Sniper Resources Enters into Joint Venture Agreements with Columbus Gold Corporation

Strategic Insights -

Sniper Resources Ltd., a company engaged in the identification, acquisition, and exploration of gold properties in the State of Nevada, USA, has entered into joint venture agreements with Columbus Gold Corporation, a gold exploration and development company operating in French Guiana and Nevada. The agreements pertain to two Nevada gold projects, Weepah and Laura, both of which have significant gold mineralization potential.

Weepah has a historical gold production record from an open pit, and sampling has yielded anomalous to high-grade gold values. Drill holes have intersected significant gold mineralization, including a 9.37 g/t (0.273 opt) gold value from 80.8-82.3 m (265-270 ft) depth. The favorable Precambrian silt and limestone is present immediately under the gravel cover, with altered rock showing anomalous gold values. Additional drilling is warranted to further evaluate the gold mineralization.

Laura has potential for both epithermal volcanic-hosted and Carlin-type sediment-hosted gold. Sampling and drilling have indicated gold mineralization in a heterolithic "jasperoid breccia", a zone sandwiched between ash-flow tuff and felsite intrusive bodies. The longest gold intersection, 9.1 m (30 ft) at 0.69 g/t (0.020 opt) gold, has been interpreted to be near a felsite intrusive body.

Sniper Resources can earn an initial 51% interest in Weepah by incurring $3,000,000 in exploration expenditures over three years, paying approximately $30,000 on execution of the agreement, and issuing an aggregate of $60,000 worth of Sniper common shares to Columbus Gold over three years. For Laura, Sniper Resources can earn an initial 70% interest by paying US$10,000 and issuing 100,000 common shares of Sniper to Columbus Gold, as well as fulfilling third-party underlying lease and maintenance payment obligations through August 7, 2012.

Key Takeaways:

  • Sniper Resources has entered into joint venture agreements with Columbus Gold Corporation for the Weepah and Laura gold projects in Nevada.
  • Weepah has significant gold mineralization potential, with historical gold production from an open pit and anomalous to high-grade gold values in sampling and drilling.
  • Laura has potential for both epithermal volcanic-hosted and Carlin-type sediment-hosted gold, with gold mineralization in a heterolithic "jasperoid breccia".
  • Sniper Resources can earn an initial 51% interest in Weepah by incurring $3,000,000 in exploration expenditures over three years, and approximately $60,000 worth of Sniper common shares over three years.
  • For Laura, Sniper Resources can earn an initial 70% interest by paying US$10,000, issuing 100,000 common shares of Sniper, and fulfilling third-party underlying lease and maintenance payment obligations through August 7, 2012.

Statistics:

  • 225,000-450,000 tonnes (250,000-500,000 tons) of gold mineralization at Weepah, averaging 1.7-2.4 g/t (0.05-0.07 opt) gold.
  • $3,000,000 in exploration expenditures required to earn an initial 51% interest in Weepah.
  • 333 check assays performed on nearly all mineralized intervals with original assays greater than 100 ppb gold at Weepah.
  • 13 of Columbus Gold's 26 Nevada gold projects are joint-ventured to major and junior mining companies.

Sources:

  • Sniper Resources Ltd. News Release, September 27, 2011.
  • Columbus Gold Corporation News Release, September 27, 2011.
  • American Assay Laboratories, Inc. Quality Assurance/Quality Control Assays for Weepah gold project.
  • NI 43-101 reports by Columbus Gold Corporation for Weepah and Laura gold projects.