| ||Thursday, May 08, 2008|
Commander Attracts a New Partner to the Olympic-Rob Property, Yukon Territory
News Release: 08-11 |
Commander Resources Ltd. (CMD-TSX Venture) reports that it has entered into a Letter Agreement with Global Resources Corporation Pty Ltd., a privately held Australian company ('GRC") providing GRC the option to earn an initial 50% interest in Commander's wholly owned Olympic-Rob IOCG (iron oxide copper-gold) project located in the Wernecke-Ogilvie Mountains region in the Yukon Territory, Canada ('Property"). The technical driving force behind GRC is Frank Bunting, formerly Base Metal and Operations Manager, North America and then Global Nickel Commodity Specialist with BHP Billiton.
Under the Agreement, GRC shall have the right to earn an initial 50% participating interest in the Property by funding $4 million in exploration by December 31, 2011 and paying to Commander $220,000 in cash or shares, of which $20,000 has been paid. As part of the initial option, GRC must complete 2000 metres of diamond drilling by December 31, 2009.
Upon completion of the earn-in to 50%, GRC may then elect to acquire an additional 10% in the Property by completing an additional $4 million in exploration by December 31, 2013 and paying to Commander $600,000 in cash or shares.
Should GRC vest at 60% as provided, GRC may then elect to increase its interest to 70% by completing and delivering a full feasibility study to Commander by December 31, 2016 and by paying to Commander $1 million in cash or shares on the date GRC elects to proceed with this final option.
Once a 70:30 JV is formed, Commander may elect at any time to convert its interest to a 2% NSR.
"GRC believes that Olympic-Rob is an unarguable Olympic Dam look-alike, with abundant evidence of copper and uranium mineralization hosted by hematite breccias. The target is huge, vertically zoned and disrupted by faulting - perhaps tricky, but representing billion ton potential. Previous drilling has confirmed rather than tested the potential which extends at depth. The Olympic Dam deposit can be described as funnel-shaped with a shallow and large "anomalous barren core" within the funnel. This geometry could exist at Olympic-Rob. GRC aims to use deep-seeing geophysics and prospect modeling tapping our IOCG experience to deliver quality drill targets and test the potential for a world-class deposit," states GRC Technical Director, Frank Bunting.
The terms of this agreement, except for the $20,000 initial cash payment, shall not be in effect until GRC has successfully completed a planned Initial Public Offering ("IPO"). If GRC fails to complete the IPO by October 31, 2008, this agreement will terminate unless mutually agreed to by both parties.
As previously reported, the Olympic claims contain a two-kilometre diameter continuous 'copper in-soil' anomaly enveloping numerous copper showings in a hematite breccia host rock. The breccia complex has similar age, geometry, structure and trace element signatures to BHP Billiton Ltd.'s giant IOCG Olympic Dam deposit in Australia. A modest deeply-sourced magnetic anomaly, some five kilometres in diameter and coincident with the breccia zone, also parallels the famous Australian analogue. A single hole in 2007 drilled into a sequence of hematite-altered siltstone containing up to 1% Cu. Drilling did not reach the target depth of > 500 metres due to bad ground conditions. Drilling of a second deep (> 500 m) hole was recommended, but not drilled.
On the adjacent Rob claims, a previously reported 400-metre-long open-ended copper and uranium in-soil anomaly envelopes a number of copper and uranium-bearing float boulders and bedrock exposures ranging from 0.01% to 1.57% U3O8, along with copper values ranging from 0.3% to 10.8% Cu from selected samples. The mineralization is closely related to distinct ground magnetic and radiometric anomalies. A two-hole drill program by Fjordland Exploration Inc. in 2007 encountered significant copper +/- uranium mineralization including an interval of 5.6 metres grading 1.12% copper within a wider, 19 metre envelope grading 0.44% Cu. A second 35.9-metre interval ran 0.21% Cu. The second hole cut two intervals of 10 and 18 metres width containing 0.21% Cu with 27 ppm U3O8 and 0.19% Cu with 30 ppm U3O8 respectively. These copper-uranium intercepts are typical of the boundary zones at Olympic Dam in early drilling there.
Bernard Kahlert, P.Eng, is the Qualified Person under NI 43-101 responsible for the technical information contained in this release.
On behalf of the Board of Directors,
Kenneth E. Leigh
President & CEO
For further information, please call:
Investor Relations: BMK Communications
Toll Free: 1-866-782-6032
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.