Anconia Resources Corp.
TSX VENTURE : ARA

Anconia Resources Corp.

December 21, 2011 13:30 ET

Anconia Announces Land Claim Option Agreement

TORONTO, ONTARIO--(Marketwire - Dec. 21, 2011) - Anconia Resources Corp. (TSX VENTURE:ARA) ("Anconia" or the "Company") is pleased to announce that it has entered into an option agreement (the "Agreement") with Melchett Syndicate Inc. ("Melchett") whereby the Company will have the option (the "Option") to acquire up to a 100% interest in 17 unpatented mining claims (comprising 205 units) (the "Property") situated located approximately 60 kilometers north of the town of Nakina in the Province of Ontario.

Under the terms of the Agreement, Anconia can acquire:
(i) a 20% interest upon payment of $37,500 to Melchett and upon incurring expenditures of at least $750,000 by December 31, 2012. The Option will remain in full force and effect until June 30, 2014 upon payment of $25,000 to Melchett on or before December 31, 2013;
(ii) an additional 20% interest upon payment of $18,750 to Melchett and upon incurring additional expenditures of at least $1,000,000 by June 30, 2014, upon which the Option will remain in full force and effect until December 31, 2015;
(iii) an additional 25% interest upon incurring additional expenditures of at least $1,500,000 by December 31, 2015, upon which the Option shall remain in full force and effect until September 30, 2017; and
(iv) the final 35% interest upon preparing and delivering a feasibility study on the Property to Melchett by September 30, 2017 (which date can be extended to September 30, 2018 upon payment of $25,000 to Melchett);

The Agreement further provides that, upon acquisition of a 100% interest in the Property, the Company will issue 500,000 common shares of the Company to Melchett.

If the Option ceases to be in full force and effect, Melchett has the right to purchase all interest in the Property previously acquired by the Company for a price equal to 10% of the expenditures incurred by the Company other than the initial $750,000 of expenditures and excluding any payment to Melchett by the Company.

Melchett will retain a 3% NSR on the Property. Anconia will have the right to purchase up to 2% of the NSR until September 30, 2025 for up to $15 million, and to purchase the NSR if Melchett wishes to dispose of all or part of the NSR.

The Agreement is subject to approval of the TSX Venture Exchange.

About the Property

The Property covers a strike length of 16 km of highly prospective sulphide bearing volcanogenic massive sulphide (VMS) stratigraphy. A whole rock geochemical survey of the Property has identified two areas situated along this strike length that maintain major element alteration and anomalous minor element (Zn, Pb, Ag, & Cu) concentrations characteristically associated with VMS deposits and more specifically with being proximal to a source vent within a VMS genetic model. These two areas are referred to as the Relf Zone and the Nakina Zone.

Of the two areas of interest the most extensive and detailed exploration has been carried out over the Relf Zone. Assays grab samples taken from outcrop at the Relf Zone are given in Table 1.

Table 1
Sample Type Zn % Pb % Cu % Ag oz/t Au g/t Sampler
Grab 1061 12.90 1.92 0.29 19.48 0.0195 Red Bird Gold Corp
Grab 1062 2.63 0.87 0.12 8.96 0.0120 Red Bird Gold Corp
Grab 1063 2.77 0.36 0.16 5.54 0.0365 Red Bird Gold Corp
Grab 1064 11.60 0.87 0.51 9.81 0.0275 Red Bird Gold Corp
Grab 1065 16.80 2.40 0.08 23.10 0.0180 Red Bird Gold Corp
Grab 1066 8.26 0.33 0.97 5.99 0.0250 Red Bird Gold Corp
Grab 1067 11.10 1.30 0.14 13.90 0.0225 Red Bird Gold Corp
Grab 1068 9.88 0.56 0.15 6.31 0.0350 Red Bird Gold Corp
Avg "x" samples 13.00 1.20 0.26 11.46 Shawmin Mines Ltd
Grab "best" 19.10 2.20 0.40 19.93 1.72 Shawmin Mines Ltd
Avg 5 grab sample 9.95 0.66 0.33 6.17 0.52 Kerr Addison
Grab "best" 19.14 2.19 0.15 16.39 Kerr Addison

At the Relf Zone surface detailed rock sampling and shallow (8 drill holes KAR-01 to KAR-08 all <200m vertical depth) and deep (2 holes SB-07-01 & SB-08-02 maximum 620m vertical depth) diamond drilling has been carried out. This exploration has determined that the Relf Zone is actually comprised of two separate zones, the Relf North and the Relf South Zones. A brief synopsis of these zones is as follows:

Relf South Zone

Stratiform Massive Sulphides (Zn, Pb, Ag, Cu) Within the Relf South Zone a "Mineralized Sequence" has been defined that is approximately 120m in true thickness, has a strike length of least 500m and a down dip extension of at least 400m. Within this "Mineralized Sequence" 5 distinct and stratigraphically controlled horizons of anomalous base metal mineralization have been identified.

