Vancouver, BC – July 2, 2013: Altair Gold Inc. (TSX-V: AVX; “Altair” or “the Company”) is pleased to report that it has signed an amending agreement (the “Second Amending Agreement”) with Sultan Minerals Inc. (“Sultan”, TSX-V:SUL) amending the Letter Agreement dated December 30, 2011, as amended on December 28, 2012, between the Company and Sultan relating to the Company’s option (the “Option”) to earn up to a 75% interest in the Kena gold project near the town of Nelson in southeastern British Columbia (the “Kena Gold Property”). The Kena Gold Property comprises 152 claim units for a total of 7,609 hectares and covers approximately 8,000 metres of strike length on a district-scale gold and gold-copper system.
Kena is an advanced gold project given the significant gold resource already outlined, the potential to expand it, and the opportunity to make new discoveries on the other exciting targets.
The current resource estimate for the Kena Gold Property is set out in the technical report dated May 15, 2013, entitled “Technical Report for the Kena Property” prepared for Altair by Gary Giroux, P. Eng., MASc. and Vivian Park, P. Geo. The mineral resource statement for the Kena Gold Property, as extracted from the 2013 Kena Technical Report, is summarized in the table below. The effective date of this resource estimate is February 7, 2013. The mineral resource statement is reported at a cut-off grade of 0.3 gpt gold.
Mineral Resource Statement, Kena Gold Property, British Columbia, Giroux and Park, May 15, 2013.
COMBINED KENA AND GOLD MT. (KGM) ZONE
At a 0.3 g/t cut-off
|Category||Tonnes||Grade Au (g/t)||Au Ounces|
|Measured and Indicated||25,280,000||0.60||490,000|
Under the terms of the Second Amending Agreement, the term of the Option has been extended by an additional two years. In addition, to earn an initital 60% interest in the Kena Gold Property under the terms of the Second Amending Agreement, Altair would have to incur exploration expenditures on the Kena Gold Property of $ 6.15 million over the next 4.5 years (no exploration expenditure commitment for 2013) and pay Sultan $2 million ($400,000 in 2013) and issue a total of 2,666,666 shares (500,000 shares in 2013) over the next four years.
“Despite our successful drill campaign in 2012 and significant upward revision to the resource estimate, whereby we were able to increase our Inferred resources by 173%, current market conditions dictate that we adjust our strategy with respect to the development of the Kena Gold Property. We have worked cooperatively with Sultan to ensure that we evolved a new commitment structure that is fair to all parties concerned,” stated Altair’s President & CEO, Fayyaz Alimohamed.
A permit application has been submitted for further drilling and exploration work, which is subject to financing.
The Second Amending Agreement is subject to acceptance for filing by the TSX Venture Exchange.
The Qualified Person for the Kena Gold Property is Mr. Warner Gruenwald, P.Geo. and VP Exploration for Altair.
For further information, please contact Fayyaz Alimohamed at (604) 641-1305, or e-mail [email protected]
ON BEHALF OF THE BOARD
Fayyaz Alimohamed, President & CEO
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.
Forward-Looking Statement Caution:
This news release contains forward-looking statements within the meaning of Canadian provincial securities laws applicable to the Company, regarding the ongoing exploration and development activities at the Company’s Kena gold property. Although the Company believes that such statements are reasonable, it can give no assurance that such expectations will prove to be correct. Forward-looking statements are typically identified by words such as: believe, expect, anticipate, intend, estimate, postulate and similar expressions, or are those, which, by their nature, refer to future events. The Company cautions that any forward-looking statements by the Company are not guarantees of future results or performance, and that actual results may differ materially from those in forward-looking statements as a result of various factors, including, but not limited to, variations in the nature, quality and quantity of any mineral deposits that may be located, the Company’s inability to obtain any necessary permits, consents or authorizations required for its activities, the Company’s inability to produce minerals from its properties successfully or profitably, to continue its projected growth, to raise the necessary capital or to be fully able to implement its business strategies. The reader is referred to the Company’s reports, publicly available through the Canadian Securities Administrators’ System for Electronic Document Analysis and Retrieval (SEDAR) at www.sedar.com for a more complete discussion of such risk factors and their potential effects.
All of the Company’s public disclosure filings may be accessed via www.sedar.com, and readers are urged to review these materials, including any technical reports filed with respect to the Company’s mineral properties.