VANCOUVER, Aug. 4, 2011 /PRNewswire/ - Ralph Rushton, the President of Emerick
Resources Corp. (TSXV: ERC) is pleased to announce that the Company
has negotiated an option to acquire a 75% interest in an extensive
claim package in the Northwest
Territories controlled by GGL Resources Corp. ("GGL"),
subject to TSX Venture Exchange approval.
A finder's fee is payable to Axemen Resource
Capital Ltd., an Exempt Market Dealer.
The Providence Greenstone Belt ("PGB") project
covers an area roughly 120 kilometers long and 30 kilometers wide
over an under-explored Archean greenstone belt. Emerick's
management sees the transaction as a unique opportunity for the
Company to explore essentially an entire greenstone belt that has
seen only limited modern exploration, and which includes known
occurrences of gold and base metals.
To complete its option:
- Emerick will invest $1.0 million
in GGL by way of a private placement of 20 million Units at
$0.05 per Unit. The warrant will be
exercisable for 3 years at $0.10.
- Upon expenditure of $10.0 million
over 5 years Emerick will have earned a 75% interest in the PGB. Of
these expenditures not less than $600,000 will be a commitment to carry out an
agreed program in 2011 and 2012 designed to advance as many targets
as possible to a drilling stage and to cover the costs of legal
surveys required to bring certain claims to lease in 2011 and 2012.
Upon Emerick having earned the 75% interest in the PGB, the parties
will form a joint venture with standard JV and dilution
provisions.
- Except with respect to the assets of GGL that are subject to
agreements with Rio Tinto Exploration Canada Inc. and De Beers
Canada Inc. which provide for mutual right to first offer, Emerick
will have a right of first offer with respect to all assets of GGL
outside the PGB.
$2 Million Private Placement
Emerick has also arranged a $2 million non-brokered private placement
consisting of 7 million flow-through shares at $0.22 per share, and 3 million non flow-through
shares at $0.20 per share. The
$1.4 million flow-through proceeds
will be used to fund the initial work commitments under the option
agreement, and the $600,000 hard cash
will be used for general working capital.
The Providence Greenstone Belt
Emerick is earning in to 75% of GL's Providence
Greenstone Belt (PGB) project, an area 120 kilometers long and 30
kilometers wide. The PGB is Archean in age, and forms part of the
Winter Lake Supracrustal Belt. It lies between Yellowknife and High Lake along a major
north-south trending structural feature, thought to be an Archean
rift zone. A prominent splay off this feature contains the
Yellowknife Gold Belt, while the Lupin Mine gold deposit, and the
Izok Lake and High Lake VMS deposits lie along easterly trending
faults off the main structure. The age, geology, and size of the
PGB is similar to other greenstone belts of the Superior craton
such as the Timmins belt which is
120 km by 10 to 40 km. The Timmins
belt is also marked by crustal-scale faults and noted for its gold,
VMS and nickel deposits. The early stage discoveries at the PGB
reflect this type of mineral potential.
Despite the fact that Greenstone belts
throughout the world are known for their economic potential
including gold, nickel, and VMS deposits, the PGB has seen only
limited exploration, with most programs completed during the 1960s
and 1980s. The discovery of nickel, copper-zinc-lead-silver-gold
VMS, and gold within the PGB confirms the potential of this
greenstone belt which is considered prospective for high grade,
world class gold deposits such as the Timmins and Red
Lake types, and also for Kidd Creek or Noranda-style VMS
systems.
A brief summary of the potential of the PGB for
specific commodities is given below.
Gold
Multiple outcrops of gold-bearing banded iron
formation have been identified on the PGB claims, locally up to 25
to 40 meters wide, and traceable as shallow conductivity VTEM
geophysical anomalies for up to 3 km. Samples collected by
Noranda in the 1980s returned up to 3.7 g/t Au over 1 meter, and
selected grab samples of up to 16.2 g/t Au. Some 40 km south
of the gold discovery mentioned above, GGL collected selected grab
samples from two poorly-exposed rusty sulfide zones separated by
300 m and containing arsenopyrite that assayed 22.62 g/t and 27.77
g/t Au, within a quartz-filled shear zone in mafic volcanics
adjacent to a banded iron formation. A selected grab sample taken
15 km to the east in an area obscured by overburden assayed 42.68
g/t Au and an adjacent selected grab sample returned 19.88 g/t
Au.
Volcanogenic Massive Sulfide Deposits
(VMS)
East of the komatiite belt in the western part
of the property, a 15 km long "figure eight" EM conductivity
anomaly is thought to indicate an area of VMS potential.
Along the entire 15 km length of the geophysical anomaly, massive
to semi-massive sulphides, containing pyrrhotite and pyrite along
with sphalerite and chalcopyrite, are found wherever rock exposures
are seen. Selected grab sampling of outcrop has returned zinc
values of up to 1.2% and up to 0.5% copper as well as anomalous
silver values. A high grade zinc-rich boulder (25% zinc) has been
traced to a potential bedrock source on the property where a
selected grab sample assayed 6% zinc.
Nickel
Exploration work by GGL has identified a number
of belts of komatiite volcanics across their claims. Detailed
sampling of the komatiite lavas carried out by GGL found that the
PGB komatiites are geochemically similar to rocks from the Kambalda
in western Australia, and there
may potentially be sites of sulfide accumulation within the
lavas. Several conductivity anomalies 2 km or more in length
have also been identified associated with the komatiites,
indicating potential for sulfide zones.
Qualified Person
Harmen Keyser,
P.Geol. (NWT), a Qualified Person in accordance with NI 43-101, is
responsible for the accuracy of this news release. Mr. Keyser
has verified that it is an accurate summary of the reports provided
to Emerick by GGL and contained within reports by historic
workers. Emerick, however, has not independently verified
GGL's exploration results or those of historic workers.
ON BEHALF OF THE BOARD
"Simon Ridgway"
Simon Ridgway, Chairman of the
Board
Symbol: TSXV-ERC
Shares Issued: 20.1-million
Neither the TSX Venture Exchange nor the
Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy
or accuracy of this release.
Forward-Looking Statement
Some of the statements in this news release contain
forward-looking information that involves inherent risk and
uncertainty affecting the business of Emerick Resources Corp.
Actual results may differ materially from those currently
anticipated in such statements.
SOURCE Emerick Resources Corp.