Commander Options Gold Property in the Yukon
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 06/02/11 -- Commander Resources Ltd. (TSX VENTURE: CMD) ('Commander') has negotiated an option agreement, for a package of claims located in the Little Highland River Valley, Watson Lake mining district in the Yukon (the 'Property'). Recently, this region has seen a great deal of gold exploration activity following the success of the 3Ace property, owned by Northern Tiger, which is situated immediately south of Commander's new claims. 2010 reported drill results on the 3Ace property included intercepts of up to 14.8 g/t gold over 10.9 m, including 145 g/t over 1.05 m.
The package of 127 claims is owned by a prospector syndicate based out of Whitehorse. In addition, Commander Resources has added another 150 claims to the area, for a total package of 277 claims, covering approx. 5,800 ha over a 20 km strike extent. The project area will be known as the Glenmorangie property.
'We have been assessing several opportunities to gain a position in the Yukon gold region and this property package is very attractive due to its accessibility and location in a known gold bearing trend,' states Eric Norton, President and CEO of Commander.
Under the terms of the option agreement, Commander has an option to earn a 100% interest in the Property through the staged issue of 840,000 shares, staged cash payments of $147,000 and a total exploration expenditure of $500,000 over four years. The NSR terms are 2% plus an advance smelter return of $12,000 per year, with an option to buy down to 1% NSR, each half per cent costing $1 million. The first year's commitment calls for $125,000 of exploration, issuance of 300,000 shares and cash payments of $27,000. The agreement is subject to Board and TSX Venture Exchange approval.
The area has been explored with funding from the Yukon Mining Incentive Program (YMIP) for the past two seasons. Gold was first discovered on the adjacent Culvert claims, now owned by Hinterland Minerals. The main showing is located 1.5 km from Commander's claims and along trend. Stream sediment, soil sampling and rock chip sampling programs have been carried out with highlights of the rock chip program shown in the following table:
Rock Chip Sampling
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Sample ID Au - ppb Sample ID Au - ppb
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RS10A 139 RS14 365
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RS15 107 RS18 205
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RS35 924 RS36 1,485
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RS43 748 RS44 442
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RS61A 430 RS61B 265
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RS61C 266 RS63 877
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Work on the Property is preliminary but research to date has shown a strong correlation between gold and arsenic values.
The Property is located in the Selwyn Basin and consists of phyllites and shales of the Hyland Group and Vampire formation. Intruding the metasediments are younger cretaceous aged stocks and plutons, which are possible mineralizing events. The Little Highland River Valley is dominated by a major structural feature called the March fault and bounded to the north by the Dawson fault, and to the south-west, by the Tintina fault. The Tintina fault and associated splays have become synonymous with gold finds and the significance of this major tectonic event is still being studied. Mineralized quartz veins have been found on the Glenmorangie property and could either be associated with faulting events or with an underlying Cretaceous aged intrusion, or both. The area has been glaciated and therefore the valleys are filled with glacial debris. Good rock exposure is found at higher altitude.
Commander is planning a summer exploration program of prospect mapping, stream sediment sampling, soil grid sampling and trenching. The work program will be designed with the intention of following up with a drill program next year. The Property is easily accessible from the Nahanni Range Road and by ATV trails. Commander is well financed for this season's work program, having recently closed a flow through financing of over $2 million. For further information and a detailed location map, please visit our website at www.commanderresources.com.
Steve Potts, VP of Exploration will be the Qualified Person under NI 43-101 responsible for the exploration activities on the property.
On behalf of the Board of Directors,
Eric Norton, President & CEO
Shares Issued: 99,442,548
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.
Contacts:
Commander Resources Ltd.
Cathy DiVito
Investor Relations
Toll Free: 1-800-667-7866
info@commanderresources.com
www.commanderresources.com