Amseco Exploration Ltd.

Amseco Exploration Ltd.

March 04, 2010 09:00 ET

Amseco Exploration Ltd. Signature of an Option Agreement With Beaufield Resources for Claims in the Urban-Barry Gold Camp, Quebec

MONTREAL, QUEBEC--(Marketwire - March 4, 2010) - Amseco Exploration Ltd. (TSX VENTURE:AEL) ("Amseco") is pleased to announce that it has entered into an additional transaction that will substantially increase its land position in the well-known Urban-Barry Gold camp. Amseco feels that this area of Quebec offers substantial gold exploration and discovery potential, and this transaction will help it greatly in its efforts to expand its interests in the region.

The Company has signed an Option to earn a fifty percent (50%) property interest and to form a Joint-Venture Agreement with Beaufield Resources Inc. (TSX VENTURE:BFD), Ottawa, ON. The Agreement covers all the Beaufield-owned claims in the Urban-Barry gold exploration camp of Quebec. Beaufield is a well-known long time participant in this gold exploration camp and Amseco feels that it will benefit strategically from Beaufield's extensive exploration expertise in the area. The quality of its work and the results it has obtained to date make Beaufield an ideal JV partner for Amseco. Together they hope to bring the exploration to a very advanced stage.

The agreement covers four hundred and thirty-seven (437) mineral claims in three (3) separate claim blocks covering an area of approximately 6,992 hectares located in sectors NTS 32G04 and 32B13. Part of these claims make up Beaufield's Lac Rouleau Lac Kent and Macho River gold projects.

To date Beaufield has identified gold occurrences on each of the three exploration blocks. The most significant of these are:

Historical Showing Best grades Host Rock
Kent Lake 5.44 g/t over 0.54m Quartz-sulphide breccia
Macho River Showing 15 g/t Au over 0.33m; 9.6 g/t Au over 0.5m and a grab sample of 29.5 g/t Au In a chloritized and carbonated shear zone
Showing #1 (Rouleau) 3.1 g/t Au over 1.1m ; 2.9 g/t Au over 1.0m Sheared carbonated zone
Showing #2 (Rouleau) 3.89 g/t over 6.7m Shear zone
Showing #3 (Rouleau) Grab samples of 15.98 g/t Au; 22.29 g/t Au; 45.55 g/t Au and 46.25 g/t Au Quartz veins with tourmaline, fuschite and iron carbonate
Showing #4 (Rouleau) Grab samples of 10.4 g/t Au; 7.4 g/t Au and 1.8 g/t over 1m Quartz veins
Cominco Showing (Rouleau) 2.25 g/t Au over 5.4 m Carbonatized and silicified coarse grained gabbro
Zone 17
Hole 87-17 (16.3 g/t Au over 0.64m; 13.1 g/t Au over 0.84m; 3.6 g/t Au over 1.29m) Silicified zone in an altered andesitic tuff
Zone 14
Hole Kub-88-14 1.63 g/t Au over 3.68m; Hole Kub-88-16 3.50 g/t Au over 1.55m Intense silicification cut by quartz-tourmaline veins
Zone 18
Hole 87-18 4.80 g/t Au over 3.35m;
Hole 87-33 8.98 g/t Au over 4.36m ;
Hole 87-51 7.64 g/t Au over 7.42 m ;
Hole 87-63 27.53 g/t Au over 3.05 m
Hole BFRL 401 11.63 g/t Au over 3.73m ;
Hole BFRL 402 7.65 g/t Au over 4.05m
Brecciated, strongly silicified and moderately carbonatized felsic tuff.
Quesnel Showing Grab sample of 12.84 g/t Au ; 6% Cu and 30.6 g/t Ag In massive sulphide pods associated with a shear zone

A significant exploration program was undertaken in 1986-1988, operated by Falconbridge Limited. This resulted in partial definition of Zone 18 and the discovery of Zone 17. The two zones are located one kilometer apart and may be joined.

In 2004 Beaufield undertook a small drill program and defined an extension of zone 18 close to surface. Holes BFRL 401 and 402 intersected significant gold intersections.

In the Summer and Fall of 2008 258 rock samples were collected from the Lac Rouleau property during geological mapping and prospecting. Four samples taken on the Quesnel Showing, in a silicified breccia containing 15% pyrite and bornite assayed anomalous values in gold, silver and copper.

Sample number Gold (Au) g/t Silver (Ag)  g/t Copper (Cu) %
671542 0.935 84.4 7.77
671543 2.17 30.9 3.01
671549 0.366 7.3 0.77
671651 0.944 4.3 0.86

This work has established the Quesnel Showing as an important new exploration target.

In the Lac Rouleau area an outcrop located in the lake consisting in chloritized schist graded 883 ppb Au 200 meters east of the Cominco Showing. A new manually striped outcrop assayed 1.0 g/t Au, also in a chlorite schist injected by a network of quartz veins. A third area, named Tourmaline Hill, returned anomalous gold and silver values (169 ppb Au and 29.5 g/t Ag) in quartz vein.

