Bonterra to acquire Larder Lake project from Kerr Mines
2016-03-17 13:24 ET - News Release
See News Release (C-BTR) Bonterra Resources Inc (2)
Mr. Nav Dhaliwal of Bonterra Resource reports
BONTERRA RESOURCES ACQUIRES LARDER PROJECT FROM KERR MINES CONSISTING OF TWO GOLD DEPOSITS AND 9 KM OF CADILLAC-LARDER BREAK
Bonterra Resources Inc. and Kerr Mines Inc. have entered into an acquisition agreement, pursuant which Bonterra will acquire a 100-per-cent interest in the Larder Lake property from Kerr Mines and its wholly owned subsidiary, Bear Lake Gold Ltd., located in the McVittie and McGarry townships of Ontario, Canada.
Acquisition highlights:
The Larder Lake property, running along nine kilometres of the Cadillac-Larder break between Kirkland Lake and Virginiatown, consists of a historic estimate as outlined below;
Deposit is open at depth with over 100,000 metres of historical diamond drilling completed;
Historical gold production and mine development to 1,085 feet, with two shafts and underground workings on site;
Strategic 2,165-hectare land position along prolific Cadillac/Larder fault break where over 13 million ounces of production has been recorded, located seven kilometres west of the Kerr Addison mine, which produced 11 million ounces of gold;
Extensive infrastructure and access (highway and power).
"The acquisition of the Larder Lake property is key to Bonterra and its shareholders. The transaction elevates Bonterra's position amongst its peers with a significant gold resource portfolio contained at the Gladiator gold project and now the Larder Lake project. We continue to identify key projects within the Abitibi gold belt, and once again advance our strategy of becoming a significant gold exploration company and building value for our shareholders. I would like to welcome Kerr Mines as a new shareholder of Bonterra," commented Nav Dhaliwal, president and chief executive officer.
Greg Gibson, CEO of Kerr Mines stated: "Kerr Mines will continue to actively participate in the Larder Lake project through its ownership stake in Bonterra. Bonterra continues to demonstrate excellent exploration work and commitment in the Abitibi gold belt of Quebec, and now Ontario, and are providing excellent returns to their shareholders. This transaction allows Kerr to continue to focus on our development plans for our Copperstone mine in Arizona and move the Larder Lake project forward in partnership with Bonterra."
Disclosure of historical estimates
The Larder Lake project contains a historic estimate. In Aug. 15, 2011, P&E Mining Consultants prepared for Kerr Mines a resource estimate as reported in a technical report titled, "43-101 technical report and updated resource estimates on the Larder Lake property, Larder Lake, Ont., for Bear Lake Gold Ltd." Bonterra considers the historical estimate to be relevant and reliable given that it was prepared under National Instrument 43-101 standards. Bonterra considers this resource estimate to be historical; it has not independently verified it, and, therefore, it cannot be relied upon as a current mineral resource for Bonterra. A qualified person of Bonterra has not done sufficient work to classify the historical estimate as current mineral resources or mineral reserves, and Bonterra is not treating the historical estimate as current mineral resources.
2011 TOTAL RESOURCE ESTIMATE AT 2.5 G/T AU CUT-OFF UTILIZING GOLD PRICE OF
$1,207 (U.S.)/OZ (1) (2) FOR THE BEAR LAKE AND CHEMINIS DEPOSITS
Classification Tonnes Grade (Au g/t) Contained ounces Au
Indicated 335,000 4.07 43,800
Inferred 5,141,000 5.55 917,000
(1) Mineral resources which are not mineral reserves do not have demonstrated
economic viability. The estimate of mineral resources may be materially affected by
environmental, permitting, legal, title, taxation, socio-political, marketing or
other relevant issues.
(2) The quantity and grade of reported inferred resources in this estimation are
uncertain in nature, and there has been insufficient exploration to define these
inferred resources as an indicated or measured mineral resource, and it is uncertain
if further exploration will result in upgrading them to an indicated or measured
mineral resource category.
Larder Lake gold project description:
The Larder Lake property is located in Eastern Ontario in the McVittie and McGarry townships near the town of Virginiatown.
The Bear Lake deposit hosts a historic estimate (2011, P+E Mining) of 3.75 million tonnes at 5.7 grams per tonne (683,000 ounces) (inferred). The Cheminis deposit contains a historic estimate (2011, P+E Mining) of indicated resources of 335,000 tonnes at 4.1 grams per tonne (43,800 ounces) and inferred resources of 1,391,000 tonnes at 5.2 grams per tonne (233,400 ounces). Please refer to cautionary information above regarding historic estimates.
The Larder Lake gold property straddles a nine-kilometre strike length of the Cadillac/Larder Lake break, a prolific regional fault zone that hosts numerous historic and active gold mines, including the historic Kerr Addison mine located about five kilometres east of the Larder Lake project (11 million ounces of gold produced during its mine operation).
Extensive infrastructure, including a paved highway, crosses the length of the property; various areas of the project are easily accessible by truck or all-terrain vehicles on non-serviced roads and trails, and an Ontario Hydro power line also runs along the length of the property.
Central to the Larder Lake gold property is the Cheminis property, which includes a vertical shaft to a depth of 1,085 feet with six levels, of which the deepest is at 1,035 feet. Intermittent past production from the Cheminis mine has totalled approximately 260,000 tons at a recovered grade of approximately 0.104 ounce per ton Au. Bonterra cautions that past results do not guarantee future results.
Gold Fields entered into an option in 2012 to earn a 60-per-cent interest in the Bear Lake properties by spending $40-million in exploration and development. After three years of work, it terminated its option last year when Gold Fields terminated all exploration activities worldwide. Kerr Mines is in possession of its results and data.
Please visit Bonterra's website for information on the Larder Lake property, its location and other general information. The Larder Lake property NI 43-101 technical report, completed by P&E Mining Consultants, is currently available on Kerr Mines' website.
Property transaction terms
Under the terms of the agreement, Bonterra can earn a 100-per-cent interest in the property by paying $500,000 and issuing 10 million common shares in the capital of Bonterra upon TSX Venture Exchange approval, paying $350,000 on the six-month anniversary of exchange approval, and paying $300,000 on the 12-month anniversary of exchange approval. The shares issued are to be voted with management for the forthcoming two years of annual general and special meetings of Bonterra. Upon closing, Kerr Mines shall be deemed an insider of Bonterra, as per exchange policies.
In relation to the transaction, subject to exchange approval, Bonterra shall pay a finder's fee of one million common shares to an arm's-length third party.
Dale Ginn, PGeo, has approved the technical information contained in this release. Mr. Ginn is a Director and Vice President of Exploration for BonTerra and is a Qualified Person as defined by NI 43-101.
We seek Safe Harbor.
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