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.
LA PRAIRIE, QUEBEC--(Marketwire - Nov. 7, 2012) - Vantex Resources Ltd. (« Vantex » or the « company ») (News - Market indicators)(FRANKFURT:UD7A) is pleased to announce the conclusion of an agreement with Golden Share Mining Corporation allowing Vantex to purchase a 100 % interest in the Lac Fortune West property located in the Dasserat Township, in Abitibi.
Adjacent to the east border of the Galloway project, the Lac Fortune West property comprises 17 claims covering an area of 390 hectares and is strategically located on the Cadillac Fault. It is also interlinked within a block of claims and cells owned by Richmont Mines Inc. (« Richmont ») and located very near the Francoeur mine.
Location Map: http://media3.marketwire.com/docs/lac-fortune2.pdf
« This new acquisition fits very well into our corporate development philosophy since it allows us to significantly increase our presence along the Cadillac Fault as well as positioning ourselves strategically within the geological environment of the Francoeur and Wasamac mines as well as other gold deposits known in this area. Also with this acquisition, Vantex will benefit from 1.8 millions$ of previous exploration expenses registered at the Quebec Ministry of Natural Resources. This will provide us with a reasonable guarantee that our claims will stay in good standing for the next decade or so while allowing us to increase the value of our Galloway project. » commented Mr. Guy Morissette, CEO of the company.
Richmont has announced its intention to restart production at the underground Francoeur gold mine in 2012-2013. The Francoeur gold mine owned by Richmont Mines ("Richmont") is part of a group of 11 similar deposits located within the Francoeur-Wasa shear zone, a very important east-north-east trending regional gold bearing structure which transects the northeast corner of the Lac Fortune West project. The principal deposits located in the Francoeur-Wasa shear zone have produced over 500,000 ounces of gold from approximately 2.6 million tonnes of ore with a recovered grade of 6.07 g/t of gold (Richmont Mines Inc. press release dated August 7th 2009).
The Lac Fortune West project hosts the South King Zone, an east-west trending gold zone recognized by drilling over a strike length of 780 m and located 500 m south of the Francoeur-Wasa shear zone. It displays several geological similarities with the Francoeur-Wasa shear zone orebodies, notably mineralization hosted at an andesite - gabbro lithological contact in close spatial association with an hematite - altered felsic intrusive showing some local breccia textures. The best Diamond drilling by previous operators yielded the following mineralized intercepts * :
Drilling by SearchGold Resources Inc. in 2004 - 2005 :
- 855.58 g/t Au over 0.35 m from 29.83 to 30.18 m
- 60.43 g/t Au over 0.27 m from 69.18 to 69.45 m
- 16.81 g/t Au over 0.50 m from 42.23 to 42.73 m
- 1.02 g/t Au over 11.43 m from 73.90 to 85.33 m
- 1.83 g/t Au over 10.94 m from 72.50 to 83.44 m (including 11.42 g/t Au over 1.50 m)
- 1.21 g/t Au over 11.37 m from 52.73 to 64.10 m
- 1.74 g/t Au over 6.20 m from 40.82 to 47.02 m
- 1.48 g/t Au over 7.32 m from 32.39 to 39.71 m
Drilling by Forbex Resources Inc. in 2001 :
- 10.30 g/t Au over 2.75 m from 57.10 to 59.85 m
- 1.13 g/t Au over 12.40 m from 44.40 to 56.80 m
* This information was taken from a Golden Share press release dated September 19, 2009.
The presence of both higher grade intercepts and mineralization over broad intervals clearly demonstrate the potential of the South King Zone. Additionally, the geological setting of the mineralization, which is associated with shearing in a felsic intrusive hosted in a gabbro along with the presence of hematite and fuchsite alteration, shows key positive indicators for the sector.
Vantex will finalise the transaction by paying $100 000 in cash and issuing 1 million common shares of the company to Golden Share. Golden Share will retain a 1% NSR and Vantex will also pay a $5 000 annual advance royalty (1.5% NSR) to the original owner of the property.
This agreement is subject to the approval of regulatory authorities and transfer of the claims to Vantex.
A 90-kilometre ground geophysical Mag survey was completed on the Hurd and Renault Bay blocks as well as on the north section of the Perron block, west of the Moriss zone. This survey was necessary to better outline the anomalous magnetic zones detected in the previous airborne survey that took place last summer.
Also, management of the company obtained all the required permits to start the drilling campaign in the north-east section of the GP showing, as previously mentionned in the October 2 press release. This campaign is starting this week.
Finallly, in order to test geophysical targets that are possibly located in the same geological environment of the Moriss zone, the company is planning another drilling program for 1 000 metres on a claim located 400 metres west of this important gold showing. This drilling program will start as soon as the required permits are delivered, around December 2012.
Vantex management completed a $263 400 private placement. The company sold 219.5 flow-through units (the "FT Unit") at a cost of $1 200 per FT Unit, for a total of $263 400. Each FT Unit comprises 8 000 flow through common shares and 2 000 common shares at a price of $0.12 per share as well as 5 000 share purchase warrants. Each warrant allows its holder to purchase one additional common share of Vantex at a price of $0.15 for a period of 12 months following TSX approval.
In connection with this financing, Avenue Capital Markets Inc. will receive a cash commission of $19 440 and 166 000 Broker warrants. Each Broker warrant will allow its holder to purchase one additional common share of Vantex at a price of $0.12 for a period of 12 months following TSX approval. Canaccord Genuity Corp. will also receive a $480 cash commission.
The securities issued as part of this financing are subject to a minimum hold period of 4 months and one day and to the approval of the TSX Venture Exchange.
Vantex' primary asset is the Galloway gold project in the Abitibi-Temiscamingue region of Quebec. The property can be accessed easily by road, from Trans-Canada Highway 117 and is 30 kilometers west of Rouyn-Noranda. The company is focusing on its three main gold zones known as: GP, Hendrick and Moriss. These three gold zones, referred to as the golden triangle, are in close geographic proximity. Vantex recently drilled 59.51 g/t gold over 6.2 metres at Moriss, along the hole. For more information on the Golden Triangle visit www.vantexressources.com or view current drill holes on the on www.corebox.net.
The drilling on the Moriss showing will resume as soon as the government agencies issue the claims extension permit to Vantex. Management has reasonable expectations that it will be delivered this fall but cannot guarantee it.
Vantex has approximately 65 million shares issued and outstanding. As of July 31, 2012 the company has $1.7 million in cash and $410 thousand in 2011 exploration tax credits due from the Government of Quebec.
Mr. Daniel Kelly, a Qualified Person under NI 43-101, has read and approved this news release.