Kesselrun Announces Drilling Results from Bluffpoint Project, Amendment to Bluffpoint Option Agreement and Vend In of Three New Projects
THUNDER BAY, ON, April 30, 2013 /CNW/ - Kesselrun Resources Ltd. (TSXV:KES) ("Kesselrun") today announced results from its diamond drilling program at its flagship Bluffpoint ("BP") project, an amendment to the BP option agreement as well as the addition of three new projects in Northwestern ON.
Bluffpoint Drilling Results
Twenty four drill holes for a total of 3,466 metres were completed in this initial drill program. Widespread gold mineralization was encountered throughout the target zone in a variably altered package of granitic rocks. Alteration including quartz, albite, chlorite, carbonate, hematite, magnetite and pyrite has been logged throughout all holes drilled to date.
Michael Thompson, P. Geo., President & CEO of Kesselrun, commented, "Initial results to date are very encouraging and have been instrumental in the ongoing development of the mineralization model for the project. Numerous untested targets remain and future exploration efforts are currently being evaluated in light of these results. We are well situated for continued development in 2013 with four projects now 100% owned by Kesselrun that are unconstrained by large exploration commitments."
Table 1 - Significant Drilling Results
|Weighted Grade Au (g/t)|
|and which includes**||130.0||136.0||6.0||0.86|
|and which includes**||66.4||74.0||7.6||1.89|
|* length refers to drilled length; true widths have not been determined|
|** previously announced results (see Kesselrun news release dated January 9th, 2013)|
BP Option Agreement Amendment & Addition of New Projects
The original option agreement to acquire the Bluffpoint project required further aggregate payments of $400,000 and the issuance 4,000,000 common shares of Kesselrun to earn a 100% interest in the project. The amended terms will have Kesselrun make a $200,000 payment and issue 2,000,000 common shares of Kesselrun to the vendor immediately to earn a 100% interest in the Bluffpoint project. For no further cost, Kesselrun will also be assigned a 100% interest in three additional projects located in Northwestern Ontario, the Esox, the Higbee Extension and the Mulcahy projects. The vendor will maintain a net smelter royalty of 2% (with Kesselrun retaining a buyback right of half or 1% for $1,000,000) on the three new projects. Michael Thompson, President & CEO of Kesselrun is the vendor of all of the projects.
Kesselrun's Portfolio of 100% Owned Projects
Bluffpoint - The Bluffpoint project consists of 103 mining claims covering 22,512 hectares in Northwestern Ontario's Wabigoon Subprovince, host to several recent gold discoveries such as Osisko's (TSX:OSK) Hammond Reef Project and Rainy River's (TSX:RR) Rainy River Project. Accessible year round by a network of well-maintained logging roads, Bluffpoint offers low cost exploration in an emerging prolific gold district.
Esox - The Esox project is located approximately 7 kilometres south of the Bluffpoint project and consists of 78 mining claims covering 14,350 hectares. The project has been explored by various companies since 1954, most recently in 2011/2012 by Armada Exploration Corp. Numerous gold, base metals and graphite targets exist on the project and remain untested (see Armada Exploration Corp. NI 43-101 Technical Report filed on SEDAR April 3, 2012).
Higbee Extension - The Higbee Extension project is located approximately 50 kilometres north of the Bluffpoint project and consists of 17 mining claims covering approximately 3,600 hectares. The primary target is granitic hosted gold located on strike from Manitou Gold's Higbee project where grab samples of up to 266 g/t Au have been encountered (Manitou Gold Inc. news release April 27, 2010)
Mulcahy - The Mulcahy project is located approximately 45 kilometres north of the Bluffpoint project and consists of 33 mining claims covering approximately 7,800 hectares. The project hosts numerous Nickel Copper Platinum Palladium targets explored by numerous companies in the past including Falconbridge Nickel. The project is located 12 kilometres on strike from Canadian Arrow Mines Ltd.'s Kenbridge Nickel Deposit with National Instrument 43-101 compliant resources of 7,139,000 tonnes grading 0.62%Ni, 0.33% Cu and 0.016% Co in a measured and indicated category as well as 118,000 tonnes grading 1.38% Ni, 0.88% Cu and 0.003% Co in inferred category (Canadian Arrow Mines Ltd. news release August 19, 2008).
Michael Thompson, P. Geo., President & CEO of Kesselrun, is the Qualified Person responsible for the Bluffpoint project as defined by National Instrument 43-101 and has approved the technical information in this news release.
Kesselrun has implemented a quality control program for the trench sampling and planned drill program to ensure best practice in sampling and analysis. The planning, execution and monitoring of Kesselrun's quality control programs on the Bluffpoint project are under the supervision of Michael Thompson, P. Geo. Kesselrun maintains strict quality assurance/quality control protocols including the systematic insertion of certified standard reference and blank materials into each sample batch. Analyses in this release were performed by Accurassay Laboratories Ltd. of Thunder Bay, Ontario with ISO 17025 accreditation. Samples are transported in security sealed bags to Accurassay and all samples were assayed using industry-standard assay techniques for gold. Gold was analyzed by a standard 30 gram fire assay with an AA and/or gravimetric finish.
About Kesselrun Resources Ltd.
Kesselrun Resources is a Thunder Bay, Ontario-based mineral exploration company focused on growth through property acquisitions and discoveries. Kesselrun's management team possesses strong geological and exploration expertise with particular experience in Northwest Ontario. For more information about Kesselrun Resources, please visit www.kesselrunresources.com.
Forward Looking Statements
This release includes certain statements that may be deemed to be "forward-looking statements". All statements in this release, other than statements of historical facts, that address events or developments that the Company expects to occur, including without limitation, the private placement, are forward looking statements. Forward looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "could" or "should" occur. Although the Company believes the expectations expressed in such forward looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in forward looking statements. Factors that may cause the actual results to differ materially from those in forward-looking statements include gold prices, results of exploration and development activities, regulatory changes, defects in title, availability of materials and equipment, timeliness of government approvals, continued availability of capital and financing and general economic, market or business conditions. The Company cautions the foregoing list of important factors is not exhaustive. Investors and others who base themselves on the Company's forward-looking statements should carefully consider the above factors as well as the uncertainties they represent and the risk they entail. The Company believes that the expectations reflected in those forward-looking statements are reasonable, but no assurance can be given that these expectations will prove to be correct. Please see the public filings of the Company at www.sedar.com. Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.
SOURCE: Kesselrun Resources Ltd.
Kesselrun Resources Ltd.
Michael Thompson, P.Geo, President & CEO
Adam Rabiner, Corporate Communications
604.868.7881 or 1.866.416.7941