SOURCE: Amarok Resources Inc.

April 20, 2010 15:05 ET

Amarok Resources Inc. Signs Agreement With St. Elias Mines Ltd. on Cueva Blanca Gold Property, Peru

RANCHO SANTA MARGARITA, CA--(Marketwire - April 20, 2010) -

Amarok Resources Inc. (OTCBB: AMOK) (the "Company" or "Amarok") is pleased to announce that the Company has entered into a letter agreement with St. Elis Mines Ltd. (St. Elias) whereby the Company has an option to earn a 60% interest, subject to a 1.5% net smelter return royalty ("NSR"), in the Cueva Blanca Gold Property (the "Property") located in northern Peru. St. Elias is a publicly traded mineral exploration company. The company has until April 30th, 2010 to complete its due diligence on the property.

Cueva Blanca Gold Property, Peru

The Property covers 1,200 hectares and is located in the Lambayeque Department in northern Peru along the same geological trend as a number of multi-million ounce deposits including Yanacocha, Pierina and Lagunas Norte.

The Cueva Blanca is a promising high-grade epithermal gold/silver vein prospect with similarities to the El Dorado deposit in El Salvador, the El Pinon in Chile, the Midas and Sleeper Mines in Northern Nevada, and the El Limon Mine in Nicaragua.

Cueva Blanca exploration history has followed the classic pattern: acquisition based on geologic reasoning; property-wide prospecting and subsequent discovery of precious metal showings; detailed surface exploration of mineralized zones; and initial diamond drilling. The historical results provide an indication of the potential of the Property and are relevant to continuing exploration.

Historical exploration work on the Cruz vein system, which included 91 trenches and 18 drill holes totaling 1,860 metres, proved that the quartz veins contain consistent gold and silver values and that the Cruz vein system is a classic epithermal gold-silver deposit. Historical results of gold assays from the Cruz vein drill program include 6.0m of 2.31 g/t, 6.0m of 2.96g/t (including 1.75m of 7.45 g/t), 1.5 m of 22.68 g/t; 9.5m of 8.09 g/t (including 1.5m of 35.84 g/t); 10.8m of 2.4 g/t and 1.2m of 6.95g/t. The vein intersections contain virtually no sulfides. The vein system is open along strike to the SE and NW, and to depth. (Source: Summary Report, Sivertz, 1999.)

An internal summary report completed for St. Elias by Sivertz indicated an inferred resource of up to 190,000 ounces of gold and 945,000 ounces of silver on the property, to a depth of 100m. Using current gold and silver prices, this inferred resource has a value of over $225 million. While the company has no reason to doubt the accuracy of the historical results, the data should not be relied upon until confirmed by the Company's own exploration that meets NI 43-101 standards for disclosure. Historical results and the work that generated them predate the enactment of National Instrument 43-101 and accordingly may not meet the requirements of that policy.

Cueva Blanca Property Agreement

Under the terms of the letter agreement, Amarok can acquire a 60% interest in the Property (subject to a 1.5% NSR) in consideration of:

  1. making cash payments of $200,000 to St. Elias over a two-year period;
  2. issuing 100,000 common shares in the capital of Amarok to St. Elias; and
  3. incurring $1,500,000 in exploration expenditures on the Property over a three-year period.

In addition, Amarok shall have the right to purchase one-half of the 1.5% NSR from St. Elias for the sum of $1,500,000 thereby reducing the NSR payable to from 1.5% to 0.75%.

Qualified Person

The contents of this news release have been verified by, Phil van Angeren, P.Geol, a Canadian geologist, who is a "qualified person" as defined in National Instrument 43-101, Standards of Disclosure for Mineral Projects.

Amarok Resources is a US based exploration and development Company, focusing on the acquisition and development of Gold and Silver projects which demonstrate high probability for near term production. Amarok is a fully reporting public company quoted on the OTCBB under the symbol AMOK.

Statements released by Amarok Resources, Inc. that are not purely historical are forward-looking within the meaning of the "Safe Harbor" provisions of the Private Securities Litigation Reform Act of 1995, including statements regarding the company's expectations, hopes, intentions, and strategies for the future. Investors are cautioned that forward-looking statements involve risk and uncertainties that may affect the company's business prospects and performance. The company's actual results could differ materially from those in such forward-looking statements. Risk factors include but are not limited to general economic, competitive, governmental, and technological factors as discussed in the company's filings with the SEC on Forms 10-K, 10-Q, and 8-K. The company does not undertake any responsibility to update the forward-looking statements contained in this release.

Visit the Amarok Resources, Inc. web site at www.amarokresources.com. Information included on the Company's website is not incorporated herein by reference or otherwise.

Contact Information

  • For additional information please contact:

    Amarok Resources, Inc.
    30021 Tomas Street, Suite 300
    Rancho Santa Margarita, CA 92688
    Telephone: 949-682-7889
    Email: info@amarokresources.com