Astral To Acquire 100% Interest In Jumping Josephine
Kootenay To Receive 4,000,000 Shares Of Astral
Vancouver, BC - Kootenay Gold
Inc. ("Kootenay") (TSX-V KTN) and Astral
Mining Corporation ("Astral") (TSX-V AA) are pleased to
announce the execution of an Option Agreement dated December 14th, 2009 (the
"Option Agreement"), whereby Astral has the right to earn a 100%
interest in the Jumping Josephine Property, located in British Columbia,
Canada (Astral currently holds a 60% undivided interest and Kootenay
holds a 40% undivided interest). In exchange for the right to increase its
interest to 100%, Astral must, subject to TSX Venture Exchange
("TSX-V") approval, issue to Kootenay a total of 4,000,000 shares
of Astral and incur exploration expenditures totalling $2,000,000.
Manfred Kurschner, President, comments. "The opportunity to acquire the
remaining 40% interest of the "JJ", is a key corporate development
for Astral, allowing the company to hold a 100 % interest in a new and
potentially substantial gold project in a first world country. Many of the
key components of an economic gold deposit, such as location, infrastructure
and grade are all here. Now the company needs to embark on a comprehensive
exploration program to fully unlock the potential of this great early stage
gold discovery"
Highlights of Drill Results at Jumping Josephine include:
- 9.95
grams per tonne gold over 10 metres from hole 001 ....... including 42.61
grams per tonne gold over 2metres
- 7.01
grams per tonne gold over 19 metres gold from hole 013 ....... including 16.42 grams per tonne gold over 5metres
- 15.18
grams per tonne gold over 4 metres gold from hole 032 ....... including 56.4 grams per tonne over 1metre
- 7.74
grams per tonne gold over 5 metres gold from hole 034 ....... including 15.99 grams per tonne over 2metres
- 13.83
grams per tonne gold over 3 metres gold from hole 043 ........ including 35.6 grams per tonne over 1metre
- 8.28
grams per tonne gold over 6 metres gold from hole 046 ........ including 43.5 grams per tonne gold over 1metre
- 12.44
grams per tonne gold over 8 metres from hole 048 ....... including 26.9 grams per tonne gold over 3metre
- 7.96
grams per tonne gold over 5 metres gold from hole 051 ....... including 32.4 grams per tonne gold over 1meter
- 10.05
grams per tonne gold over 7.5 metres from hole 070
- 13.23
grams per tonne gold over 4 metres from hole 072
- 7.01
grams per tonne gold over 2 metres from hole 073
- 8.31
grams per tonne gold over 8 metres from hole 074
Planning and permitting is now underway for a
focused and comprehensive trenching and diamond drilling program on the
Jumping Josephine Project for the spring 2010, as well as the
previously-announced bulk sampling at the JJ Main zone. This work will
continue to evaluate the two kilometre JJ Main structure, as well as testing
a number of other high-priority targets.
Gold encountered over a strike length of 900 metres(m) and to vertical depths
of up to 240m below surface and remains open on strike and at depth. A map
showing drillhole locations and a longitudinal section are provided on
Astral's website at the following links: http://www.astralmining.com/i/misc/Drill_Plan2008.jpg and http://www.astralmining.com/i/misc/JJ_Long_Section2008.jpg
Terms of Option
Pursuant to the Option Agreement, Astral has the right to acquire Kootenay's
40% interest in the Jumping Josephine Property, thereby giving Astral 100%
ownership and control of the project. Kootenay also will include a 61.04km2
package of claim blocks contiguous to the North and on strike with the
Jumping Josephine property known as the CP/Midas Claims. To exercise the option Astral
must:
- issue
to Kootenay an aggregate 4,000,000 common shares with 750,000 shares
issuable upon receiving TSX-V approval and the balance issuable in
stages over 18 months from the date of the Option Agreement and
- expend
$2 million on exploration over a 2 year period with a commitment to
spend $750,000 by the first anniversary and the balance by the second
anniversary of the Option Agreement. Astral will also make available to
Kootenay one board position. Should any portion of the "JJ" or
CP/Midas Claims go into commercial production, Astral will pay Kootenay
a royalty of 1% net smelter returns(NSR) and will issue to Kootenay an
additional 400,000 common shares.
