Shear Minerals Ltd.
TSX VENTURE : SRM

Shear Minerals Ltd.

November 18, 2009 16:05 ET

Shear Options Napajut Gold-Diamond Project, Nunavut

CALGARY, ALBERTA--(Marketwire - Nov. 18, 2009) - Shear Minerals Ltd. (TSX VENTURE:SRM) ("Shear") today announced that it has signed a letter of intent with Exploratus Ltd. ("Exploratus") whereby Shear can earn an option in all mineral rights to the Napajut Gold-Diamond Project (the "Property"), Nunavut together with related datasets.

"We are very excited about this transaction as it further supplements our current projects in the Kivalliq region of Nunavut," says Shear President and CEO Pamela Strand "Our projects will share logistical opportunities and hopefully potential development synergies. Napajut is an excellent exploration property and allows Shear shareholders exposure to a much larger exploration venture hosting both gold and diamond upside."

About the Napujut Lake Gold-Diamond Potential

The Napajut Lake Gold-Diamond Property is located 75 km west-northwest west from the community of Arviat and also 250 km southwest of Shear's Churchill Project, Nunavut. The Property is underlain by the Archean Kaminak Lake greenstone belt of the Hearne sub-province of the Churchill Structural Province which is favorable for high grade gold, base metal and diamond deposits. Exploratus purchased 100% of the Property from Phelps Dodge Corporation ("Phelps") in 2004 and it is subject to a 2.5% NSR in favor of Phelps.

The bulk of the past exploration at Napajut has focused on its gold potential. The main showings are the Cliffside and North Showings with potential from several unsourced gold-bearing boulder trains on the project where assays have been up to 36 g Au/t. Gold mineralization is consistently hosted within sheared mafic volcanic rocks associated with sericite-silica-pyrite-pyrrhotite-arsenopyrite. The most recent exploration work done on the property by Exploratus was in 2007 and 2008 when a 2,541 line km helicopter-borne mag-EM airborne geophysical survey was completed (Aeroquest International). In 2008 a follow up mapping, sampling and prospecting field program was completed by APEX Geoscience Ltd. of Edmonton, Alberta.

As a result of the 2007 airborne geophysical survey several priority targets suggestive of kimberlites were identified by Exploratus and have been reviewed and added to by Shear. In Shear's review of the geophysical data, in excess of 26 kimberlite targets have been selected for follow-up. Other recent diamond activity in the area includes current drilling at the Ferguson Lake Project by Starfield Resources Inc. and Thanda Resources Inc. located 170km northwest of Napajut Lake.

The planned work program by Shear will include a thorough in-house desktop compilation of all available data including geology, geophysics, known showings and all sample results, to be followed by a 2010 prospecting program to follow-up priority anomalies for both gold and diamond potential.

Terms of the Deal

Under the terms of the agreement, Exploratus has granted Shear the right and option to acquire, subject to all underlying royalties, up to a 50% interest in all mineral rights and up to a 90% interest in the diamond only rights, plus related datasets from the Project based on the following terms:

  • The issuance to Exploratus of an aggregate of 3,000,000 common shares of Shear
  • Shear has a First Option to acquire a 50% interest in the Project by incurring $100,000 before August 31, 2010 and an additional $1,500,000 before August 31, 2013 with the drilling of a minimum of 5 gold targets with 800m of drilling.
  • If the First Option is exercised Shear has an option to complete a Second Option whereby Shear can earn an additional 40% interest in the diamond rights for the Project by incurring an additional $2,000,000 in exploration expenditures before August 31, 2016. If Shear completes this second option, then Exploratus will have a 10% carried interest until the earlier of Shear completing a bankable feasibility study or incurring a further $12,500,000 in expenditures.
  • Shear will be the Operator.
  • The transaction is subject to regulatory approvals, including final approval by the board of directors of Shear and Exploratus.

Shear is a Canadian-based exploration company focused on diamond exploration in the Canadian North, where it explores in established diamond districts and has discovered new ones. Shear currently has a portfolio of eight diamond projects, seven of which are drill-ready. Shear has advanced its flagship Churchill Diamond Project from a conceptual idea to an expanding diamond district hosting 88 kimberlites in the Kivalliq region of Nunavut. The 2010 field programs are under the supervision of Pamela Strand, P. Geol., a Qualified Person under NI 43-101, who has reviewed and approved the contents of this news release.

 

On behalf of the Board
SHEAR MINERALS LTD.
/s/ "Pamela Strand"
Pamela Strand, P. Geol.
President
 

This news release may contain forward looking statements, being statements which are not historical facts, including, without limitation, statements regarding potential mineralization, exploration results, resource or reserve estimates, anticipated production or results, sales, revenues, costs, "best-efforts" financings or discussions of future plans and objectives. There can be no assurance that such statements will prove accurate. Such statements are necessarily based upon a number of estimates and assumptions that are subject to numerous risks and uncertainties that could cause actual results and future events to differ materially from those anticipated or projected. Important factors that could cause actual results to differ materially from either of the Companies' expectations are in Shear's documents filed from time to time with the TSX Venture Exchange and provincial securities regulators, available at www.sedar.com. Shear disclaims any intention or obligation to revise or update such statements. 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.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Shear Minerals Ltd.
    Pamela Strand
    President and CEO
    (780) 435-0045 or Toll Free: 1-866-298-9695
    www.shearminerals.com