Savant Explorations Ltd. Acquires Second Prime Gold Exploration Property Along the Prolific Cadillac-Larder Lake Break
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 06/29/10 -- Savant Explorations Ltd. (TSX VENTURE: SVT) ('Savant' or 'the Company') is pleased to announce that it has reached agreement with Geoconseil Jack Stoch Ltee., a privately held company, and Jacques Viau, under which the Company has the option to acquire a 100% interest in the 852.5 hectare McWatters Gold Property ('McWatters'). McWatters is located 6 kilometres east of Rouyn-Noranda situated on the prolific Cadillac-Larder Lake Break, midway between two of the Abitibi's largest gold camps: the Kirkland-Larder Lake District (Past Production 36.9 Moz) and the Cadillac District (Past Production 12.2 Moz).
McWatters Property
The McWatters property covers 4.0 km of strike length along the Cadillac-Larder Lake Break and includes the past producing McWatters Mine (reported past production of 334,500 tonnes grading 10.8 grams/t gold), and two diluted historical resources of 235,000 tonnes grading 6.6 grams/t gold and 170,000 tonnes grading 5.0 grams/t gold. A Qualified Person has not done sufficient work to classify these historical estimates as current mineral resources; Savant is not treating the historical estimates as current mineral resources and the historical estimates should not be relied upon. The historical resources were shallowly tested to depths less than 225 metres and remain open at depth. One of the historical resources occurs within a broad zone of alteration in mafic volcanic rocks along the main Cadillac-Larder Lake Break. The style and setting of the mineralization in this historical resource is similar to that in the high-grade, deep seated gold deposits in the Kirkland Lake District including the Kerr Addison Mine (39.5 Mt grading 8.5 grams/t gold).
Little exploration has occurred on the property away from the McWatters Mine and the historical resources. In these areas, testing of the main Cadillac-Larder Lake Break and secondary parallel structures, which host the gold mineralization on the property, is generally limited to depths in the order of 100 metres. The historical records note encouraging drill intercepts of 2 to 6 grams/t gold over narrow intervals in a parallel structure located north of the main Cadillac-Larder Break which warrants additional drilling.
The potential for the discovery of large high-grade gold deposits similar to those in Kirkland-Larder Lake District 50 km to the West and the Cadillac District 50 km to the East is promising. Savant will test the McWatters property by undertaking systematic exploration drilling to locate high-grade gold mineralization at depth in the down plunge extensions of the known near surface mineralization as well as other areas within and peripheral to the Cadillac-Larder Break.
Acquisition Terms
Savant will acquire a 100% interest in the McWatters property through cash payments totalling $690,000 payable over a 4 year period, work commitments totalling $5,000,000 over 4 years and the staged issuance of 1.3 million Savant common shares to the vendors over this same period. A gross metal royalty (GMR) on gold production will be payable to the vendor as follows: 1.0% GMR when gold is US$1,000 per ounce or less; 1.5% GMR when gold is greater than US$1,000 per ounce but less than US$1,200 per ounce; 2.0% GMR when gold is greater than US$1,200 per ounce but less than US$1,800 per ounce; and 2.5% GMR when gold is greater than US$1,800 per ounce. The initial cash payment on signing is $30,000 and the issuance of 150,000 shares.
John McClintock, President and CEO of Savant commented: 'In December of 2009 we set out to make Savant a prominent exploration player in the main gold camps of Quebec through the acquisition of under explored properties with demonstrated gold mineralization. The McWatters acquisition is a second step in achieving our goal. We consider the exploration opportunity and potential at McWatters to be excellent.'
John McClintock, P. Eng., CEO of Savant is the Qualified Person, as defined by National Instrument 43-101, responsible for the technical data in this news release.
This news release contains forward-looking statements concerning the McWatters Property. These statements are based on assumptions and judgments of management regarding future events or results that may prove to be inaccurate as a result of failure to obtain necessary regulatory approvals, the failure to reach agreement on final documentation, exploration results and other risk factors that are beyond Savant's control. There can be no assurance that such forward-looking statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements contained 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.
Contacts:
Renmark Financial Communications Inc.
Barbara Komorowski
(514) 939-3989
bkomorowski@remarkfinancial.com
Renmark Financial Communications Inc.
Maurice Dagenais
(514) 939-3989
mdagenais@renmarkfinancial.com
Savant Explorations Ltd.
John McClintock
President and CEO
(604) 801-7240
(604) 689-8355 (FAX)
info@SavantExplorations.com
www.SavantExplorations.com