Toronto, Ontario--(Newsfile Corp. - September 1, 2016) - Darnley Bay Resources Ltd. (TSXV: DBL) ("Darnley Bay" or the "Company") is pleased to announce it has entered into an agreement to acquire a 100% interest, subject to a royalty, in the Nak copper-gold project, located 80 kilometres northeast of Smithers, B.C., from vendor Bernie Kreft.
The Nak project (the "Property") is road- accessible and located in the Babine Lake area of central British Columbia. The Nak project occurs in the well-mineralized Babine copper-gold porphyry belt that includes the former Bell and Granisle mines, the Morrison deposit and numerous other advanced prospects. The Bell and Granisle mines together produced 130 million tonnes of ore grading 0.4% copper (Cu), 0.15 g/t gold (Au) and 0.75 g/t silver (Ag). The Morrison project is currently the subject of a feasibility study. The Nak property was originally explored by Noranda in the 1960's and 1970's and more recently by a number of junior exploration companies through the mid 1990's. The Company cautions that the information reported above on the Bell and Granisle mines, and Morrison deposit is not necessarily indicative of the mineralization on the Nak project.
Highlights from the 1995-96 Nak drilling include 70.7 m grading 0.248% Cu and 1.166 g/t Au in hole 96-55, 12.5 m grading 2.614% Cu and 0.143 g/t Au in hole 96-58, 18.0 m grading 1.318% Cu and 0.203 g/t Au in hole 96-65 and 21.3 m grading 0.295% Cu and 1.059 g/t Au in hole 96-70. In 2008, a single hole in the Southern Zone returned a drill hole mineralized from the collar to the end of the hole and returned 316.5 m of 0.115% Cu and 0.257 g/t Au gold. The 1995-96 drilling work was completed by Hera Resources Inc.
A geophysical survey in 2008 identified a low chargeability and high magnetic susceptibility zone interpreted to be associated with the gold-rich Southern Zone. This signature extends beyond the existing drilling and known mineralization. Two specific target areas, the IP Embayment and the Northeast Extension have similar geophysical signatures and have seen limited drill testing. The Northeast Zone is also supported by anomalous Cu, Au and Mo soil geochemistry. The IP Embayment area, with its irregular chargeability anomaly patterns, lies along strike from the gold-rich Southern Zone and has a coincident high magnetic signature. Both targets require drill testing. The survey was completed by Copper Ridge Explorations Inc.
Terms of the acquisition include cash payments of $150,000 over five years: $15,000 on signing, $15,000 on the next three anniversaries of signing, $30,000 on the fourth anniversary and $60,000 on the fifth anniversary. Bonus payments to the vendor will consist of $25,000 on 1,500 metres of drilling and a further $25,000 upon a total of 3,000 metres of drilling. A payment of $125,000 and 250,000 common shares will be payable upon a total of 10,000 metres of drilling. The Optionor may elect to pay $250,000 rather than issue the Common Shares or the Optionor can elect to pay a combination of Common Shares and cash equivalent of $250,000 in lieu of the obligation to issue up to 250,000 Common Shares, Darnley Bay has a work commitment of $25,000 to be completed by the end of May 26, 2017, and a total of $500,000 by the third anniversary of the agreement. The vendor will retain a 2% Net Smelter Royalty, 62.5% of which can be purchased from the vendor for $1.5 million.
This transaction is consistent with Darnley Bay's stated business strategy to acquire interests in several base metal deposits at or near the feasibility stage. On March 8, 2016, Darnley Bay announced an option to acquire the Davidson molybdenum deposit near Smithers, British Columbia and on May 24, 2016, it announced an option to acquire the Clear Lake Zinc Project in the Yukon.
It is with sadness that we announce the passing of Leon La Prairie on August 23, 2016 at age 90. Leon was the co-founder of the company in 1993, and served as the CEO (25 years) and Chairman (28 years). A mining engineer by trade and a promoter at heart, he will be remembered fondly by friends in the mining industry and throughout the North, where his wit and wisdom touched many for more than 60 years. We send our condolences to the La Prairie family.
Stephen Reford, P.Eng., Chief Technical Officer of Darnley Bay, Qualified Person under National Instrument 43-101, reviewed and approved the scientific and technical information presented in this press release. The Company has not independently verified the assessment reports:
Spencer, B.E., 1996, Report on the 1995 Drill Program-Nak 95-1/95-2 Mineral Claims, Omineca Mining Division, Babine Lake Area, British Columbia, Geological Survey Branch Assessment Report No. 24,273.
Bridge, D., 1997, Geological and Drilling Report on the Nak 95-1 - 95-3, Nak 4-11, Snak and Snak 1 Mineral Claims, Omineca Mining Division, North-Central British Columbia, Geological Survey Branch Assessment Report No. 24,928.5.
Jamie Levy, President and CEO
Telephone: (416) 567-2440
Fax: (416) 361-2515
E-mail: jlevy@darnleybay.com
Web site: www.darnleybay.com
Forward-Looking Information
This release includes certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical facts, that address future production, reserve potential, exploration drilling, exploitation activities and events or developments that Darnley Bay expects are forward-looking statements. Although Darnley Bay believes the expectations expressed in such statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the statements. There are certain factors that could cause actual results to differ materially from those in forward-looking statements. These include market prices, exploitation and exploration successes, continued availability of capital and financing, and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and actual results or developments may differ materially from those projected in the forward-looking statements. For more information on Darnley Bay, investors should review registered filings at www.sedar.com.
Neither the 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.
