Aug 7 2013
Metals Creek Resources Corp. is pleased to announce the discovery of a new gold occurrence on the Squid East project in the Matson Creek area in the Yukon. The initial phase of exploration consisted of a trenching program focused on a strong northwest trending gold plus pathfinder element soil anomaly located on the Squid East claim block.
Chip sampling at the newly discovered “Exploits Zone” from recently completed trench E4-3 returned 1.96 grammes per tonne (g/t) gold over the entire 22 meter (m) trench length. Included in this is a higher grade interval of 6.39 g/t gold over 4.0 m. Individual chip samples within this zone were 2.0 meters long and ranged from 0.25 g/t to 8.55g/t gold. Trenching was limited to 22m within this portion of the trench due to frost conditions on both ends. Mineralization has not been cut-off in terms of defining the width of the zone and remains open in all directions. A follow up drill program is scheduled to begin in mid-August to follow-up on these encouraging results and better define the orientation and geometry of the newly discovered zone.
Bedrock mapped in the trenches consisted of heavily bleached and weathered broken rock which is considered to be in place and is typical for the White gold district. The host rock to the gold mineralization consists of sericite schist with local quartz veining, and local hematite alteration.
These initial results compare favorably to other significant initial trenching results in the White Gold District which includes Kaminak Gold Corporation’s Coffee Project which returned trench assays of 2.3 g/t Au over 21.0 m (Kaminak News Release, August 13th, 2009).
Alexander (Sandy) Stares, President and CEO of Metals Creek states, “We are extremely pleased with the results of this initial trenching program. These assay results demonstrate strong similarities to other proven projects in the White Gold district. We are looking forward to the upcoming drill program and continuing to advance the Squid East Project.”
GTA can earn an initial 51% interest in the Squid East property as previously announced in a press release dated 12 January 2013. Terms include cash payments of $60,000 over three years ($20,000 on signing), issuance of a total of 2,000,000 GTA shares over three years (200,000 on signing) and work expenditures of $2,000,000 over three years ($500,000 firm including a minimum 400 meters of drilling by the 1st anniversary). Metals Creek will be the operator during the earn-in period. Once a 51% interest is earned by GTA, either a 51/49 joint venture will be formed, or GTA may elect to increase its interest to 70% by incurring additional payments of $210,000 and 400,000 GTA shares and expenditures of $1,000,000 by the 5th anniversary. GTA would assume operatorship once it had earned a 51% interest.
MEK initially staked the Yukon properties in February, 2011 and has a 100% interest in four separate claim blocks (242 claims) within the White Gold District. The Squid East claims are located proximal to the Matson Creek placer gold operations, approximately 90km southwest of Dawson City. A four wheel drive access road and airstrip service the placer camp and MEK’s current field work availed of the placer camp airstrip, accommodations and equipment to help carry out the program. During the trenching program, a six km access trail was completed from the Matson Creek four wheel drive road to the target area making access more cost effective.
Michael MacIsaac, P. Geo, VP Exploration for the Corporation and a qualified person as defined in National Instrument 43-101, is responsible for this release, and supervised the preparation of the information forming the basis for this release.