Kent Exploration Inc.

TSX VENTURE : KEX


Kent Exploration Inc.

December 10, 2013 09:00 ET

Kent Exploration Executes Option Agreement on Bayhorse Silver Mine

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Dec. 10, 2013) - Kent Exploration Inc (TSX VENTURE:KEX) ("Kent" or the "Company") announces that, subject to the approval of the TSX Venture Exchange ("TSX-V"), it has entered into an Option and Joint Venture Agreement (the "Agreement") dated December 4, 2013 among Bayhorse Silver Mine, LLC, American Cordilleran Mining Corporation ("ACMC") and AMCOR Exploration Inc., a wholly owned subsidiary of ACMC (ACMC and AMCOR Exploration Inc. are collectively referred as "AMCOR"), to earn an 80% (the "Option") of AMCOR's 100% leasehold interest in the Claims (as defined below), commonly referred to as the Bayhorse Silver Mine ("Bayhorse") in east-central Oregon State. The Agreement supercedes the Letter of Agreement with AMCOR that was announced in the Company's news release dated November 7, 2013.

Bayhorse is the sole registered and legal owner of 3 patented claims and 10 lode claims totaling approximately 250 acres (the "Claims"). The property is readily accessible, being approximately 7 miles by County road from Huntington, Oregon, on the BN rail line, with road access and power at the property boundary, approximately 500 feet from the main adit entrance.

Mining has been conducted intermittently at Bayhorse since the early 1920's and the mine last closed after the price of silver dropped to under US$6/oz in late 1984. The property has remained dormant since. The Bayhorse mine has two existing accessible adits, the upper extending about 800 feet westward into the hill and the lower extending about 500 feet into the hill. A middle level is reached only by raises from the lower level and winzes from the upper level. Three areas have been stopped in the ground between the upper and middle level.

To earn the Option, the Company is required to (i) pay an aggregate of US$25,000 to AMCOR (US$5,000 paid); (ii) issue an aggregate of 1,500,000 common shares to AMCOR in stages over five (5) years, with 500,000 common shares are issuable within five (5) days of TSX-V acceptance, a further 500,000 common shares issuance on the third anniversary of TSX-V acceptance and the remaining 500,000 common shares issuance on the fifth anniversary of TSX-V acceptance; and (iii) incur not less than an aggregate of US$1,500,000 of expenditures over five (5) years, of which US$500,000 is a firm commitment.

A work program is underway on the Bayhorse property, and follow up assays from those assays announced in the Company's news release KEX2013-11 from a surface and underground sampling program recently conducted by the Company are tabulated below. Further assay results are pending.

Ag Ag Cu Zn
Sample Type g/t oz/tonne % %
178623 Stockpile grab 1,210 38.9 8.62 4.92
178624 grab, upper adit entrance 169 5.43
178625 1m Chip, 0.5 mi s. of Bayhorse adit 424 13.63 2.17

Historic Information:

The Company advises that information of a historic nature is presented in this news release and historic production, estimates, drill information and grades reported have not been verified; A qualified person has not done sufficient work to verify the historical estimates nor classify the historical estimates as current mineral resources or mineral reserves and the Company is not treating the historical estimates as current mineral resources or mineral reserves. (ounces/grams conversion is one ounce/short ton = 34.2857 grams/tonne)

As "stated in the minerals production yearbook" (Jacobsen, 1959), total reported historic production from the Bayhorse Mine through 1959 was 286,000 ounces of silver from 8,300 tons of ore for an average of approximately 35.5 opt Ag (1,217 g/t Ag). Herdrick (1981) estimated remaining shipping ore at a 7.5 opt Ag cutoff to be 166,208 tons, and on-site mill ore at a 3 opt Ag cutoff to be 473,350 tons. Herdrick provides no production and shipping records

According to other more recent reports in 1984, 90 underground drill holes totaling approximately 15,000 feet reportedly delineated approximately 26,000 tons of silver bearing mineralization of which 5,718 tons were reported being produced at an average grade of 16.7 opt Ag (572.5 g/t Ag) while approximately 20,000 tons at an average of 15 opt Ag reportedly remained unmined. The historic records also indicate that of the 5,718 tons produced, approximately 23% reportedly graded between 21 - 100 opt Ag, 71% reportedly graded between 6 opt - 20 opt Ag and 6% reportedly graded less than 6 opt Ag. Ancilliary copper produced reportedly averaged 1% Cu. The highest reported grade from the 1984 drilling, sampling and mining program was a round that reportedly assayed 691 opt Ag (23,691 g/t Ag) and 15.72% Cu from a tetrahedrite-tennantite rich vein.

Both adits on the property are open, but the workings are not entirely accessible at present due to safety issues. Historic reports indicate that the mineralization, consisting mainly of tehrahedrite/tennantite, occurs in a 60-80 feet wide in a zone along an andesite and rhyolite contact. Minor copper, arsenic, and vanadium are associated with the silver. Azurite and malachite coatings are common in oxidized parts of mineralized ground on the walls of the excavated stopes. Additional minerals include enargite, dufrenoysite and cuprodesclosite. Gold values of up to 10 g/t Au have also been reported in the mineralization.

Kent Exploration Inc. is a junior exploration company with a 100% interest in its three New Zealand high grade gold prospects (Alexander River, Paparoa and Lyell), in the highly prolific West Coast South Island gold fields of New Zealand, and has entered into an Option and Joint Venture Agreement to earn an 80% Leasehold interest in the historic Bayshore Silver Mine in Oregon.

The Company has an experienced management and technical team with extensive exploration expertise and offers investors the potential for a major gold discovery on its New Zealand gold projects.

This News Release has been prepared on behalf of the Kent Exploration Inc. Board of Directors, which accepts full responsibility for its contents. The contents of this news release has been reviewed and approved by Dr. Clay Conway, P. Geol., a Qualified Person as recognized by National Instrument NI-43-101 and a director of the Company.

ON BEHALF OF THE BOARD

Graeme O'Neill, President

Neither the 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.

Caution Regarding Forward-Looking Statements - This news release contains certain forward-looking statements, including statements regarding the business of the Company, including with respect to execution of the Option and Joint Venture Agreement and the anticipated results thereof. These statements are subject to a number of risks and uncertainties. Actual results may differ materially from results contemplated by the forward-looking statements. There is no guarantee that the Option will be completed as proposed or at all. The Agreement remains subject to approval of the TSX Venture Exchange. When relying on forward-looking statements to make decisions, investors and others should carefully consider the foregoing factors and other uncertainties and should not place undue reliance on such forward-looking statements. The Company does not undertake to update any forward looking statements, oral or written, made by itself or on its behalf except as required by law.

Contact Information

  • Kent Exploration Inc.
    Graeme O'Neill
    President
    604-684-3394 or Toll free: 1-866-399-6539
    1-888-282-7763 (FAX)
    www.kent-exploration.com