Calgary, Alberta: Boxxer Gold Corp. (TSX-V:BXX/OTC Other:BXXRF) (�Boxxer� or the �Corporation�) is pleased to announce that subject to regulatory approval, it has executed an option agreement whereby it has the right to earn a 100% working interest in the East Breccia copper-molybdenum-silver exploration property located in south-central Ontario, subject to a 3% Net Smelter Return (�NSR) held by the Optionors of the property.
The East Breccia property is located in the Sault Ste. Marie Mining Division in south-central Ontario, approximately 65 kilometres north of Sault Ste. Marie, Ontario. The property consists of 11 contiguous mineral claims covering approximately 4,300 acres. The addition of the East Breccia property is part of Boxxer's strategy to acquire a selective inventory of early stage, essentially under-explored, poly-metallic copper projects with large tonnage potential. The majority of the exploration on the East Breccia property was completed between 1961 and 1982, and since that time very little systematic exploration has been completed. Technical Highlights of the work performed on the property are:
- The reported copper-molybdenum-silver mineralization is hosted in the East Breccia and the south half of the West Breccia, located near the former Tribag Copper Mine site,
- A total of 55 drill holes have been completed in the East Breccia, where historical drill hole intersections of 0.25% copper, 0.042% MoS2 and 7.2 g/t silver over 142.4m*, and 0.31% copper, 0.038% MoS2, and 4.8 g/t silver over 143.2m* being reported,
- The East Breccia has a surface dimension of approximately 550m by 700m and has been explored to a depth of 750m below surface, and
- The West Breccia has a surface dimension of 200m by 650 m and has been explored to a depth of 850m.
Note: The above quoted mineralized intervals have not been verified by Boxxer. The analytical methods used to measure the copper-molybdenum-silver concentrations in the core is not known. Boxxer believes that the above quoted mineralized intervals are correct and significant, however until the mineralized intervals are verified by additional exploration, these mineralized intervals should be considered speculative.
Option Agreement Highlights
Under the terms of the Option Agreement, Boxxer has the right to earn a 100% interest in the East Breccia property (subject to the NSR payable to the vendors) by making the following payments and exploration commitments:
- An initial cash payment of $15,000 and issuing 75,000 common shares of Boxxer on execution of the option agreement and receipt of regulatory approval,
- Additional cash payments totaling $150,000 and common share issuance totaling 450,000 over four years,
- Exploration expenditures totaling $308,000 over four years; $44,000 of which is required in year one, $44,000 in year 2, $88,000 in year three and $132,000 in year four, and
- A 3% NSR to the property vendors, of which Boxxer has the right to repurchase 1% of the NSR at any time for a cash payment of $1,000,000.
�In our assessment of current global commodity fundamentals, Boxxer is continuing to implement its strategy of assembling a selective portfolio of high quality, copper exploration properties with the potential to host large poly-metallic deposits," commented Colin Christensen, Boxxer�s Vice President of Corporate Development. �The optioning of the East Breccia property, along with the recent acquisition of the DOK property in northwest British Columbia, in conjunction with the Company's Boss property in southern Nevada, we feel we have positioned ourselves with projects that have world class mineral potential, and Boxxer intends to be very active with exploration on all three properties in 2011.�
East Breccia Property Highlights;
The East Breccia property is located next to the former Tribag Copper Mine that is reported to have processed 1.25 million tonnes of mineralization with a reported average grade of 2% copper from the Breton and West breccias between 1967 and 1974. The East Breccia property hosts two zones of mineralization: the East Breccia and one half of the West Breccia. Mapping, sampling and minor amounts of trenching has been completed over the property. Diamond drilling of both breccias was completed between 1961 and 1982 using core sized that ranged from AQ to HQ. A total field ground magnetometer survey has also been completed over the property. The property is covered with glacial overburden of variable thickness.
2011 Exploration Plans;
Objectives for 2011 include plans to re-establish a grid over the property, attempt to locate the historical drillhole collars and depending on the availability of a diamond drill, drill two or three diamond drill holes to confirm the presence of significant copper-molybdenum-silver mineralization on the property. Also, Boxxer plans to analyze the core for a suite of elements including gold, which according to the historical records, was not analyzed for.
Elmer B. Stewart, MSc. P. Geol., President of Boxxer, is the Corporation�s nominated Qualified Person pursuant to National Instrument #43-101, Standards for Disclosure for Mineral Projects, has reviewed the technical information disclosed in this news release.
About Boxxer Gold Corp.
Boxxer Gold is a Canadian junior resource company involved in the exploration of two copper projects in the state of Nevada, the DOK copper-gold porphyry property in Northwest B.C., and a shear hosted gold project located 110 kilometres north of Yellowknife NWT, Canada.
For more information on Boxxer please visit our website at www.boxxergold.com or contact:
Boxxer Gold Corp |
Boxxer Gold Corp |
Torrey Hills Capital |
Keith Bullen |
John L. Maslanyk |
James Macdonald |
Investor Relations |
Vice President & Chief Information Officer |
Senior Account Manager |
Tel: 416-350-2794 |
Tel: 1-403-804-2251 |
Tel: 1-858-458-7300 |
Fax: 416-350-2794 |
Toll Free: 1-888-479-3596 |
Fax: 1-858-481-4306 |
email: kbullen@rogers.com |
e-mail: john@boxxergold.com |
e-mail: jmacdonald@torreyhillscapital.com |
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.
Forward-Looking Statements: This news release may contain certain forward-looking information. All statements included herein, other than statements of historical fact, is forward-looking information and such information involves various risks and uncertainties. There can be no assurance that such information will prove to be accurate, and actual results and future events could differ materially from those anticipated in such information. There is no certainty that the historical mineralization reported from the property exists and that the proposed drilling would intersect significant mineralization. For any forward-looking information given, Management has assumed that the results it has received and the interpretation thereof are reliable, and has applied geological and geophysical interpretation methodologies which are consistent with industry standards. Although Management has a reasonable basis for the conclusions drawn, actual results may differ materially from those currently anticipated in such statements. For such statements, the Corporation claims safe harbour for future releases. A description of assumptions used to develop such forward-looking information and a description of risk factors that may cause actual results to differ materially from forward-looking information can be found in the Corporation�s disclosure documents on the SEDAR website at www.sedar.com. The Corporation does not undertake to update any forward-looking information except in accordance with applicable securities laws