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Zimtu Capital Corp. Options Package of Seven Rare Metal Projects in Southern British Columbia to First Gold Exploration Inc. |
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Thursday, 30 December 2010 01:26 |
Zimtu Capital Corp. (TSXv: ZC) (FSE: ZCT1) ("Zimtu") announced that Zimtu and two of its prospecting partners have signed an agreement with First Gold Exploration Inc. (TSXv: EFG) (FSE: F12) (OTCQX: FGEXF) whereby First Gold can earn a 100% interest in a package of seven rare earth element ("REE") and niobium properties located in southeastern British Columbia.
For its participation in the transaction, Zimtu will receive staged cash and share payments from First Gold as follows: (i) $12,500 on signing; (ii) $50,000 and 1,000,000 common shares on TSX Venture Exchange ("TSXv") acceptance; (iii) 500,000 common shares on the first anniversary; and (iv) 500,000 common shares on the second anniversary. Zimtu's partners, Cathro Resources Corp. and Cazador Resources Ltd. will together receive cash and share consideration equal to that of Zimtu.
During the term of the agreement, First Gold shall ensure that the claims are maintained in good standing. The vendors will retain a 2% Net Smelter Royalty ("NSR") on the properties; 1% of which can be purchased by First Gold for C$1 million and the second 1% of which can be purchased by First Gold for C$5 million. The transaction is subject to acceptance by the TSXv.
The seven properties: the Kin, Trident, IRC, Munroe, Hiren, Claire and Lindmark were acquired by Zimtu and its partners in 2009 after a detailed review of government lake sediment geochemistry databases and an assessment of geological environments prospective for REEs and rare metals. Targets were then refined using geology, airborne magnetics, known mineral prospects, access, and land use considerations. The properties cover some of the highest and most significant regional government geochemical results for REEs.
In 2010, Zimtu and its partners retained TerraLogic Exploration Inc. to complete two exploration assessments of the properties for their REE and niobium potential. Highlights from the 2010 prospecting, rock and silt sampling programs were as follows:
Trident: Prospecting verified the presence of widespread syenite intrusions over 10 km long by up to 1 km wide at Trident Mountain. Most importantly, a total of eight rock and boulder samples collected in 2010 returned greater than 0.10% Nb2O5 (niobium oxide) with one grab sample from outcrop returning 2.82% Nb2O5 and 500 g/t Ta2O5 (tantalum oxide). Four boulder samples also returned greater than 0.30% TREO (total rare earth oxides) with one mafic intrusive boulder sample returning 2.81% TREO.
Kin: Prospecting results to date at the Kin property are very encouraging with four syenite boulder samples over a 700 x 700 meter area returning up to 5.26% TREO and 2.7% Nb2O5. Silt samples from the property are also exceedingly anomalous. Out of 102 silt samples collected from all seven of Zimtu's seven rare metal projects in 2010, the single highest value of 2622 ppm TREE (total rare earth elements) was returned from this drainage. The sum of the boulder and silt anomalies indicates excellent prospective regions up-hill and up-ice within underexplored areas proximal to and/or on strike with- the Trident Property, located 10 kilometers to the northwest.
IRC: Nine rock samples were collected in 2010 with three of the samples returning greater than 0.20% TREO. The best sample, a zeolite altered syenite, returned 0.30% TREO and 0.52% Nb2O5. This sample was a more anomalous version typical of 0.3-2m wide syenite dykes that crisscross through the mafic alkaline host rocks in this and other parts of the Ice River Complex. This property is immediately adjacent to the Ice River REE-Niobium-Base Metals Project operated by Eagle Plains Resources Ltd. (TSXv:EPL).
In British Columbia, carbonatites, nepheline and sodalite syenites gneisses and related alkaline rocks are found in a broad zone which is parallel to, and on either side of the Rocky Mountain Trench (Pell, 1989). This belt has been labeled the "Rocky Mountain Rare Metal Belt".
All seven properties acquired were initially staked based on highly anomalous RGS stream-silt anomalies and prospective regional geology. Four of the properties, the Trident, Kin, IRC, and Hiren are part of, or proximal to, large alkaline intrusive complexes with established potential for REE and niobium mineralization. Together, the seven properties encompass 20,600 hectares.
The properties were originally acquired by Zimtu and its partners by staking and were acquired for project generation. Zimtu continues to evaluate and acquire prospective resource properties to make available for sale or joint venture and provides mineral property advisory services to connect companies with mineral properties of interest.
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