TORONTO, ONTARIO--(Marketwire - March 28, 2013) - Strike Minerals Inc. (TSX VENTURE:STK) ("Strike" or the "Company") announces that a statement of claim has been filed against the Company under the Construction Lien Act (Ontario), by 161229 Canada Inc. carrying on business as Whelan Mining Contractors ("Whelan"). Whelan claims that the Company owes money for dewatering work undertaken by Whelan at the Company's Edwards Gold Mine property (the "Property") and caused a Claim for Lien and Certificate of Action to be registered on title. Whelan has also named Waterton Global Value (Luxembourg) S.A.R.L. ("Waterton") as a defendant in relation to a charge advanced by Waterton on the Property.
The Company is currently in discussions with both Waterton and Whelan to come to a settlement of this matter. The Company does not foresee any precipitous action taken by any of the parties and looks forward to working with Waterton and Whelan to come to a mutually agreeable settlement.
Strike Minerals is a TSX-V listed company that is engaged in the exploration and development of precious metal properties in Canada. Its primary property is the former producing Edwards Gold Mine property in the Goudreau - Lochalsh Gold Camp near Wawa, Ontario. Historic production in the camp between 1930 and 2001 is estimated at 500,000 ounces of gold. Between 1996 and 2001 underground development was completed through a decline to a depth of approximately 290 m resulting in 145,000 oz Au being mined from the Property.
Subsequent drilling on the Property has delineated an additional five zones that have significant gold mineralization. Strike has commenced dewatering of the underground workings in order to provide access to enable underground drilling and bulk sampling of these new zones. The dewatering will also enable Strike to evaluate old stopes and high grade mineralization that was not mined when the mine was closed due to low gold prices in 2001.
Strike also has a large land position in the Hemlo West area near Schreiber, Ont. The property has a number of historic producers that produced small tonnages of very high grade gold mineralization, averaging approximately 18-25 g/t gold, between 1935 and 1937 generally associated with shear zones in the region. These shear systems have seen very little modern exploration, and drill testing at or near a prominent syenite volcanic contact is considered highly prospective for the discovery of additional gold mineralization. Strike will conduct an initial program of surface geological and alteration mapping on the property with a goal of increasing the understanding of the geologic and structural relationships on the property in preparation for drill testing to assess the extent and value of the mineralization.
Certain information set forth in this news release may contain forward-looking statements that involve substantial known and unknown risks and uncertainties. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond the control of Strike, including, but not limited to, the impact of general economic conditions, industry conditions, volatility of commodity prices, risks associated with the uncertainty of exploration results and estimates and that the resource potential will be achieved on exploration projects, currency fluctuations, ability to raise funds, dependence upon regulatory approvals, and the uncertainty of settling the action brought against it by Whelan. There is no assurance that the company's exploration projects will add to Strike's resource base in the short-term, or at all. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements.
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.