Sheltered Oak Resources Corp.
TSX VENTURE : OAK

Sheltered Oak Resources Corp.

October 26, 2011 13:32 ET

Sheltered Oak Expands Kerrs Gold Deposit Along Strike and to Depth & Negotiates A $500,000 Bridge Loan

TORONTO, ONTARIO--(Marketwire - Oct. 26, 2011) - Sheltered Oak Resources Corp. ("OAK" or "the Company") (TSX VENTURE:OAK) today announced drilling results from two holes completed for extension potential of the Kerrs Gold Deposit located on its 100% controlled Kerrs Property and the adjacent property in the East Timmins Gold Camp. Results from both holes demonstrate the same mineralization characteristics of the Kerrs Quartz Carbonate Breccia Zone (KBX Zone) which is hosted in the Kerrs Gold Deposit. These results imply that the Kerrs Gold Deposit extends beyond the boundaries defined to date and remains open along strike and to depth.

Highlights from these results in the Kerrs Gold Deposit are:

SECTION 1500N:
• DDH K-11-48 EXTENSION : KBX ZONE: 4.40 m averaging 2.83 g/t Au
SECTION 1600N :
• DDH K-11-49 : KBX ZONE : 17.2 m averaging 1.81 g/t Au
Including : 4.8 m averaging 2.54 g/t Au
Including : 4.4 m averaging 3.73 g/t Au

JJ Elkin, President and CEO of Sheltered Oak commented: "We are encouraged with the results of the in-fill and extensional drilling programs thus far. The objectives of our Phase 6 drilling program involving 24 holes have been met and we are awaiting more results from nine holes. Once we receive the pending results, we will be upgrading our geologic model in order to plan for future drilling activities."

EXPLORATION DRILLING SUMMARY

From June 29, 2011, to October 8, 2011, a total of twenty-four (24) holes have been drilled totalling 8,702 metres (m).

Three definition holes targeted in-filling, to tighten the spacing between intercepts on higher grade sections, as well as seven holes extending the Kerrs Quartz Carbonate Breccia Zone (KBX Zone) hosted in the Kerrs Gold Deposit.

In-fill drill holes K-11-44, 45, and 46, were focused on sections 1100N and 1200N and their assay composite results were first reported in a prior news release issued on September 8, 2011 which included adjacent historical holes on each section for grade continuity purposes.

Six extensional drill holes completed on sections 1400N, 1500N, 1600N, 1700N and 1800N have successfully extended the KBX Zone along strike and to depth. Reported today is drill hole K-11-49 (section 1600N) which intersected a significant pyritic quartz vein replacement breccias (KBX Zone) from 403 m to 429 m averaging 1.81 g/t Au. This intercept is located 136 m downdip of K-06-16 which returned 1.22 g/t Au over 4.1 m. At section 1600N, the structural dip of the Kerrs Gold Deposit steepens. Based on this interpretation, holes K-11-47 (first assays reported in September 8, 2011, news release) and 48 were deepened to 600 m and confirmed that the pyritic quartz vein breccias correlate to the intersection in hole K-11-49. Also notable, each of these holes terminated in a quartz feldspar porphyry unit intruded at the mafic/ultramafic flow contact.

On section 1700N, holes K-11-55, 55A, and 57 transected a north/south trending diabase dyke that was formed after the Kerrs Gold Deposit. On section 1800N, hole K-11-58 was planned to intersect the KBX Zone on the northeast side of the diabase dyke but the KBX Zone was not encountered due to a 100 m displacement of the mafic/ultramafic flow contact to the east. Taking this structural adjustment into account, hole K-11-59 was collared northeast of hole 58 on line 1800N and successfully intersected the KBX Zone at a depth of 562 m to 585 m and terminated in the quartz feldspar porphyry unit.

