VANCOUVER, BRITISH COLUMBIA--(Marketwired - July 15, 2013) -
NOT FOR DISTRIBUTION TO U.S. WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES
Sona Resources Corp. ("the Company" or "Sona") (News - Market indicators) (FRANKFURT:QS7) is pleased to announce that it has entered into a mineral property option agreement (the "Option Agreement") with Lu'An (Canada) Capital & Energy Investment Inc. ("LCE"). Pursuant to the Option Agreement, Sona has been granted the option (the "Option") to acquire a 100% interest (subject to a 5% net profits interest royalty) in 49 mining claims, encompassing a total of 10,273 hectares, known as the Mineral Creek Gold Property (the "Property") located near Port Alberni, British Columbia.
To exercise the Option the Company must: (i) issue 500,000 common shares in Sona to LCE on execution of the Option Agreement (the "Effective Date"); (ii) deliver an independent NI 43-101 compliant technical report on the Property on or before the first anniversary of the Effective Date; (iii) complete a surface trenching program on the Property for a combined minimum total expenditure of $100,000 on or before the first anniversary of the Effective Date; (iv) complete a surface trenching program on the Property for a combined minimum total expenditure of $200,000 on or before the second anniversary of the Effective Date; (v) complete 5,000 meters of Diamond core drilling on the Property for a combined minimum total expenditure of $750,000 on or before the fourth anniversary of the Effective Date; and (vi) complete an additional 5,000 meters of Diamond core drilling on the Property for a combined minimum total expenditure of $750,000 on or before the sixth anniversary of the Effective Date.
Pursuant to the Option Agreement, if the Company delivers an NI 43-101 compliant technical report on the Property to LCE that outlines an inferred mineral resource of 250,000 ounces of gold at a minimum average grade of eight grams of gold per tonne of ore, then the Issuer will, subject to Exchange approval and shareholder approval, if required, issue to LCE a further 1,500,000 common shares in the capital of Sona. Lastly, if the Company commences commercial production on the Property then the Company will, subject to Exchange approval and shareholder approval, if required, issue to LCE a further 2,000,000 common shares in the capital of Sona.
A finder's fee of $8,800 will be paid by the Company to Canada Asia Business Network ("CABN") in connection with the Option Agreement. In addition, 40,000 finder's warrants ("Finder's Warrants") will be issued to CABN in connection with the Option Agreement, with each Finder's Warrant entitling CABN to acquire one common share in Sona at a price of $0.30 for a period of 24 months following the issuance of the Finder's Warrants.
About Mineral Creek
The Mineral Creek Gold Property is located on Vancouver Island, British Columbia, approximately 10 kilometres east of the town of Port Alberni. It is comprised of 49 mineral claims totalling 10,273 hectares, and the predominant geological structure is the north-south-trending Mineral Creek fault zone, which hosts the Mineral Creek gold zone. Several narrow quartz vein that splay off the Mineral Creek fault have returned bonanza-grade gold assay values.
The property has a long history of exploration and high-grade gold mining, beginning with placer mining of China Creek in the 1860s. In the 1890s and again in the 1930s, a modest amount of high-grade gold was mined from quartz veins east of the Mineral Creek fault via seven original adits. Exploration carried out on the claims between 1986 and 1990 included 300 Diamond drill holes totalling approximately 50,000 metres. In 1988, an exploration tunnel four metres wide by three metres high was driven 1.8 kilometres along the McLaughlin Ridge on the property. The tunnel was designed to allow for further evaluation of the Mineral Creek gold zone, and as an underground drill platform along the hanging wall of the Mineral Creek Fault.
Between 1993 and 1995, test mining of 1,800 tonnes on the two-metre-wide 900 Zone along the fault returned an average assay grade of 51.1g Au/t. In addition, 10 samples from surface muck piles were analyzed, and returned assay values that averaged 65.6g Au/t and 19.4g Ag/t.
In 2007, approximately 200 tonnes of a planned 5,000-tonne bulk sample were extracted from the Lower Linda Vein. Face chip samples taken over widths of 0.6 to 1.5 metres along a 10.5-metre strike length returned assay values between 29.5g Au/t and 1,795.0g Au/t.
From 2005 to 2010, numerous exploration activities were carried out on the property, including 175 Diamond drill holes totalling 24,400 metres; 360 line kilometres of airborne geophysical surveying; and the compilation of a GIS database. This recent six-year Diamond drilling period targeted five high-grade gold zones that occur as splays off the main north-south-trending Mineral Creek Fault. From these drill holes, bonanza gold grades were intersected from the Ember Vein (253.0g Au/t over 1.5 metres true width), the HW-1 Vein (137.5g Au/t over 0.3 metres true width), the 1050 Zone (74.5g Au/t over 0.9 metres true width) and the Linda Zone (292.0g Au/t over 0.26 metres true width).
Previously reported resources on the property were compiled from a series of historical mineral inventory estimates made between 1988 and 1990, and thus are not considered NI 43-101 compliant. As an important first step, Sona will compile and review all of the historical exploration data and commission an independent NI 43-101 report.
About Sona Resources Corp.
Based in Vancouver, Sona is a junior gold resource company with a focus on bringing its Blackdome-Elizabeth Gold Project into full commercial production. Since its inception in 1990, Sona has engaged in a wide range of mineral exploration activities in Canada, Mexico and the United States, as well as small-scale gold production.
Sona owns a 100 percent interest in the former Blackdome Gold Mine in south-central British Columbia, 250 kilometres north of Vancouver; and the Elizabeth Gold Deposit Property, 30 kilometres south of Blackdome. At Blackdome, the mineral resources are estimated to be 144,500 tonnes grading 11.29g Au/t containing 52,500 oz. gold, indicated; and 90,600 tonnes grading 8.79g Au/t containing 25,900 oz. gold inferred (news release dated May 4, 2010). At Elizabeth, Sona has outlined an inferred gold resource of 523,000 tonnes grading 12.26g Au/t containing 206,100 oz. gold (news release dated June 8, 2009).
Mineral resources that are not mineral reserves do not have demonstrated economic viability.
Sona aims to bring the fully permitted Blackdome mill back into production at an initial rate of 200 tonnes per day, with feed from the formerly producing Blackdome Gold Mine
Sona also holds a 100 percent interest in the Montgolfier Project in Quebec, 40 kilometres east of the multimillion-ounce Casa Berardi Mine gold deposit.
On behalf of the Board,
Nick Ferris, Executive Chairman
This news release contains certain forward-looking statements, and such statements involve risks and uncertainties. The results or events predicted may differ materially from actual results or events. Any forward-looking statement speaks only as of the date of this news release. Except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results, or any other occurrence.
This news release does not constitute an offer to sell or a solicitation of an offer to sell any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.
Neither the TSX Venture Exchange nor its regulation services provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
