SOURCE: Angkor Gold Corp.

Angkor Gold

May 09, 2016 09:15 ET

Angkor Gold Corp. Signs US$3.5 Million Option Agreement With Blue River Resources on Banlung License

GRANDE PRAIRIE, AB--(Marketwired - May 09, 2016) -  ANGKOR GOLD CORP. (TSX VENTURE: ANK) ("ANGKOR") is pleased to announce that it has entered into a Definitive Agreement ("DA") with Blue River Resources ("Blue River") to explore ANGKOR's 100% owned Banlung tenement in Ratanakiri Province, Cambodia. The agreement gives Blue River initially the right to participate in up to a 50% interest of the Banlung license after the completion of a total investment of US$3.5 million in exploration expenditures over a 4-year period. Once the first 3 options have been satisfied, Blue River may then exercise their option on an additional 20% interest of the Banlung tenement through the commission and completion of a bankable feasibility study on the property or portion thereof.

Blue River Resources Ltd. is a mineral exploration and development company, focused on discovering and developing copper deposits in the Quesnel Trough Copper Belt of British Columbia and Washington State.

"I am pleased to announce this agreement with Blue River today. The beauty of this anomaly is its close proximity to surface -- making it easier to work on, and quicker to move to a development strategy if warranted," said Mike Weeks, President of ANGKOR. He continued, "We will now move full steam ahead with exploration plans at Okalla West to build our understanding of the depth and layout of this gold anomaly with an eye towards operationalizing the area."

"There are great synergies here, and we are keen to get on the ground and build shareholder value for both companies moving forward," stated Griffin Jones, President of Blue River. "We have been looking for the right opportunity to explore outside of the traditional markets for Blue River. Angkor Gold and Cambodia are the perfect fit with the country's growing infrastructure, and significant potential as a developing world-class mining sector."

Today's announcement follows a previous release of surface data on the Banlung tenement dated October 13, 2015 where ANGKOR disclosed the discovery of a 2 km2 gold anomaly.

Highlights:

  • ANGKOR will receive a non-refundable US$100,000 exploration payment from Blue River, and grant Blue River the following earn-in Options:
    • Option #1 - Based on additional Exploration & Development Expenditures of US$900,000 from June 30, 2016 through March 30, 2018, Blue River will be granted a 10% interest on the Banlung Tenement;
    • Option #2 - Based on Exploration & Development Expenditures of US$1,500,000 no later than 2 years following the date that Option 1 is exercised, Blue River will be granted a 30% interest on the Banlung Tenement for a total of 40%;
    • Option #3 - Based on Exploration & Development Expenditures of US$1,000,000 no later than 1 year from the date Option 2 is exercised, Blue River will be granted a further 10% interest on the Banlung Tenement for a total of 50%;
    • Option #4 - Based on the completion of a Bankable Feasibility Study on the Banlung Tenement, or portion thereof, Blue River will earn a final 20% interest on the Banlung Tenement for a total of 70%.
  • Upon completion of the 4th Option, ANGKOR will maintain a 30% free-carry on the Banlung Tenement, or can convert at its discretion, to a 5% Net-Smelter Return.

"Our plans are to advance exploration quickly and efficiently on the Banlung tenement with specific focus on the Okalla West prospect initially but to also capture and comprehend the Banlung intrusive structure," continued Weeks. "It is a large property with lots of potential."

"In addition to the gold anomaly at Okalla West, the discovery of olivine-pyroxenite rocks in the south-west of Okalla West prospect, coupled with the cobalt, copper, chrome, nickel and vanadium termite mound anomalism in the same area keeps the door open to the potential for economic base metals within the mafic complex," stated John Paul Dau, VP of Operations. "These early indications on Okalla West show the great potential of the area as a flagship project for both companies," he concluded.

ANGKOR has plans to continue its current work programs on two of its priority prospects -- Halo and Peacock prospects, on two other licenses. These work programs include PEACOCK Prospect on the Koh Nheak license and Halo Prospect on the Oyadao South licenses, including:

PEACOCK -

  • 2.5 - 3.5km of trenching and composite assay sampling over priority areas defined by moderate to high intermediate IP anomalies, mapped breccia zones, interpreted IP fault zones, associated with rock gold assay results of 1.85 to 31.8 g/t Au
  • A further 2 x 1km depth section IP surveys
  • Test drilling based on these results

HALO -

  • Construct access road
  • 7.3km of shallow trenching for structural mapping, composite geochemical sampling and spectral analysis to better define the mineralization, structures and alteration zones
  • Soil pH testing of termite mound samples within the identified phyllic zone, to correlate hydrothermal alteration with areas containing base metals
  • 10km2 intermediate surface IP survey over the phyllic alteration zone and 3 x depth section IP surveys based on the results of the surface IP
  • Detailed 1:2,000 scale geology mapping
  • Test drilling based on the results of the above programs and surveys

The QP for this release, which he wrote and approved, is Kurtis Dunstone, BSc Geology, Senior Project Manager for ANGKOR. Mr. Dunstone has fifteen years post graduate mining and global exploration industry experience, across Australia, Canada, Papua New Guinea and Cambodia, and is a current member of the Australian Institute of Geoscientists.

ANGKOR's seven exploration licences in the Kingdom of Cambodia cover 1,448 km2, which the company has been actively exploring over the past 6 years. The company has now covered all tenements with stream sediment geochemical sampling; the company has flown low level aeromagnetic surveys over most of the ground; drilled 21,855 metres of NQ core in 190 holes; and has collected in excess of 110,000 termite mound, and 'B' and 'C' zone soil samples in over 20 centres of interest over a combined area of over 140km2, in addition to numerous trenches and detailed geological field mapping. Exploration on all tenements is ongoing.

ANGKOR GOLD CORP.
ANGKOR Gold Corp. is a public company listed on the TSX-Venture Exchange, is Cambodia's premier gold explorer with a significantly large land package and a first-mover advantage with excellent relationships at all levels of Government (local to national).

BLUE RIVER RESOURCES LTD.
Blue River Resources Ltd. has a 100% interest in two mineral properties in the Quesnel Trough Copper Belt, The Castle Copper Project near the Copper Mountain Mine, Princeton, BC and the Mazama Copper Deposit, Okanogan County, Wa.

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    ANGKOR GOLD CORP.
    Stephen Burega
    Vice President of Corporate Development
    Telephone: (647) 515-3734
    Email: sb@angkorgold.ca