2013-03-01 20:59:15 -
(NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES. ANY FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF U.S. SECURITIES LAW.)
Toronto, Ontario CANADA, March 01, 2013 /FSC/ - Upper Canada Gold Corporation (UCC - TSX Venture), ("Upper Canada" or the "Company"), is pleased to announce that the Company has completed its acquisition of a fee simple interest of approximately 3,350 acres (part of the Rancho Las Mariposa Land Grant) located 15 miles north of Mariposa, California and known as the Pine Tree-Josephine Property (the "Property"). The purchase was completed through the Company's wholly owned subsidiary, Fremont Gold Mining LLC. The Property is subject to a 3% net smelter royalty.
price consisted of aggregate consideration to the vendor of US$5,120,000 of which approximately US$5,000,000 was paid on closing. During the course of the purchase, Upper Canada also paid the vendor a payment of US$40,000 in consideration for an extension to the closing date. The Company has also paid a third party an aggregate finder's fee of US$303,600 of which US$253,600 was paid on closing.
Upper Canada's President, Michael Churchill, commented, "The Pine Tree-Josephine Property has had extensive historical work including a historical feasibility study conducted in the late 1980's. Mine plans and extensive engineering were also completed at that time. California in general, and the Pine Tree Property in particular, represent an excellent opportunity to acquire and develop world class assets with price to risk ratios that clearly favour first movers such as Upper Canada. We have assembled an excellent California asset and a highly motivated and experienced management team and board all of whom are personally invested in the company's success. We are well funded and look forward to advancing the Property."
About the Pine Tree-Josephine Property
The history of the Property dates back to 1848 when gold was officially discovered in the region and several deposits have been mined intermittently from the early 1850's until the end of the Second World War. The most significant of these deposits is the Pine Tree-Josephine Deposit, which has been extensively developed and has, according to William B. Clark (Gold Districts of California, California Division of Mines and Geology, Bulletin 191 (1963)), produced in excess of $4,000,000, the equivalent of more than 125,000 ounces of gold from underground mining of high-grade quartz veins.
The Property includes the Pine Tree-Josephine Deposit which covers a two and a half mile (4 km) segment of the Mother Lode vein system, which consists of en echelon quartz veins, silica-ankerite alteration zones and ultrabasic intrusive associated with the Melones Fault Zone. Within the Property, four gold bearing alteration zones have been identified along the strike of the fault zone, the most significant of which is the Pine Tree-Josephine deposit. This deposit was developed extensively during previous mining activity and was further delineated during a surface reverse circulation drilling program from 1985 to 1986 (65,158 feet), which probed the deposit over 2,700 feet of strike length to a depth of 900 feet.
An in-situ geologic historical resource (called "reserve" at the time) was estimated by Derry Michener Booth & Wahl, Inc. (DMBW) in 1988. They reported in the "drill indicated" categories 8,290,100 tons grading 0.085 ounces per ton (opt) gold at a 0.025 opt cut off for a total of 702,184 oz Au; and in the "drill inferred" category they reported an additional 1,597,300 tons grading 0.078 ounces per ton gold for a total of 124,781 oz Au. DMBW also noted the potential for a possible increase of resources in the footwall of the known mineralization where drill holes were extending through the footwall. Other historical "reserve" estimates were also done in 1986 by Wright Engineers Ltd and an underground conceptual "reserve" estimate was completed by Beacon Hill Consultants Ltd. (BHC) in 1991. Historically, the underground potential was estimated by BHC (Case 1) to be 7.3Mt grading 0.116 ounces per ton Au for 838,000 of Au. This does not meet the "potential" definition for NI 43-101 as BHC did not give a range of tons and grade.
The above historical estimates are not compliant with CIM standards and National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI-43-101") requirements and they are not relevant to the Company or its acquisition of the Property. There is no new data regarding the historical estimates available to the Company. The Company has not performed any work or study to date to substantiate the reported historical estimates.
The Company now intends to bring the DMBW historical resource to CIM and NI 43-101 standards. Further exploration will test the expansion of the resources and to assess the underground resource potential.
Mr. A.A. Burgoyne, P.Eng., M.Sc., a consulting geologist who is an independent Qualified Person under NI 43-101 has completed a NI-43-101 compliant technical report on the Property which the Company will file in the near future.
Eric Moeller, RPG (SC374), is the Qualified Person under NI 43-101 who has reviewed the contents of this release.
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.
CAUTION REGARDING FORWARD-LOOKING INFORMATION
This news release of Upper Canada contains statements that constitute "forward-looking statements". Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause Upper Canada's actual results, performance or achievements, or developments in the industry to differ materially from the anticipated results, performance or achievements expressed or implied by such forward-looking statements. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates",
"believes", "intends", "estimates", "projects", "potential" and similar expressions, or that events or conditions "will", "would", "may",
"could" or "should" occur. Forward-looking statements in this document include statements regarding Upper Canada's expectations regarding the historical resource of the Pine Tree-Josephine Property, the exploration potential of the Pine Tree-Josephine Property, and ownership, entitlements, drilling and exploration activities on properties in which Upper Canada has, or believes it has, an interest. There can be no assurance that such statements will prove to be accurate. Actual results and future events could differ materially from those anticipated in such statements, and readers are cautioned not to place undue reliance on these forward-looking statements. Any factor could cause actual results to differ materially from Upper Canada's expectations. Upper Canada undertakes no obligation to update these forward-looking statements in the event that management's beliefs, estimates or opinions, or other factors, should change, unless otherwise required by law.
FOR FURTHER INFORMATION CONTACT:
Tel: 647-977-9267 x101
Chief Executive Officer
Tel: 647-977-9267 x222
This press release is available in PDF. Please click on the following link to view the PDF file: