StoneShield Capital Corp.
TSX VENTURE : STS

StoneShield Capital Corp.

December 09, 2010 03:02 ET

StoneShield Signs Option to Acquire Up to A 100% Interest in the Risby Copper/Silver/Lead/Zinc Project in the Northwest Territories, Canada

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 9, 2010) - StoneShield Capital Corp. (TSX VENTURE:STS) ("StoneShield" or the "Company") is pleased to announce it has signed an option with Andesite Capital LLC ("Andesite") to acquire up to a 100% interest in the Risby copper/silver/lead/zinc project (the "Risby Project") located near the Yukon border in the Northwest Territories, Canada.

The Risby Project, located within the MacKenzie Mountains some 80km east of the MacMillan Pass in the Yukon Territories, is comprised of 93 claims totaling approximately 89,040 acres (360 km2). The southern claim blocks are located at the northern boundary of the Redstone copper/silver deposit owned by Western Copper Corporation (WRN-TSX), host to an inferred resource of 33.6 Mt of 3.92% Cu & 9.0g/t Ag (43-101 compliant; contained metals of 2.94 billion pounds Cu, 9.8 million ounces Ag). The Redstone deposit is estimated to be continuous over a surface area of 3.6km in length, 2.4km in width with an average thickness of 0.8 metres. The Redstone deposit is a laterally persistent, stratabound, blanket-like deposit, very similar to other sediment- hosted copper deposits, such as the Kupferschiefer in Poland and the copper belts of Zambia and the Congo. Sediment-hosted deposits are among the largest in the world and contain approximately 25% of the world's copper resources. Many of the copper occurrences on the Risby Project have similar stratabound geologic characteristics to the Redstone deposit and these deposits.

Director Allen Ambrose commented, "The Risby Project is situated in a belt of sedimentary rock several hundred kilometres in length that is host to numerous base metal prospects. The district-scale size of the land package with extensive mineralization already encountered in several areas, further highlight the highly prospective potential of this region to host copper, lead, and zinc mineralization. StoneShield will be well positioned in this emerging region of the Northwest Territories that has had only limited exploration in the recent past."

The separate property blocks are divided into two main groups based on two main explorations targets: those of sediment-hosted copper affinity, termed the Proterozoic Copper/Silver properties; and those of Mississippi-Valley type affinity, termed the Paleozoic Lead-Zinc properties.

The Copper/Silver Properties

The primary exploration target consists of sediment-hosted copper occurrences within Proterozoic sediments that are scattered over the 300km long Redstone Copper Belt. The property includes claims within two of six structural embayments that host copper mineralization. Copper mineralization is typically hosted near the contact between an oxidized clastic sediment footwall and a reduced carbonate sediment hangingwall, which is typical for these deposits.

Numerous sedimentary copper occurrences have been discovered on two separate claim blocks. The Keele block is the largest of the claim blocks and contains five main copper showings and four other untested occurrences. The June showing was drill tested in the mid-1970s by Shell Canada Ltd. and returned drill results including 52m of 2.3% Cu. Drilling at the Jay showing returned drill results including 12m of 2.7% in one Shell drill hole. Both areas require additional drilling to determine the extent of the mineralization. Drilling by Phelps Dodge at the Ann showing resulted in 3.5m of 1% Cu and 1.6m of 1.2% Cu in two separate holes. This zone is considered to be open in all directions. All three of these showings (June, Jay and Ann) are hosted within the transitional stratigraphy between the underlying redbeds and overlying carbonates (typical for redbed copper deposits) and the same stratigraphic horizon as the Redstone deposit.

The Nite and Hammer/Pat Creek showings are hosted within carbonates that are stratigraphically higher than the June, Jay and Ann and contain copper mineralization that is structurally complex. Assays from surface exposures range from 13.7m of 1% Cu in a trench to an average sample value of 1-1.2% Cu over 400m of surface strike length. Three holes drilled by Phelps Dodge in 2007 each penetrated 1m to 2m thick mineralized intervals grading from 1% to 2% Cu.

The Lead/Zinc Properties

The Mississippi Valley style lead-zinc mineralization is hosted in structural and hydrothermal dissolution features in Devonian carbonates and occurs in numerous locations within three separate claim blocks (KAP, Boom, AdyJo). The KAP area contains drill intercepts by Cominco Ltd. of 9.5m of 25% Zn and 13.5m of 16% Zn. Gravity survey anomalies have been only partially tested by drilling. Nine high-grade zinc samples contained an average of 0.019% gallium and 0.077% germanium, both rare metals in high demand.

The qualified person for StoneShield under National Instrument 43-101 is Allen Ambrose, P.Geo.

The Option Agreement

Under the terms of the option agreement, StoneShield can acquire an initial 75% undivided interest in the Risby Project by incurring a total of $3,000,000 in exploration expenditures on the Risby Project as follows: $600,000 in expenditures on the Risby Project to be incurred in the first year following TSX Venture Exchange acceptance ("Acceptance") of the option agreement, $1,000,000 in expenditures in the second year, and $1,400,000 in expenditures in the third year. In addition, StoneShield will make cash payments of $40,000 to Andesite within 10 business days of Acceptance, $60,000 to Andesite on the first anniversary date of Acceptance and $100,000 to Andesite on the second anniversary date of Acceptance as well as issue to Andesite 500,000 shares of the Company within 10 business days of Acceptance, 500,000 shares on the first anniversary date of Acceptance and 500,000 shares on the second anniversary date of Acceptance.

StoneShield has a further option to acquire an additional 25% undivided interest (for a total 100% interest) in the Risby Project by either: (a) paying to Andesite $3,000,000; or (b) incurring an additional $3,000,000 in expenditures by the fifth anniversary date of Acceptance, paying to Andesite $100,000 on the third anniversary date of Acceptance and $100,000 on the fourth anniversary date of Acceptance, and issuing to Andesite 1,000,000 shares on the third anniversary date of Acceptance and 1,000,000 shares on the fourth anniversary date of Acceptance. Andesite shall retain a 2% net smelter returns royalty.

StoneShield is a publicly traded exploration company focused on the discovery of high- value precious metals deposits in North and South America. The Company's experienced management team boasts multiple discoveries, and brings over 70 years of combined experience in the mining and exploration sector. Please visit the Company's web site address at www.stoneshieldcapital.com.

ON BEHALF OF THE BOARD OF DIRECTORS OF STONESHIELD CAPITAL CORP.

Kris Kottmeier, President/CEO

Neither 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

  • StoneShield Capital Corp.
    Benjamin Curry
    Investor Relations
    (604) 689-2881 or Toll Free: 1-877-689-2881
    www.stoneshieldcapital.com