Zappa options Nevada claims; arranges financing
Zappa Resources Ltd ZPA
Shares issued 19,037,256 May 27 close $0.06
Wed 28 May 2003 News Release
Mr. Albert Gerry reports
LETTER OF INTENT FOR PROPERTY OPTIONS ON SWIMMERS FLAT AND TOE JAM CLAIMS
ELKO COUNTY NORTH OF THE CARLIN TREND NEVADA
Zappa Resources has signed a letter of intent with Altair Minerals of
Eugene, Ore., that grants Zappa an option to acquire a 100-per-cent
interest in the Swimmers Flat property and Toe Jam Creek claim group
located Elko country, Nevada. Swimmers Flat consists of 20 unpatented lode
mining claims and Toe Jam Creek consists of eight unpatented claims located
on BLM administered public lands and not subject to any underlying claims.
The property locations are in the Tuscarora Mountains just north of the
prolific Carlin gold trend.
The properties consist of altered and mineralized Eocene volcanics probably
related to the nearby Cornucopia caldera. The probable Eocene volcanics of
the same age as nearby Carlin type old mineralization are felsic to
intermediate strongly welded ash flow tuffs. They are pervasively clay and
illite altered, with zones of solidification, pyritization, opalization and
veining. Some of the veined and silicified zones form bold outcrops, one of
which was detected during aerial reconnaissance leading to recognition of
the properties.
The exploration target at Swimmers Flat is Carlin-style gold-arsenic
mineralization in the Paleozoic sedimentary rocks located directly under
the altered Eocene volcanics. These basement rocks crop out nearby to the
northeast and south. Directly underlying these rocks would be the reactive
carbon-bearing host rock of the Carlin trend, such as the Silurian Devonian
Robert Mountain formation. A recent grab sample from an altered zone in
Swimmers Flat ran over seven grams per tonne. Geologic mapping, sampling
and geophysics will be Zappa's early objectives to locate and to determine
targets for drilling.
The terms of the option require Zappa to issue 250,000 shares in the first
and second year, pay $70,000 (U.S.) in total over a four-year period while
completing work programs totalling $245,000 (U.S.) within the same
four-year time frame for each of the two claim groups. Each property also
carries a 4-per-cent net smelter royalty of which half or 2 per cent of the
royalty can be bought back for $2-million. The option agreements are
subject to approval of the TSX Venture Exchange.
Zappa Resources will proceed with a non-brokered private placement of three
million units consisting of one share at 10 cents and a full warrant priced
at 15 cents if exercised in the first year and 20 cents if exercised in the
second year. This private placement will be on a best efforts basis and is
set to close by June 30.
Zappa has notified Bell Resources Ltd. that it no longer will pursue its
50-per-cent option agreement on the Bryan Lake property east of Flin Flon
in Northern Manitoba.
Zappa in addition announces that the due diligence period is over for the
company to examine the Anglo American HudVam property also located east of
Flin Flon. Zappa will not continue examining the property as it has been
determined to be uneconomical for Zappa to pursue at this time.
WARNING: The company relies upon litigation protection for
"forward-looking" statements.
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