BonTerra Resources Acquires Larder Project from Kerr Mines Consisting of Two Gold Deposits and 9 km of Cadillac-Larder Break
Vancouver, BC and Toronto, ON – March 17, 2016: BonTerra Resources Inc. (TSX-V: BTR, US: BONXF, FSE: 9BR1) (“BonTerra”) and Kerr Mines Inc. (“Kerr Mines”) (TSX:KER) are pleased to announce that they have entered into an acquisition agreement, pursuant which BonTerra will acquire a 100% interest in the Larder Lake Property (the “Property”) from Kerr Mines and its wholly-owned subsidiary, Bear Lake Gold Ltd., located in the McVittie and McGarry Townships of Ontario, Canada.
- The Larder Lake Property, running along 9 km of the Cadillac-Larder break between Kirkland Lake and Virginiatown, consists of a historic estimate as outlined below
- Deposit is open at depth with over 100,000 metres of historical diamond drilling completed;
- Historical gold production and mine development to 1,085 feet, with two shafts and underground workings on site;
- Strategic 2,165-hectare land position along prolific Cadillac/Larder Fault Break where over 13 Million ounces of production has been recorded; located 7km west of the Kerr Addison Mine, which produced 11 million ounces of gold;
- Extensive infrastructure and access (highway and power).
"The acquisition of the Larder Lake Property is key to BonTerra and its shareholders. The transaction elevates BonTerra’s position amongst its peers with a significant gold resource portfolio contained at the Gladiator Gold Project, and now the Larder Lake Project. We continue to identify key projects within the Abitibi Gold Belt, and once again advance our strategy of becoming a significant gold exploration company and building value for our shareholders. I would like to welcome Kerr Mines as a new Shareholder of BonTerra.”, commented Nav Dhaliwal, President and CEO.
Greg Gibson, CEO of Kerr Mines stated, “Kerr Mines will continue to actively participate in the Larder Lake Project through its ownership stake in BonTerra. BonTerra continues to demonstrate excellent exploration work and commitment in the Abitibi Gold Belt of Quebec, and now Ontario, and are providing excellent returns to their shareholders. This transaction allows Kerr to continue to focus on our development plans for our Copperstone Mine in Arizona and move the Larder Lake Project forward in partnership with BonTerra.”
Disclosure of Historical Estimates*:
The Larder Lake Project contains a historic estimate. In August 15, 2011, P&E Mining Consultants prepared for Kerr Mines a resource estimate as reported in a technical report titled “43-101 Technical Report and Updated Resource Estimates on the Larder Lake Property, Larder Lake, Ontario for Bear Lake Gold Ltd.” BonTerra considers the historical estimate to be relevant and reliable given that it was prepared under NI 43-101 standards. BonTerra considers this resource estimate to be historical; it has not independently verified it, and therefore it cannot be relied upon as a current mineral resource for Bonterra. A qualified person of Bonterra has not done sufficient work to classify the historical estimate as current mineral resources or mineral reserves, and BonTerra is not treating the historical estimate as current mineral resources.
|*2011 Total Resource Estimate @ 2.5 g/t Au Cut-Off Utilizing Gold Price of US$1,207/oz(1)(2)|
|Bear Lake deposit and Cheminis deposit|
|August 15, 2011 – P&E Mining Consultants NI 43-101 Technical Report|
(1) Mineral resources which are not mineral reserves do not have demonstrated economic viability. The estimate of mineral resources may be materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant issues.
(2) The quantity and grade of reported inferred resources in this estimation are uncertain in nature and there has been insufficient exploration to define these inferred resources as an indicated or measured mineral resource and it is uncertain if further exploration will result in upgrading them to an indicated or measured mineral resource category.
Larder Lake Gold Project Description:
- The Larder Lake Property is located in eastern Ontario, in McVittie and McGarry Townships, near the town of Virginiatown.
