Bearclaw Capital Corp.
TSX VENTURE : BRL

Bearclaw Capital Corp.

August 29, 2007 17:55 ET

Bearclaw Announces Santa Maria Property Deal

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 29, 2007) - Bearclaw Capital Corp. (TSX VENTURE:BRL) is pleased to announce that it has reached an agreement with Cadillac Mining Corporation ("Cadillac"), by which Cadillac may earn up to a 75% interest in Bearclaw's Santa Maria property (the "Property"), located 37 km south-west of Smithers, B.C.

Cadillac may acquire an initial 60% interest in the Property by making exploration expenditures totalling $450,000 and issuing 400,000 shares to Bearclaw over the next three years, and by paying $10,000 cash to Bearclaw. Upon vesting the 60% interest, Cadillac may earn an additional 15% interest by spending an additional $200,000 on exploration and issuing an additional 100,000 shares to Bearclaw. The terms of this agreement are subject to regulatory acceptance.

The Property hosts structurally controlled Cu-Ag-Au massive to disseminated sulphide mineralization within a series of stacked rhyolite flows/domes extending over a strike length of at least 500 metres. The prospect was discovered in 1916, subsequent to which a 36 meter shaft was sunk and 91 meters of drifting was completed. Reported production in 1917 (B.C. Minfile reference) was 69,400 g Ag and 33,200 kg copper from 217 tonnes of ore.

Modern exploration on the prospect includes mapping, soil sampling, geophysical surveys, trenching and 2290 m of core and percussion drilling in 19 holes. The majority of historical exploration, which was conducted in 1966 and 1970 (Minfile records), focused on drilling along EM conductors and returned significant values ranging to 2.55% Cu and 23 g/t Ag over 6.1 meters. However, drilling at that time was restricted to relatively shallow holes, core recovery is reported to have been very poor, and no gold analyses were performed.

Management of Cadillac has announced that it is of the opinion that prior exploration has left considerable latitude for further work, particularly with recent advances in modelling of volcanogenic and sub-volcanic deposits. In particular, they announced that, in their view, the similarity in style of mineralization and proximity to the mined out Equity Silver Mines deposits located some 78 km. to the east of the Property was most encouraging.

William R. Gilmour, P.Geo., a qualified person for the purposes of National Instrument 43-101, has reviewed the technical information in this news release for Bearclaw.

This press release may contain forward-looking statements. Known and unknown risks and uncertainties may cause actual events or results to materially differ from those expressed or implied by any such forward-looking statements.

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

Contact Information

  • Bearclaw Capital Corp.
    John B. Ross
    (604) 263-5147