AccelRate Power Systems Inc.
FRANKFURT : KCG
TSX VENTURE : AXP

AccelRate Power Systems Inc.

March 24, 2011 09:30 ET

AccelRate Doubles its Yukon Land Position

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 24, 2011) - AccelRate Power Systems Inc. (TSX VENTURE:AXP)(FRANKFURT:KCG) is pleased to announce that it has entered into option agreements entitling it to acquire a 100% interest in nine gold exploration prospects in Canada's Yukon Territory. These new projects comprise 1875 mineral claims (approximately 39,000 hectares), bringing the total land position optioned by the Company to 3756 claims totalling more than 78,000 hectares. The new options and all previously announced property options are subject to acceptance by the TSX Venture Exchange.

Upon completion of the Change of Business announced by AccelRate on November 24, 2010, and subject to regulatory approval, AccelRate intends to change its name to "Goldstrike Resources Ltd" and become a pure gold explorer. The Company continues to evaluate other property opportunities that fit its aggressive growth and exploration strategy for this emerging new gold district.

SELWYN MOUNTAINS AREA - ATAC CARLIN MODEL

Seven of AccelRate's new prospects cover multiple strong regional geochemical anomalies in Hyland and Road River Group sedimentary rocks in several relatively unexplored areas of the Selwyn Basin 85 to 270 kilometres south of ATAC's Osiris discovery property. All seven properties (BIG ONE, CANOL, GULL, MAC, PLATEAU, RUSSELL, and SPEARHEAD) cover the inferred source areas of strong to moderate gold silt anomalies from recent government geochemical surveys. Thallium is also anomalous on all seven properties, and other anomalous elements include arsenic, antimony and mercury. This geochemical signature is consistent with Carlin-style mineralization.

HYLAND-NAHANNI RIVER AREA - NORTHERN TIGER OROGENIC GOLD MODEL

In addition their Carlin potential, the BIG ONE and GULL properties in the Nahanni area are directly on trend with a series of recent high grade structurally controlled gold discoveries in Hyland Group conglomerate (3 ACE, SPROGGE, FER etc.). Northern Tiger recently intersected 4.3 g/t Au over 30.3 m and 14.8 g/t Au over 10.9 m in two holes 60 m apart on the 3ACE property. A high grade grab sample of 4,800 g/t (140 opt) Au was reported from the main 3ACE zone, and the best chip sample to date assayed 1,013 g/t (29.56 opt) Au over 1.1 metres. The BIG ONE and GULL properties each cover the hinge of a mapped regional anticline in similar host rocks, and arsenic is present in both areas.

KLAZA AREA - ROCKHAVEN HIGH SULPHIDE EPITHERMAL VEIN MODEL

AccelRate's KZ option property is located in the Nansen Gold Camp, 13 km northwest of the former high grade gold producer. It is contiguous with Rockhaven's Klaza property, where four parallel gold-mineralized zones have been discovered within a 1500 m wide northwest-trending structural corridor, and drill holes have intersected grades as high as 7.2 g/t Au and 260 g/t Ag over 15.3 m. The KZ property covers the inferred source of two strong gold anomalies and is on trend with a series of anomalous gold samples taken by Wolverine Minerals on its adjacent BBB property to the north. The property is underlain by the same intrusive rocks as those hosting the gold on Rockhaven's KLAZA property, and is only 3 km from active placer claims at the head of the Klaza River.

FINLAYSON LAKE AREA - KAMINAK COFFEE CREEK OROGENIC GOLD MODEL

AccelRate's JIMMY option property cover Devono-Mississippian orthogneiss and felsic metavolcanic rocks of the Yukon-Tanana Terrane, similar to the host rocks on Kaminak's Coffee Creek property. The claims cover the inferred source of several strong and moderate regional gold silt anomalies with minor arsenic. A major northwest-plunging anticline projects through the property, and the metamorphic rocks are intruded by a small mid-Cretaceous stock that could also be related to the gold mineralization. A mineral showing consisting of pyrite, chalcopyrite, sphalerite and galena in felsic metavolcanics has been documented on the property. To date exploration in the area has focused on jade in ultramafic rocks within the metamorphic sequence, and massive sulphide deposits in the felsic metavolcanic unit. The recent Kinross and Kaminak discoveries in Yukon-Tanana rocks in the Dawson Range Gold Belt suggest that this area east of the Tintina Fault should also have strong potential for similar gold deposits.

OPTION TERMS

The new options are the subjects of nine different arm's length agreements entered into with a private staking syndicate. The properties are not contiguous with properties which are the subjects of previously announced options, and the staking syndicate which has granted the new options is independent of the syndicate from which the Company acquired the options announced on March 17, 2011. The Company has entered into thirteen separate agreements in order that it may pursue each of them independently. The essential terms of each option are as follows:

1. The Company may exercise each option by making cash payments, issuing shares and incurring exploration expenses as follows, and may issue shares in lieu of cash for the second, third, and fourth payments:
         
  On or Before (Date) Cash Shares Exploration Expenses
         
  TSX Acceptance + 5 $90,000 450,000 N/A
  Nov. 1, 2012 $100,000 500,000 $100,000
  Nov. 1, 2013 $200,000 500,000 N/A
  Nov. 1, 2014 $300,000 750,000 N/A
  Nov. 1, 2015 $500,000 750,000 $2,500,000
         
  Total: $1,190,000 2,950,000 $2,600,000
   
2. Each Option entitles AccelRate to acquire a 100% interest in the subject property, subject to a 3% net smelter returns royalty and a 5 km Area of Interest. AccelRate will have the right to reduce the NSR by 1% by paying $1,500,000 to the Syndicate at any time prior to the ninth anniversary of the Option agreement. All shares issued to exercise the options will be subject to a four month hold. AccelRate must keep the claims in good standing, apply all work carried out towards assessment and file such assessment reports within 6 months of completing any exploration work. In addition, AccelRate will be responsible for all reclamation required.

There has been no change to the status of the COB. The Company completed its previously announced private placement of subscription receipts on March 21, 2011, raising gross proceeds of $6,000,000. All subscription proceeds will be held in escrow until completion of the COB, at which time the subscription receipts will be exchanged for shares of the Company. All shares issued pursuant to such exchange will be subject to a four month hold period from the date of issue of the subscription receipts and, accordingly, may not be traded until July 22, 2011.

The Company is making required filings respecting the COB in accordance with Exchange Policy. It anticipates those filings will be reviewed in the ordinary course. However, the TSXV has in no way passed upon the merits of the proposed COB and has neither approved nor disapproved the contents of this press release. There can be no assurance that that the COB or other transactions described herein will be completed as proposed or at all.

Investors are cautioned that, except as disclosed in the Filing Statement or Management Information Circular to be prepared in connection with the proposed COB, any information released or received with respect to the COB may not be accurate or complete and should not be relied upon. Trading in the securities of AccelRate should be considered highly speculative.

The technical information in this news release has been reviewed by Trevor J. Bremner, M.Sc., P.Geo., a qualified person for the purposes of National Instrument 43-101.

ON BEHALF OF THE BOARD

Reimar Koch, President, AccelRate Power Systems Inc.

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.

Contact Information

  • AccelRate Power Systems Inc.
    Reimar Koch
    President
    (604) 688 8656
    (604) 688 8654 (FAX)
    info@accelrate.com