Hunter Bay Minerals plc

March 02, 2011 08:01 ET

Hunter Bay Minerals Plc Completes Due Diligence of Sela Creek

LONDON, UNITED KINGDOM--(Marketwire - March 2, 2011) - Hunter Bay Minerals Plc (TSX VENTURE:HBY) ("Hunter Bay") is pleased to announce that it has completed its due diligence investigation of the Sela Creek Project and has received confirmation from Selakriki Okanisi Resources N.V. i. o. (the "Owner") that it is the registered title holder of the Sela Creek Project. The Owner has now satisfied all of the conditions precedent to the letter agreement dated December 21, 2010 (the "Agreement") among Hunter Bay, the Owner and Kudray S.A. (the "Optionee"), a wholly owned subsidiary of Hunter Bay. As a result, the Optionee has paid the Owner USD $25,000 in accordance with the terms of the Agreement.

As part of the technical due diligence investigation, Hunter Bay completed a scout sampling program throughout the Sela Creek Project. Hunter Bay collected a total of 54 samples, which includes 27 rockchip outcrop samples and 27 samples from 10 channels totalling 43.60 metres (Table 1). Encouraging channel sample results were returned, with significant intercepts including:

  • 2.0 metres at 4.68 g/t gold, SKC001
  • 2.6 metres at 2.82 g/t gold, SKC006
  • 1.0 metre at 3.99 g/t gold, SKC007
  • 2.0 metres at 3.60 g/t gold, SKC008

The channel samples were collected over the entire width of the vein.

The Sela Creek Project is a grassroots stage exploration project located in eastern Suriname. The project is hosted in a Proterozoic Greenstone Belt within the Guiana Shield. The Guiana Shield is a cratonal block once linked to the West Africa craton and contains similar large scale vein hosted gold deposits.

Scout exploration indicated three styles of gold mineralization at Sela Creek: subvertical mesothermal quartz veins and lenses which are spatially related to regional shear zones and contacts with felsic intrusive bodies; limonitic shear zones which likely represent the supergene-altered surface expression of quartz-sulphide mineralised shear zones; and variably quartz-veined intrusives. Quartz veins and shear zones have a true width at surface of up to 6 metres.

Ongoing exploration in the licence area has identified visible gold in quartz fragments from tailings and extensive surface exploitation by artisanal miners of quartz veins at the contact between intrusive units and schist. These artisanal workings occur intermittently over a total strike length of 6 km and require further exploration.

Sela Creek has not been tested by modern exploration methods. Hunter Bay aims to follow up the encouraging first pass results with a substantial exploration program including soil and rock-chip geochemical surveys, channel sampling, geological mapping and satellite data interpretation. The exploration potential is considered favourable for near-surface oxide gold mineralization and deeper hypogene vein-style, shear-hosted and intrusion-hosted gold mineralization.

Sample preparation and gold fire assay was carried out by The Assay Office (Suriname), Paramaribo , Suriname. The laboratory is not certified. The Assay Office include routine Canadian Certified Reference Materials (CCRM), in-house standards and blank samples with each sample submission. Hunter Bay has relied on these internal QA/QC results which indicate that an acceptable level of accuracy and precision has been achieved. Hunter Bay is developing its own QA/QC procedures appropriate for the Sela Creek Project as the project is just being established.

Andrew Tunningley, MAusIMM, a director of Hunter Bay, is the Qualified Person as defined in National Instrument 43-101 – Standards of Disclosure for Mineral Projects and is responsible for the preparation and supervision of all technical information in this news release.

About Hunter Bay

Hunter Bay is engaged in the acquisition, exploration and development of mineral resource properties located in Canada and South America. Hunter Bay currently owns a one-hundred percent (100%) interest in the Great Bear Lake Properties located in the eastern side of Great Bear Lake NW, has an option to acquire up to an eighty percent (80%) interest in the Sela Creek Project located in Suriname and has an option to acquire a forty five percent (45%) interest in the net profits of the Fortuna Project located in the Nambija Gold District, Ecuador.

Forward-Looking Statements

Information set forth in this news release contains forward-looking statements that are based on assumptions as of the date of this news release. These statements reflect management's current estimates, beliefs, intentions and expectations. They are not guarantees of future performance. Hunter Bay cautions that all forward looking statements are inherently uncertain and that actual performance may be affected by a number of material factors, many of which are beyond Hunter Bay's control. Such factors include, among other things: risks and uncertainties relating to exploration and development of Hunter Bay's properties, the ability of Hunter Bay to make all cash payments and incur all required expenditures under the Agreement to acquire the Sela Creek Project; Hunter Bay's limited operating history; the need to comply with environmental and governmental regulations; and potential defects in title to Hunter Bay's properties. Accordingly, actual and future events, conditions and results may differ materially from the estimates, beliefs, intentions and expectations expressed ot implied in the forward looking information. Except as required under applicable securities legislation, Hunter Bay undertakes no obligation to publicly update or revise forward-looking information.

Table 1: Channel Sample Results, Sela Creek Project  
Channel ID Sample ID From (m ) To (m ) Interval (m ) Au (g/t )
SKC0001 SK000017 0.00   0.80   0.80   0.65  
SKC0001 SK000018 0.80   2.80   2.00   4.68  
SKC0001 SK000019 2.80   4.40   1.60   0.45  
SKC0001 SK000020 4.40   7.40   3.00   0.57  
SKC0002 SK000021 0.00   1.60   1.60   0.10  
SKC0002 SK000022 1.60   4.80   3.20   0.11  
SKC0003 SK000023 0.00   1.00   1.00   0.12  
SKC0003 SK000024 1.00   2.00   1.00   0.98  
SKC0003 SK000025 2.00   3.00   1.00   0.19  
SKC0004 SK000026 0.00   1.00   1.00   0.05  
SKC0004 SK000027 1.00   2.00   1.00   0.02  
SKC0004 SK000028 2.00   3.00   1.00   0.05  
SKC0005 SK000029 0.00   1.00   1.00   0.41  
SKC0005 SK000030 1.00   2.10   1.10   1.12  
SKC0005 SK000031 2.10   3.10   1.00   0.06  
SKC0006 SK000033 0.00   2.60   2.60   2.82  
SKC0007 SK000034 0.00   1.00   1.00   3.99  
SKC0008 SK000035 0.00   2.00   2.00   0.02  
SKC0008 SK000036 2.00   4.00   2.00   <0.01  
SKC0008 SK000037 4.00   6.00   2.00   3.60  
SKC0009 SK000038 0.00   2.00   2.00   0.06  
SKC0009 SK000039 2.00   4.00   2.00   0.03  
SKC0009 SK000040 4.00   6.00   2.00   <0.01  
SKC0009 SK000041 8.00   10.00   2.00   0.04  
SKC0009 SK000042 10.00   12.00   2.00   0.25  
SKC0010 SK000051 0.00   1.00   1.00   0.75  
SKC0010 SK000052 1.00   2.70   1.70   0.16  

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

  • Hunter Bay Minerals plc
    Christopher Wilson
    CEO and President
    (+44) 203-178-2101
    (+44) 207-724-2734 (FAX)