields Ltd. “In addition to the project’s compelling drill hole intercepts, the Thundercloud property remains largely unexplored. Its location is an excellent fit with Laurentian’s experience base in northwestern Ontario and management’s belief that the recent successes at Rainy River and Hammond Reef are a strong indication of the emerging gold potential of the western Wabigoon Subprovince.”
Laurentian may earn 100% of Teck’s interest in Thundercloud by issuing to Teck 500,000 Laurentian shares within five business days of TSX Venture Exchange approval and spending an aggregate of $6 million on exploration over three years. Laurentian must issue an additional 500,000 shares prior to December 31, 2011 and a further 1,000,000 shares (“vesting shares”) within 65 days of notifying Teck that is has completed the $6 million in exploration expenditures.
At any time up to 60 days after Laurentian earning 100% interest, Teck may elect to back-in to a 60% interest in the Thundercloud project by incurring and sole-funding three times the exploration expenditures incurred by Laurentian, prior to Teck giving notice of its intention to back-in, to a maximum of $18,000,000. These expenditures must be incurred by Teck within four years of delivery of the back-in notice. Upon notification of Teck’s intent to back-in, Laurentian’s obligation to issue the vesting shares, described above, shall terminate.
The technical contents of this release have been reviewed and approved by Mr. Patrick Lengyel, P.Geo., Vice President Exploration for Laurentian Goldfields Ltd., a Qualified Person pursuant to National Instrument 43-101.
Laurentian has not verified the exploration results reported herein and has confirmed neither grades nor widths described. Detailed descriptions of these historic exploration programs were included in assessment work filed by Teck with the Ontario Ministry of Northern Development and Mines in 2009.