HAWKEYE ACQUIRES PLATINUM GROUP ELEMENT (PGE) PROPERTY IN YUKON
HAWKEYE Gold & Diamond Inc. (the �Company� or "HAWKEYE"): Vancouver, British Columbia: is pleased to announce the Company has entered into a binding letter agreement (the "Letter Agreement") to acquire the REX Property which is a platinum group element (PGE) claim group consisting of 150 claims totaling 3,120 hectares and is located 124 kilometers west of Whitehorse and 8 kilometers south of Haines Junction in the Yukon Territory. The REX Property is located along the Shakwak / Denali Fault system, which transects the Kluane Range Mountains and the Kluane Ni-Cu PGE Belt. The Kluane Range is home to the Wellgreen PGE Deposit located 141 kilometers to the northwest along the Alaska Highway. Wellgreen is under advanced assessment by Wellgreen Platinum with an Indicated Resource of 14.4 Mt at 2.23 g/t Pt+Pd+Au, 0.68% Ni and 0.62% Cu, and an Inferred Resource of 446.6 Mt at 0.87 g/t Pt+Pd+Au, 0.31% Ni and 0.25% Cu at a 0.22% NiEq cut-off. During a 2013 drill program Wellgreen intersected 756 metres of continuous mineralization grading 1.92g/t Platinum Equivalent (�Pt Eq.�) or 0.46% Nickel Equivalent (�Ni Eq.�), including 461 metres of continuous mineralization grading 2.31g/t Pt Eq. (0.55% Ni Eq.), which contains a 65.6 metre interval grading 4.19g/t Pt Eq. (1.00% Ni Eq.), comprised of 1.33g/t platinum+palladium+gold (�3E�) with 0.56% nickel and 0.45% copper. The REX Property is a project focused on exploring for buried Wellgreen Type ultramafic hosted Ni-Cu-PGE deposits. The project area is underlain by a large ultramafic intrusion. Outcrop is limited and most of the property is unexplored. Historical 1987 exploration outline anomalous platinum, palladium and gold in soils on the property (see About the REX Property below). Many other ultramafic intrusions in the Kluane Range (i.e. - Wellgreen Deposit) host PGE occurrences or deposits with similar geology to the Rex Property.
Terms of Letter Agreement
To acquire a 100% stake in the REX Property, HAWKEYE is obligated to; (1) make cash payments totaling $240,000 over four years, which the first payment of $20,000 is not payable to the vendor until HAWKEYE completes its first equity financing via private placement over $0.05 per share raising a minimum of $400,000 (first through fourth anniversary payments date's commence upon completion of the first equity financing); (2) issue 1,050,000 common shares to the vendor over four years from TSX acceptance; and (3) perform a total of $80,000 for work programs on the property over four years from TSX acceptance. Under terms of the agreement, so long as the Company issues all shares to the vendor by the fourth anniversary date; (a) if the Company cannot make any cash payment(s) on any anniversary date(s) due to bad market conditions or its inability to pay on time, the vendor will not be able to terminate the agreement and the Company has up to eight years from TSX Venture acceptance of the agreement to pay the vendor any outstanding cash payments; and (b) if the Company cannot make its minimum work program commitments of $20,000 per year over four years due to bad markets or the Company inability to pay for the work program on time, these commitments will revert to the Company paying minimum assessment payments to the mining recorder's office to keep the property in good standing and the Company also has up to eight years from TSX acceptance to fulfill its minimum work program expenditures of $80,000.
HAWKEYE will also issue the Vendor share bonus's totaling; (1) 150,000 shares in the capital of the Company when HAWKEYE trades over $0.60 per share on the TSX Venture for a period of three consecutive trading days; and (2) 2,000,000 shares upon receipt by the Company of a Pre-feasibility study.
The REX Property is subject to a 3% NSR which the Company may purchase a 1.5% interest from the vendor for $1,500,000.
Terms of the Letter Agreement will be incorporated into a definitive option agreement (the "Option Agreement") and is subject to TSX Venture Exchange acceptance.
Message from the President & CEO
HAWKEYE President & CEO Greg Neeld states, "The REX Property presents HAWKEYE with potential for a PGE, copper, and gold discovery similar to the Wellgreen deposit. This acquisition is the first in a series of strategic diversified mineral exploration acquisitions management intends to complete over the short term to position HAWKEYE for future financings and increase shareholder value as we move forward in 2014. We feel 2014 will be one of the better mineral exploration markets when compared to the last few years. Management believes that in current market conditions the terms of the Letter Agreement are fair because it incentivizes the vendor but also protects our shareholders because cash and work program commitments may be delayed for any reason up to eight years from TSX Venture acceptance of the REX agreement for the Company to earn a 100% interest in the Property. This agreement model forms a partnership between the parties thereby significantly reducing the risk of the Company expending significant amounts of cash over the property and the Vendor clawing the Property back in bad markets due to certain cash, share and work program commitments not being met. HAWKEYE is excited about the REX Property acquisition and look forward to completing appropriate financing(s) so we can commence work programs over the Property."
About the REX Property
The REX Property is a ultramafic hosted Ni-Cu-PGE target. The target area has not been extensively mapped due to glacial overburden that has concealed what lies beneath most of the flat lying property. A variety of weakly serpentinized ultramafic rocks are poorly exposed in outcrops and trenches on a low hill in the extreme northeast corner of the property. The outcropping rock has been historically described as mixed peridotite-dunite and minor gabbroic rock phases which locally display coarse grained cumulate textures. Chloritic schist of probable Upper Jurassic age belonging to the Dezadeash Group of the Gravina-Nutzotin Assemblage also outcrop on the hill. Foliation in the schist strikes northwest and dips steeply to the southwest. Ultramafic rock types exposed in the northeast exhibited magnetite in hairline fractures. One small area contains up to 10% magnetite as the matrix to a brecciated coarse grained dunite. Historical drilling for asbestos in the northeast shows that fracturing and brecciation within the ultramafic appear to increase with depth. During 1987 a reconnaissance geochemical surveying was conducted over the central part of the Rex claims with sample intervals of 100m on lines 900m apart. 157 samples were collected and anomalous copper, gold, platinum and palladium were identified in the survey. The most extensive area of anomalous platinum (25-60 ppb) was identified over an approximate length of 3,200 meters. Gold values up to 160ppb were also found.
Ultramafic complexes elsewhere in the Kluane Range, including the Wellgreen Deposit, host economic and other significant platinum group element occurrences. Platinum is found in streams draining an ultramafic intrusion 25 km to the west of Rex.
The technical contents of this release were approved by Mr. Dan Cardinal, P.Geo., a qualified person as defined by National Instrument 43-101 for the REX Property. The property has not been the subject of a National Instrument 43-101 report.
For further information on the REX Property please go to our website at www.hawkeyegold.com on or after January 21, 2014.