Vancouver, B.C. - Northern Vertex Capital Inc. (TSX.V:NEE) ("Northern Vertex") and Kootenay
Gold Inc. (TSX.V:KTN) ("Kootenay") have entered into a letter agreement whereby Northern Vertex has the right to earn a undivided 60% interest in the Copley Gold Property located in the Nechako Plateau of Central British Columbia in exchange for issuing an aggregate total of 800,000 common shares of Northern Vertex to Kootenay; and financing $2.2 million of exploration expenditures on the property within a four-year period. All terms of this letter agreement are subject to approval by the TSX Venture Exchange.
Gold potential of the Copley Property is considered high for the following reasons:
- Highlights of Channel Sampling: Recent channel samples reported:
- 10.02 g/t gold over 2 meters;
- 4.8 g/t gold over 3 meters;
- 0.55 g/t gold over 7 meters;
- 0.33 g/t gold over 9 meters (with 0.461 g/t gold over 5 meters);
- 0.226 g/t gold over 8 meters.
- Size Potential: The gold-bearing system is large, at least 6 km long and 2 km wide within a 2,926 hectares property.
- Favorable Geologic Setting: Gold occurs in three aligned topographic domes underlain by scilicified rhyolite.
- Textures and Alteration Consistent with Gold Deposition: The zone of boiling (gold deposition) is manifest as:
- quartz replacing calcite rhombs
- miarolitic cavities lined by fine-crystalline quartz crusts
- celadonic and argillic alteration
- Significant Ground Preparation: Several surges of brecciation and stockworking focused fluid flow and provided the opportunity for gold transportation and deposition.
- Regional Scale Structures: At least one major east-west structure traverses the property, topographic and magnetic linears suggest several are present.
- Blackwater as an Analogue: Copley is geologically similar to Blackwater, Richfield Ventures' important new bulk tonnage discovery located 40 km to the south.
- Excellent Infrastructure and Logistics: All season road-access and a nearby power grid have important long-term cost implications.
The foregoing geological disclosure has been reviewed and verified by Robert Thompson, Phd, P.Eng (a qualified person for the purpose of National Instrument 43-101, standards of disclosure for mineral projects).
Terms of agreement
To fulfill the terms of the letter agreement, Northern Vertex must spend an aggregate total of $2.2 million on exploration over four years and issue up to 800,000 shares with 200,000 shares due on regulatory approval of the letter agreement and 200,000 common shares of Northern Vertex on or before the first year anniversary and each of the second and third anniversaries thereafter, of the execution date. Subsequent to exercise of the earn-in, Northern Vertex and Kootenay will form a 60/40 joint venture. Financing of further work on the Copley Gold property will be on a proportional basis under the direction of a management committee with voting rights proportional to ownership percentage. Either party may be diluted on the basis of a standard formula if they do not contribute to the planned programs. If either party is diluted below 10 per cent, their interest will convert to a 1.5-per-cent NSR (net smelter return) royalty. Mr. Kenneth Berry is a director and officer of both Northern Vertex and Kootenay.
A 43-101 Technical Report will be filed on SEDAR shortly.
Northern Vertex has also issued an aggregate total of 990,000 incentive stock options exercisable for a period of five years at a price of $.45 per share to directors, officers and consultants of the company.
About Northern Vertex
Northern Vertex is currently reviewing various historic producing mine sites for acquisition. In addition, the Company is conducting systematic exploration on the Deer Creek Gold Property and the Copley Gold Property in British Columbia, Canada.
ON BEHALF OF THE BOARD OF NORTHERN VERTEX
For further information, please contact
Colin Clancy at Telephone: 604-601-3656
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or the accuracy of this release.
Cautionary Note to US Investors: This news release may contain information about adjacent properties on which we have no right to explore or mine. We advise U.S. investors that the SEC's mining guidelines strictly prohibit information of this type in documents filed with the SEC. U.S. investors are cautioned that mineral deposits on adjacent properties are not indicative of mineral deposits on our properties. 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.