BonTerra Secures Strategic Southwestern Extension of the Gladiator High-Grade Gold Project
Vancouver, BC – March 11, 2016: BonTerra Resources Inc. (TSX-V: BTR, US: BONXF, FSE: 9BR1) (the “Company” or “BonTerra”) is pleased to announce that it has entered into an option agreement with Golden Valley Mines Ltd. (“Golden Valley”) to acquire an 85% interest in Golden Valley’s Lac Barry Property, which is strategically located adjacent to BonTerra’s Gladiator Gold Project in Québec. This option secures the projected southwestern on strike extension of high-grade gold mineralization currently being drilled on the West Arena Property of the Gladiator Gold Project. In addition, the Lac Barry Property is adjacent to and immediately south of BonTerra’s Coliseum Property and also materially extends property coverage southward to include additional greenstone stratigraphy and structural gold targets.
Lac Barry Property Description
The Lac Barry Property is comprised of 35 claims covering 1,431.65 hectares adjacent to the south boundary of BonTerra’s Coliseum Property. A property map can be viewed at: http://www.bonterraresources.com/images/PropertyMap_20160311.pdf
The Lac Barry Property is located approximately 1.5 kms southwest of BonTerra’s current West Arena Property drill program in an area that hosts a 43-101 compliant resources of 905,000 tonnes, containing 273,000 ounces Au, grading 9.4 gms/t at a cutoff grade of 4.0 g/t. A 25,000 meter drill program is currently underway at the West Arena Property. (See news release dated March 3, 2016).
In 2013, Golden Valley completed an eight-hole drill program totaling 999 meters testing two separate target areas separated by a distance of approximately 5 kilometers. This initial drill program on the property succeeded in confirming three important mineralization target categories. Namely:
- Shear zone-hosted gold mineralization;
- Intrusion-hosted disseminated gold (similar-like intrusion-hosted gold encountered in BonTerra’s current drill program at West Arena); and
- A VMS (volcanogenic massive sulphide) mineralization hosted in a unit containing copper, gold silver and zinc mineralization.
BonTerra’s Lac Barry Property exploration strategy is to perform a detailed evaluation of all existing technical data, fulfill its first year $250,000 work commitment as soon as possible and to evaluate results with a view to accelerating Lac Barry exploration expenditures.
Nav Dhaliwal, President and CEO of BonTerra, stated: “The option acquisition of the Lac Barry Property is strategic for BonTerra, since it adds over 5 kms of structural, lithological and on-strike potential to the excellent high-grade gold results we are encountering with our current 25,000 meter drill program. This option acquisition also significantly increases our exposure to a highly prospective land position directly south of our current Coliseum Property boundary.”
Lac Barry Option Transaction Terms:
Golden Valley has granted an exclusive option to BonTerra to acquire an 85% interest in the Lac Barry Property under the following terms: (i) BonTerra must issue to Golden Valley such number of common shares in the capital of BonTerra, having an aggregate value of $200,000 based on the closing price of BonTerra’s shares on the TSX Venture Exchange (“Exchange”) on the day prior to receiving Exchange approval; and (ii) BonTerra must incur expenditures of an aggregate amount of $2,000,000 over a 3 year period on the property.
Upon the exercise of the option, Golden Valley will retain a 15% interest in the property and a 3% net smelter royalty (“NSR”), with 1% being subject to a buyback in favour of BonTerra for $1 million.
Robert Gagnon, Geo. has approved the information contained in this release. Mr. Gagnon is a Director for BonTerra and is a Qualified Person as defined by NI 43-101.
The agreement is subject to Exchange approval.
BonTerra Resources Quick Facts:
- Using a 4 g/t Au cut-off grade, the project currently contains an inferred resource of 905,000 tonnes, grading 9.37 g/t Au for 273,000 ounces of gold. Of note, ~90% of the worlds operating mines have an average gold grade less than 8 g/t. Mineral Resource Estimate and technical report filed July 27, 2012, Snowden Mining Consultants.
- ~$3.5 million in cash as at January 1, 2016; ~53 million shares outstanding.
- 2016 Exploration Program underway – up to 25,000 meters utilizing minimum of two drill rigs at its 100% owned Gladiator Gold Project to expand current gold resource.
- Located in the Abitibi Greenstone Belt in mining-friendly Québec.
ON BEHALF OF THE BOARD OF DIRECTORS,
Nav Dhaliwal, President & CEO
BonTerra Resources Inc.
For additional information, please contact:
Neither 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 press release contains "forward-looking information" that is based on Bonterra’’s current expectations, estimates, forecasts and projections. This forward-looking information includes, among other things, statements with respect to Bonterra’s 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 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 disclaims any intention or obligation to update or revise forward-looking information, whether as a result of new information, future events or otherwise.