The exploration drilling results for K-11-48 and 49 are outlined as follows:

Drill
Section
Drill
Hole
From
(m)
To
(m)

Interval*
True
Width
Comp. Grade
Au (g/t)
Intercept
Spacing (m)
1400N K-10-36 301.8 308.4 6.60 5.87 0.85 98
1400N K-10-35 324.0 330.0 6.00 5.52 2.28 87
1400N K-06-12B 428.2 436.0 7.80 7.18 2.67 195
1400N K-11-47 508.7 526.8 18.10 assays pending
1500N K-10-37 348.2 364.8 16.60 14.11 2.01 76
1500N K-10-38 314 320 6.00 5.34 0.81 145
1500N K-11-48 445.0 450.5 5.50 4.40 2.83
1600N K-06-16 322.4 326.5 4.10 3.85 1.22 136
1600N K-11-49 403.0 429.0 26.00 17.20 1.81
including 409.0 416.3 7.30 4.80 2.54
including 420.3 427.0 6.70 4.40 3.73
1800N K-11-59 562.0 585.0 23.00 assays pending
* All intervals are represented as down-hole core lengths. True widths(TW) are corrected by 35% to 95% of core length. The intercept spacing is the distance between the drill hole pierce points in the KBX Zone measured from the midpoint of each composite grade interval in the downdip Azimuth direction of 130 degrees.

Bridge Loan

On other news, Sheltered Oak negotiated a bridge loan from Richbert Agencies S.A. (the "Lender") for the principal sum of $500,000 payable on the later of (i) the 31st of December 2011 and (ii) the date on which Sheltered Oak completes a debt, equity or other financing for the net proceeds of at least $500,000. The principal sum bears an interest rate of 10% per annum and payable on a quarterly basis.

Quality Assurance and Quality Control

The Phase 6 diamond drilling program involving concept generation, geological core logging, sampling and drilling logistics is supervised by Peter Hubacheck, P.Geo. (APGO), who is providing geological management services via Hubacheck Consulting Geologists (HCG), an affiliate of W.A. Hubacheck Consultants Ltd. Peter Hubacheck is a Qualified Person as defined by NI 43-101 and has reviewed and authorized the geotechnical material in this news release.

ABOUT SHELTERED OAK RESOURCES CORP.

Sheltered Oak Resources Corp. is focused on mineral exploration opportunities within Canada and owns a 100% interest in 27 mining claims including 12 mining lease totaling 4,176 hectares which comprise the Kerrs Gold Property, located east of Matheson in the prolific area of the Abitibi Greenstone Belt in northeastern Ontario. The Company has also acquired an option to earn a 60% interest in 46 mining leases comprising the adjacent property from Goldcorp Canada Ltd. and Goldcorp Inc.

Should you wish to receive informational updates on Sheltered Oak Resources Corp. please contact cecilia@chfir.com.

Some statements contained in this news release are forward-looking and, therefore, involve uncertainties or risks that could cause actual results to differ materially. Such forward-looking statements include comments regarding the expectation and timely disclosure of the results of a diamond drilling program, additional drilling and, an additional debt, equity or other financing. Factors that could cause delays in reporting the exploration drilling results include: verifying and validating the geological logging, modelling and assay lab QA/QC protocols, verifying and validating the drill hole location co-ordinates and downhole surveys and obtaining additional funding which may or may not be achieved on terms acceptable to the Company. Although OAK has attempted to identify important factors that could cause actual actions, events or results may differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. Readers should not place undue reliance on any forward-looking statements. OAK disclaims any obligation to update forward-looking statements unless required by law.

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.

Contact Information

  • Sheltered Oak Resources Corp.
    J.J Elkin
    President and CEO
    416-628-5802
    416-628-5051 (FAX)
    jj@shelteredoak.com

    Sheltered Oak Resources Corp.
    Art Hampson
    Chief Financial Officer
    416-628-5802
    416-628-5051 (FAX)
    ahampson@shelteredoak.com

    CHF Investor Relations
    Jeanny So
    Director of Operations
    416 868 1079 ext. 225
    416 868 6198 (FAX)
    jeanny@chfir.com