Oct 13 2010
Paget Minerals Corp. (TSX VENTURE:PGS) today announced that it has initiated a Phase II exploration program on the Cabin Gold-Silver project, central BC.
The program will consist of an Induced Polarization and ground magnetic survey followed by initial drill testing of geological and geophysical targets.
Mapping and sampling at Cabin identified a 600 x 1,000 metre (m) zone of quartz-sericite-pyrite alteration cut by mineralized veins, stockworks and breccias with significant gold and silver values. Five main north trending mineralized structures have been identified to date across a width of 1000m. All mineralized structures are exposed in a series of trenches dating back to the 1960's, and are open along strike under glacial cover. The best exposed structure, Zone E, has been traced discontinuously over a strike length of 415m. The Cabin mineralization is hosted in a quartz monzonite to monzodiorite pluton that is believed to be part of the same Late Cretaceous magmatic event that hosts the Blackwater gold and Capoose silver-gold deposits.
A total of 72 rock chip and grab samples from Cabin average 0.96 grams per tonne (g/t) gold (Au), 73.4 g/t silver (Ag), 0.46% zinc (Zn) and 0.36% lead (Pb). Outcrop and trench rock sample results include the following:
The Cabin gold-silver project is located in the Nechako Basin of central BC, 80 kilometres north of Richfield Ventures Corp.'s (Richfield) Blackwater gold project and 17 kilometres south of Thompson Creek Metal's Endako molybdenum mine. The project area is accessible by logging roads.
The Cabin Property is being acquired from Richfield pursuant to a 100% Option Agreement dated September 27, 2010. In order to exercise the option Paget must make a $500,000 cash payment to Richfield on or before the third anniversary of the agreement and incur the following expenditures on the property: $250,000 on or before the second anniversary and $250,000 on or before the third anniversary of the agreement for a total expense of $1,000,000. Richfield will also be entitled to a 2% Net Smelter Return Royalty (NSR) on any production from the Cabin Property, Paget will retain the right to purchase half of the 2% NSR for $1,000,000.
Paget's Nechako Basin Joint Venture with Richfield has been terminated in lieu of the option agreement noted above.
Paget's disclosure of a technical or scientific nature in this press release has been reviewed and approved by John Bradford, MSc., P.Geo., Paget's Chief Geologist, who serves as a Qualified Person under the definition of National Instrument 43-101. Rock samples were analyzed at ALS Laboratory Group's North Vancouver, BC laboratory. Samples were analyzed for gold by fire assay with ICP-AES finish and for 35 other elements by conventional ICP-AES (aqua regia digestion). Overlimit gold (>10 g/t) samples were re-assayed by fire assay with a gravimetric finish. The Cabin property represents an early stage exploration property and does not contain any mineral resources as defined by National Instrument 43-101.