Benton Resources Inc. is pleased to announce that the Company has signed a Letter of Intent to Option/Joint Venture with Metals Creek Resources Corp. whereby Benton can earn up to a 70% interest in MEK's 100%-owned Staghorn Gold Property in Newfoundland.
To earn an initial 60% interest, Benton must make cash payments of $50,000, issue a total of 500,000 Benton shares and incur work expenditures of $500,000, all over a three year period. Benton will be the operator during the earn-in period. Once a 60% interest is earned by Benton, either a 60/40 joint venture will be formed, or Benton may elect to earn an additional 10% interest to bring its total property interest to 70% by paying $50,000 cash and issuing an additional 500,000 Benton shares within 60 days of the 3rd anniversary date and incurring an additional $500,000 in exploration expenditures by the 5th anniversary date. This agreement is subject to regulatory approval.
During the summer/fall of 2014, MEK discovered a high grade gold bearing, granitic boulder train along the Cape Ray/Victoria Lake Fault Zone on the Staghorn property. The regional fault zone hosts a number of gold deposits including Marathon Gold's Valentine Lake deposit, located 30 km to the northeast and Benton's Cape Ray gold deposits approximately 100km to the southwest. The Staghorn Gold Property covers a 29 km strike length of the mineralized trend. Previous work had outlined a number of gold showings in the central and southwestern part of the property. This latest discovery is located in the northeast part of the property, in an area of little previous work and opens up a new prospective area for further exploration.
The boulders are described as angular to sub-angular, and consist of altered and foliated granite containing variable amounts of pyrite and arsenopyrite. A total of 30 samples were collected from the numerous boulders which varied in size from 0.10 to 0.75 meters and have been traced over a 175 meter length. Assay results ranged from 11 parts per billion gold (ppb Au) to 32,152 ppb Au (see previous MEK press release dated August 18, 2014). The abovementioned samples are boulder samples, selective by nature and are unlikely to represent average grades on the property.
Stephen Stares, President of Benton states, "We've completed two field visits to the project, confirmed the gold grades and reviewed the historical work. The project is situated between the Marathon and Benton gold deposits on the same mineralized regional fault structure in a friendly mining jurisdiction with good access. As such I believe the Staghorn project represents a good opportunity for Benton shareholders."