Ateba Resources Inc.

Ateba Resources Inc.

February 01, 2010 14:13 ET

Ateba Signs Option Agreement for Mining Claims on Gold Property, 10 km Northeast of Queenston's Upper Beaver Project, Larder Cadillac Break

TORONTO, ONTARIO--(Marketwire - Feb. 1, 2010) - Ateba Resources Inc. ("Ateba") (CNSX:ATR) is pleased to announce that it has signed an option agreement (the "Agreement") with New Walsh Katrine Resources Inc, ("NWK"), a private Ontario company. NWK granted the exclusive option to acquire 100% of NWK's interest (the "NWK Interest") in the Walsh Katrine Mine Property located in Ossian and Katrine townships near the Quebec/Ontario border in the Larder Lake area (the "Property"). The NWK Interest consists of a 60% interest in 2 claims and a 100% interest in 8 claims, for a total of 71 claim units covering approximately 1,136 hectares. All claims are contiguous with the historic Walsh Katrine Mine which forms part of the Property.

The Property is located in the Larder Lake area of northeastern Ontario, about 12 km northeast of the world renowned Kirkland Lake Gold Mining Camp and approximately 11 km north of the Kerr-Addison Mine in Virginiatown. A map and further information regarding the Walsh Katrine Mine Property is available on the Company website :

"We acquired this Property based on its location, high-grade historic gold assays and indications of mineable gold," commented Bill Dickie, President and CEO. "The Property is situated near one of the most prolific gold regions of Canada and within striking distance of multiple past producing gold mines. In addition, historical work has yielded multiple assays showing over 15 ounces per tonne gold. We are eager to begin work on the project and I look forward to providing you with updates as we move forward."

As per the Agreement, Ateba will, over four years, incur work expenditures on the Property totalling CDN $1,500,000; issue 1,000,000 common share purchase units (the "Units"); and, pay an aggregate of $150,000. Each Unit consists of one common share in the capital of Ateba (a "Common Share") and a share purchase warrant entitling the holder to purchase one Common Share for a period of two (2) years from the date of issuance of the Unit.

In addition, Ateba has agreed to pay to NWK a royalty of 2.0% of net smelter returns ("NSR") realized from minerals produced from the Property. Ateba can purchase 1.0% of this NSR for $1,000,000 for a period of four years from the signing of the Agreement.

Mineralization in the deposit is associated with a Syenitic intrusion which cuts intermediate to mafic volcanic rocks. Gold mineralization at the Walsh Katrine Mine is related to a set of siliceous veins (quartz/carbonate) which host sulphide mineralization consisting of pyrite, chalcopyrite, sphalerite and galena. Native gold is noted in the historical data, observed in a surface exposure during a 1997 examination of the Property for NWK.

It appears that most of the gold in the deposit is associated with sulphide mineralization that is focused, but not limited to, vein sets that cut the Syenitic intrusion. This is very similar to the types of deposits historically observed at the Kirkland Lake Gold Mining Camp, where 63% of the gold mined came from similar geological environments. The Syenitic intrusion is oriented north-south, and extends over the entire width of the Property (approximately 2 km). It terminates at the northern edge of the Property, and extends just south of the southern boundary. Its width on the surface is approximately 300 to 400 metres, and the Syenitic intrusion is expected to widen with depth.

The quartz-carbonate veins, which host most of the historic mineralization, strike slightly north of west, and are described in historic reports to be 0.5 to 5.0 feet wide, dipping steeply to the north. In the immediate vicinity of the Walsh Katrine mine site, historic data indicates four sub-parallel gold-bearing veins approximately 100 to 200 feet apart. Diamond drilling in 1986 confirmed the presence of multiple gold-bearing veins, with similar widths and grades, in the immediate vicinity of the old Walsh Katrine mine site. Reinterpretation of the geology and historic resource (currently in progress) suggests at least one additional north-south striking gold-bearing vein, which was identified during re-plotting of historical underground data. Additional gold mineralization, albeit lower grade than the veins themselves, has also been identified in the regions between veins sets.

