Bannockburn Resources, Inc.

October 28, 2005 15:22 ET

Bannockburn Options Yukon Gold Project and Announces up to $800,000 Financing

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Oct. 28, 2005) - Bannockburn Resources, Inc. is pleased to report it has signed an agreement with ATAC Resources Ltd. of Vancouver, BC to earn up to 75% interest in the Klaza gold-silver property 50 km. west of Carmacks in the Yukon. ATAC is publicly traded on the TSX Venture Exchange.

The project comprises 24 mineral claims last explored in the late 1980s. Geological mapping, prospecting, soil geochemistry, EM-16 surveys and trenching have defined three main gold-silver bearing vein systems (BRX, Klaza and BYG) on the property. The only zone to be drill tested is the BRX zone, which has been traced for 850 metres along strike. In total, 13 diamond drill holes totalling 824 metres were completed, with the best hole returning 5.6 grams gold per tonne and 13.69 grams silver per tonne over 8.9 metres, including a higher grade section running 22.24 grams gold per tonne and 45.41 grams silver per tonne. The other holes, some of which had poor core recovery and others that failed to intersect the desired vein target, returned only slightly anomalous gold values.

The Klaza zone lies 1 km to the north and has been traced by trenches for 250 metres along strike with a gold-in-soil geochemical anomaly extending more than 100 metres further along strike in both directions. The widest trench exposure returned 3.83 grams gold per tonne and 83.67 grams silver per tonne over 8 metres, while the highest assay yielded 39.07 grams gold and 92.38 grams silver per tonne over 1.1 metres.

The BYG zones occurs midway between the two other zones and has been exposed in two trenches located 180 metres apart. The assay from this zone range from nil to 5.47 grams gold per tonne and 21.77 grams silver per tonne over 3.3 metres.

Under the terms of the agreement, Bannockburn can earn 75% interest in the property by spending $500,000 on exploration before September 29, 2008, including a minimum $100,000 expenditure by September 29, 2006 and issuing 1 million common shares, or that number of common shares equal to $1 million, to ATAC, at Bannockburn's option, on or before Sept. 29, 2008.

Upon Bannockburn earning a 75% interest, ATAC can elect to re-acquire a 25% interest in the project by completing exploration expenditures of twice the amount spent by Bannockburn and forming a 50%-50% joint venture. Failing that, ATAC and Bannockburn will form a 25%-75% joint venture. Bannockburn will be the operator of either joint venture. Should either party not participate in an exploration work program, its interest will be diluted and should either be diluted down to a 10% working interest its interest will be converted into a 2% net smelter royalty.

Bannockburn plans on compiling all the historic data in an effort to outline the tonnage potential of the high-grade gold-silver veins and then complete an induced polarization geophysical survey aimed at defining potential bulk tonnage targets.

The foregoing disclosure, including results of the previous exploration, have been reviewed, verified (including sampling, analytical and test data) and compiled by Richard A. Graham, P. Geol., President of Bannockburn, who is a 'qualified person' for the purpose of National Instrument 43-101, Standards of Disclosure for Mineral Projects.

Bannockburn also announces a private placement of up to 8,000,000 shares at $0.10 per share for total proceeds of $800,000. A commission of 7.5 % is payable in the form of shares. The proceeds of the private placement will be used to fund Bannockburn's 75% interest in the Klaza gold-silver property and for working capital.

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

Contact Information

  • Bannockburn Resources, Inc.
    Richard A. Graham
    President and CEO
    (604) 689-1428