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Mainstream Minerals acquires 100% Interest in Hazard Lake Gold property
11/16/2009 (BAYSTREET NEWSWIRE) Mainstream Minerals Corporation (TSX-V: MJO) (the "Company") announces that it has entered into a Property Option Agreement with Mr. Perry English, on behalf of Rubicon Minerals Corporation (the "Optionor"), for an option to acquire a 100% interest in the Hazard Lake Gold Property, Township of Uchi Lake in the Red Lake Mining Division, Ontario. The optioned 24 claim units are adjoining the Bobjo property to the South East.
The Hazard Lake Property area lies within the Archean Birch-Uchi Greenstone Belt of the western Uchi Subprovince of NW Ontario. The most significant mineralization discovered on the Hazard Lake property to date is at the Northgate and Milberry occurances. Northgate Exploration drill tested the “Northgate Occurrence” in 1959, with one hole intersecting 0.4 ounces per ton Au over 3.3 feet at a 500ft depth. At that time, Northgate calculated a resource of 64,000 tons grading 0.28 ounces gold per ton. This resource constitutes a “historical resource” in the context of National Instrument 43-101.
The mineralization at the Milberry Occurrence is believed to be the extension of the Hill-Sloan-Tivy vein north of the property. The vein strikes N28°E and can be traced for a length of 228.7 metres (Thurston 1985). Drilling on the Milberry Occurrence has returned assays up to 107.31 g/T Au over 0.91 metres, 151.54 g/T Au over 0.67 metres, 81.94 g/T Au over 0.76 metres, and 44.29 g/T Au over 0.91 metres.
Historic data taken was from the Ontario Government geological files.
(The calculations and results shown in this news release are pre-National Instrument 43-101 and are therefore not compliant with National Instrument 43-101 requirements. The Company is not treating the historical estimates and results as accurate or current. Readers are cautioned not to place undue reliance on these historical estimates and results.)
Under the terms of the Option Agreement, Mainstream Minerals can earn a 100% interest by completing payments to the Optionor as follows:
On signing of the Agreement $8,000.00
1st Anniversary of the Agreement $12,000.00
2nd Anniversary of the Agreement $16,000.00
3rd Anniversary of the Agreement $25,000.00
4th and final Anniversary of the Agreement $35,000.00
In addition to the cash payment schedule, Mainstream Minerals shall issue to the Optionor, shares in the Company as follows:
On signing of the Agreement 100,000 Common Shares
1st Anniversary of the Agreement 50,000 Common Shares
2nd Anniversary of the Agreement 50,000 Common Shares
The Optionor will retain a 1.5 % Net Smelter Return (the “NSR”) interest in the Property in which one-half (0.75%) can be purchased back by the Company for a onetime payment of $750,000.00.
About Mainstream Minerals
Mainstream Minerals Corporation is a mineral exploration and development company focused on precious metal / rare earths mining properties with economic potential, with the aim of bringing such properties to commercial production. The Bobjo Mine project is located in the prolific Red Lake Gold Camp in Ontario.
MJO Shares Outstanding: 26,676,087
ON BEHALF OF THE BOARD
Signed “Michael Romanik”
Michael Romanik, President & CEO
(204) 222-0137
info@mainstreamminerals.com
www.mainstreamminerals.com
This news release includes certain forward-looking statements concerning the future performance of Mainstream Mineral Corporation’s business, its operations and its financial performance and condition, as well as management's objectives, strategies, beliefs and intentions. The Company does not intend, and does not assume any obligation, to update these forward-looking statements. Forward-looking statements are frequently identified by such words as "may", "plan", "expect", "anticipate", "estimate", "intend" and similar words referring to future events and results. These forward-looking statements represent management's best judgment based on current facts and assumptions that management considers reasonable. The Company makes no representation that reasonable business people in possession of the same information would reach the same conclusions. All forward-looking information is inherently uncertain and subject to a variety of assumptions, risks and uncertainties, including the speculative nature of mineral exploration and development, fluctuating commodity prices, competitive risks and the availability of financing and as described in more detail in the Company’s recent securities filings available at www.sedar.com. Actual events or results may differ materially from those projected in the forward looking-statements and readers are cautioned against placing undue reliance thereon.
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.
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