Touchdown Resources Inc.

December 01, 2010 18:54 ET

Touchdown Resources Acquires High Grade McFarlane Lake Gold Project in Border Township, Sudbury Mining Division, Ontario

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 1, 2010) - Touchdown Resources Inc. (the "Company" or "Touchdown") (TSX VENTURE:TDW) is pleased to announce that it has signed a Purchase Agreement ("Agreement") to purchase 100% right and title to 20 mineral claims in the Border Township, Sudbury Mining Division, Ontario (the "Property") with Steven Anderson, Don Mc Holdings Ltd., Brenda Chisholm and Larry Salo (collectively referred to as the "Vendors") all of whom are at arm's length to the Company.

Sudbury, Ontario: Border Township Property Purchase

Pursuant to the Agreement, Touchdown will issue to the Vendors a total of 1,200,000 of its common shares and 600,000 share purchase warrants exercisable at $0.20 for a period of 24 months within 3 days of receiving TSX Venture Exchange ("Exchange") approval, and, will issue an additional total of 1,200,000 of its common shares on the first anniversary of Exchange approval.

Pursuant to the Agreement, Touchdown agrees that the Vendors shall reserve unto itself a 3.0% net smelter returns royalty (the "Royalty") in relation to the Property. Each of the Vendors agrees that Touchdown may, in its sole discretion, purchase 1.5% of such Royalty from the vendors in consideration of $1,000,000, such that, upon completion of such purchase, the Royalty shall be reduced to 1.5%. A finder's fee may be payable in accordance with Exchange policy.

McFarlane Lake Gold Project

The McFarlane Lake Gold Project is made up of 20 contiguous unpatented single unit and block mining claims located in the central eastern portion of Border Township, Sudbury Mining Division. In total the property covers 800 acres or 320 hectares. The northern boundary of the Project is approximately 8 kms to the south from downtown Sudbury. Bush road access via Provincial Hwy 17 By-Pass is approximately 2 km to the north of the Property.

The claim block is situated near the center of an extensive east-west belt of Huronian Supergroup of metasediments which extend from Sault Ste. Marie to Cobalt, Ontario. It is underlain by Huronian greywacke with high silica quartzite and massive amphibolites. This unit contains blue to grey brecciated quartz vein structures with moderate percentages of massive marcasite and nodules, and course disseminated chalcopyrite with lesser covelite, bornite, arsenopyrite and pyrite.

Touchdown President Richard Macey stated, "This project adds another highly prospective gold asset to our project portfolio from which historic sampling, from sulphide mineralization, yielded spectacular gold values including 3.11, 2.67, and 2.78 oz/t Au."

This news release has been prepared on behalf of the Touchdown Resources Inc. Board of Directors, which accepts full responsibility for its contents. The contents of this release have been reviewed and approved by Marvin A. Mitchell, P.Eng, a qualified person as defined by National Instrument 43-101.

Touchdown Resources Inc. is a Vancouver-based mineral exploration company, focusing on the acquisition, evaluation and exploration of projects in the prolific gold and mining camps of Northern Ontario. Touchdown also holds gold and molybdenum properties in British Columbia. Touchdown's shares are listed on the TSX Venture Exchange under the symbol "TDW".

On Behalf of the Board,

Touchdown Resources Inc.

Richard Macey

"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

  • Touchdown Resources Inc.
    Richard Macey
    (604) 669-0401
    (604) 669-0414 (FAX)