Northcore Resources Inc.

Northcore Resources Inc.

August 03, 2011 07:44 ET

Northcore Resources Signs a Letter of Intent to Purchase a 50% Interest in the Little Monster Property With Vanstar Mining Resources

MONTREAL, QUEBEC--(Marketwire - Aug. 3, 2011) - Norhcore Resources Inc. (TSX VENTURE:NCR) is pleased to announce that it has signed a Letter of Intent ("LOI") to enter into a 50% interest purchase and joint venture agreement with Vanstar Mining Resources Inc. (TSX VENTURE:VSR) regarding 20 cells covering an area of 1,100 hectares comprising the Little Monster property ("Little Monster") located in Chibougamau, Quebec. The LOI is subject to the signature of a Joint Venture Agreement as well as Board and regulatory approval.

The Little Monster property is contiguous to Stellar Pacific Ventures' (TSX VENTURE:SPX) Monster Lake property. The Monster Lake area is actively being explored by Stellar Pacific Ventures, which recently discovered many gold showings. In a recent press release dated June 15, 2011, Stellar Pacific Ventures reported … This phase II program consists of 20 to 25 holes totalling 2,500 to 3,000 metres. The program will test extensions of zones Megane, 52, 325, Nouvelle and Eratix. Zones Megane, 52 and 325 reported good gold intersections in previous drilling done in January and February, 2011, by the company and will be tested at depth.

Hole M-16-10 at showing 325 cut 5.54 grams per tonne (g/t) gold over 4.6 metres including 1.0 metre grading 18.36 g/t gold. The mineralized zone has been cut between depths of 38.8 to 50.6 metres totalling 11.8 metres grading 2.44 g/t Au. This hole was drilled to confirm the vertical extension of newly discovered showing 325 where surface channel sampling done by the company in the summer 2010 program reported grades of 7.26 g/t Au over 1.6 m, and 2.10 g/t Au over 2.1 metres.

Hole M-18-10 located 100 metres southwest of surface showing zone 325 cut a five-metre zones grading 5.38 g/t Au over 5.0 m including 11.3 g/t Au over 1.0 m and 8.6 g/t Au over 2.0 m. The mineralized structure at depth is consistent with the surface showings and consists of silicified schist containing 3 to 15 per cent sulphide mainly pyrite and pyrotite with minor chalcopyrite ...

This Monster Lake area also contains some important gold deposits such as the Joe Mann mine and the Chevrier and Philibert deposits.

To purchase a 50% interest in Little Monster, Northcore will make a cash payment of $5,000 and issue 400,000 common shares to Vanstar once the transaction will have been approved by the regulatory authorities. Both parties have undertaken to spend a minimum of $50,000 in annual exploration expenses. Northcore has negotiated a right of first refusal to acquire Vanstar's 50% interest.

Should one of the parties not spend his annual commitment, the defaulting party will be diluted by 10% for each tranche of $100,000 spent by the participating party. In case of default, such dilution could be reduced to 0% over time, whereby a 1% NSR would still be obtained by the defaulting party if a minimum of $100,000 has been invested in the property over the life of the agreement.

Vanstar will act as the Joint Venture operator on Little Monster and both parties have agreed to set up a Joint Venture Management Committee which will operate in accordance with standard Joint Venture requirements. Compilation and preliminary exploration work on the property should start in early September following the signature of the JV Agreement.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this press release.

Contact Information