Clarity Metals Corp. press release
Foundation Resources Raise the Stakes in Ontario With 100% Acquisition of Rapidly Advancing Coldstream Gold Project
CSE - Canadian National Stock Exchange · Gold · Silver · Zinc · Copper · Molybdenum · Arsenic · Tungsten · Lithium · Nickel · Canada
By Nathan Pearson Resourcexinvestor.com
Amidst a steady news flow of laudable drill results and private placement updates, Foundation Resources (TSX-V: FDN) has been working aggressively to advance its succinct, yet stellar property portfolio. The company recently reached a milestone with its Coldstream Gold project in Ontario as it finally acquired 100% ownership of the flagship property which boasts an NI 43-101 resource estimate of 763,276 ounces of gold Inferred and 96,400 ounces of gold Indicated on the East Coldstream Deposit which is one of the five significant mineralization areas on the Property.
Having just completed a private placement of $1,027,250 and riding high on drill results from Coldstream’s Iris Lake prospect and East Coldstream deposit, Foundation Resources is making notable strides in the junior exploration world.
"We are very pleased to acquire the remaining 40% interest in the Coldstream Property which is a substantial step forward in the development of the company," states Foundation President Ike Osmani. "Further, this consolidation of ownership enhances Alto as a strategic shareholder and creates additional value for our existing shareholders."
Alto Ventures Ltd. (TSX-V: ATV) is the company from which Foundation acquired the remaining 40% interest in Coldstream on November 8th. Foundation initially entered into an option agreement with Alto to acquire up to a 70% interest in Coldstream on April 7th 2009. By January 2011 the company had earned a 60% interest in the property and, less than a year later, Foundation has managed to push that 60% interest to 100%, establishing some seriously impressive project advancements along the way.
Coldstream Project
The Coldstream Project is located in the Archean age Shebandowan Greenstone Belt within the Wawa Subprovince, host to past and present world class precious and base metal deposits. Only 115 kilometres west of Thunder Bay, the gold project sits on the same mineralized corridor as the Moss Lake gold deposit (TSX-V: MOK), which hosts 1.5m ounces of gold, and Xtrata/Rainy Mountain Royalty Corp. Coldstream Property is host to five (5) significant gold targets; East Coldstream Deposit, Iris Lake, Span Lake, Goldie Zone and Burchell West.
Since acquisition in 2009, Foundation has displayed a genuinely impressive work ethic on Coldstream. In 2011 alone the company has embarked upon two 6,000 metre drill program, expanded the project, completed an IP Geophysical Survey, commissioned an NI43-101 resource estimate on the East Coldstream deposit and provided investors with a consistent stream of drill results.
The objective of the company’s 6,000 metre winter drilling program was to expand the Main, North, East and Sanders zones at the East Coldstream Deposit, while the remaining 3000 metres were utilized in exploring other areas of the property. March saw news of new high-grade gold intersected at the Iris Lake property, located approximately 1500 metres north of the East Coldstream Deposit.
Highlights read as follows: 8.39 g/t gold over 11.0 m within a 26.0 metre-wide zone averaging 3.68 g/t gold: Hole IL-11-02.
-5.09 g/t gold over 2.0 m within 8.85 metre-wide zone averaging 1.76 g/t gold and 3.55 g/t gold over 1.50 m within 13.0 metre-wide zone averaging 1.24 g/t gold: Hole IL-11-03.
April brought results of 10.0 g/t gold over 4.0 metres within a 13.0 metre-wide zone averaging 3.49 g/t gold on the East Coldstream Deposit while May and June’s results confirmed that the company was continuing to hit gold at the Deposit with intersects as highlighted below:
23.0 metre-wide zone averaging 1.04 g/t gold within 47.0 metre-wide mineralized envelope grading at 0.72 g/t gold: Hole C-11-62. 16.0 metre-wide zone averaging 1.06 g/t gold including 2.62 g/t gold over 4.0 m: Hole C-11-62. 23.0 metre-wide zone averaging 1.0 g/t gold including 2.66 g/t gold over 5.75 m: Hole C-11-64. 12.0 metre-wide zone averaging 1.14 g/t gold within 38.0 metre-wide mineralized envelope grading 0.54 g/t gold: Hole C-11-64. 9.25 metre-wide zone averaging 1.78 g/t gold including 5.18 g/t gold over 1.80 m: Hole C-11-63.
The 6,000 metre summer drill program began on June 26th with the objectives to continue exploring and developing the high-grade gold mineralization at the Iris Lake discovered during the winter drill program and also to continue expanding the East Coldstream Deposit both laterally and down plunge immediately west of the deposit in a virtually unexplored area.
July saw Foundation announce 8.26 g/t gold over 3.35 metres intersected at the deposit and in September, the eagerly awaited NI43-101 resource estimate reported 763,276 ounces of gold in the inferred category and 96,400 ounces of gold in the indicated category on the East Coldstream Deposit. The report also confirmed that the deposit occurs at surface and is open in both strike and dip.
