Commander Acquires New Gold Property in BC
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 06/14/11 -- Commander Resources Ltd. (TSX VENTURE: CMD) ('Commander') is pleased to announce that it has entered into a Letter of Intent dated June 10, 2011 ('Agreement') to acquire a package of claims on a newly discovered epigenetic gold prospect in Southern BC. The package of claims is held by The Marlow Prospecting Syndicate of Kamloops (the 'Vendors') and has been increased by additional staking of adjacent claims by Commander. The property is located near Stump Lake, 25 km south of Kamloops and can be worked year-round with good access by road.
The Vendors recently discovered quartz-carbonate breccia exposures assaying up to 6 g/t Au. These breccias and associated open-space quartz veins clearly indicate the presence of a high-level, epigenetic gold mineralizing system. Examination and sampling by Commander during the due diligence period has confirmed an extensive gold-bearing breccia-vein system which is exposed over a 1.2 km north-south strike extent. The geological setting and mineralization style shows some similarities to the Blackwater property owned by Richfield Ventures.
Eric Norton, President and CEO of Commander, comments: 'We are very pleased to be acquiring such an exciting new gold prospect. The location in Southern BC, with good road access and year-round workability will be a significant enhancement to our portfolio.'
The Vendors hold five claims (2,140.84 hectares), and Commander Resources has staked an additional eight claims (3,583.15 hectares), all of which will comprise the Stump Lake Property covering over 57 square kilometers. Under the terms of the Agreement, Commander may earn a 100% interest in the property over a five year period by making total cash payments of $625,000, issuing two million shares to the Vendors and completing $3 million in exploration work. Of this, there is a firm commitment in the first year of $60,000 cash, issuance of 300,000 shares and work on the property totaling $400,000. The property is subject to a 2% Net Smelter Return Royalty ('NSR') in favour of the Vendors. Commander may reduce the NSR to 1% by paying $2 million to the Vendors.
Commander intends to run an aggressive first year program on the property and will mobilize a crew to site in July. The 2011 program will consist of detailed prospecting and mapping, soil grid sampling, ground geophysics and trenching. Drilling, if warranted, could be conducted in the fourth quarter of 2011.
The Agreement is subject to approval by Commander's Board of Directors and the TSX Venture Exchange. Once approved, the parties will enter into a definitive Option Agreement incorporating the terms of the Letter of Intent.
Bernard H. Kahlert, P.Eng., VP of Corporate Development, is the Qualified Person under 43-101 regulations responsible for the technical content of this News Release.
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