Benton options claims in Hope Brook gold mine area
2008-01-10 11:11 ET - News Release
Mr. Stephen Stares reports
BENTON RESOURCES CORP. (BTC) ACQUIRES PAST PRODUCER
Benton Resources Corp. has acquired by option and staking a large land package that includes the past-producing Hope Brook gold mine located on the southwest coast of Newfoundland. The company has staked the favourable gold-bearing trend that hosts the Hope Brook deposit for approximately 30 kilometres and has entered into an option agreement with Quinlan Prospecting (QP) of Newfoundland to acquire three separate claim blocks, one of which includes the Hope Brook gold deposit. To earn a 100-per-cent interest in the three claim blocks, Benton will make cash payments to QP totalling $170,000 and issue 200,000 shares over four years. The company will pay a finder's fee to a third party for being introduced to the project of 25,000 shares and 25,000 warrants exercisable for 24 months at a price of $1. The optioned claim blocks and the staked claims are subject to a 2-per-cent net smelter return payable to QP (the NSR) with an advance royalty payment of $10,000 owing per year to a maximum of $100,000 commencing upon Benton having exercised the option to acquire the three claim blocks. Benton has the right to purchase 50 per cent of the NSR for $1-million.
The company's management is excited about this unique opportunity as the Hope Brook deposit was the province of Newfoundland's largest gold deposit and it is management's view that there is significant potential to discover additional deposits in the area. The Hope Brook deposit operated from 1987 to 1997 and produced 752,826 ounces of gold plus a copper concentrate from 1993 to 1997. Previous exploration by Royal Oak Mines near the mine during the last few years of mining operations resulted in the discovery of several areas of significant gold mineralization. Significant occurrences include the 240 zone, located approximately one kilometre southwest and on strike of the Hope Brook deposit. Historical drilling returned grades of up to 3.88 grams per tonne over 41 metres and 6.98 gpt over 5.8 metres, and shallow drilling along strike from the former open-pit area intersected up to 14.3 metres of 4.64 gpt (NL Gov assessment files). Since the closure of mining operations in 1997, little or no exploration has been carried out for gold in the area.
The company is planning an aggressive and extensive exploration program, and has begun an extensive regional compilation of the entire belt which will incorporate all existing drill holes, mine workings, geology and assay results of the mine area. A large airborne survey will be flown over the entire project as soon as possible to be followed up with ground exploration programs including geological mapping, prospecting and diamond drilling. The company will keep their shareholders informed as this project moves along.
Clinton Barr (PGeo), vice-president of exploration for Benton Resources, is the qualified person responsible for this release.
We seek Safe Harbor.
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