VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 26, 2012) - Red Mile Minerals Corp. (TSX VENTURE:RDM)(the "Company")("Red Mile") has acquired an option (the "Option") to earn a 50% interest in the Blue Quartz Extension gold property located immediately adjacent, and on trend, to the Blue Quartz property, owned 50% by the Company and 50% by McLaren Resources Inc. (MCL - CNSX)("McLaren").
The Blue Quartz Extension property is located in Beatty Township in the Timmins District of Ontario and consists of 8 staked claims (240 ha) and is subject to an existing 2% NSR. The property is situated 8km north-west of the Black Fox Mine operated by Brigus Gold. Under the terms of the Option, the Company must;
- Spend a minimum of $100,000 on exploration drilling by August 31, 2013;
- Spend a further $200,000 on exploration drilling by August 31, 2014;
- Spend an additional $200,000 on exploration drilling by August 31, 2015 for an aggregate total of $500,000 to earn a 50% interest.
Property Map: http://redmileminerals.com/images/REd-Mile-Blue-Quartz-Property.png
The Company can spend the exploration funds on either the Blue Quartz Extension property or the Blue Quartz property to earn the interest in the Blue Quartz Extension property.
The Company has signed a letter agreement to acquire the Option, with an industry standard definitive Option Agreement to be executed within 6 months. Upon execution of the option, Red Mile and McLaren will each own 50% of the entire Blue Quartz-BQ Extension package.
John Heslop, a member of the Board of Directors of the Company, is also a director of McLaren, and therefore abstained from voting on the Option agreement.
Proposed Drill Program
The drill program will focus upon expanding on the positive exploration results received in 2010 - 2011.
Blue Quartz Drill Results - 2010 & 2011: http://media3.marketwire.com/docs/r925t.pdf
These results indicate a strong gold mineralized structure located at the west end and below the historic underground workings as well as to the west and below the majority of the limited drilling completed on the property to date. The mineralized zone is open to depth and down plunge with indications that the hydrothermal alteration system is increasing in intensity along with both the grade and width of the mineralization. The drilling will target down plunge and along strike of this mineralization.
About Red Mile Minerals
Red Mile Minerals is a closely 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. To access the Company's updated presentation, clink on the link www.redmileminerals.com.
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.