THUNDER BAY, ONTARIO--(Marketwired - Oct. 18, 2016) - Benton Resources Inc. (TSX VENTURE:BEX) ("Benton" or "the Company") is pleased to announce that the Company and its joint venture partner Nordmin Engineering Ltd. ("Nordmin") have now completed 5000m of diamond drilling in 29 holes on the Cape Ray Gold project located on the Cape Ray Fault in Southwest Newfoundland. To date more than 480 samples have been cut and sent for assay with another 240 samples remaining to be cut and submitted. Nordmin is earning up to a 50% interest in 4 of the 6 deposits (see Benton PR January 20, 2015) owned by Benton by completing various work programs and project milestones as well as carrying Benton to a full feasibility study and arranging 50% of project financing to production.
In March of this year the companies released the results of a positive preliminary economic assessment ("PEA") for their Cape Ray Gold Project (see PR March 07, 2016). The results of the PEA include a pre-tax net present value ("NPV") at a 7% discount rate of $48.4 million with a pre-tax internal rate of return ("IRR") of 29% and a post-tax NPV at a 7% discount rate of $32.6 million with a post-tax IRR of 24%. The reader should be cautioned that the PEA is preliminary in nature. It contains inferred mineral resources that are considered too speculative to have the economic considerations applied to them that would enable them to be categorized as mineral reserves. The current drill campaign will help bring some of the inferred resources into indicated which will help with the confidence level of the project as we move towards the feasibility study.
Within the past number of weeks, a staking rush has occurred in Newfoundland with over 5,000 claim units staked by various parties including Altius Minerals, Metals Creek Resources, Sokoman Iron, Prospector Shawn Ryan, along with many others. The staking is concentrated on the Cape Ray Fault zone and the Rogerson Lake Conglomerate, which is interpreted to be a north east extension of the auriferous zone which is host to Benton's six Cape Ray gold deposits. Marathon Gold's Valentine Lake deposits (over 1 million oz Au), Benton's Staghorn project and Altius Minerals' Wilding Lake project all occur along this trend and Altius has lead the staking rush, adding claims throughout the belt and in most cases tying directly along strike from Benton's projects.
On September 20, 2016, Altius Minerals announced the discovery of widespread and high-grade gold occurrences, including the Alder zone, on their Wilding Lake Project, northeast of Marathon's Valentine Lake deposits. The discoveries are described by Altius as follows:
"Mineralization at the Alder Zone occurs as coarse, free gold in association with chalcopyrite, rare scheelite, and gold-silver telluride, in association with tourmaline bearing quartz veins. One hundred and seven cut channel samples collected to date from outcrop in trenches have yielded uncut gold values ranging up to 13.9 g/t over 4.0 m, 5.4 g/t over 3.6 m, and 49.3 g/t over 4.6 m (including 279 g/t gold over 0.9 m). Several additional gold occurrences in outcrop and float have also been discovered by reconnaissance prospecting along trend up to 3.5 km away from the Alder Zone. Also, two initial grab samples from a recently exposed pyrite-bearing shear zone occurrence named Jigger, located 15.2 km to the northeast, have returned results of 8.4 and 19.7 g/t gold in grab samples."
Stephen Stares, Company President and CEO stated "this is a very exciting time for the island of Newfoundland and for Benton Resources. In the last few weeks, a major staking rush has occurred on a trend that Benton's team has long recognized as being highly prospective for good gold deposits. During the last downturn in the mining industry, Benton had the foresight to acquire an excellent asset in the Cape Ray project containing a proven gold resource along the Cape Ray structure and we remain well positioned by having multiple projects on this important structure. Benton and Marathon currently possess the most advanced projects along this gold trend and our team looks forward to advancing the Cape Ray deposits toward development".
In addition the company would like to announce that it has terminated its option with Element 79 Capital Inc. (Element) on its Abernethy gold project located in NW Ontario. Element was unable to fulfill the terms under the agreement (See PR dated February 25, 2015). Benton now retains 100% interest in Abernethy.
About Benton Resources Inc. (TSX VENTURE:BEX):
Benton Resources Inc. is a well-funded Canadian-based junior with a diversified property portfolio in Gold-Silver, Nickel, Copper, and Platinum group elements.
Clinton Barr (P.Geo.), V.P. Exploration for Benton Resources Inc., is the qualified person responsible for this release.
On behalf of the Board of Directors of Benton Resources Inc.,
Stephen Stares, President
THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
The information contained herein contains "forward-looking statements" within the meaning of applicable securities legislation. Forward-looking statements relate to information that is based on assumptions of management, forecasts of future results, and estimates of amounts not yet determinable. Any statements that express predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance are not statements of historical fact and may be "forward-looking statements."
Forward-looking statements are subject to a variety of risks and uncertainties which could cause actual events or results to differ from those reflected in the forward-looking statements, including, without limitation: risks related to failure to obtain adequate financing on a timely basis and on acceptable terms; risks related to the outcome of legal proceedings; political and regulatory risks associated with mining and exploration; risks related to the maintenance of stock exchange listings; risks related to environmental regulation and liability; the potential for delays in exploration or development activities or the completion of feasibility studies; the uncertainty of profitability; risks and uncertainties relating to the interpretation of drill results, the geology, grade and continuity of mineral deposits; risks related to the inherent uncertainty of production and cost estimates and the potential for unexpected costs and expenses; results of prefeasibility and feasibility studies, and the possibility that future exploration, development or mining results will not be consistent with the Company's expectations; risks related to gold price and other commodity price fluctuations; and other risks and uncertainties related to the Company's prospects, properties and business detailed elsewhere in the Company's disclosure record. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking statements. Investors are cautioned against attributing undue certainty to forward-looking statements. These forward looking statements are made as of the date hereof and the Company does not assume any obligation to update or revise them to reflect new events or circumstances. Actual events or results could differ materially from the Company's expectations or projections.