The Lac Rouleau area adjoins Metanor Resources Inc. Barry gold deposit, presently being mined, where resources were recently re-evaluated by Systèmes Géostat International Inc. in compliance with NI 43-101 and are estimated at 35,500 oz Au of Indicated Resources (269,000 t at 4.10 g/t Au) and 67,600 oz Au of Inferred Resources (450,000 t at 4.68 g/t Au) in zones 43 and 45 and in the main zone. Similarly the Noront Resources Ltd. Winfall property, where advanced drilling (over 200 holes to date) has outlined a number of high grade gold zones at various depths including 4.8 meters of 52.3 ounces per ton of gold. This property shares boundary with one of Beaufield's blocks.

The project is located approximately 100 km east of Lebel-sur-Quévillon, QC. It is within the central part of the Urban Barry greenstone belt.This belt, which is 70 km long by 30 km wide, occurs within the northern portion of the Abitibi Greenstone Belt. It is comprised of E-W trending mafic, felsic, and volcaniclastic rocks which are bounded to the north, west and south by granitoid batholiths and to the east by the Grenville Front. The volcanic pile has been intruded by synvolcanic to post tectonic, mafic to felsic intrusives. Regionally, the metamorphic grade is lower greenshchist which increases to amphibolite grade, closer to the Grenville Front. 

The contact between the granitic terrain to the north and the volcanics to the south is the locus of the Urban deformation zone. The volcanic package is penetrated by a 60 degree trending regional foliation and is cut by shears which vary in orientation from northeast to east-west. Gold mineralization is most often found within northeast and east-northeast shear zones. The central portion of the Urban Barry Belt is the site of numerous gold showings whose discoveries date back to the 1930s. Among the more prominent projects are the Eagle Hill (TSX VENTURE:EAG) Windfall (formerly Noront) project, the Murgor Zones, the Barry gold deposit (presently being mined by Metanor (TSX VENTURE:MTO), and Beaufield's Lac Rouleau showing. There are also numerous isolated surface gold showings and gold bearing drill intersections.

Amseco can acquire a fifty percent (50%) interest by performing a total of one million nine hundred and eighty thousand ($1,980,000) dollars of exploration work on the Option Property within forty-eight (48) months from the date of regulatory approval of the transaction in accordance with the following schedule:

  1. A minimum of $400,000 within twelve (12) months of obtaining the regulatory approval for this transaction, and
  2. An additional $500,000 within the following twelve (12) months or a minimum of $900,000 within twenty-four ( 24 ) months of obtaining regulatory approval of this transaction, and
  3. An additional $600,000 within the following twelve (12) months or a minimum of $1,500,000 within thirty-six (36) months of obtaining regulatory approval of the transaction, and
  4. A final $480,000 within the last twelve (12) months of the Agreement or a minimum of $1.980 million within forty-eight (48) months of obtaining the regulatory approvals of the transaction.

Amseco will also issue to Beaufield one million two hundred and fifty thousand (1,250,000) shares within thirty (30) business days of obtaining said regulatory approval. Of these:

500,000 shares will become free trading four (4) months following the approval of the transaction.

375,000 shares will become free trading eight (8) months following the approval, and the final

375,000 shares will become free trading twelve (12) months following the approval.

The claims are subject to a two percent (2.0%) NSR ("Net Smelter Return") upon production, payable to Beaufield. Half of said NSR can be bought back by the Amseco for a payment of one million dollars ($1,000,000) at any time.

During the earn-in period Beaufield and Amseco will form a Joint-Venture Management Committee composed of four individuals: two (2) from Beaufield and two (2) from Amseco. Amseco will act as the Operator of the project. Once Amseco has earned its 50% interest the management committee will continue with Beaufield as Operator unless its participation in the project become less than 50% in which case Amseco will resume acting as Operator.

Following the approval of this transaction Amseco will have signed agreements giving it interest or the possibility of earning interests in seven hundred and six (706) claims in the Urban-Barry gold exploration camp. This covers an area of more than twelve thousand four hundred and sixty-eight (12,468) hectares, or 124.68 square kilometres, in the area. Amseco's Urban-Barry project is one of the Company's top three gold exploration plays which also include the Malartic and Timmins projects. The Company feels that this area will benefit greatly from a unified exploration approach and looks forward to expanding its Urban-Barry exploration program.

The parties have agreed to sign a formal Joint-Venture Agreement within thirty (30) days from receiving regulatory approvals.

This press release has been reviewed by Jens Hansen, P. Eng. He is a Qualified Person under National Instrument NI-43-101. He is the President of Beaufield one of the parties to the proposed transaction.

We seek safe harbour

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.

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