Fjordland Signs LOI and Preliminary Agreement with Sumac Mines Ltd. on Dillard
Copper-Gold Property, Southern British Columbia
VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 04/04/13 -- Fjordland
Exploration Inc. (TSX VENTURE:FEX) is pleased to announce the signing
of a Letter of Intent (LOI) and Preliminary Agreement (PA) (the
"Agreement") with Sumac Mines Ltd. ("Sumac"), a subsidiary of
Sumitomo Metal Mining Co. of Japan, on the Dillard porphyry
copper-gold project ("the Project") in southern BC. The Agreement has
received approval by Sumac's and Fjordland's boards of directors, and
formal signing of the Agreement was carried out on April 3, 2013.
Under the terms of the Agreement, Sumac has the option to earn a 51%
interest in the Project by making aggregate expenditures of
CDN$3,500,000 over a three year period. Expenditures will include
$800,000 in 2013, $1,000,000 in 2014, and $1,700,000 in 2015.
Included in the aggregate expenditure is a cash payment to Fjordland
of $193,000 upon signing, and the Agreement is subject to TSX Venture
Exchange approval. Upon Sumac completing the required earn-in
expenditures and exercising their option, a joint venture between
Sumac (51%) and Fjordland (49%) for the Project will be formed. The
Agreement includes a 20-kilometre (km) Area of Interest ("AOI")
around the Dillard Property.
As operator, Fjordland has commenced planning for the 2013 work
program, with formal budget and work plan approvals expected within a
Tom Schroeter, President and CEO of Fjordland, states: "Sumac is an
exceptional partner for the Dillard project, with its long-term
presence in Vancouver. We are extremely pleased to have the
opportunity to be working together on the Dillard Property and also
under a strategic alliance within the 20-km AOI. They bring expertise
with financial resources and technical skills to join our team in the
next step to advance the potential of the Dillard project. We look
forward to launching a significant drilling program this year."
About the Dillard Porphyry Project
Dillard is a porphyry copper-gold project, road accessible from
Vancouver in three hours, located between Princeton and Merritt.
Previous limited, shallow drilling over an area measuring
approximately 1300 m in length and 400 m in width by Placer Dome in
1991 on the "Dill" property resulted in the discovery of several
significant copper and gold intercepts that have had no follow up. On
the adjacent "Dillard" property, several new prospecting discoveries
have been made in the past two years. When combined with historic
geochemical and geophysical anomalies, these areas represent
excellent drill targets (see news release dated October 18, 2012:
About Fjordland Exploration Inc.
Fjordland Exploration is a mineral exploration company focused on the
discovery of gold, copper and molybdenum deposits in British
Columbia. Fjordland currently has a portfolio with 25 properties. It
has a 100% interest in 5 properties known as "Tak" totaling 43,486 ha
in the Woodjam area of central BC. Fjordland and Serengeti Resources
Inc. are (50/50) partners in the "Milligan West" property totaling
15,736 ha, adjoining Thompson Creek Metals Ltd.'s Mt. Milligan
copper-gold deposits on the west. Fjordland and Serengeti Resources
Inc. are 35%/65% partners exploring 10 properties (QUEST Project)
totaling 49,753 ha in the Quesnel Terrane north of Woodjam for
precious and base metals. Xstrata Copper has one property under
option from Fjordland and Serengeti under a separate "QUEST
(Xstrata)" option agreement. Fjordland has a 100% interest in 2
properties totaling 17,657 ha in the Iron Range in southeastern BC.
Fjordland has an option to acquire a 100% interest in the adjoining
Dillard and Dill copper and gold properties, north of Princeton.
Fjordland's shares trade on the TSX Venture Exchange under the symbol
"FEX". For further information visit Fjordland's website at
About Sumac Mines Ltd.
Sumac Mines Ltd. (Sumac) is a mineral exploration company based in
Vancouver and a subsidiary of Sumitomo Metal Mining Co., Ltd. (SMM).
Sumac has explored many copper projects in British Columbia since the
early 1970s, which resulted in the discovery of the Kutcho Creek
deposit in the northern part of the province. Sumac is currently
exploring for copper and gold in British Columbia and the Yukon. The
parent company, SMM, is an integrated non-ferrous mining, smelting,
refining and manufacturing company. SMM is operating the Hishikari
gold mine in Japan and the Pogo gold mine in Alaska, and has invested
in many large copper mines in the world.
T.G. Schroeter, P.Eng./P.Geo., who is a qualified person within the
context of National Instrument 43-101, has read and takes
responsibility for this news release.
Tom Schroeter, President & CEO
Neither TSX Venture Exchange nor its Regulation Services providers
(as that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release.
Fjordland Exploration Inc.
Manager, Investor Relations
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