VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 14, 2013) - Red Mile Minerals Corp. "Red Mile" (TSX VENTURE:RDM) has, subject to regulatory approval, acquired a 100% interest in the 1,100 hectare Esker Gold Property located 61 km west of the town of Pickle Lake in northwestern Ontario. The property is contiguous to the southeast with the Golden Patricia mine, which produced 450,000 ounces of gold at a head grade of 14.9 g/t Au while operated by Barrick Gold from 1988 to 1996.
The Esker Property hosts the Esker gold prospect discovered by St. Joe Canada Limited in 1988. Gold is hosted by quartz veins and alteration within sheared mafic metavolcanics and banded iron formation comparable to that found along strike at Golden Patricia mine 4.75 km to the northwest.
A total of 12 diamond drill holes by St. Joe Canada tested the Esker Zone in 1988-1990; all holes intersected gold-bearing intervals. Three holes tested the thickest part of the Esker zone to a depth of approximately 50m and along strike for 80 m. Historical assay results from the Esker zone include:
- ME-88-08: 3.18 g/t Au over 12.3 m, including 5.67 g/t Au over 5.22 m in iron formation;
- ME-88-06: 24.0 g/t Au over 0.3 m from a quartz vein in mafic metavolcanic.
(*summarized from Ontario Ministry of Northern Development and Mines data)
John Hickey, President & CEO of Red Mile commented: "We are excited about acquiring a quality property with high grade gold potential in a structurally favourable setting that has been under-explored and has gold showings located at surface. To date, there has been limited drilling to test the gold zone. Its proximity to a past producer and the advantages of available infrastructure in the area are also attributes that attracted us to the property."
To acquire a 100% interest in the Esker Gold Property, Red Mile will, subject to Regulatory Approval, issue 1,000,000 common shares of Red Mile to DLK Minerals.
A 2.0% net smelter return royalty ("NSR") has been reserved in favour of DLK; Red Mile may purchase and terminate 1.0% of the NSR, in increments of 0.5%, at $500,000 per 0.5% (total of 1% at $1,000,000).
Red Mile has moved its head office to 65 Queen St. West, Suite 520, Toronto, ON M5H 2M5.
Kerry Sparkes M.Sc., P.Geo and Director of Red Mile is the Qualified Person responsible for the technical information contained within this release.
About Red Mile Minerals Corp.
Red Mile Minerals is a tightly held mineral exploration company with a gold property along the prolific Destor-Porcupine gold-producing region in Ontario and the Dorset Property in Baie Verte, Newfoundland. Red Mile continues to seek additional mineral exploration opportunities where the company's exploration expertise and corporate share structure could substantially enhance shareholder value. Currently there are 21,445,000 shares issued and outstanding.
On behalf of the Board of Red Mile Minerals Corporation
John Hickey, President and CEO
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.