Discovery Harbour Granted Option to Purchase 100% Ownership of Nevada Project
/NOT FOR DISSEMINATION IN THE UNITED STATES OR OVER THE UNITED STATES NEWSWIRE SERVICES./
VANCOUVER, June 20, 2014 /CNW/ - Discovery Harbour Resources Corp. ("DHR" or the "Company") (TSX-V:DHR) is pleased to announce its entry into an Exploration License with Option to Purchase dated June 19, 2014 (the "Agreement") with Blind Mice Mining Company Inc. (the "Optionor"), whereby the Optionor granted the Company an option (the "Option") to acquire 100% ownership of the 2BAR project (the "Property") located in the Table Mountain Mining District, Churchill County, Nevada. The 2BAR project is comprised of eleven patented mining claims comprising approximately 227.26 non-contiguous acres (91.97 hectares).
General terms of the Agreement are:
| • | Three year option period with annual payment schedule of: (all amounts in US$) | |
| ANNIVERSARY | OPTION PAYMENT | |
| Upon Execution (within two days of signing) | $50,000 | |
| First Anniversary | $50,000 | |
| Second Anniversary | $50,000 | |
| Third Anniversary-Purchase | $2,100,000 | |
| Total Purchase Price | $2,250,000 | |
| • | DHR may exercise its Option to purchase 100% ownership of the Property at any time by paying the $2,250,000 purchase price, less any option payments made previous to its decision to exercise the Option; | |
| • | Upon exercise of the Option by payment of the total purchase price of $2,250,000, DHR will own 100% of the Property and all attendant mining rights to the claims. There are no royalties due to the landowner; | |
| • | DHR is granted exclusive rights to explore the property for three (3) years from the date of entry into the Agreement; and | |
| • | DHR may terminate the Agreement at any time. | |
DHR is aware of five vertical shafts of unknown depths and eight adits and drifts of unknown lengths, all within the patented claim blocks comprising the property. Previous sampling encountered high grade copper and silver mineralization at surface. DHR's Qualified Person has been unable to verify the above information and it is not necessarily indicative of mineralization on the property.
A due diligence trip to the properties is presently being arranged. This trip will serve to determine if any environmental liabilities exist on the optioned claims, allow access to the outcropping mineralization on all claims for geochemical sampling and assay confirmation of previous work, determine priority drilling sites, determine what access road repairs are needed for the ingress-egress of the drilling rigs and initiate the stream sediment sampling program.
Previous exploration on the main 2BAR property suggests that the mineralization resides in a minimum of two separate zones and are separated by approximately 120 vertical feet of section. Host lithologies to the mineralization at 2BAR are Jurassic volcanics, basalts and andesites. Copper mineralization is dominated by copper oxides and carbonates, azurite, malachite and cuprite with lesser amounts of copper sulfides, chalcocite, chalcopyrite. DHR's plans for testing 2BAR this summer include approximately 2,000 feet of core drilling, mapping of outcrop and sampling of outcrop, soils over the claims area and stream sediments.
The Company intends to submit all samples (rock, core, soils and reconnaissance stream sediments) from the summer exploration program to ALS Chemex in Reno, Nevada for preparation and geochemical analysis.
Bruno Hegner, President and CEO of Discovery Harbour comments, "We are very pleased to have been granted this option and are eager to commence exploration on this project. From the results derived from previous programs on the property, to-date, we see the potential for grade and size at 2BAR."
"The acquisition of the 2Bar project does not mean that we will ignore our Wabassi VMS project in Ontario. Our efforts this summer will focus on improving the development profile of the Wabassi District through continued interaction with Provincial and First Nations leaders on access and infrastructure issues."
A finder's fee of $10,000 is payable to DeMatties LLC, a private company in the United States, in connection with the granting of the Option.
Michael J. Senn, a licensed professional geologist, is the Qualified Person for Discovery Harbour Resources as described in National Instrument 43-101 has reviewed and approved the technical contents of this release. All dollar amounts referred to in this news release are in United States dollars.
ON BEHALF OF THE BOARD OF DISCOVERY HARBOUR RESOURCES CORP.
"Bruno Hegner"
Frank D. Hegner
President, CEO, Corporate Secretary and Director
Disclaimer for Forward-Looking Information
Except for statements of historical fact, this news release contains certain "forward-looking information" within the meaning of applicable securities law. Forward-looking information is frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may" occur. Forward-looking information in this press release includes, but is not limited to, statements regarding expectations of management regarding the grant and exercise of the option to acquire a 100% interest in the 2BAR property, the timing and payment of the option payments, the Company's plans and timing for exploration of the 2BAR property and testing of samples collected during the proposed exploration program on the 2BAR property, and the Company's plans with respect to its Wabassi property. Although the Company believes that the expectations reflected in the forward-looking information are reasonable, there can be no assurance that such expectations will prove to be correct. Such forward-looking statements are subject to risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in the statements including, without limitation, the risks that the Company may not have the funds necessary to make its option payments pursuant to the Agreement, the proposed exploration program on the 2BAR property may not be completed as and when expected or at all, such other risks as are customarily associated with mineral exploration activities, and such other factors beyond the control of the Company. Except as required by law, the Company expressly disclaims any obligation, and does not intend, to update any forward-looking statements or forward-looking information in this news release.
Neither 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 release.
Contact
Contact Kieran Magee by telephone at (604) 689-1799 or by fax at (604) 689-8199.