Royal Roads regains 100% ownership of its Burtons Pond gold property, Newfoundland
Tue Feb 3, 9:44 AM
ca.news.finance.yahoo.com
Trading Symbol: RRO - TSX-V
Shares Outstanding: 112,127,490
HALIFAX, Feb. 3 /CNW/ - Royal Roads Corp. (RRO-TSX-V) ("Royal Roads") is pleased to announce that the Burtons Pond gold property ("Property") ownership has reverted back 100% to Royal Roads. In December 2004 Buchans River Ltd. ("Buchans") entered into a joint venture agreement which would enable Prominex Resource Corp. ("Prominex") to earn a 70% interest in the Property by fulfilling certain obligations. Under the terms of the agreement, Prominex was required to make cash payments totaling $35,000, issue common shares totaling 400,000, and incur exploration expenditures totaling $625,000 over a four year period. All cash payments and share issuances were made, however Prominex did not fulfill the required exploration expenditures. The Property was acquired by Royal Roads through the amalgamation with Buchans River in July 2008.
Management is reviewing the Property's gold potential and gold exploration in the region by other companies with the view to formulating a go forward plan for the Property.
Burtons Pond Property
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The Burtons Pond gold property is located in the historic Betts Cove area of north-central Newfoundland and Labrador covering 7.25 km(2) (725 hectares). The Property covers a portion of the Betts Cove Ophiolite Complex, an Ordovician mafic-ultramafic suite and is host to the Burtons Pond Prospect, a gold-copper-rich, quartz-calcite stockwork vein system. Gold potential of the Property is highlighted by assays of up to 10.2 grams per tonne gold, 15.2 grams per tonne silver and 1.64% copper over 3.0 metres in drill core reported by previous operators in the 1980s.
The Betts Cove Ophiolite Complex hosts two historical, former-producing, massive sulphide deposits at Tilt Cove and Betts Cove, as well as the former Nugget Pond gold mine which operated between 1997 and 2001. The Tilt Cove mine produced 8,160,000 tonnes of ore grading 1 to 12% copper, including 42,425 ounces of gold. The Betts Cove mine produced approximately 118,500 tonnes of ore averaging about 10% copper. The former Nugget Pond Mine, located 7 kilometres to the northeast, produced approximately 489,000 tonnes of ore containing approximately 168,700 ounces of gold, for an average production grade of 10.74 grams per tonne.
Qualified Person
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Paul Moore, M.Sc., P.Geo., (NL), Royal Roads' Vice President of Exploration, is acting as Qualified Person in compliance with National Instrument 43-101 with respect to this release and has reviewed the contents for accuracy.
About Royal Roads
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Royal Roads is a resource company based in Halifax, Nova Scotia, Canada and is focused on exploring and developing base metal properties in the famous Buchans and Victoria Lake mining camps in central Newfoundland and Labrador, Canada. Royal Roads controls mineral properties totaling 33,700 hectares, including the historic Buchans mines, the Lundberg deposit in the Buchans camp and the Daniels Pond deposit in the Victoria Lake camp. The Company also has joint venture interests on various Newfoundland mineral properties with Prominex Resource Corp., Playfair Mining Ltd., Benton Resources Corp., and Golden Dory Resources Ltd. Royal Roads is 29.18% controlled by Acadian Mining Corporation, a Halifax based resource company developing gold and base metal properties, including the Scotia Mine (lead and zinc) in Nova Scotia.
Forward Looking Statements
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Certain information regarding Royal Roads contained herein may constitute forward-looking statements within the meaning of applicable securities laws. Forward-looking statements may include estimates, plans, expectations, opinions, forecasts, projections, guidance or other statements that are not statements of fact. Although Royal Roads believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct. The Company cautions that actual performance will be affected by a number of factors, many of which are beyond Royal Roads' control, and that future events and results may vary substantially from what both companies currently foresee. Royal Roads' forward-looking statements are expressly qualified in their entirety by this cautionary statement.
The TSX Venture Exchange does not accept responsibility for the adequacy
or accuracy of this release.
Contacts
Will Felderhof
President & CEO of Royal Roads
will@royalroadscorp.ca
David Felderhof
Vice-President of Royal Roads
david@royalroadscorp.ca
(902) 444-3637 |
