2013-02-27 20:06:39 -
Cranbrook, British Columbia CANADA, February 27, 2013 /FSC/ - Yellowjacket Resources Ltd. (YJK - TSX Venture), ("Yellowjacket" or "the Company") is pleased to provide an update on its internal strategic review of the Yellowjacket Gold Project as previously announced on November 27, 2012 (the "Strategic Review").
The Yellowjacket Gold Project is a large gold exploration property located approx. 9 km east of Atlin, British Columbia and is accessible by an all-season road. The project holds a British Columbia Mines Act permit for an open-pit gold mine and onsite 400 tpd mill and concentrator, processing up to 75,000 tons per year. The permit contemplates a 7-9 year mine life from a series of open pits located entirely within an area of
disturbed placer workings.
The purpose behind the Strategic Review was to assess possible mechanisms to derive increased value from its Yellowjacket Gold Project, as well as explore potential opportunities to deploy the Company's existing treasury into oil and gas royalties.
The Company received several expressions of interest involving the Yellowjacket Gold Project during the course of the Strategic Review. However, after deliberation, the Company's Board of Directors has elected to retain 100% ownership of the Yellowjacket Gold Project. This decision was based upon several factors, amongst which were: i) an economic assessment of optimal market conditions to vend or partner an advanced gold exploration project into; ii) consideration of potential cash flows possible from a permitted, low-CAPEX mining project; iii) the flexibility of timing around the Yellowjacket Gold Project given the good-standing nature of its mineral tenures and the Company's treasury; and iv) feedback from fellow shareholders indicating a desire to retain exposure to the significant gold exploration potential ascribed to the Yellowjacket Gold Project.
"Though we appreciate those parties who expressed interest in the Yellowjacket Gold Project, the Company is ultimately quite pleased with its decision to retain 100% of our high-potential gold exploration project, which is fully permitted for production. With no long term debt and a solid treasury, Yellowjacket is well positioned to take advantage of opportunities as they arise, especially in current market conditions. We are confident that the Yellowjacket Gold Project is a high-value gold asset and we will work to accelerate the markets' understanding of that in the near-future," stated Chuck Downie, P.Geo., President and CEO of the Company.
As part of the second component of the Strategic Review, the Company examined a number of oil and gas opportunities in which the Company could deploy on-hand resources. After a review of oil and gas market opportunities, for which economics have been negatively affected by recent scarcity of oil transportation capacity from Western Canada, the Company elected not to acquire any oil and gas royalties. The Board of Directors of the Company sees the potential to generate a superior rate of return through mineral exploration opportunities versus deployment of its treasury into the more capital intensive oil and gas sector. In addition, after assessing market opportunities as against the Company's treasury, Yellowjacket believes it is capable of identifying accretive uses of its capital in a period of time when a large portion of the junior mining sector lacks a similar level of resources and managerial experience.
The technical information in this news release has been prepared in accordance with the Canadian regulatory requirements set out in National Instrument 43- 101 and reviewed on behalf of the company by C.C. (Chuck) Downie, P.Geo. President and CEO for Yellowjacket Resources, a qualified person.
About Yellowjacket Resources Ltd.
Yellowjacket Resources Ltd. is a junior exploration company created in December 2011 by way of plan of arrangement and spin-out from Eagle Plains Resources Ltd. (TSX-V:EPL). The company is focused on mineral exploration projects proximate to infrastructure.
Yellowjacket Resources Ltd. controls the Yellowjacket Gold Project; a gold exploration property located approx. 9 km east of Atlin, British Columbia and accessible by an all-season road. The Yellowjacket Gold Project holds a British Columbia Mines Act permit for an open-pit gold mine and onsite 400 tpd mill and concentrator, processing up to 75,000 tons per year. The permit contemplates a 7-9 year mine life from a series of open pits located entirely within an area of disturbed placer workings.
"Charles C. Downie"
President and CEO
Yellowjacket Resources Ltd.
For further information, please contact Mike Labach at
1 866 HUNT ORE (486 8673) Email: firstname.lastname@example.org
or visit our website www.yellowjacketresources.com
Cautionary Note Regarding Forward-Looking Statements
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. 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.
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