Technical
Details
Jumping Josephine is a new gold discovery in southern British Columbia where
Astral holds total claims of 338 km2. Mineralisation at the JJ Main Zone was
identified by prospectors in 2004, trenched by Astral in 2006 and first
drilling was conducted in spring 2007. To date Astral has completed a total
of 103 diamond drillholes for a total of 12,800m over the Jumping Josephine
claim block. The majority of drilling has focused on the JJ Main Gold
Discovery Zone, with 92 holes totalling 11,603m completed since spring 2007.
Gold mineralisation at JJ Main is associated with a quartz stockwork zone
within faulted monzonite thought to be of Jurassic age. Mineralisation has
been intersected by drilling over a strike length of 900m and to a vertical
depth of 240m. The zone has a true width of up to 12.4m as evidenced by hole
013. The hosting structure is demonstrated by geophysics and geological
observation to persist for over 2.5km along strike. JJ Main is located within
by a circular magnetic feature thought to represent a causative buried
intrusive stock. Parallel structures to JJ Main are considered highly
prospective; an example is hole104 which intersected mineralised stockwork
veining reminiscent of the JJ Main zone some 400m perpendicular to the strike
of JJ Main.
Visible gold is often observed within the stockwork quartz veins and
individual metre-wide samples range up to 61.8 grams per tonne gold (hole 048
58-59m). The presence of coarse gold was noted early during exploration and
all samples from the stockwork zone were analyzed by the metallic screen fire
assay method initially by ACME Analytical Laboratories and later ALS Chemex,
both analytical service providers compliant with ISO 9001:2000 for the
provision of assay and geochemical services. The metallic screen fire assay
method aims to report the total contained gold for a 1,000g sub-sample of
each pulverized sample received and is considered more accurate than the
routine 30g fire assay analysis when coarse gold is present. Astral included
its own blanks and independently-prepared standards into the sample sequence
to assure proper quality assurance/quality control (QA/QC). Samples adjacent
to the mineralized stockwork zone do not host obvious quartz veining or
sulphide mineralization and are sent for 30gm fire assay analysis for gold.
Exploration work reported in this release was completed under the supervision
of Astral's Project Geologist Dale Brittliffe, P.Geo.and a Qualified Person
as defined in National Instrument 43-101.
Astral
Astral Mining Corporation is a Canadian company engaged in the exploration
and development of precious metal properties in North America. By focusing on
exploration in mining-friendly districts, the Company minimizes the political
and social risks encountered in many other parts of the world. With a new
gold discovery at the Company's Jumping Josephine Gold Project in Southern
British Columbia and an experienced technical team and seasoned management,
Astral is poised to leverage this expertise into early exploration success. Further
details on Astral Mining Corporation and its high-quality portfolio of
exploration projects can be found at www.astralmining.com.
Kootenay
Kootenay is an emerging exploration Company actively developing mineral
projects in the Sierra Madre Region of Mexico and in British Columbia,
Canada. The Company is currently drill testing four separate projects.
Kootenay's top priority remains the ongoing development of its Promontorio
Silver project in Sonora State, Northwest Mexico, which encompasses the
former producing Promontorio Silver Mine. Further information can be found
at: www.kootenaygold.ca
ON BEHALF OF THE BOARD
"Manfred Kurschner"
Mr. Manfred Kurschner, President & CEO
Astral Mining Corporation
ON BEHALF OF THE BOARD
"James M. McDonald"
Mr. James M. McDonald, President & CEO
Kootenay Gold Inc.
For further information on Astral please contact
Manfred Kurschner, President & CEO, at or 604-641-1315, or by email
info@astralmining.com, or visit the Company's web site at www.astralmining.com.
For further information on Kootenay Gold, please contact James McDonald,
President & CEO at 403- 238-6986 or Ken Berry, Chairman at 604-601-5655;
1-888-601-5650; www.kootenaygold.ca
Neither 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
Cautionary Note to US Investors: This news release may contain
information about adjacent properties on which we have no right to explore or
mine. We advise U.S. investors that the SEC's mining guidelines strictly
prohibit information of this type in documents filed with the SEC. U.S. investors
are cautioned that mineral deposits on adjacent properties are not indicative
of mineral deposits on our properties. This news release may contain
forward-looking statements including but not limited to comments regarding
the timing and content of upcoming work programs, geological interpretations,
receipt of property titles, potential mineral recovery processes, etc. Forward-looking
statements address future events and conditions and therefore involve
inherent risks and uncertainties. Actual results may differ materially from
those currently anticipated in such statements.
2009 Number 15
|