Stockwork/Vent (Cu) Also within the Relf South Zone the deep drilling (SB-07-01 619m, SB-08-02 688m) intersected a zone of Cu mineralization within the footwall stratigraphy immediately below the "Mineralized Sequence".

Relf North Zone

Stratiform Massive Sulphides (Zn, Pb, Ag, Cu) The Relf North Zone has been determined to be a hanging deposit whose source of economic mineralization and major element alteration is the same source which formed the mineralization noted within the Relf South Zone.

Mr. Jason Brewster, President and Chief Executive Officer of Anconia states "With the acquisition of the Melchett Lake property the Company controls over 16 kilometers of favourable sulphide mineralized stratigraphy within the Melchett Lake greenstone belt. With the known Relf Zone and the Nakina Zone, which has alteration characteristics equal to or stronger than those investigated at the Relf Zone, the Company believes that the belt has the potential to host additional as yet undiscovered VMS concentrations along strike, for example at Key Lake in the western portion where we have a high priority geophysical target."

John L. Wahl PhD, P.Geo, of John L. Wahl Consulting Ltd and a "Qualified Person" pursuant to NI 43-101 has reviewed and approved the technical information in this press release on behalf of the Company.

About Anconia

Anconia is a base and precious metals exploration and development company, which is focused on providing shareholder value through the advancement of its properties in the Nunavut Territory and Ontario, Canada. Anconia is undertaking a comprehensive exploration program to determine the potential of the projects currently in its portfolio.

Forward-Looking Information

This news release contains forward looking statements within the meaning of applicable Canadian securities laws including with respect to the potential of the Melchett Lake greenstone belt to host additional VMS concentrations along strike. Words such as "may", "will", "should", "anticipate", "plan", "expect", "believe", "estimate" and similar terminology are used to identify forward-looking statements and forward-looking information. Such statements and information are based on assumptions, estimates, opinions and analysis made by management of Anconia in light of its experience, current conditions and its expectations of future developments as well as other factors which it believes to be reasonable and relevant. Forward-looking statements and information involve known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those expressed or implied in the forward-looking statements and information. Risks and uncertainties that may cause actual results to vary include but are not limited to: the speculative nature of mineral exploration and development, including the uncertainty of mineral reserve and resource estimates; uncertainties relating to the availability and costs of financing needed to complete exploration activities; exploration costs varying significantly from estimates; delays in the exploration and development of, and/or commercial production from, the properties in which Anconia has an interest; unexpected geological or hydrological conditions; operational and technical difficulties; fluctuations in commodity prices; the existence of undetected or unregistered interests or claims, whether in contract or in tort, over the property of Anconia; success of future exploration and development initiatives; competition; operating performance of facilities; environmental and safety risks, including increased regulatory burdens, seismic activity, weather and other natural phenomena; inability to, or delays in, obtaining necessary permits and approvals from government authorities; risks relating to labour; and other exploration, development and operating risks; changes to and compliance with applicable laws and regulations, including environmental laws and obtaining requisite permits; as well as other risks and uncertainties which are more fully described in Anconia's annual and quarterly Management's Discussion and Analysis and in other filings made by Anconia with Canadian securities regulatory authorities and available at www.sedar.com.

Forward-looking information speaks only as of the date on which it is provided and, except as may be required by applicable securities laws, Anconia disclaims any intent or obligation to update any forward-looking information, whether as a result of new information, future events or results or otherwise. Although Anconia believes that the assumptions inherent in the forward-looking information are reasonable, forward- looking information is not a guarantee of future performance and accordingly undue reliance should not be put on such information due to the inherent uncertainty therein.

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

  • Anconia Resources Corp.
    Jason Brewster
    President and CEO
    416-815-9777