VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 04/11/12 -- Kent Exploration Inc. (TSX VENTURE: KEX)(PINKSHEETS: KXPLF)(FRANKFURT: 7KX) (the "Company" or "Kent") reports that it has entered into an agreement with Senator Minerals Inc ("Senator") to acquire Senator's 50% interest in and to the Ivanhoe Creek Bentonite claims, in Elko County, Nevada (the "Agreement").
The terms of the Agreement require the Company to pay Senator $100 (paid) and reserve to Senator a 3% Production Royalty. With the acquisition of Senator's 50% interest in the Bentonite Claims, Kent now holds a 100% interest in and to the claims, subject to a reservation in favor of RMIC Gold of a 1% net smelter return royalty (NSR Royalty) and the aforementioned 3% Production Royalty reserved for Senator.
The Ivanhoe Creek Bentonite deposit, that has a reported historic 2 million plus tons of high-quality bentonite, was discovered in 1978 when minor production was undertaken. According to the historic mine application report, the property was drilled to a depth of up to 75 feet with a number of the deeper drill holes bottoming in high quality bentonite. The bentonite deposit is drill permitted for an approximately 50 hole drill program to confirm the reported 2 million ton historic deposit. The Company intends, subject to financing, to commence operations on the bentonite claims at the earliest opportunity.
Graeme O'Neill, the Company President & CEO, comments: "In these very difficult times we must ensure we are doing everything we can to provide the Company with a sound underpinning for the future. While industrial minerals do not normally excite the investor's imagination, the barite project, and now the bentonite project, provide us with the ability to provide near term cash flow, and any positive cash flow we create should provide additional shareholder confidence in the Company, reduce future dilution and provide ongoing funding for our substantial New Zealand gold projects."
Bentonite production in North America averaged 4.6 million metric tons over the past five years and sale prices averaged US$55.40 per metric ton over the same period. Bentonite is an industrial mineral used for, among other things, diamond drilling, heap leach pads and tailings ponds, as well as kitty litter, iron ore pelletizing, etc. By acquiring a 100% interest in the bentonite claims, the Company has acquired the potential to create an additional source of cash flow.
Mining the bentonite would typically consist of stripping between six inches to two feet of altered surface material to expose the high quality bentonite, then mining and field drying the bentonite for sale, either as a raw product, or with beneficiation, as a finished product.
The Bentonite surface claims are situated directly over the Company's Ivanhoe Creek Gold Project lode claims and readily accessible from the mine access road to the currently producing Hollister gold mine. The Company's Ivanhoe Creek gold lode claims are on strike between two large gold mines, Great Basin Gold's 2 million plus ounce Hollister Gold Mine and Newmont's highly prolific and low cost 5 million ounce Midas gold mine. Ivanhoe Creek is approximately 5 km northwest from the Hollister mine and 16 km southeast from Midas and is highly prospective for a Midas style gold deposit.
Due to a significant workload created by current market conditions, Mr. Michael England has regretfully resigned as a director of the Company. The directors of the Company take this opportunity to thank Mr. England for his long service as a director.
In its furtherance of preparing the Company as a producer, the Company has accepted the resignation of its CFO Robin Peterson and has appointed Giusseppe Gallo, who has significant experience in transitioning companies, as the Company's Chief Financial Officer.
Kent Exploration Inc. is a junior exploration company with a 100% interest in all its major projects, and is planning on building shareholder value through establishing cash flow from its Flagstaff Mountain, WA, barite mine and its Ivanhoe Creek bentonite property. Any positive cash flow is intended to reduce dilution and fund exploration on its three major high grade gold prospects (Alexander River, Paparoa and Lyell), in the highly prolific West Coast South Island gold fields of New Zealand. Additional shareholder value has been established been through its approximately 22% interest in Archean Star Resources Inc, ("Archean") which is listed on the TSX Venture Exchange under the symbol ASP and has discovered high grade gold in Western Australia.
The Company has an experienced management and technical team with extensive exploration expertise and offers investors the potential for a major gold discovery on its New Zealand gold projects.
This News Release has been prepared on behalf of the Kent Exploration Inc. Board of Directors, which accepts full responsibility for its contents. The contents of this news release has been reviewed and approved by Dr. Clay Conway, P. Geol., a Qualified Person as recognized by National Instrument NI-43-101 and a director of the Company.
ON BEHALF OF THE BOARD
Graeme O'Neill, President
Neither the TSX Venture Exchange, nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange), has reviewed, nor do they accept responsibility for, the adequacy or accuracy of this news release.
Contacts:
Kent Exploration Inc.
Graeme O'Neill
President
604-684-3394 or Toll free: 1-866-399-6539
1-888-282-7763 (FAX)
www.kent-exploration.com
