Central Resources Corp.

Central Resources Corp.

March 30, 2011 16:52 ET

Central Resources Options the TAC Gold-Silver Prospect, Yukon

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 30, 2011) - Central Resources Corp. (TSX VENTURE:CBC) ("Central" or the "Company") is pleased to announce that it has negotiated an option agreement to acquire 100% ownership of the TAC claims, located 15 kilometres north of the historic Mt. Skukum Gold Mine, near Whitehorse, Yukon.

The property comprises 182 contiguous claims (totaling 3,806 hectares) staked in 2009 by private individuals to cover an epithermal gold-silver target that was explored by Kerr Addison Mines in the 1980's following the discovery of gold mineralization in the Mt. Skukum area.

Previous work has shown that the TAC gold-silver prospect is characterized by a large gossanous (iron-oxide stained) quartz-sericite alteration zone measuring 500 by 800 metres, hosted by rhyolite tuffs. Within this area, a 180 metre wide body of sheared and silicified rhyolite, exposed in a creek drainage, has returned multiple grab samples consistently running 500 to 1,500 ppb gold. Of the 317 historic rock samples collected in the area by Kerr Addison in 1985, 152 samples exceeded 30 ppb gold and 18 exceeded 1,000 ppb (1 g/t) gold. The highest grades correlate with stronger silicification and millimeter scale sulphide stringers in the rhyolite. Elsewhere on the property, historic samples of quartz vein-breccia float returned values as high as 8,400 ppb (8.4 g/t) gold and 108 g/t (3.5 opt) silver. The outcrop source of these mineralized samples has yet to be identified.

The district is well known for epithermal style gold-silver mineralization hosted by quartz-carbonate-sericite veins associated with graben faults and rhyolite dykes related to formation of the Mt. Skukum Volcanic Complex in a caldera setting. The past producing Mt. Skukum Mine, situated 15 kilometres south from TAC claims, produced over 77,000 ounces of gold between 1986 and 1988 from a single high grade zone in an underground mining operation. Mineralization on the TAC claims represents a more disseminated style of low grade gold mineralization, which may be suitable for bulk tonnage mining (open pit) techniques, although the potential for high grade vein style mineralization cannot be discounted.

Central is highly encouraged by the geological setting of the TAC claims and the tenor of known mineralization within the district. The Company plans to conduct an initial exploration program this summer to confirm and expand known mineralization and define drill targets for subsequent testing.

Peter Thiersch, M.Sc., P.Geo., the Qualified Person and Vice President of Corporate Development for Central Resources, has reviewed and approved the technical disclosure made in this press release, based on information provided by the vendor.

Option Terms

Central can earn 100% ownership of the TAC property, subject to a 2% Net Smelter Royalty ("NSR"), by making staged payments to the private owners of 270,000 cash, 1,000,000 common shares of the Company, and a work commitment of $240,000, over 5 years. Upon TSX-V Exchange approval, an initial payment of $10,000 cash and 200,000 shares will be made, with a first year work commitment of $40,000. Central has the right to purchase 1% of the NSR at any time for a cash payment of $1,000,000. The foregoing is subject to acceptance by the TSX Venture Exchange.

About Central Resources

Central Resources Corp. is a junior exploration company created to leverage the extensive knowledge and experience of a dedicated group of financial and resource industry professionals. The Company has acquired options on several highly prospective mineral properties in the Yukon and British Columbia and continues to pursue additional opportunities to build shareholder value.

This news release contains forward-looking information, which involves known and unknown risks, uncertainties and other factors that may cause actual events to differ materially from current expectation. Important factors - including the availability of funds, the results of financing efforts, the results of exploration activities -- that could cause actual results to differ materially from the Company's expectations are disclosed in the Company's documents filed from time to time on SEDAR (see www.sedar.com). Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The company disclaims any intention or obligation, except to the extent required by law, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

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

  • Central Resources Corp.
    Paul Reynolds
    President and CEO
    Central Resources Corp.
    Peter Thiersch
    VP Corporate Development