Anconia Resources Corp. (formerly Citadel Gold Mines Inc.)
TSX VENTURE : ARA

June 28, 2011 10:11 ET

Anconia Provides Property Update and Announces Investor Relations Contract and Option Grants

TORONTO, ONTARIO--(Marketwire - June 28, 2011) - Anconia Resources Corp. (TSX VENTURE:ARA) ("Anconia" or the "Company") is pleased to provide the following update on its interest in four properties in the Nunavut Territory of Canada.

As previously announced, the Company completed a reverse takeover transaction earlier this month pursuant to which Anconia acquired 2215107 Ontario Inc. ("221"), a private Ontario corporation holding an option to acquire a 100% interest in certain mining claims – the "ZAC property" and the "Marce property" – located in the Territory of Nunavut. The ZAC property and the Marce property are both located approximately 170 kilometres south of Baker Lake. Baker Lake is serviced by regional air carriers and offers technical and logistical resources to the Company. Both of these properties are VMS style targets with prospecting and early stage exploration work carried out, which successfully demonstrated that significant base metal, along with gold and silver, mineralization exists on these properties.

ZAC Property

Anconia filed a technical report on SEDAR titled "Technical Report on the Victory Lake Project District of Kivalliq Nunavut" authored by Howard Lahti and John C. Archibald ("Archibald"), dated October 20, 2010 and revised May 25, 2011 (the "Report"), which examines the staked claims ZAC 1, 2 and 3. This property covers approximately 29.3 square kilometers, which completely covers an exploration target consisting of geophysics indicated multiple lenses with a strike length in excess of 2.5 km. Some of the zones were found to outcrop sporadically on surface and have been sampled. The Report summarizes a due diligence trip in 2009 during which Archibald obtained a total of 24 surface grab samples selected for precious and/or base metals depending on location. Of the samples selected, assay results ranging from 3.72% to 21.8% Zinc, 0.39% to 2.59% Copper, 0.24% to 6.59% Lead, trace to 3.52 g/t Gold and 0.8 g/t to greater than 300 g/t Silver were obtained. The sampling by Archibald is consistent with previous systematic sampling of the outcropping zones by the property owners which yielded grades from 0.26% to 20% Zinc from the zone known as the "West Zone", and trace to 8.91% Copper, trace to 19.1% Zinc, 1.08 g/t to 517 g/t Silver, and 0.01 g/t to 8.71 g/t Gold from the zone known as the "Main Zone".

Marce Property

The Marce property is located approximately 18 kilometers south-west of the ZAC property and consists of four staked claims covering an area of approximately 23.4 square kilometers, encompassing a geophysical target (identified by large gravity, magnetic and electromagnetic anomalies) with an indicated strike length of approximately 1.3 kilometers which is open along strike. Historic sampling by the property owners, referred to by management for indicative purposes only, returned grades which ranged from 0.02% to 7.67% Copper, 0.14% to 21.75% Zinc, 46.9 g/t to 894 g/t Silver, and 0.2 g/t to 7.27 g/t Gold (sample grades are all historic and could not be physically verified). In 2009, Archibald conducted limited sampling on the Marce occurrence (3 surface grab samples) and returned samples which assayed from 16.3% to 17.7% Zinc, 0.06% to 0.18% Copper, 241 g/t to >300 g/t Silver, and 0.5 g/t to 2.5 g/t Gold. The values obtained by Archibald again verify that elevated metal values obtained from historic sampling are present, however, Archibald was unable to access the area which produced the historic higher grade Copper areas of the Marce occurrence so the historic high copper values could not be verified.

221 holds an option to acquire a 100% undivided interest in the ZAC and Marce properties. The option is exercisable upon payment of $250,000 (in staged payments over four years) and prior to exercise, 221 is responsible for incurring all costs, payments and expenses in order to keep these properties in good standing and to file all assessment work in a timely fashion.

In addition to the ZAC and Marce properties, the Company has staked an additional two exploration projects, the RB Property and the ARNI Property. Initial information with respect to these properties is as follows.

RB Property

The RB property is located approximately 45 kilometres East-South-East of the ZAC claims, and consists of four staked claims covering approximately 41.8 square kilometers. The RB property is a highly prospective gold property, which was previously held by Noble Peak Resources and was abandoned in the late 1980's. There has been some drilling on this property (conducted by Noble Peak Resources), which yielded results from trace up to 0.413 oz/t over 8.0m, as well as surface sampling, which yielded results from trace to 4.08 oz/t over 1m from trenching (taken from public filings with the Nunavut mining recorder, the Nunavut Geoscience Archive).

ARNI Property

The ARNI property is a Copper Nickel prospect on the shore of Baker Lake approximately 60km East of the town of Baker Lake. Very limited information exists for this prospect, however the public record with the mining recorder for Nunavut indicates two showings on the property were sampled by a prospector who previously held land claims in the area, which assayed 3.72% Copper, 2.28% Nickel, and 1.08 oz/ton Silver (Nunavut Geoscience Archives). These are the only assay results available for this property. These are selective results and are unlikely to represent the average grades for this property.

The RB and ARNI properties are both wholly-owned by Anconia, subject only to normal course work requirements in the Nunavut Territory for staked mining claims.

Anconia has exploration plans for 2011, which include each of these four properties, commencing in July 2011. Further information regarding upcoming exploration and each of the four properties held will be released as available.

Mr. John C. Archibald, a consultant 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.

Investor Relations and Grant of Options

Anconia is also pleased to announce that it has engaged Investor Cubed Inc. ("Investor Cubed" or "ICI") to provide investor relations and shareholder communications services effective June 27, 2011 for an initial one year term, the agreement is renewable under the same terms and conditions for an additional one year term.

In connection with the engagement, Anconia has agreed to pay Investor Cubed a monthly fee of $5,000. In addition, Investor Cubed has been granted options to purchase 370,000 shares of Anconia at a price of $0.40 per share for a period of two years. The options will vest quarterly in four installments of 92,500 each, with the first installment vesting three months from the date of grant, and will be governed by the provisions of Anconia's stock option plan. Investor Cubed currently has no interest, directly or indirectly, in Anconia or its securities other than the options.

Investor Cubed provides specialized investor relations and business consulting services to a select group of leading emerging and mid-capitalization public companies. Investor Cubed has an established national network of financial industry professionals including investment advisors, bank owned investment dealers and leading independent financial firms. In addition, Investor Cubed introduces and manages national online and off-line marketing initiatives.

Investor Cubed's appointment as an investor relations consultant of Anconia and the granting of the options to Investor Cubed remain subject to the approval of the TSX Venture Exchange.

Additionally, Anconia announces that, pursuant to the terms of its stock option plan, an aggregate of 2,350,000 incentive stock options have been granted to certain of its directors, officers, and consultants. Each option entitles the holder thereof to purchase one common share at an exercise price of $0.40 per share, representing the closing price of Anconia's common shares on the TSX Venture Exchange on June 24, 2011. The options are exercisable for up to five years from the date of grant.

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, Canada. Anconia is undertaking a comprehensive exploration program to determine the potential of the four projects currently in its portfolio.

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