Alix and Geo acquire Saskatchewan coal permits
2008-09-12 07:15 ET - News Release
See News Release (C-AIX) Alix Resources Corp
Mr. Michael England of Alix reports
ALIXRESOURCES AND GEO MINERALS ANNOUNCE ACQUISITION OF PROPERTIES WITH 2SEPARATE HISTORIC COAL INTERCEPTS IN SOUTH CENTRAL SASKATCHEWAN
AlixResources Corp. and Geo Minerals Ltd. have acquired 100-per-centinterests, subject to a royalty, in several blocks of coal dispositionapplications that have been confirmed by comfort letters as firstpriority from the Saskatchewan Energy and Resources department. All theacquired areas have historic coal occurrences within Lower Cretaceousstratigraphy, and cover approximately five townships, or about 45,000hectares, in size. The companies have entered into a joint ventureagreement to each own a 50-per-cent interest and incur all costs andexpenditures as such.
Three blocks acquired consist of six knownoutcrops on the south shore of Wapawekka Lake and two coal interceptson the eastside of Montreal Lake that are not contiguous. Anotherapplication consists of two documented coal outcrops in south-centralSaskatchewan.
The six coal outcrops occur over a 3.5-miledistance on the south shore of Wapawekka Lake within Lower Cretaceousstratigraphy. The first outcrops were discovered in 1909 withsubsequent discoveries of outcrops made in the 1920s and 1930s bygovernment of Canada geologists. A Department of Mineral Resources,province of Saskatchewan publication, titled, "Silica Sand and CoalOccurrences on Wapawekka Lake," by Mr. Pearson, 1961, containsdescriptions of both the Wapawekka Lake outcrops and the Montreal Lakecoal seams. It is reported that Worcester in 1909 trenched one outcropfor a distance of 17 feet and the seam swelled from a thickness of 4.5feet to 5.6 feet. On the east side of Montreal Lakem, a 14-footintercept at 630 feet and a 30-foot intercept at 720 feet werediscovered in boreholes in the late 1950s. These two intercepts areapproximately 17 kilometres apart.
Mr. Pearson also stated inthe report, "The coal outcrops at Wapawekka lake may indicate thenorthern edge of a coal field lying to the south, southwest and west ofWapawekka Lake." Subsequent to this report, Anglo American drilled anexploratory hole outside of the acquisition area in 1969, 18 miles duesouth of the Wapawekka Lake outcrops that intercepted 80 feet of coalat a depth of 627 feet, reported in assessment report 73I0001.
The south-central Saskatchewan block covers two detailed outcrops in Saskatchewan Energy Resources Miscellaneous report 2003-7.
Termsfor the two new property acquisitions call for a consideration of$30,000 and 100,000 common shares from each of the companies plus a2-per-cent royalty. The transaction is subject to regulatory approval.
SaskatchewanEnergy Resources has recently announced that it does not require anydrilling applications for drill holes up to 150 metres in depth, thatonly ministry notification is required. It is anticipated that a crewwill visit the Wapawekka Lake outcrops to begin surface exploration topinpoint and trench the outcrops, and to also survey the area prior tobeginning a near-surface drill program.
The technical contentsof this release were approved by Geo Minerals director and AlixResources advisory board member, and qualified person as defined byNational Instrument 43-101, Marvin Mitchell, PGeo. |
