Boxxer enters LOI for mineral leases in Indin Lake

Boxxer Gold Corp (C:BXX)
Shares Issued 72,507,180
Last Close 3/20/2008 $0.085
Monday March 24 2008 - News Release

Mr. Elmer Stewart reports

Boxxer Gold Corp. has entered into a letter of intent with Ursa Polaris Developments Corp., an arm's-length third party, to purchase a 100-per-cent interest in 15 mineral leases, covering approximately 3,277 acres, located in the Indin Lake mafic volcanic belt. These mineral leases are located approximately 210 kilometres northwest of Yellowknife in the Northwest Territories.

Elmer Stewart, president and chief executive officer of Boxxer, stated: "The preliminary review of the information indicates that the mineral leases contain similar lithologies, alterations, structural setting and styles of gold mineralization, to the gold mineralization in the Yellowknife and Hope Bay mafic volcanic belts. Assuming that the transaction is completed, Boxxer would use an exploration model similar to the Yellowknife mining district to explore this property."

Highlights of LOI

Subject to completion of legal, financial and technical due diligence satisfactory to Boxxer, Boxxer shall have the right to purchase a 100-per-cent interest in the mineral leases. The salient points of the LOI are:

1. The completion of the proposed transaction is subject to the approval of the TSX Venture Exchange, shareholders and other regulatory bodies if required.
2. Boxxer will issue 4.5 million fully paid and non-assessable common shares as payment for 100-per-cent interest in the mineral leases and all available technical information.
3. Boxxer shall have the option until July 31, 2008, to purchase the existing camp and other infrastructure located on the mineral leases for a purchase price of $100,000. A $25,000 non-refundable payment toward the $100,000 has been made and the balance of $75,000 will be payable on exercising the option.
4. Assuming that Boxxer exercises its option to purchase the camp and other infrastructure located on the mineral leases, the vendor has agreed to assign its $50,000 bond related to cleanup and if required removal of the camp to Boxxer.
5. The parties have agreed to work toward completion of financial, legal and technical due diligence, and closing the transaction within 90 days, based on due diligence acceptable to Boxxer and receipt of all approvals required.

Geology

The Indin Lake mafic volcanic belt is located within the Slave Structural province of the Canadian Shield and is similar to other volcanic belts in the Slave Structural province, such as the Yellowknife volcanic belt and the Hope Bay volcanic belt. The Indin Lake mafic volcanic belt is underlain by andesitic and basaltic volcanics, volcaniclastic sediments and turbidites, which have been intruded by quartz feldspar porphyry dikes.

Structural setting and mineralization

The dominant structural feature within the mineral leases is a seven-kilometre-long, broad, northeast-trending carbonate-sericite-pyrite altered shear zone, which hosts 18 reported zones of gold mineralization. The gold mineralization where described is hosted in carbonate-sericite-pyrite altered mafic volcanics, in what is described as quartz veins, silicified zones, quartz blowouts and in quartz feldspar porphyry dikes. In addition to gold, arsenopyrite-galena-sphalerite and other sulphosalt minerals are also reported to occur within the mineralized zones. The historical exploration results (underground channel sampling and the Diamond drilling) report that the gold mineralization ranges from 0.5 metre and up to seven metres in width.

Historical exploration

The mineral leases were extensively explored between 1947 and 1957. The early exploration (1947-1957) consisted of Diamond drilling, construction of shafts, drifting and crosscutting, to provide underground access to the gold mineralization and channel sampling. Based on the historical exploration results, shafts, drifting, crosscutting and channel sampling of the mineralized zones, were completed at the North Inca and Diversified zones. The historical exploration at the Lexindin zone consisted of core drilling and surface channel sampling. This zone is located approximately three kilometres northeast of the North Inca zone. Since the 1960s, exploration of the mineral leases has been sporadic, consisting of limited geophysical surveys, prospecting and channel sampling, and limited core drilling, on the previously located zones of gold mineralization.

The above exploration information described under structural setting and mineralization and historical exploration is historical in nature, and has not been verified by a qualified person as that term is defined in National Instrument 43-101 and its companion policies. As such this historical information should not be relied upon.

Mr. Stewart, MSc, PGeol, president of Boxxer, is the corporation's nominated qualified person, pursuant to National Instrument 43-101. Mr. Stewart has reviewed the technical information disclosed in this news release.