Dundarave Resources Inc.

Dundarave Resources Inc.

January 30, 2012 09:23 ET

Dundarave Acquires Option on Jesse Creek Property

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 30, 2012) - Dundarave Resources Inc. (TSX VENTURE:DDX) (the "Company") is pleased to announce that it has entered into an option agreement with Mr. J. Dawson and Mr. G. Belik (the "Optionors") to acquire a 100% interest in 18 contiguous mineral claims located near Merritt, British Columbia, known as the Jesse Creek property (the "Property"), subject to a 2% net smelter return royalty. The Property is located in the central part of the Nicola Volcanic Belt, midway between the Afton and Copper Mountain porphyry copper-gold deposits.

Overview of the Jesse Creek Property

The Jesse Creek property covers approximately 6000 hectares located just north of the town of Merritt, B.C. Topography is moderate; access and infrastructure are excellent and it can be explored year round. The property has potential for hosting both alkaline porphyry copper (gold) deposits similar to Afton and Copper Mountain, as well as calc-alkaline type porphyry copper (molybdenum) mineralization similar to the nearby Highland Valley deposits.

Most of the past exploration on the Property was directed towards the discovery of Craigmont type skarn, copper mineralization and the porphyry targets were never drilled and are virtually untested.

Significant skarn and alkaline type porphyry mineralization/alteration occur in the Chase zone (near the south end of the property) associated with a high level, diorite-monzonite intrusion which may be an apophysis of a larger intrusive mass at depth. A large IP chargeability anomaly straddles the intrusive center. This anomaly is open to the east.

In the north-central part of the property, the Jesse Creek Stock has the potential for the discovery of significant calc-alkaline, porphyry-type mineralization. This stock is an extension or possibly a separate offshoot of the Guichon Creek Batholith (host of the productive Highland Valley porphyry copper deposits). The intrusive body appears to be differentiated into a diorite-quartz diorite border phase and an internal granodiorite phase. A copper mineralized quartz monzonite breccia (SB zone) noted in early exploration over 40 years ago appears to be a, younger diatreme breccia pipe at least 300 meters in diameter. In 2011 a copper stained outcrop was discovered near the east end of the Jesse Creek Stock in an area of extensive overburden. This transition from quartz diorite to granodiorite to quartz monzonite is very similar to the transitional zonal series mapped in the central part of the Guichion Creek batholith where mineralization is associated with the central quartz monzonite phases.

Regionally, lineaments and magnetic features outline both styles of porphyry coppers targeted at Jesse Creek. The Company will initially define targets with a detailed airborne magnetic survey to be followed by geological mapping and induced polarization/resistivity surveys over selected areas. Priority targets from this work will then be tested by drilling.

Summary of the Option Agreement

Pursuant to the option agreement, the Company may acquire the Property in consideration for total cash payments of $1,075,000 and the issuance of 1,700,000 common shares of the Company to the Optionors on the following schedule:

  • $40,000 was paid on signing of the option agreement;
  • $35,000 payable on or before 30 days of signing the option agreement;
  • 200,000 shares upon TSX Venture Exchange acceptance of the option agreement;
  • an additional $100,000 and 200,000 shares on or before the first anniversary date of stock exchange acceptance;
  • an additional $200,000 and 300,000 shares on or before the second anniversary date of stock exchange acceptance;
  • an additional $300,000 and 400,000 shares on or before the third anniversary date of stock exchange acceptance; and
  • an additional $400,000 and 600,000 shares on or before the fourth anniversary date of stock exchange acceptance.

The Agreement also provides for a 2% net smelter return royalty in favour of the Optionors. The Company may elect to purchase, at any time from the Optionors one-half (1/2) of the NSR on the Property, thereby reducing the Optionors' NSR to one percent (1%) respectively, upon the total payment to the Optionors of $1,000,000.

Andre Pauwels, P.Geo is a qualified person under National Instrument 43-101, and has reviewed and is responsible for the contents of this news release.

The Option Agreement is subject to approval of the TSX Venture Exchange.

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

  • Dundarave Resources Inc.
    Paul Matysek, M.Sc., P.Geo.
    President & CEO
    800 863-1551