- The Bear Lake deposit hosts a historic estimate* (2011, P+E Mining) of 3,750,000 tonnes at 5.7 g/t (683,000 oz) (inferred). The Cheminis Deposit contains a historic estimate* (2011, P+E Mining) of indicated of 335,000 tonnes at 4.1 g/t (43,800 oz) and inferred of 1,391,000 tonnes at 5.2 g/t (233,400 oz). Please refer to cautionary information above regarding historic estimates.
- The Larder Lake Gold Property straddles 9 km strike length of the Cadillac/Larder Lake break, a prolific regional fault zone that hosts numerous historic and active gold mines, including the historic Kerr Addison mine located about 5 km east of the Larder Lake Project (11 million ounces of gold produced during its mine operation).
- Extensive infrastructure including a paved highway crosses the length of the property, various areas of the project are easily accessible by truck or all-terrain vehicles on non-serviced roads and trails, and an Ontario Hydro power line also runs along the length of the property.
- Central to the Larder Lake Gold Property is the Cheminis property (the "Cheminis Mine"), which includes a vertical shaft to a depth of 1,085 feet, with six levels of which the deepest is at 1,035 feet. Intermittent past production from the Cheminis Mine has totaled approximately 260,000 tons at a recovered grade of approximately 0.104 ounces Au/ton. BonTerra cautions that past results do not guarantee future results.
- Gold Fields entered into an option in 2012 to earn a 60% interest in the Bear Lake properties by spending $40 million in exploration and development. After 3 years of work, they terminated their option last year when Gold Fields terminated all exploration activities worldwide. Kerr Mines is in possession of their results and data.
Please visit www.bonterraresources.com for information on the Larder Lake Property, its location, and other general information. The Larder Lake Property 43-101 technical report, completed by P&E Mining Consultants, is currently available on Kerr Mines website www.kerrmines.com.
Property Transaction Terms:
Under the terms of the agreement, BonTerra can earn a 100% interest in the Property by paying CDN$500,000 and issuing 10,000,000 common shares in the capital of BonTerra upon TSX Venture Exchange (“Exchange”) approval, paying CDN$350,000 on the six-month anniversary of Exchange approval, and paying CDN$300,000 on the twelve-month anniversary of Exchange approval. The shares issued are to be voted with management for the forthcoming two years’ of annual general and special meetings of BonTerra. Upon closing, Kerr Mines shall be deemed an Insider of BonTerra, as per Exchange policies.
In relation to the transaction, subject to Exchange approval, BonTerra shall pay a finder’s fee of 1,000,000 common shares to an arm’s length third party.
Dale Ginn, P.Geo. has approved the technical information contained in this release. Mr. Ginn is a Director and Vice President of Exploration for BonTerra and is a Qualified Person as defined by NI 43-101.
For additional information, please contact:
Todd Hanas, Corporate Development
Bonterra Resources Inc.
President and CEO
Kerr Mines Inc.
Neither TSX Venture Exchange, the Toronto Stock Exchange nor their 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 press release contains "forward-looking information" that is based on Bonterra’’s and Kerr Mines’ current expectations, estimates, forecasts and projections. This forward-looking information includes, among other things, statements with respect to Bonterra’s and Kerr Mines’ exploration and development plans. The words "will", "anticipated", "plans" or other similar words and phrases are intended to identify forward-looking information. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause Bonterra’s or Kerr Mines’ actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking information. Such factors include, but are not limited to: uncertainties related exploration and development; the ability to raise sufficient capital to fund exploration and development; changes in economic conditions or financial markets; increases in input costs; litigation, legislative, environmental and other judicial, regulatory, political and competitive developments; technological or operational difficulties or inability to obtain permits encountered in connection with exploration activities; and labour relations matters. This list is not exhaustive of the factors that may affect our forward-looking information. These and other factors should be considered carefully and readers should not place undue reliance on such forward-looking information. Bonterra and Kerr Mines disclaim any intention or obligation to update or revise forward-looking information, whether as a result of new information, future events or otherwise.