Key Gold Announces the Acquisition of the Musset Lake Copper Property Containing a Near Surface Historic Mineral Resource of 110
02 September 2010 - 1:24AM
Marketwired Canada
KEY GOLD HOLDING INC. (TSX VENTURE:KGH) ("KGH" or the "Company") Robert Seguin,
president, is pleased to announce that Key Gold has signed a Binding Letter of
Agreement (the "Agreement") to acquire a 100% interest in the Musset Lake Copper
Property (the "Property") consisting of 82 mining claims covering 3,998.1
hectares or 40 km2. The Property is located 90 km north of Schefferville
(Quebec) and can be accessed in the summer by helicopter and/or float-plane.
There is road access from Schefferville to New Millenium's KeMag Iron Property
located 40 km to the southeast.
Geology of the Musset Lake Copper Property
The Property hosts four copper showings centered on the Franelle Copper Prospect
("Franelle"). Franelle is hosted by a northerly striking near vertical dipping
gabbroic intrusive that is approximately 200 m wide and strikes the length of
the claims (about 5,000 m). Copper mineralization is disseminated in all parts
of the gabbro in varying concentrations. Enriched zones and fracture controlled,
higher grade mineralized zones are also present. Copper minerals observed are
chalcopyrite, chalcocite, malachite and bornite. Accessory minerals are
magnetite, ilmenite and epidote. Franelle was discovered during a regional
reconnaissance program by Canada Tungsten in 1975. Six holes were drilled in
1977 with the following results:
------------------------------------------------------------
DDH # Grade % Copper Core Length (m)
------------------------------------------------------------
77-1 0.19 49.5
------------------------------------------------------------
77-2 0.21 52.7
------------------------------------------------------------
77-3 0.29 173.4
------------------------------------------------------------
incl. 0.59 33.2
------------------------------------------------------------
incl. 0.80 14.9
------------------------------------------------------------
77-4 0.51 50.3
------------------------------------------------------------
incl. 0.86 25.3
------------------------------------------------------------
77-5 0.19 19.1
------------------------------------------------------------
77-6 0.19 202.5
------------------------------------------------------------
The drilling was followed by an estimation of "reserves" (GM33646, 1977;
Ministere des ressources naturelles et de la faune Quebec or MRNFQ) totalling
110,000,000 tonnes grading 0.23% Copper. This Mineral Resource is strictly
historical in nature and is non-compliant to the NI 43-101 Mineral Resources and
Mineral Reserves standards, and should therefore not be relied upon. A Qualified
Person has not done sufficient work to upgrade or classify these historical
Mineral Resources as current NI 43-101 compliant, and there is no guarantee that
any future exploration will convert part or all of the historical Mineral
Resources to current Mineral Resources.
The Property was then optioned to Outland Resources which drilled 4 holes in
1987. The drilling was not filed for assessment work but the core was logged and
sampled by Fonteneau Resources (GM53415). Hole 87-1 intersected 3 zones of
mineralization; 0.74% Copper over 23.2 m, 0.37% Copper over 20.1 m and 1.05%
Copper over 3 m. In hole 87-2, 9.8 m of core was sampled for an average grade of
0.83% Copper. Additional drilling was done in 1995 by Black Pine Limited
(GM53794). The results confirmed previous drilling results and are summarized
below:
-------------------------------------------------------
Grade Core Length
DDH # % Copper (m)
-------------------------------------------------------
96-1 0.28 19.8
-------------------------------------------------------
incl. 0.65 3.0
-------------------------------------------------------
96-2 0.26 12.2
-------------------------------------------------------
incl. 0.68 1.5
-------------------------------------------------------
96-3 0.36 23.3
-------------------------------------------------------
incl. 0.56 8.2
-------------------------------------------------------
96-4 0.24 40.8
-------------------------------------------------------
incl. 0.52 3.0
-------------------------------------------------------
96-5 0.29 43.4
-------------------------------------------------------
incl. 0.65 14.0
-------------------------------------------------------
96-6 1.35 4.9
