ICN Resources Ltd.
TSX VENTURE : ICN

ICN Resources Ltd.

March 29, 2011 09:15 ET

ICN Signs Definitive Agreement With Lode Star Gold, Inc.

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 29, 2011) - ICN Resources Ltd. ("ICN" or the "Company") (TSX VENTURE:ICN) is pleased to announce the signing of the Definitive Agreement between ICN and Lode Star Gold, Inc. ("LSG") for the Goldfield Bonanza Project. A binding Letter of Intent was signed and announced in December 2010 (see ICN News Release of December 16, 2010). Final execution of the full and more detailed agreement was subject to certain due diligence conditions which have now been met and satisfied. 

Carl Hering, President and CEO of ICN stated that, "This is a great project for ICN, and the arrangement with Lode Star Gold is structured in such a way as to be mutually beneficial to both parties as the project advances. We are certainly thrilled to have LSG as a future partner and believe that this high quality, potentially very high grade gold project is a significant addition to ICN's portfolio of volcanic hosted exploration properties in Nevada. Having now completed our due diligence and finalized the Definitive Agreement, ICN has initiated a significant drill program on the Property."

The Property consists of 31 patented and one unpatented mill site claim, (approximately 450 acres), and forms the Goldfield Bonanza Project, located in the historic mining district of Goldfield Nevada. The Goldfield District was discovered in 1903 and has produced intermittently since that time, with the last recorded production coming from open pit operations conducted during the 1980's. According to Nevada Bureau of Mines and Geology Bulletin 78 (1972), the Goldfield District has recorded production in excess of 4.1 million ounces of gold from high grade quartz-alunite ledges, with some historic stopes grading in excess of 1 oz/ton Au (>34 g/tonne). Bulletin 78 also noted that the average grade of recorded gold production from 1903 to 1940 was in excess of 0.5 oz/ton Au (>17 g/tonne). 

The District is a classic, epithermal, high sulfidation gold system, hosted by volcanic rocks of Tertiary age. A large portion of the GF Bonanza Property is covered by a thin veneer (< 130 feet or < 40 metres) of post mineral sediments, and consequently offers untested exploration targets not located by historic prospecting and mining. During the past ten years, Lode Star has completed over 35,000 feet (10,750 m) of reverse circulation and core drilling, from both surface and underground. They have encountered intercepts of multiple ounces per ton in some of their drilling, but have only tested less than 1,000 feet (300 m) of the main structural zone. The preliminary CSAMT data indicates a potential strike length in excess of 5,000 feet (1500 m) along this principle structural zone. 

ICN's year one work commitment is a minimum of US$1 million dollars. Initially, ICN has completed a CSAMT (Controlled Source Audio-frequency Magnetotelluric) geophysical survey over the entire property, as this specific geophysical technique has been shown to clearly identify and outline the main structural trend. Drill testing of new exploration targets will follow the initial core drilling program now underway. This core program is designed to verify historic drill results from previous operators. ICN plans to mobilize an RC (Reverse Circulation) drill rig to the property within the next 6 weeks to augment the initial core drilling program. 

Upon the signing of the Definitive Agreement, and approval thereof from the TSX Venture Exchange, ICN will pay Lode Star US$50,000 and issue Lode Star 500,000 units (each unit consisting of one ICN common share and one full share purchase warrant with each warrant entitling the holder to purchase one additional common share of ICN for a period of two years at an exercise price equal to 110% of the average closing market price of ICN's common shares over a five consecutive day period immediately prior to the date of share issuance). To earn their 80% interest in the Property, ICN would be required to pay to LSG a total of US$3 million in cash, issue 3 million units and complete US$5 million of exploration work over a four (4) year option period. If ICN completes all requirements of the Option to vest at 80% in the Property, a standard mining joint venture would be formed with ICN as operator in the 80/20 JV.

Mark Walmesley, Director of Operations for LSG states, "With the mutual respect garnered from working with Carl on this Definitive Agreement, ICN and Lode Star Gold are a great combination. The approach to develop the property is sound and on track. With the geophysics concluded and drilling underway we are both eagerly awaiting initial results."

Lonnie Humphries, owner and President of LSG states, "Lode Star is excited to see this project moving forward towards its true potential. ICN is coming in with a solid understanding of the district and a fitting exploration approach. I am confident that this alliance and our good working relationship will produce very favorable results."

The closing of the Definitive Agreement is subject to the approval of the TSX Venture Exchange. Tom Temkin, a Qualified Person as defined by National Instrument 43-101 – Standards of Disclosure for Mineral Projects, has reviewed and approved the technical content of this news release.

About ICN Resources

ICN is primarily focused on exploration for volcanic-hosted precious metal deposits in western Nevada, emphasizing targets with geological similarities to Sleeper, Sandman, Hollister, Midas and Aurora in Nevada. ICN plans to explore for high-grade feeder zones associated with large low-grade gold and silver systems, as well as high grade deposits at the our new Goldfield Bonanza Project, primarily in western Nevada. ICN is also evaluating other opportunities in established metallogenic belts elsewhere in the United States. The ICN management and geologic team have extensive experience in Nevada and will utilize this experience to generate prime opportunities for ICN shareholders.

On Behalf of the Board of Directors of ICN Resources Ltd.,

Carl Hering, President & CEO

ICN Resources Ltd.

The forward-looking information contained in this press release is made as of the date of this press release and, except as required by applicable law, ICN does not undertake any obligation to update publicly or to revise any of the included forward-looking information, whether as a result of new information, future events or otherwise. By its very nature, such forward-looking information requires ICN to make assumptions that may not materialize or that may not be accurate. This forward-looking information is subject to known and unknown risks and uncertainties and other factors, which may cause actual results, levels of activity and achievements to differ materially from those expressed or implied by such information.

Neither TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy of this release.

Contact Information