The initial discovery was made a century ago, and was followed by frantic follow-up activity between 1909 and 1920. Assay results from various sources and locations on the Property are provided in the following tables:

Surface Trenching – continuous chip samples and sample pits along strike of veins
Year Location Au Au Width Length *Source
    (g/t) (oz/t) (ft) (m) (m) (ft)  
1910/23 vein 1 8.40 0.25 -- -- 305.0 1,000 (1)
1910/23 vein 2 17.80 0.52 -- -- 61.0 200 (1)
1910/23 vein 3 38.02 1.11 -- -- 56.5 185 (1)
1910/23 vein 4 5.24 0.15 -- -- 80.5 265 (1)
Note: width of sampling not known 


Diamond Drilling – various locations into area of historic underground workings
Year Location Au Au From To Interval *Source
    (g/t) (oz/t) (m) (m) (m) (ft)  
1920/23 DDH A 13.68 0.40 15.95 16.95 1.00 3.28 (1)
1920/23 DDH B 539.91 15.75 7.47 -- 0.20 0.66 (1)
1920/23 DDH F 5.10 0.15 142.26 142.76 0.50 1.64 (1)
3.19 0.16 144.94 145.87 0.93 3.05
3.73 0.10 147.31 148.15 0.84 2.76
3.84 0.11 152.23 152.57 0.34 1.12
1920/23 DDH G 541.69 15.80 101.49 102.09 0.60 1.97 (1)
    12.68 0.37 111.06 111.46 0.40 1.31 (1)
1986 DDH CP09 2.06 7.07 99.13 102.47 3.36 11.00 (2)
 Note: true widths are not known


Underground – sampled backs along drifts
Year Location Au Au Width Length *Source
    (g/t) (oz/t) (m) (ft) (m) (ft)  
1924/29 140' level 17.14 0.50 1.40 4.50 15.00 50.00 (1)
1924/29 140' level 11.31 0.33 0.90 3.00 37.00 120.00 (1)
1924/29 140' level 13.03 0.38 0.90 3.10 30.00 100.00 (1)
1924/29 140' level 55.53 1.62 0.90 3.10 13.00 38.00 (1)
1924/29 250' level 15.77 0.46 1.40 4.60 15.00 50.00 (1)
1924/29 250' level 26.05 0.76 1.40 4.50 23.00 75.00 (1)
1924/29 250' level 36.34 1.06 1.40 4.50 9.00 28.00 (1)
1924/29 500' level 26.40 0.77 1.40 4.50 9.00 30.00 (1)
 *Sources: (1) Original drawings and mine plans; (2) Original diamond drill core logs.

A Qualified Person, as defined by NI 43-101, has not done sufficient work to classify the above historical estimates as current mineral resource. Consequently, Ateba is not treating any of these historical estimates as current mineral resources and the historical estimates should not be relied upon for any purpose.

The management of Ateba is planning to review the historic resource by updating past resource calculations, which were based on gold prices significantly lower than those sustained by the current market and by completing a National Instrument 43-101 Technical Report on the Property. Ateba also intends to verify historical surface sampling and recalculate resources by incorporating the results of the 1986 drilling. It is expected that this review will significantly increase the amount of contained gold, thus adding value to the Property even before field work commences.

Ateba is in the process of assessing a program proposal, the first phase of which would verify historical surface data and extend the resource along strike and at depth, as well as partially re-open the underground workings with an objective of increasing the gold resource. The program would involve up to 12,000 metres of diamond drilling as well as the assessment of the geology and mineralization using the underground workings

Ateba is a mineral exploration company with a uranium Property in Elliot Lake on which there is a historic resource (not compliant with NI 43-101 standards) of 11 million tonnes grading 450 g/t U3O8. Ateba has chosen an additional direction in its quest to develop the historic Walsh Katrine gold project.

Note Regarding Forward-Looking Statements

This press release and other written or oral communication from Ateba Resources Inc. (the "Company") may include certain statements that may be considered "forward-looking statements" within the meaning of that phrase under Canadian securities laws. Statements other than historical facts that address possible future events, plans or developments are forward-looking statements. Such statements may be identified by the use of words such as "will", ""may", "expects", "estimate", "intend" or the use of the future or conditional tense. Certain material factors or assumptions were applied in drawing our conclusions and making those forward-looking statements. Forward-looking statements reflect management's current views with respect to possible future events and conditions and, by their nature, are based on management's beliefs and assumptions and subject to known and unknown risks and uncertainties, both general and specific to the Company. Although the Company believes the expectations expressed in such forward-looking statements are reasonable, such statements are not guarantees of future performance and actual results or developments may differ materially from those in our forward-looking statements. Readers are cautioned that risks may change or new risks may emerge. Additional information regarding the material factors and assumptions that were applied in making these forward looking statements as well as the various risks and uncertainties we face are described in greater detail in the "Risk Factors" section of our annual and interim Management's Discussion and Analysis of our financial results and other continuous disclosure documents and financial statements we file with the Canadian securities regulatory authorities which are available at The Company undertakes no obligation to update this forward-looking information except as required by applicable law.

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