Benton Signs LOI on High Grade Gold Project in the Kirkland Lake Area
THUNDER BAY, ONTARIO -- (Marketwire) -- 05/02/11 -- Benton Resources Corp (TSX VENTURE: BTC) ('Benton' or 'the Company') is pleased to announce that the Company has signed a letter of intent to acquire a 100% interest in the Melba gold project (the 'property') from Nordex Explosives Ltd. ('Nordex'), subject to a 2-per-cent net smelter return royalty retained by Nordex.
The property, which consists of 9 mining leases totaling 284 hectares, is located in western Melba Township, approximately 20 kilometres north of Kirkland Lake, Ontario. The property is situated between the Destor-Porcupine and the Kirkland Lake-Larder Lake fault systems and gold mineralization on the property is associated with northwest structures believed to be associated with the Ross Fault, a major northwest structure associated with numerous gold deposits including the former past producing Ross mine located 20 km to the northwest near Ramore, Ontario.
Gold was first discovered on the property in 1934 and in 1937 an inclined shaft was sunk on the main gold-bearing vein to a depth of 247 feet (75 metres) with 900 feet (274 metres) of lateral development completed on the 225 foot (69 metre) level. In 1939, Teck-Hughes completed a 4 ton bulk sample along 60 feet (18.3 metres) of the main vein which returned 0.21 ounces per tonne (7.2 grams per tonne) over an average width of 4.5 feet (1.4 metres). The property was dormant from 1939 to 1959, when Pitchvein Mines Ltd. dewatered the shaft and drilled 28 short underground drill holes from the 225 foot level. Significant results from the underground drilling program are listed below:
13.89 gpt Au over 7.2 metres (Hole A-60)
7.55 gpt Au over 12.35 metres (Hole B-60)
5.46 gpt Au over 14.85 metres (Hole C-60)
4.42 gpt Au over 8.26 metres (Hole F-60)
Gold mineralization on the property is associated with quartz veins and stringers hosted within sheared and altered diorite porphyry and brecciated silicified sedimentary rocks. The drill hole information was obtained from MNDMF assessment files and although the Company believes the information is relevant and presented for information purposes only the reader is cautioned that the data is historical and not compliant with current NI 43-101 standards.
The terms of a four-year option agreement, subject to the completion of Benton's due diligence and receipt of regulatory approval, provides for staged payments to Nordex totaling $450,000 and 700,000 shares. As well Benton shall complete $500,000 in work commitments on the Melba property of which $200,000 must be completed by the first anniversary and the remaining $300,000 completed by the third anniversary of the closing date. After the completion of the cash payments, the share issuances and the work commitments, Benton will have earned a 100-per-cent interest in the Melba property, subject to a 2-per-cent net smelter return royalty to be granted to Nordex, with a buyback privilege of Benton of 1 per cent of the NSR from Nordex for $1-million.
President Stephen Stares Comments 'the historical results are exciting as there appears to be limited previous work completed on the property. The acquisition of the Melba property provides Benton the opportunity to explore a property with significant gold mineralization in the Kirkland Lake-Timmins mining district. We look forward to immediately initiating work on this project.'
In addition Benton has terminated the Deloro option located near Timmins, Ontario due to only obtaining anomalous gold results from the last drill campaign.
About Benton:
Benton is a Canadian based junior with multiple joint ventures and a diversified property portfolio in Gold, Nickel, Copper, and Platinum group elements. The Company currently has approximately $14.75 million in cash, owns approximately 55.4 million shares and 2.43 million warrants in Coro Mining Corp. (TSX: COP), holds approximately 348,000 shares of Stillwater Mining Company (NYSE: SWC), holds 782,500 shares in Marathon Gold Corp. (TSX: MOZ), holds 1.6 million shares in Puget Ventures (TSX VENTURE: PVS), holds 4 million shares of Mineral Mountain Resources Ltd. (TSX VENTURE: MMV), and holds 815,000 shares of Bell Copper Corporation (TSX VENTURE: BCU). Benton is currently in the process of spinning out the majority of its assets by a plan of arrangement into a new listed company in order to separate its 41.6% investment in Coro Mining from its cash, equities and exploration assets. Benton shareholders will receive a pro-rata interest in this new company at a ratio as yet to be determined and pursuant to regulatory approval.
Clint Barr (P.Geo), V.P. Exploration for Benton resources Corp., is the qualified person responsible for this release.
On behalf of the Board of Directors of Benton Resources Corp.,
Stephen Stares, President
Forward-looking statements in this release are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform act of 1995. Investors are cautioned that such forward-looking statements involve risks and uncertainties.
THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
Contacts:
Benton Resources Corp.
Stephen Stares
(807)475-7474
(807)475-7200 (FAX)
www.bentonresources.ca
Investor Relations
Clair Calvert
204-799-2086