Sona Resources Corporation

Sona Resources Corporation

October 12, 2010 13:30 ET

Sona and First Nation Sign Partnership Agreement

Joint Venture to Share in the Development of Blackdome and Elizabeth Properties

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 12, 2010) - Sona Resources Corp. (the "Company" or "Sona") (TSX VENTURE:SYS)(FRANKFURT:QS7) is pleased to announce that it has entered into a business partnership agreement with the Stswecem'c Xgat'tem Development Limited Partnership ("SXDLP") of Dog Creek, British Columbia. The parties will jointly undertake the development of Sona's 100 percent owned Blackdome Gold Mine ("Blackdome") and Elizabeth Gold Property ("Elizabeth"), located in the Clinton and Lillooet Mining Districts of southern British Columbia. SXDLP is the wholly owned and independently operated economic development corporation for the Canoe Creek Indian Band.

Sona has granted to SXDLP a four-year option for the purchase of up to 10 percent of the shares in No. 75 Corporate Ventures Ltd., a wholly owned subsidiary of Sona that holds all the mineral claims, mining leases, ore processing plant and equipment for both projects. The option is exercisable upon permitting approvals and Sona's decision to commence full production at the two gold properties.

"We are pleased to have SXDLP as our business partner for the Blackdome and Elizabeth projects," says Nick Ferris, Sona's Executive Chairman. "We believe this agreement sets a precedent for the mining sector. It uses a free-market approach, and is founded on our mutual desire to create wealth, jobs, and contracting and other business opportunities for all the people of south-central British Columbia. We believe our combined efforts will help to develop entrepreneurial abilities and trade skills among the region's First Nations."

Sona and SXDLP will collaborate as business partners in all areas of operations, including finance, permitting and development, employment, contracting, and cultural and environmental matters.

"We believe this agreement will provide our community with capacity in terms of business development, and skills development in the mining sector," says Chief Hank Adam of the Canoe Creek Indian Band. "We view this agreement with Sona as an avenue to creating employment and other business opportunities for our people."

About Stswecem'c Xgat'tem Development Limited Partnership

SXDLP is a British Columbia provincially registered partnership, formed in 2007, with a mandate to invest in various joint ventures and conduct business activities relating to economic development for the Canoe Creek Band. SXDLP currently operates in the forest industry, in harvesting and silviculture as well as agriculture. The partnership with Sona will provide SXDLP the opportunity to develop business ventures in the mining industry and support entrepreneurs in the local aboriginal community.

About Sona Resources Corp.

Since its inception in 1990, Sona has engaged in exploration activities at its mineral properties in Canada and the United States, as well as small-scale gold production at its flagship property, the 100 percent owned Blackdome Gold Mine, in south-central British Columbia. At Blackdome, the indicated mineral resources are estimated to be 144,500 tonnes, grading 11.29g Au/t and containing 52,600 ounces of gold, and the inferred resource is estimated to be 90,600 tonnes, grading 8.79g Au/t (news release May 4, 2010). At its 100 percent owned Elizabeth Gold Property, 30 kilometres south of the Blackdome Gold Mine, Sona has outlined an inferred gold resource of 522,900 tonnes, grading 12.3g Au/t and containing 206,100 ounces of gold (news release June 8, 2009).

Sona aims to bring the fully permitted Blackdome Gold Mine and mill back into production over the next three years at a rate of 200 tonnes per day, with mill feed from both Blackdome and Elizabeth. A positive Preliminary Economic Assessment by Micon International Ltd. (news release May 28, 2010) has estimated pre-tax cash flow of $27 million and pre-production capital costs of $21 million over an eight-year period, based on a gold price of $950 per ounce.

Sona holds a 100 percent interest in two other promising properties: The Callaghan Project is located in Nevada, within 80 kilometres of several producing mines, and is underlain by the Roberts Mountain Thrust, a major structural setting for gold deposits. The Montgolfier Project is located in Quebec, 40 kilometres east of the multimillion-ounce Casa Berardi Mine gold deposit.

This news release contains certain forward-looking statements, and such statements involve risks and uncertainties. The results or events predicted may differ materially from actual results or events. Any forward-looking statement speaks only as of the date of this news release. Except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results, or any other occurrence.

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

  • Sona Resources Corp.
    802-1166 Alberni Street
    Vancouver, BC, Canada V6E 3Z3
    +1 (888) 236-5200
    +1 (604) 684-6678 (FAX)
    Marston Webb International
    Victor Webb/Madlene Olson
    Media Inquiries
    +1 (212) 684-6601
    +1 (212) 725-4709 (FAX)
    Stswecem'c Xgat'tem Development Corp.
    Clayton Harry, President
    Box 55, Dog Creek, BC, Canada V0L 1J0
    +1 (250) 440-5649
    Canoe Creek Indian Band
    Chief Hank Adam
    Dog Creek, BC, Canada V0L 1J0
    +1 (250) 440-5685