Ethos Capital Corp. (the "Company" or "Ethos") (TSX VENTURE: ECC)
is pleased to announce that it has obtained the option to acquire a
100% interest in two prospective gold properties located
respectively 70 km and 120 km south of Dawson City, Yukon. The
Bridget and Hen properties, identified by experienced target
generator Shawn Ryan (Wildwood Exploration Inc.), comprise a total
of 1,385 claims (approximately 28,950 hectares) and are located in
the highly prospective White Gold area, west-central Yukon. The
newly recognized high-grade, lode gold mineralization in the area
has led to two significant discoveries: the Golden Saddle deposit
(Kinross Gold Corporation) and The Coffee Creek prospects (Kaminak
Gold Corporation) in 2008 and 2010 respectively. The Casino
copper-molybdenum-gold deposit (being developed by Western Copper
Corporation) is located nearby.
The Bridget and Hen properties are strategically located in the
White Gold region of the Dawson Range, respectively east and north
of Kaminak's Coffee Property. Part of the Hen property adjoins
Kinross Gold's claims containing the new "JP Ross" discovery. The
primary target on the Bridget and Hen properties is a near-surface,
bulk tonnage gold setting analogous to Kinross Gold Corporation's
recently acquired White Gold Project, and Kaminak Gold
Corporation's newly discovered Coffee Project. The Bridget and Hen
properties represent promising gold exploration targets in an
emerging gold district with historic placer gold production and
significant discoveries in 2008 and 2010. Please CLICK HERE to view
the claim map.
Recent Gold Discoveries in the Dawson Range
In 2008, Underworld Resources Inc. drilled 18.1m grading 4.35
g/t Au and 50.7m grading 3.1 g/t Au following up with an intercept
early in 2009 grading 3.39 g/t Au across 104.0m. This led to
delineation of the Golden Saddle deposit with an Indicated Resource
of 1,004,570 oz gold @ 3.2 g/t Au, and an additional Inferred
Resource of 407,413 oz gold @ 2.5 g/t Au. In Spring of 2010,
drilling on the Coffee Project produced two significant
discoveries: the Supremo Zone which yielded 17.07 g/t Au over
15.5m, and the Latte zone which returned 2.35 g/t Au over 51m. This
information is not necessarily indicative of the mineralization
that may be identified on the Betty and Wolf properties.
Mineralization at both Golden Saddle and on the Coffee Project
is believed to be dominantly associated with felsic plutonic and
older metamorphic rocks. Mineralization is structurally controlled
and has a gold - arsenic - antimony surface soil geochemical
response.
The Bridget and Hen Properties
In 1970, regional silt sampling by Silver Standard identified
the Bridget Property area as one of three significant copper-silver
anomalies along with what is now the Minto mine (Capstone) and the
Lucky Joe prospect (Copper Ridge) in the region. In 2001 Shawn Ryan
following up on government airborne magnetic surveying recognized
the association of gold with the historically identified copper
targets and the coincidence of this mineralization to magnetic
highs.
The Bridget Property was explored by Shawn Ryan over three years
between 2005 and 2008. Work included prospecting, geochemical
sampling (a total of 1,455 soil samples collected) and ground
magnetic surveying (approx.32 line kms) on the Bridget property.
Soil sample analyses from the 2008 detailed soil grid indicate a
geochemically anomalous area greater than 750 meters in length with
copper greater than 200 to 711 ppm coincident with anomalous
bismuth (to 155 ppm) and molybdenum (to 322pmm) associated with a
strong magnetic anomaly. The results suggest similarities with the
Minto and Lucky Joe areas of mineralization.
The Bridget Property is contiguous with the Company's Betty
Property optioned from Shawn Ryan in November 2010 (see NR 30
November 2010). The area is highly prospective for White Gold
District style gold mineralization such as Kinross's White deposit
and Kaminak's Coffee prospects as well as porphyry copper-gold
mineralization similar to Minto or Lucky Joe.
The Hen property has seen limited exploration. The property
covers approx.100 square kilometres centred on Henderson Creek
which is a current and long-lived area of placer gold mining made
famous by the American author Jack London who had a cabin on
Henderson Creek during the Klondike gold rush. The Hen property
covers an airborne magnetic anomaly and adjoins claims owned by
Kinross who have made a gold discovery at the "JP Ross" prospect
east of the Hen property boundary.
2011 Work Program
Ethos Capital Corp. management believes these two new properties
represent excellent opportunities for exploration for bulk tonnage
gold mineralization in the emerging White Gold District. There is
also potential for gold-copper- molybdenum mineralization similar
in style to the nearby Casino deposit and the Minto deposit. Summer
2011 exploration plans include airborne magnetics and radiometric
surveying plus ground follow-up soil geochemical surveys designed
to infill and expand existing data, trenching of existing soil
anomalies, ground magnetic surveying and geological mapping. The
goal of this work is to identify and prioritize diamond drill
targets.
The Option Agreements
The Company has entered into option agreements with Shawn Ryan
and Wildwood Exploration Inc., to acquire a 100% interest in each
of the Bridget and Hen properties.
The Bridget property option agreement calls for Ethos to make
cash payments aggregating $550,000, incur exploration expenditures
aggregating $2.5 million and issue up to 1.25 million shares staged
over the five-year term of the option. More specifically, to
acquire and maintain the Bridget option, Ethos will make upfront
payments of $100,000 cash and 250,000 common shares. To maintain
the option, Ethos will be required to make additional option
payments of $450,000 in cash and issue 1.0 million shares, staged
over four years. Upon completion of $4.0 million in exploration
expenditures, Ethos will be required to issue an additional 250,000
shares; and upon completion of $7.5 million in exploration
expenditures it will be required to issue an additional 250,000
shares.
