New Property Acquisition
posted on
Oct 18, 2008 05:41PM
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Journey Enters Option Agreement to Acquire Charay Gold Property
10:31 EDT Friday, October 17, 2008
VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 17, 2008) - Journey Resources Corp. ("Journey" or the "Company") (TSX VENTURE:JNY)(OTCBB:JNYRF)(FRANKFURT:... is pleased to announce that, subject to regulatory approval, it has entered into a mineral claim option agreement (the "Option Agreement") with Tektite Financial Inc. and Minera Bacoachi, S.A de C.V., whereby Journey has been granted an exclusive option to acquire, through its wholly Mexican subsidiary, a 100% interest in and to certain mining claims comprising the Charay Gold Property, located in Sinaloa, Mexico (the "Property").
The Property is comprised of three concessions covering 380 hectares, located in northern Sinaloa, Mexico, approximately one hour by road from the city of Los Mochis. In 2005, Vane Minerals Group drilled 27 shallow holes on the Property, totaling 1,576 meters. Eight drill holes targeted large zones of intense alteration in search of large-tonnage, low-grade disseminated mineralization. Nineteen drill holes targeted and intersected mineralized quartz vein/structure along a strike length of approximately 240 meters.
Vane Minerals estimated an approximate 37,000 tonnes of material along the 240 meter drill-tested strike length of the structure across a width of 1.14 meters, and to a depth of 50 meters, which averaged 18.75 g/T Au and 120.15 g/T Ag . The mineralized structure remains open along strike with mineralization appearing to increase with depth. Due diligence on the property has consisted of re-logging and quarter sampling of the 2005 drill core. The new samples were assayed by Chemex Laboratories located in Vancouver, BC, Canada. There was an excellent correlation with previously reported results, however, the previous data has not been sufficiently verified by a qualified person under National Instrument 43-101 to be classified as a current resource estimate. Journey is not treating the estimate as a current resource estimate and therefore, this data should not be relied upon.
Journey is in the process of mobilizing a drill rig to the property to complete a Phase-I drill program designed to test the mineralized depth and extensions of the known structure. VP Exploration of Journey, Mr. Chris Wilson states, "This is a very attractive property in an area that has seen little to no historic exploration. By utilizing our own drill rig we will be able to quickly and cheaply evaluate this property's potential to host a high-grade, near-surface gold-silver deposit." Under the terms of the Option Agreement, Journey must fulfill certain payment and expenditure requirements. In consideration for a 100% right, title and interest in and to the Property, Journey shall pay to the optionors a total cash amount equal to US$2,725,000, with initial payments consisting of $30,000 upon execution of the Option Agreement, $25,000 on or before December 1, 2008 and two additional payments of $50,000 on or before April 1, 2009 and August 1, 2009 respectively. In addition to such cash payments, the Company will issue 1,000,000 common shares of Journey's capital and incur $75,000 in work expenditures on the Property on or before April 1, 2009. Journey has also agreed to pay optionors a 2% net smelter royalty in the event of commercial production of the Property.