VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 21, 2012) - Duncastle Gold Corp. (TSX VENTURE:DUN)(FRANKFURT:5D3) ("Duncastle") has signed a letter of understanding with Fortune Tiger Resources Ltd. ("Fortune Tiger") to option up to 80% of the Black Lake gold property in Ontario for payments in cash and shares, and exploration work commitments. The letter of understanding is subject to TSX Venture Exchange acceptance on behalf of Duncastle.
The Black Lake property is located approximately 20km east of the town of Sioux Lookout in northwest Ontario, and about 10km northeast of, and along strike from, Duncastle's recently acquired Drayton property (see Duncastle news release Oct. 16, 2012).
Similar to the nearby Drayton project, two styles of gold mineralization occur on the property: high-grade targets in quartz vein stockwork in structural deformation zones similar to that of the Red Lake Mine located 200km northwest, and bulk tonnage targets in quartz-feldspar porphyries. Multiple occurrences of both types of mineralization are identified on the property, with the Moretti Shear Zone, a 400 meter long mineralized shear zone, being the most compelling with gold values as high as 1,212 g/t gold in a grab sample and 155g/t gold over 0.6 meters in channel samples (historical results reported by Cameco in 1998, data not independently verified by Duncastle).
To earn an initial 60% interest in the Black Lake property, Duncastle must:
- Issue 200,000 shares upon TSX Venture Exchange acceptance;
- Pay $20,000 on or before January 28, 2013;
- Pay $25,000, issue 200,000 shares, and complete $150,000 in exploration expenditures on or before October 28, 2013;
- Pay $30,000, issue 200,000 shares, and complete an additional $250,000 in exploration expenditures on or before October 28, 2014;
- Pay $50,000, issue 200,000 shares, and complete an additional $250,000 in exploration expenditures on or before October 28, 2015; and
- Issue 200,000 shares, and complete an additional $350,000 in exploration expenditures on or before October 28, 2016.
Duncastle may earn a further 20% interest (for an aggregate 80% interest) by issuing a further 400,000 shares and completing an additional $700,000 in exploration work on or before the sixth anniversary of regulatory approval.
Upon earning the 60% or 80% interest in the property, Duncastle and Fortune Tiger will work as partners with the interest of the lesser contributing partner being diluted down accordingly. An interest of less than 10% will convert to a 1.5% NSR, with a buy-down option to 1% for a payment of $500,000. Duncastle and Fortune Tiger acknowledge an existing 2% NSR with a buy-down to 1% for payment of $1,000,000 per an underlying agreement.
President Michael Rowley, commented, "The Black Lake project makes an excellent addition to our portfolio of high quality gold projects in the Wabigoon Greenstone belt of northwest Ontario, an area that remains underexplored but is growing rapidly as a region with the development of the Rainy River and Hammond Reef deposits, among other discoveries. The Black Lake project has seen little advanced exploration work in recent decades and is only 10km from our Drayton project and about 100km north of our Pipestone project."
About Duncastle Gold
Duncastle Gold Corp. is a Vancouver-based gold exploration company with mineral claims covering or surrounding past producing mines in Ontario and British Columbia, Canada. In addition to the newly acquired gold projects in Ontario and the past-producing Yankee-Dundee Mine in southeast BC, Duncastle has an option to acquire a 100% interest in the highly prospective polymetallic Porphyry Creek project in northwest BC including a copper-molybdenum porphyry system announced December 2010.
As part of the Manex Resource Group, Duncastle benefits from shared expertise in corporate finance, public company administration, investor relations, and technical and geological services provided for seven public companies active in North America. Since its formation in 1997, the Manex Group companies have raised over C$350 million in exploration financing.
Rob Macdonald, (P.Geo.), is the Qualified Person responsible for reviewing the technical results in this release.
On behalf of the Board of Directors,
Michael Rowley, President, Director, Duncastle Gold Corp.
For further information, please visit the company's website at www.duncastlegoldcorp.com.
This News Release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements. These statements are based on a number of assumptions, including, but not limited to, assumptions regarding general economic conditions, interest rates, commodity markets, regulatory and governmental approvals for the company's projects, and the availability of financing for the company's development projects on reasonable terms. Factors that could cause actual results to differ materially from those in forward looking statements include market prices, exploitation and exploration successes, the timing and receipt of government and regulatory approvals, and continued availability of capital and financing and general economic, market or business conditions. Duncastle Gold Corp. does not assume any obligation to update or revise its forward-looking statements, whether as a result of new information, future events or otherwise, except to the extent required by applicable law.
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.