Duncastle Gold Signs Agreement for Pipestone Project Acquisition in
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 11/13/12 -- Duncastle
Gold Corp. ("Duncastle") (TSX VENTURE:DUN)(FRANKFURT:5D3) announced
today that it has signed a letter of understanding with Mineral
Mountain Resources Ltd ("Mineral Mountain") (TSX
VENTURE:MMV)(OTCQX:MNRLF) to acquire up to 100% of Mineral Mountain's
Pipestone Project 60 kilometers northeast of Fort Frances in
Northwest Ontario for shares, cash payments and exploration work
The Pipestone project consists of a large 344 square kilometer land
position which is highly prospective for both high-grade and
bulk-tonnage style gold mineralizing systems similar to that found at
the nearby Rainy River (Rainy River Resources Ltd), Hammond Reef
(Osisko Mining Corporation) and Cameron Lake (Coventry Resources Ltd)
The project is situated in a prime location at the junction of the
Pipestone-Manitou Stretch Deformation Zone and the Helena-Pipestone
Deformation Zone of which the latter can ultimately be traced for
over 55 kilometers to the same geological setting that hosts the
Rainy River gold deposit (4.41 Moz Au M+I). The Pipestone-Manitou
Stretch Deformation Zone and its associated splays remain vastly
underexplored and contain several drill ready and earlier stage gold
targets including neighboring exploration projects at Manitou Gold's
Gaffney Extension property and Kesselrun Resource's Bluffpoint
Previous work on the Pipestone project by Mineral Mountain Resources
has returned numerous surface gold occurrences and mineralized drill
intercepts throughout the property including a coherent, shallowly
dipping zone of disseminated gold mineralization within the Lawrence
Lake Batholith at the Pine Centre prospect.
Nelson Baker, President and CEO of Mineral Mountain commented: "We
are delighted to have Duncastle Gold, with the Manex Resource Group
and their strong team of explorers, continue the search for a large
gold resource in this regionally complex greenstone belt".
President Michael Rowley commented: "Duncastle is very pleased with
the option to acquire 100% of the Pipestone project as our second and
most significant acquisition in Ontario to date. We believe that th
property has true multi-million ounce gold potential based on the
regional metallogeny, and a clear initial target for drill follow-up
at the Pine Centre prospect with potential for significant expansion
along strike and down dip. In addition there are numerous other
targets in several geological settings throughout the very large
property. The location is excellent and access by existing roads is
Under the terms of the letter of understanding, Duncastle can acquire
an undivided 100% right, title and interest in the project upon
completion of cash payments in the aggregate amount of $300,000,
issuances of an aggregate 2,000,000 common shares in the capital of
Duncastle, and minimum exploration expenditures on the property in
the aggregate amount of $4,000,000, in accordance with the following
To earn an initial 60% interest, Duncastle must:
-- Issue 250,000 shares upon TSX Venture Exchange ("Exchange") acceptance;
-- Pay $35,000 upon completion of a non-flow-through private placement;
-- Pay $50,000, issue 250,000 shares, and complete $500,000 in exploration
expenditures on or before the first anniversary of Exchange acceptance;
-- Pay $50,000, issue 250,000 shares, and complete a further $500,000 in
exploration expenditures on or before the second anniversary of Exchange
-- Pay $65,000, issue 250,000 shares, and complete a further $500,000 in
exploration expenditures on or before the third anniversary of Exchange
To earn a further 40% interest (for an aggregate 100% interest),
Duncastle will pay $100,000, issue 1,000,000 shares, and complete a
further $2.5 million in exploration expenditures on or before the
fifth anniversary of Exchange acceptance.
Mineral Mountain will retain a 2% net smelter return royalty ("NSR")
on claims which are not already subject to royalties. Duncastle shall
have the right to purchase one half of Mineral Mountain's NSR (thus
reducing it to 1%) at any time for a payment of $1,000,000.
Duncastle and Mineral Mountain acknowledge existing royalties on
certain claims in the Pipestone package including a 3% NSR payable on
certain claims with an option to buy down to 1% for $1,000,000 per
1%, and a 2% NSR payable on certain other claims with the option to
purchase one half (thus reducing it to 1%) for a payment of
The letter of understanding, and the issuance of shares thereunder,
are subject to Exchange acceptance on behalf of Duncastle.
About Duncastle Gold
Duncastle Gold Corp. is a Vancouver-based gold exploration company
with mineral claims covering or surrounding past producing mines in
British Columbia and, recently, in Ontario, Canada. In addition to
the newly acquired high-grade gold projects in Ontario and the
past-producing Yankee-Dundee Mine in southeast BC, Duncastle holds a
100% interest in the highly prospective polymetallic Porphyry Creek
project in northwest BC including a copper-molybdenum porphyry system
announced December 2010.
As part of the Manex Resource Group, Duncastle benefits from shared
expertise in corporate finance, public company administration,
investor relations, and technical and geological services provided
for seven public companies active in North America. Since its
formation in 1997, the Manex Group companies have raised over C$350
million in exploration financing.
Rob Macdonald, (P.Geo.), is the Qualified Person responsible for
reviewing the technical results in this release.
About Mineral Mountain
Mineral Mountain is focused on the exploration and, if warranted,
development of the Holy Terror Project in the Keystone mining
district in the southeastern part of the Black Hills of South Dakota,
U.S.A. The Keystone district contains historic gold mines, eight of
which occur within the Holy Terror Project, that targeted Early
Proterozoic gold mineralization associated with iron formations and
shear zones similar to the deposits at the Homestake gold mine.
Nelson Baker, (P.Eng.), is the Qualified Person responsible for
reviewing the technical results in this release on behalf of Mineral
Mountain Resources Ltd.
On behalf of the Board of Directors of Mineral Mountain Resources
Nelson W. Baker, President and CEO, Mineral Mountain Resources Ltd.
On behalf of the Board of Directors of Duncastle Gold Corp.,
Michael Rowley, President, Director, Duncastle Gold Corp.
This News Release may contain forward-looking statements including
but not limited to comments regarding the timing and content of
upcoming work programs, geological interpretations, receipt of
property titles, potential mineral recovery processes, etc.
Forward-looking statements address future events and conditions and
therefore involve inherent risks and uncertainties. Actual results
may differ materially from those currently anticipated in such
statements. These statements are based on a number of assumptions,
including, but not limited to, assumptions regarding general economic
conditions, interest rates, commodity markets, regulatory and
governmental approvals for the company's projects, and the
availability of financing for the company's development projects on
reasonable terms. Factors that could cause actual results to
materially from those in forward looking statements include market
prices, exploitation and exploration successes, the timing and
receipt of government and regulatory approvals, and continued
availability of capital and financing and general economic, market or
business conditions. Mineral Mountain Resources Ltd and Duncastle
Gold Corp. do not assume any obligation to update or revise its
forward-looking statements, whether as a result of new information,
future events or otherwise, except to the extent required by
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.
Mineral Mountain Resources Ltd.
Director and Vice-President Corporate Development
Duncastle Gold Corp.
1.888.456.1112 or 604.641.2742
Manex Resource Group
V-P of Corporate Development
1.888.456.1112 or 604.641.2773
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