EDMONTON, ALBERTA--(Marketwired - Feb. 4, 2015) - Grizzly Discoveries Inc. (News - Market indicators)(OTCQX:GZDIF)(FRANKFURT:G6H) ("Grizzly" or the "Company") is pleased to provide an update on its proposed activities to develop its numerous resource properties in British Columbia and Alberta, Canada.
This past year the Company has focused on implementation of significant cost reductions together with consolidation of and key acquisitions for its land holdings, during these difficult junior resource market conditions. The Company has analyzed its portfolio of properties and dropped non-core land positions in its Alberta potash properties, retaining the strategic positions for the future. This has resulted in a reduction from 900,000 acres to 425,000 acres, eliminating carrying costs of the non-core holdings. In the Buffalo Head Hills area, Grizzly has expanded its land position and added strategic claims to consolidate its area of focus around the known kimberlites and future targets. The Company's current land position is approximately 185,000 acres.
Grizzly holds significant mineral claim positions in the Greenwood Gold District near Greenwood, British Columbia, which the Company has assessed as highly prospective for the potential to define and develop gold and silver precious metal resources along with copper. The Greenwood properties lie in an extremely politically stable mining community having strong interests in the exploration and development of assets in the ground. Historic mining in the area produced more than 6.8 million ounces of gold (Dufresne and Banas, 2013). The Motherlode underground and open pit mine historically produced more than 175,000 ounces of gold, 700,000 ounces of silver and 78 million pounds of copper (Dufresne and Banas, 2013).
Kinross' Buckhorn mine in the State of Washington, just across the US border from Grizzly's Greenwood properties, boasted a 1.2 million ounce gold resource at the start of production, and Midway's Golden Eagle deposit, located 40 km from Grizzly's properties, has a 1.74 million ounce indicated gold resource and a further 192,000 ounces in an inferred category (Chapman and Seal, 2009). More than 6.8 million ounces of gold have been produced with another 2+ million ounces of gold in measured and indicated along with another 680,000 ounces inferred as in situ gold resources within a radius of less than 70 km from the Company's mineral claims (Dufresne and Banas, 2013).
The Company also holds almost 425,000 acres of metallic and industrial mineral permits in eastern Alberta along the Saskatchewan border. The Company has determined this area, based on historic drilling showing high grade potash zones underlying the Company's property, as prospective for a potential potash resource. The long term forecasted demand for fertilizer, in particular potash, makes this land position important for longer term development. In consideration of historic drilling, the opportunity for diversification for Grizzly is excellent.
The last year has been a challenge for all players in the resource sector. The TSX Venture Composite Index is near an all-time low, and share prices for most junior resource companies are at historic bottoms. Nevertheless, Grizzly's management is optimistic for the future, particularly with its current land holdings. Brian Testo, Grizzly's CEO, reiterated that "the resource sector survivors will be those companies with strong management holding significant share positions, good properties, cash in the bank, and operating in safe mining environments with little or no geopolitical risk. That describes Grizzly Discoveries in a nutshell."
Management believes that this should inspire a sense of confidence in Grizzly Discoveries, as the features of the Company coincide with what it takes to survive a devastated junior resource market. Management, insiders and associates own over 50% of the shares outstanding, with the President, Brian ("Griz") Testo, holding or controlling over 9 million shares, having invested several million dollars personally. The Company has an adequate treasury with minimal monthly overhead and a committed management team to stay the course.
For Grizzly Discoveries, nothing has changed in the fundamentals. The focus to explore, discover and develop a gold/copper/silver resource in its vast contiguous Greenwood properties, together with the potential opportunity to discover and develop a large potash resource, makes the Company a strong candidate for recovery when the bull markets finally do return to the natural resources sector. Grizzly continues to pursue joint ventures, property options, and financing opportunities, to be positioned to take advantage of the inevitable recovery.
INVESTOR RELATIONS CONSULTANT
The Company announces that is has entered into a new investor relations consulting agreement the "IR Agreement") with Mr. Stephen Smart, an individual residing in Brazil. The Company had previously engaged Mr. Smart for a one year term in 2013. Mr. Smart will provide investor relations services to the Company, including communicating with prospective shareholders to increase awareness of and interest in the Company for a term of two years. Mr. Smart is a corporate finance consultant whose primary business involves introducing clients to investment opportunities. Mr. Smart is a shareholder of the Company.
In consideration of Mr. Smart's services, the Company will issue to Mr. Smart options (the "Options") to acquire up to 400,000 common shares ("Common Share") of the Company at an exercise price of $0.10 per Common Share pursuant to the terms of the Company's stock option plan (the "Plan"). The Options shall vest in equal installments during the first year of the term and shall expire two years from issuance or earlier in accordance with the Plan.
The IR Agreement is effective for a period of two years, and both the IR Agreement and the issuance of options are subject to the approval of the TSX Venture Exchange.
ABOUT GRIZZLY DISCOVERIES INC.
Grizzly is a diversified Canadian mineral exploration company with its primary listing on the TSX Venture Exchange with 48.7 million shares issued, focused on developing its precious metals properties in southeastern British Columbia and significant Potash assets in Alberta. The Company holds, or has an interest in: metallic and industrial mineral permits for potash totaling more than 425,000 acres along the Alberta-Saskatchewan border; over 235,000 acres of precious-base metal properties in British Columbia; and more than 185,000 acres in properties which host diamondiferous kimberlites in the Buffalo Head Hills and Birch Mountains of Alberta.
On behalf of the Board
Grizzly Discoveries Inc.
Brian Testo, President
For further information, please visit our website at http://www.grizzlydiscoveries.com.
The content of this news release and the Company's technical disclosure has been reviewed and approved by Michael B. Dufresne, M. Sc., P. Geol., who is the Qualified Person as defined by National Instrument 43-101 Standards of Disclosure for Mineral Projects.
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.
Caution concerning forward-looking information
This press release contains "forward-looking information" and "forward-looking statements" within the meaning of applicable securities laws. This information and statements address future activities, events, plans, developments and projections. All statements, other than statements of historical fact, constitute forward-looking statements or forward-looking information. Such forward-looking information and statements are frequently identified by words such as "may", "will", "should", "anticipate", "plan", "expect", "believe", "estimate", "intend" and similar terminology, and reflect assumptions, estimates, opinions and analysis made by management of Grizzly in light of its experience, current conditions, expectations of future developments and other factors which it believes to be reasonable and relevant. Forward-looking information and statements involve known and unknown risks and uncertainties that may cause Grizzly's actual results, performance and achievements to differ materially from those expressed or implied by the forward-looking information and statements and accordingly, undue reliance should not be placed thereon.
Risks and uncertainties that may cause actual results to vary include but are not limited to the availability of financing; fluctuations in commodity prices; changes to and compliance with applicable laws and regulations, including environmental laws and obtaining requisite permits; political, economic and other risks; as well as other risks and uncertainties which are more fully described in our annual and quarterly Management's Discussion and Analysis and in other filings made by us with Canadian securities regulatory authorities and available at www.sedar.com. Grizzly disclaims any obligation to update or revise any forward-looking information or statements except as may be required by law.
