Ateba Resources Inc.

Ateba Resources Inc.

February 16, 2010 11:16 ET

Ateba Signs Option Agreement for an Additional 4 Gold Mining Claims Near Larder Lake

Extends known gold trend by 600 metres

TORONTO, ONTARIO--(Marketwire - Feb. 16, 2010) - Ateba Resources Inc. ("Ateba") (CNSX:ATR) is pleased to announce that it has signed an option agreement (the "Agreement") with Ashley Gold Mines Limited, ("Ashley"), a private Ontario company. Ashley granted, the exclusive option to acquire 100% of Ashley's interest (the "Ashley 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 Ashley Interest consists of a 40% interest in 2 mining claim blocks and a 100% interest in 5 mining claim blocks, that together cover approximately 496 hectares. All claims are contiguous with the Walsh Katrine Mine which forms part of the Property.

The Property is located in the Larder Lake area of northeastern Ontario, about 12 km east 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 :

"With this acquisition we have increased our option interest in this highly prospective area to 100% ownership in 95 claim units," commented Bill Dickie, President and CEO. "This Property is situated within striking distance of multiple past producing gold mines near the Larder-Cadillac Break."

The Company has obtained historic assay results collected in 1996 from exploration pits on the new claims, optioned in the foregoing agreement. These results suggest a probable strike length of gold mineralization for more than 600 metres northwest from the Walsh Katrine Mine. A continuous channel sample from exploration Pit#1, located about 600 metres northwest of the old mine shaft, assayed 4.89 g/t Au (0.14 oz/t Au) over 2.4 metres. Additional grab samples from this same pit assayed up to 15.82 g/t Au (0.46 oz/t Au). Grab samples from Pit#2 assayed up to 17.30 g/t Au (0.51 oz/t Au).

Mineralization of the deposit is associated with a Syenitic intrusion with quartz-carbonate vein sets hosting mineralization that consists of pyrite, chalcopyrite, sphalerite, galena and native gold. This association of gold with sulphide mineralization and the geological setting is very similar to the deposit type observed in the Kirkland Lake Gold Mining Camp.

Historic assay results from various sources and locations on the Property are provided in the following table (previously reported 01/02/2010):

Surface Trenching
Year Location Au Au Width  Length *Source
    (oz/t) (g/t) (ft) (m) (ft) (m)  
1910/23 vein 1 0.245 8.40 -- -- 1,000 305 (1)
1910/23 vein 2 0.519 17.80 -- -- 200 61 (1)
1910/23 vein 3 1.109 38.02 -- -- 185 56 (1)
1910/23 vein 4 0.153 5.24 -- -- 265 81 (1)
Diamond Drilling
Year Location Au Au Width Length *Source
    (oz/t) (g/t) (ft) (m) (ft) (m)  
1920/23 DDH A 0.399 13.68 -- -- 3.3 1.0 (1)
1920/23 DDH B 15.75 539.91 -- -- 0.7 0.2 (1)
1920/23 DDH F 0.15
-- -- 0.7
1920/23 DDH G 15.802 541.69 -- -- 1.9 0.6 (1)
    0.37 12.68 -- -- 0.2 0.1 (1)
1986 DDH CP09 0.223 7.64 -- --   7 (2)
Year Location Au Au Width Length *Source
    (oz/t) (g/t) (ft) (m) (ft) (m)  
1924/29 140 level 0.50 17.14 4.5 1.4 50 15 (1)
1924/29 140 level 0.33 11.31 3.0 0.9 120 37 (1)
1924/29 140 level 0.38 13.03 3.1 0.9 100 30 (1)
1924/29 140 level 1.62 55.53 3.1 0.9 38 13 (1)
1924/29 250 level 0.46 15.77 4.6 1.4 50 15 (1)
1924/29 250 level 0.76 26.05 4.5 1.4 75 23 (1)
1924/29 250level 1.06 36.34 4.5 1.4 28 9 (1)
1924/29 500 level 0.77 26.40 4.5 1.4 30 9 (1)
 *Source: (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.

As per the Agreement, Ateba will, over four years, incur work expenditures on the Property totalling CDN $1,000,000; issue 666,667 common share purchase units (the "Units"); and pay an aggregate of $100,000. 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 Ashley 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 $666,667 for a period of four (4) years from the signing of the Agreement.

Ateba is in the process of assessing a program proposal which would involve up to 12,000 metres of diamond drilling aimed at verifying historical data and potentially extending the resource along strike and at depth. The program contemplates re-opening the underground workings with the objective of documenting and completing an NI 43-101 Technical Report and Mineral Resource Estimate.

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.

Shares Outstanding: 29,726,692

The CNSX does not accept responsibility for the adequacy or accuracy of this press release.

Contact Information