Hawkeye Gold to start work on Scotia property
2010-09-16 04:12 ET - News Release
Mr. Greg Neeld reports
SCOTIA PROPERTY RECEIVES TSX APPROVAL - WORK PROGRAM TO COMMENCE -
Hawkeye Gold & Diamond Inc. has received TSX Venture Exchange acceptance for the option agreement with Geo Minerals Ltd. whereby the company can acquire up to a 60-per-cent interest in the Scotia massive sulphide property, which totals 8,366.41 hectares and is located 42 kilometres southeast of Prince Rupert, situated in the Skeena mining district of British Columbia.
Hawkeye may acquire up to a 60-per-cent interest in the Scotia property by making payments totalling $210,000, issuing one million shares over three years and incurring $1.15-million in property expenditures on the Scotia property over a four-year period to earn a 51-per-cent interest, and thereafter may earn an additional 9-per-cent interest (total 60 per cent) by incurring $500,000 in property expenditures until a feasibility study is completed and issuing an additional 500,000 shares to Geo Minerals within 15 days upon completion of the feasibility study.
The Scotia property is a polymetallic zinc, silver, lead, copper and gold massive sulphide occurrence that has incurred previous drilling on the principal mineralized zone, called the Albere zone.
A resource estimate utilizing a 1-per-cent zinc cut-off for the Albere zone conducted by Giroux Consultants Ltd. (2009) is incorporated into an NI 43-101 report for Geo Minerals and announced by Geo Minerals through a news release in Stockwatch dated Jan. 11, 2010, has estimated that the measured and indicated resource within the mineralized shell is 802,000 tonnes grading 4.87 per cent zinc, 13.87 grams per tonne silver, 0.53 per cent lead, 0.09 per cent copper and 0.17 gram per tonne gold. The total measured plus indicated resource for the Albere zone was calculated to be 876,000 tonnes grading 4.35 per cent zinc, 12.29 grams per tonne silver, 0.47 per cent lead, 0.08 per cent copper and 0.15 gram per tonne gold.
The same resource estimate indicates that there is an additional 702,000 tonnes within the mineralized shell at the Albere zone classed as inferred resource, grading 4.47 per cent zinc, 13.74 grams per tonne silver, 0.45 per cent lead, 0.10 per cent copper and 0.19 gram per tonne gold. No economic parameters have been defined by the current resource estimate as to an appropriate cut-off for various types of mining. The Albere zone is open along strike to the northwest and open downdip to the west.
An airborne geophysical survey performed over the property during 2008 detected four new primary anomalies similar to the Albere zone and 10 additional secondary anomalies.
Hawkeye is co-ordinating a work program and crew for planned mobilization to the Scotia property in a few days to perform prospecting and mapping, trenching, stream sediment sampling, and soil and rock-chip geochemical sampling at the locations of the new airborne geophysical anomalies.
Further news will be forthcoming upon commencement of the work program over the Scotia.
Upon a positive recommendation from the company's geologists from the 2010 work program, these airborne anomalies will be followed up by a drilling program, as would the Albere zone, to test its extension along strike to the northwest and downdip to the west.
Arne O. Birkeland, PEng, is the qualified person for the Scotia property and is responsible for the technical information reported in this news release.
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