Trueclaim Exploration Inc.

July 07, 2010 09:29 ET

Trueclaim Exploration Inc.: TRM Expands Scadding Gold Claims

ST. THOMAS, ONTARIO--(Marketwire - July 7, 2010) - Trueclaim Exploration Inc. (TSX VENTURE:TRM) (the "Company") an explorer and developer of precious and base metals, is pleased to announce that it has completed an Option Agreement (the "Agreement") with Mr. Terry Loney (the "Optionor") of Garson, Ontario. Under the Agreement the Company can earn a 100% interest in approximately 7,000 hectares (17,297 acres) comprised of 438 claim units. These claims are contiguous with the claims currently owned and being explored by the Company related to the former Scadding Gold Mine. The addition of these new claims will bring the Company's holdings in the Scadding region to approximately 21,000 hectares (52,000 acres).

"The addition of these new claims had been defined as key land acquisition targets in the Scadding development program" noted Mr. John Carter, President of Trueclaim. He went on to state that "the claims include a number of former producing properties, while other areas have been the subject of a number of preliminary exploration programs. As such we are looking forward to folding them into the overall Scadding exploration plan that will include the 10,000 metre Phase II drill program scheduled for the fall of 2010".

The additional acreage is located in five general areas as follows:

  1. To the north the area includes the Alwyn Porcupine Mine or Haultain Mine, a former gold producer operated in the 1930's, having past production of 7,000 tons @ 0.2 ounces per ton (opt) from a shaft with lateral workings, and a historic non-compliant NI 43-101 resource of 12,000 tons grading 0.14 opt (totalling 1,680 oz) and 1% Copper (Cu). The site has unexplored gold-hosting structures along strike (recent samples from this E-W shear have run at 0.2 opt) and a minimum of three untested induced-polarization geophysical targets.
  2. To the east is an area known as the Midas Property. It contains historic drill intersections of 0.65 opt gold (Au) over 1.5 metres and grab samples of up to 11 opt Au. Quartz veins and alterations are exposed for over 700 metres in this area. It also contains several untested VLF-EM anomalies.
  3. To the north-east is the McLaren Lake Property where assaying by Mid-Continental Goldfields of channel samples has yielded 0.14 opt Au over 4.6 metres. The area contains an extensive alteration zone with little work done to date.
  4. To the east is the East Red Rock Property. Preliminary work on this area by Anglesea Development Ltd. (1980) has generated drill assays of 0.17 Au over 3.05 metres. Historic records indicate that a bulk sample of 2,500 tonnes was also taken from this area and was reported to yield 0.27 opt Au and up to 7% Cu.
  5. To the north-west is the East Jerome showing. In 1997 Flag Resources reported a grab sample of 1.28% nickel and copper and 4.35 g/t Platinum (Pt) and Palladium (Pd) on this property. This is the same formation as the Rathbun Lake Occurrence located north of Scadding, where historic drill programs reported assays of 10.2% Cu, 0.14% Ni, 0.056 opt Pt, 0.02 opt Au, 2.02 opt Ag and 34.6 opt Pd.

Alkalic alteration is found on a number of the claims covered by these five areas, as well as chlorite shear zones. These can be related to gold mineralization and may also be related to an Iron oxide Copper Gold (IOCG) style mineralization.

The addition of these new claims represents the third agreement with Mr. Loney. The first consisted of an option on 1,619 hectares (4,000 acres) completed and announced in January, 2010. This first agreement included acreage in two related areas. To the west the first option contains past workings such as the Bonanza mine, which have has several showings with some significant grades. To the east are claims which are contiguous with approximately 75% of the perimeter of the past gold-producing Norstar Mine. The second dated April 17th, 2010 was established to allow contiguousness for Mr. Loney's optioned Maclennan claims.

Under the terms of the new Agreement the Company agreed to include all of the claims covered under the Loney agreements in an airborne geophysical survey carried out in the spring of 2010. The Company has recently announced some of the results of that survey in its June corporate update press release. The Option Agreement is also subject to a two percent (2.0%) Net Smelter Return (NSR) in favour of Mr. Loney. Finally, in order for the option on the current agreement to be fully exercised the Company has agreed to make an aggregate payment of $100,000 and to issue an aggregate 800,000 common shares, both to Mr. Loney, according to the following schedule:

  1. A payment of $20,000 on or before the twelve (12) month anniversary of the Effective Date of the Agreement (the Effective Date being defined as five business days following the receipt by the Company of regulatory approval of the Agreement).
  2. A payment of $30,000 on or before the twenty-four (24) month anniversary of the Effective Date of the Agreement.
  3. A payment of $50,000 on or before the thirty-six (36) month anniversary of the Effective Date of the Agreement.

The Company will also issue the common shares to Mr. Loney as follows:

  1. 100,000 common shares within five (5) business days of the Effective Date of the Agreement.
  2. 200,000 common shares on or before the twelve (12) month anniversary of the Effective Date of the Agreement.
  3. 200,000 common shares on or before the twenty-four (24) month anniversary of the Effective Date of the Agreement.
  4. 300,000 common shares on or before the thirty-six (36) month anniversary of the Effective Date of the Agreement.

As noted in prior announcements, the Company will be incorporating the new claims into its Phase II ground and drill exploration work planned for Scadding, and will be providing additional corporate updates as the program proceeds. This will include presentations to a broad range of institutional and retail investors over the course of 2010 and into 2011. On a related note, previous plans to engage the services of 0880065 B.C. Ltd. owned by Erika Tibbe as an outside investor relations service have been terminated.

We seek safe harbour.

John Carter, President

Technical information in this news release has been reviewed by Mr. Bob Komarechka, P. Geo., acting as a consulting Project Geologist for the Company, and prepared in accordance with Canadian regulatory requirements as set out in National Instrument 43-101. Company Management, which takes full responsibility for content, prepared this news release. Some of the statements contained in this release are forward-looking statements, such as estimates and statements that describe the Company's future exploration and financing plans, objectives or goals, including words to the effect that the Company or management expects a stated condition or result to occur. Since forward-looking statements address future events and conditions, by their very nature, they involve inherent risks and uncertainties. Actual results in each case could differ materially from those currently anticipated in these statements. Such risks include expectations that may be raised by discussing potential mine types and by comparing the Company's projects to other projects. Also, in order to proceed with the Company's exploration and acquisition plans, additional funding is necessary and, depending on market conditions, this funding may not be forthcoming on a schedule or on terms that facilitate the Company's plans.

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 news release.

Contact Information

  • Trueclaim Exploration Inc.
    John Carter
    1-888-686-1405 (FAX)