-------------------------------------------------------
incl. 3.19 1.8
-------------------------------------------------------
96-7 0.36 31.7
-------------------------------------------------------
incl. 0.54 8.2
-------------------------------------------------------
96-8 0.56 39.0
-------------------------------------------------------
incl. 0.67 10.1
-------------------------------------------------------
96-9 0.22 43.0
-------------------------------------------------------
incl. 0.52 4.9
-------------------------------------------------------
96-10 0.22 66.8
-------------------------------------------------------
incl. 0.48 6.1
-------------------------------------------------------
96-11 0.24 81.1
-------------------------------------------------------
incl. 0.38 27.4
-------------------------------------------------------
96-12 0.17 50.0
-------------------------------------------------------
incl. 0.73 1.8
-------------------------------------------------------
96-13 0.20 77.1
-------------------------------------------------------
incl. 0.52 7.3
-------------------------------------------------------
96-14 0.32 80.8
-------------------------------------------------------
incl. 1.49 1.5
-------------------------------------------------------
96-16 0.15 56.7
-------------------------------------------------------
incl. 0.47 1.5
-------------------------------------------------------
96-17 0.19 51.8
-------------------------------------------------------
incl. 0.73 3.0
-------------------------------------------------------
96-26 0.23 62.4
-------------------------------------------------------
incl. 0.53 9.0
-------------------------------------------------------
96-27 0.42 79.2
-------------------------------------------------------
incl. 0.80 9.1
-------------------------------------------------------
96-29 1.12 32.0
-------------------------------------------------------
incl. 2.42 13.7
-------------------------------------------------------
Brassard (MB84-03, 1984) discovered two additional copper zones; the Bennelle
and Beluet showings. The Bennelle Showing is 1.1 km long by 50 m, and is
characterized by chalcopyrite and bornite in gabbro. Grab samples and pack-sac
drilling samples indicated copper grades similar to the Franelle Showing with
locally high concentration of copper in bornite and covellite. The southeast
portion of the dyke is Uranium enriched. The Beluet Showing is characterized by
chalcopyrite and azurite in sandstone, the surrounding host rock.
The Agreement
Under the terms of the Agreement, KGH in order to acquire a 100% interest in the
Property shall pay C$30,000 and issue 2,250,000 common shares to the vendors
upon receipt of the approval of the TSX Venture Exchange (the "Exchange"). The
shares are subject to a four month hold period from their date of issuance. The
vendors retain a 2% Net Smelter Returns Royalty (the "NSR") on the claims. The
NSR is subject to a buy-back clause, whereby KGH can purchase 1% for C$1,000,000
at any time. Moreover a finder fee of 300,000 common shares is payable for
services rendered.
Concurrently with the acquisition and subject to regulatory approval, Key Gold
intends to complete a financing by way of private placement through the issuance
of common shares at a subscription price of C$0.125 per share for aggregate
gross proceeds of up to C$600,000.
In addition, Key Gold has entered into agreements to convert into equity certain
debts amounting to up to $150,000 owing to arm's length creditors at a price of
$0.125 per share, subject to regulatory approval.
The technical information in this news release was prepared, revised and
approved by Jean Lafleur, P. Geo., Technical Advisor to the Company, a Qualified
Person under NI 43-101 standards and independent of the issuer.
About Key Gold Holding Inc.
Key Gold Holding Inc. is a junior mining exploration company listed on the TSX
Venture Exchange whose mission, among others, is to invest in small-scale gold
production projects and to provide expertise in financial and mining engineering
with the objective of maximizing return on investments and shareholders' value.
Shares outstanding: 11 740 434
Pangolin Diamonds Corporation (TSXV:KGH)
Historical Stock Chart
From Jun 2024 to Jul 2024
Pangolin Diamonds Corporation (TSXV:KGH)
Historical Stock Chart
From Jul 2023 to Jul 2024
Real-Time news about Pangolin Diamonds Corporation (TSX Venture Exchange): 0 recent articles
More Key Gold Holding Inc. News Articles