Similarly, the Hen property option agreement calls for Ethos to
make cash payments aggregating $650,000, incur exploration
expenditures aggregating $2.55 million and issue up to 1.75 million
shares staged over the five-year term of the option. More
specifically, to acquire and maintain the Hen option, Ethos will
make an upfront payment of $125,000 cash and 350,000 common shares.
To maintain the option, Ethos will be required to make additional
option payments of $525,000 in cash and the issuance of 1.4 million
shares, staged over four years. Upon Ethos completing $4.0 million
in exploration expenditures Ethos will be required to issue an
additional 350,000 shares, and upon completion of $7.5 million in
exploration expenditures it will be required to issue an additional
350,000 shares.
Each of the properties will be subject to a 2% NSR royalty in
favour of the optionors ,with an option in favour of the Company to
buyout 1% of the NSR royalty exercisable for CDN$2.5 million per
property.
The Bridget and Hen option agreements, taken together with the
Betty and Wolf option agreements described in the Company's
November 30, 2010 news release, are being treated by the TSX
Venture Exchange as a Fundamental Acquisition. Consequently, the
property acquisitions pursuant to the Bridget and Hen option
agreements are subject to the acceptance of the TSX Venture
Exchange, which acceptance is, among other things, subject to the
Company completing and filing NI 43-101 compliant technical reports
on each of the Bridget, Hen, Betty and Wolf properties. The Company
has engaged Jean Paulter, P.Geo, JP Exploration Service Inc., to
prepare these technical reports, and expects to have all of the
required reports completed by March 31, 2011. The Company will not
make any cash payments or share issuances under the Bridget and Hen
option agreements until they have been accepted for filing by the
TSX Venture Exchange. Any shares subsequently issued by the Company
under these option agreements will be subject to a four-month hold
period.
About Ethos
Ethos is junior mining company focused on exploration and
development of its valuable mineral assets located in highly
prospective mineralized belts, close to infrastructure and in areas
that are politically stable, mining-friendly and hospitable to
exploration and development. The Company's principal projects are
its 2,187 claims totalling 457 square kilometre property package in
the heart of the emerging White Gold / Klondike gold district as
well as its Santa Teresa and Corrales silver-zinc-lead properties
in Mexico.
Work in Mexico at the Corrales Property in past year has
included shallow drilling testing silver-zinc-lead mineralization,
limited deeper drilling aimed at establishing vectors to
higher-grade mineralization, and currently ongoing detailed
magnetics surveying aimed at identifying priority drill targets
beneath the pediment cover. Results of the magnetics surveying are
pending.
This News Release has been reviewed and approved by Peter
Tallman, P.Geo, Chief Operating Officer of Ethos Capital Corp. and
Qualified Person for the Yukon projects, in accordance with
regulations under National Instrument 43-101.
Ethos Capital Corp.
Per:
Gary Freeman, President & CEO
Forward-Looking Statement Cautions:
This press release contains certain "forward-looking statements"
within the meaning of Canadian securities legislation, relating to,
among other things, the Company's plans for the acquisition of the
above-described Hen and Bridget properties, and the future
exploration of the Hen, Bridget, Wolf and Betty properties.
Although the Company believes that such statements are reasonable,
it can give no assurance that such expectations will prove to be
correct. Forward-looking statements are statements that are not
historical facts; they are generally, but not always, identified by
the words "expects," "plans," "anticipates," "believes," "intends,"
"estimates," "projects," "aims," "potential," "goal," "objective,"
"prospective," and similar expressions, or that events or
conditions "will," "would," "may," "can," "could" or "should"
occur, or are those statements, which, by their nature, refer to
future events. The Company cautions that Forward-looking statements
are based on the beliefs, estimates and opinions of the Company's
management on the date the statements are made and they involve a
number of risks and uncertainties. Consequently, there can be no
assurances that such statements will prove to be accurate and
actual results and future events could differ materially from those
anticipated in such statements. Except to the extent required by
applicable securities laws and the policies of the TSX Venture
Exchange, the Company undertakes no obligation to update these
forward-looking statements if management's beliefs, estimates or
opinions, or other factors, should change. Factors that could cause
future results to differ materially from those anticipated in these
forward-looking statements include, the Company's inability to
secure the acceptance by the TSX Venture Exchange for the
above-described option agreements, delays faced by the Company in
completing the NI 43-101 technical reports, accidents and other
risks associated with mineral exploration operations, the risk that
the Company will encounter unanticipated geological factors, the
possibility that the Company may not be able to secure permitting
and other governmental clearances necessary to carry out the
Company's exploration plans, and the risk of political
uncertainties and regulatory or legal changes in the jurisdictions
where the Company carries on its business, including Mexico and the
Yukon Territory, that might interfere with the Company's business
and prospects. The reader is urged to refer to the Company's
reports, publicly available through the Canadian Securities
Administrators' System for Electronic Document Analysis and
Retrieval (SEDAR) at www.sedar.com for a more complete discussion
of such risk factors and their potential effects.
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.
Contacts: Ethos Capital Corp. Gary Freeman 604-682-4750 Ethos
Capital Corp. Andy Hay 604-682-4750 www.ethoscapitalcorp.com
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