Bolero Acquires Second Moly Property in Montana
2/22/05
VANCOUVER, British Columbia, Feb 22, 2005 (BUSINESS WIRE) --
United Bolero Development Corp. (the "Company", "United Bolero") (TSX VENTURE:UNB) is pleased to announce the signing of an option agreement to acquire a 100% ownership interest, subject to a retained 3% Net Smelter Royalty (NSR), in the Bald Butte molybdenum property in southwestern Montana, USA.
Tonnage calculations by Gulf Mineral Resources Co. (historical, non 43-101 compliant) utilizing a pit design with a 0.06% Mo cut-off grade, indicated the presence of 131 million tons of mineralized material grading 0.077% Mo at a stripping ratio of 2:1 (waste to ore).
Terms include a down payment of $80,000, a first year anniversary payment of $100,000, subsequent annual payments of $200,000 and the issuance of 600,000 shares in 5 increments of 120,000 per year. Annual payments are capped when the total of annual payments plus royalties reaches $5,000,000. The NSR is payable as to 1% to Cyprus Gold Exploration Corporation and 2% to the property vendors (a group of Montana individuals). A provision to reduce the vendors 2% royalty to 1% in the third year upon the payment of $500,000 is included. The option agreement is subject to the approval of the TSX Venture Exchange.
The early gold miners knew of the existence of molybdenite on the Bald Butte property. It was not until the 1960's, however that the area became of interest for its molybdenum potential. Amax and then Mine Finders explored the property until Gulf Mineral Resources acquired it in 1976. Gulf conducted a continual evaluation of the deposit from 1976 through 1982, culminating in feasibility studies. Work conducted by Amax and Gulf include geological, geophysical and geochemical surveys, trenching, sampling, 54,103 feet of surface diamond drilling, and extensive costing and feasibility studies.
Bald Butte is a quartz vein stockwork hosted molybdenite deposit, located approximately 3 miles south west of the historic Marysville gold mining district of Montana. The Bald Butte area was also an active gold producing area and numerous claims were brought to patent in the 1880's. The option agreement includes a total of 22 patented claims, comprising approximately 350 acres, and an area of interest with radius of 0.5 miles from the property boundaries. The company has acquired, through staking, an additional 10 claims (contiguous to the property and included in the area of interest provision) to cover possible extensions of significant mineralization.
This second acquisition of a major molybdenum deposit in south-western Montana re-affirms the company's belief not only in the bright future that exists for molybdenum, but also the opportunities available to companies participating in Montana's mineral industry.
The proximity of Bald Butte to the company's (previously announced Dec. 13, 2004, Jan. 4, 2005) Cannivan Gulch molybdenum property (75 miles) appears to be a natural fit and savings due to inherent synergies are anticipated. The Bald Butte project is easily accessible by existing roads, a rail siding is within 8 miles, the Butte-Mullan power line crosses a portion of the property and 2 existing flotation mills, MRI (53,000 TPD and Phillipsburg (3000 TPD) are both within 80 miles.
L.J. Bardswich, P. Eng. (Ontario) is the Qualified Person for purposes of National Instrument 43-101. Mr. Bardswich prepared the technical information contained in this news release.
United Bolero management stresses that reports completed to date (historical reports) on the Bald Butte deposit are not in compliance with National Instrument 43-101. The historical reports on the Bald Butte project have not been reviewed in detail by, nor prepared by, a Qualified Person as defined by NI 43-101; therefore the Bald Butte deposit cannot be defined as a proven or probable resource or reserve at this time and we caution investors in relying on historical estimates and statements.
On behalf of the Board of Directors, William Morton, President & CEO, Director
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
United Bolero Development Corp. (TSX VENTURE:UNB)
SOURCE: United Bolero Development Corp.
United Bolero Development Corp. William Morton President & CEO, Director Toll Free: (888) 945-4770 or (604) 925-8898 Fax: (604) 925-9897 info@unitedbolero.com www.unitedbolero.com
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