Drilling has continued on the ever-advancing Coldstream project, seeing 254.00 g/t and 7.05 g/t gold intersected over 0.50 m and 3.20 m, respectively at Iris Lake in October, and an aggressive drill program slated for Q4 2011 and 2012 in a bid to further expand and increase the current resource estimate.
Mitchell Although Foundation’s considerable efforts are focused primarily on the Coldstream project at the moment, the company’s massive sulphide Mitchell Property in the Red Lake Mining District of Ontario and its high-grade San Rafael gold-silver project in Mexico add a delectable dose of diversity to the company’s land holdings.
On May 26th 2011 Foundation entered into a purchase agreement with Perry English, on behalf of Rubicon Minerals Corp. (TSX-V: RMX) whereby Foundation has the right to acquire 100% interest in the Mitchell Property’s 736 hectares. Located approximately 10 kilometres southwest of the former South Bay Mine (1.6 mt mined @2.5% copper, 14% zinc and 3.5 ounce per ton silver), the property occurs within the southern Birch-Uchi Greenstone Belt in the Uchi Subprovince of the Superior Province of the Canadian Shield and contains felsic volcanic units similar to those found at the South Bay Mine.
Regarding the history of the property, Noranda Mining and Exploration Company carried out geophysical and litho-geochemical surveys and geological mapping on Mitchell in the mid 1990s and reported 2 areas of VMS-style mineralization. There are also numerous other base metal sulphide occurrences on the property that Foundation will re-evaluate using appropriate geological and geophysical methods.
Several gold-bearing quartz veins hosted within northeast-trending, pyritic shear zones have also been reported to occur within the south-central part of the Mitchell property and, eager to get to work locating high-grade gold veins, Foundation is considering an exploration work program consisting of geologic mapping/prospecting, litho-geochemical sampling in selected areas and drilling of some untested historic geophysical targets for massive sulphide mineralization for the near future.
San Rafael Casting off the bowline to sunnier shores, Foundation Resources has also signed an option agreement with Minera Aurum SA de CV and Francisco Javier Perez Gavilan to acquire a 70% interest in the San Rafael Project in Mexico.
Located 154 kilometres west-northwest from the city of Durango, Mexico, 30 kilometers to the northwest of the Tayoltita Mine and 34 kilometers to the southwest of the Bacis Mine, the San Rafael property hosts the past-producing San Rafael gold and silver mine which consists of four levels, totaling about 400 metres of development, plus other short adits in other parts of the property.
Recent sampling undertaken during Foundation’s due diligence of the property returned very encouraging precious metal values, such as a series of three continuous chip samples totaling 3.8 metres taken across the back of the Esperanza adit which averaged 13.86 g/t gold and 175.88 g/t silver. Although company focus remains on Coldstream, the San Rafael property is shaping up to be a seriously promising prospect for future development.
"We are very pleased with the recent acquisition of the Mitchell project in the Red Lake Mining District of Ontario and the San Rafael project in Durango State, Mexico, which is a very significant step towards building a precious and base metal portfolio to enhance share holder value.” Comments Paul Chung, CEO of Foundation. “Further, our technical team has been able to identify and develop these assets, which gives shareholders an opportunity to participate in potential new discoveries as we develop the flagship East Coldstream Deposit."
Rock-Solid Management With over 19 years experience and expertise in the management of public companies, Paul Chung B.Sc, MBA is regarded as a highly valuable asset to Foundation’s Board of Directors which is headed by John Hiner as Chairman of the Board. Having managed projects on proven deposits in South America, North America and Africa, Hiner brings over 30 years experience in worldwide resource exploration and management to the table.
President and Director of Foundation is Ike Osmani, P.Geo. With over 28 years of mineral exploration and management experience, Osmani has worked with Homestake Canada Inc., Cameco, Lake Shore Gold and TNR gold. Combined with the extensive expertise and industry know-how that the remaining members of the board have to offer – Jerry Bella CGA as CFO, Ralph Shearing B.Sc, Director and Barry Girling, Director - Foundation is most definitely living up to its name when it comes to rock-solid management.
Holding Its Own Resting comfortably on a highly respectable stake of land, Foundation Resources has found itself smack bang in the middle of an emerging gold camp in northwest Ontario. Counting as its neighbors’ Osisko Mining (TSX-V: OSK) with 10M ounces of gold inferred, Moss Lake with 1.5M ounces of gold inferred & indicated and Lake Shore Gold (TSX-V: LSG)with 251,271 ounces of gold (historical), Foundation is more than holding its own. With over 16,000 metres drilling completed on East Coldstream Deposit, an NI43-101 resource of 763,276 inferred and 96,400 indicated ounces of gold with an aggressive drill program scheduled for 2011-2012, Foundation Resource investors will most definitely be watching this space.
Follow the company’s progress at www.foundationres.com