- NI 43-101 Compliant Gold Resource
- M+I = 541,000 ounces
- Inferred = 557,000 ounces
Vancouver, BC –January3, 2012: Altair Ventures Inc. (TSX-V: AVX; “Altair” or “the Company”) is pleased to report that it has signed a binding Letter Agreement for an option to acquire up to a 75% interest in the Kena gold project near the town of Nelson in southeastern British Columbia from Sultan Minerals Inc. (“Sultan” TSX-V:SUL). The Kena 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.
Multiple gold and gold-copper targets exist on the Kena Property. Of particular note are the Gold Mountain Zone and the Kena Gold Zone, where NI 43-101 compliant Mineral Resource Estimates have been established (Giroux and Dandy, 2004). The Gold Mountain Zone comprises 10.18 million tonnes averaging 0.736 g/t Au classed as measured plus indicated and an additional 22.0 million tonnes averaging 0.668 g/t Au classed as inferred, and the Kena Gold Zone comprises 14.68 million tonnes averaging 0.635 g/t Au classed as measured plus indicated and an additional 3.8 million tonnes averaging 0.699 g/t Au classed as inferred, all at a 0.30g/t Au cutoff.
Total M&I resources for the two zones comprise 541,000 contained ounces of gold, while total Inferred resources comprise 557,000 ounces.
The Gold Mountain and Kena Gold Zones have been partially tested with 16,500 metres of drilling in 116 diamond drill holes.
The authors of the aforementioned resource report are independent of both the vendor and the issuer. Altair has verified with the authors that there has not been a sufficient amount of work done on either the Gold Mountain or Kena Gold Zone since 2004 to warrant a change to the resource estimates and the Company intends to file an updated NI 43-101 report on the project as a whole.
“The optioning of the Kena Project represents an important milestone for Altair given the significant gold resource already outlined in two zones, the potential to expand it, and the opportunity to make new discoveries on the other exciting targets”, stated Altair’s President & CEO, Fayyaz Alimohamed. “We intend to advance the project as quickly as possible.”
Sultan has been assembling the Kena property since 1999 and, since that time has conducted several exploration programs comprising geophysical, geochemical and geological surveys, trenching and diamond drilling. The project area was subject to similar programs on various parts of the property by different exploration companies between 1974 and 1991. Minor historical mining has taken place, presumably in the early 20th century, for which limited production data is available in government records.
Limited work has been done on the project since the 2004 NI 43-101 Technical Report as Sultan had primarily been focused, since 2006, on its Jersey-Emerald tungsten project as well as on other projects.
The Gold Mountain, Kena Gold and Kena Copper King Zones are predominantly hosted by lower Jurassic Elise Formation (Rossland Group) mafic volcanics and mid Jurassic Silver King feldspar porphyry intrusive rocks. In the first two zones gold generally occurs as free gold or in pyrite. The content for arsenic, mercury and base metals is low. Numerous drill holes revealed that gold mineralization extends into the adjacent (footwall) volcanic rocks. This intrusive hosted style of mineralization is believed to have considerable depth potential. To date few if any holes have tested the intrusion and contact zone at depths much more than 200 metres vertically below surface.
In addition to the two aforementioned zones containing the resources, several high priority targets exist on the Kena Property. The Kena Copper King Zone contains widespread copper-gold mineralization that may be of a porphyry style, lying within an Induced Polarization anomaly that is 6,000 metres long by 900 metres wide. A deformation zone containing high grade gold mineralization, dubbed the “High Grade Corridor” has only been tested by a few drill holes, with promising results.
Further, a significant gap exists between the Gold Mountain and Kena Gold Zones that is essentially untested and could join the two mineralized zones. Drilling to date on these additional zones has been widely spaced and Altair plans to conduct follow-up programs to further delineate the mineralization with the goal of building additional resources.
The Kena Property is located seven kilometres south of Nelson, British Columbia and is readily accessible by Highway 6 and a network of secondary logging roads. The project has access to power, water, superb infrastructure and local trained manpower. Sultan has previously worked on the project at most times during the year, including the months of January and February.
In order to advance this significant project, the Company will consolidate its share capital on a one-for-three basis. The number of currently outstanding shares of Altair is 43,816,383. The number of common shares outstanding following the consolidation will be 14,605,461.There will be no name change in conjunction with the consolidation. Shareholder authorization to effect the share consolidation was approved at the Company’s Annual and Special General Meeting held on September 6, 2011.
Altair plans to complete a definitive option agreement with Sultan by March 30, 2012. Upon signing the definitive option agreement, Altair will pay $195,000 ($ 5,000 already paid on signing the Letter Agreement) and issue 500,000 post-consolidation shares to Sultan.
To earn a 60-per-cent interest in the Kena project, Altair will be required to spend $7.5 million ($1.5 million in year one) on the project, pay Sultan a total of $2 million ($400,000 in year one) and issue 2,666,667 million post-consolidation shares (500,000 in year one) over a four year period. At that point, Altair and Sultan will hold 60 percent and 40 percent interests, respectively, and will be responsible for their pro rata costs in jointly developing the deposit.
Altair has the option to earn another 10% by completing an independent third party feasibility study on the Kena deposit (the “First Option”). It has yet another option (the “Second Option”) to earn an additional 5% by developing the project to the stage of commercial production, for a total of up to 75% of the project.
Altair will pay Sultan a one-time bonus if a pre-defined reserve or resource target is met through future exploration. After it earns its 60% interest, Altair will pay Sultan, within six months, a $2 million bonus, in cash or shares at Altair’s option, if the total measured and indicated resource exceeds 2 million ounces of gold (at a 0.3 g/t cut-off). Alternatively, if Altair elects to exercise the First Option, then it will pay Sultan a bonus that will be the higher of (i) $5 per proven and probable ounce of gold as specified in the feasibility report or (ii) $ 2 million, if the total measured and indicated resource exceeds 2 million ounces of gold (at 0.3 g/t cut-off).
The Qualified Person for the Kena Property is Mr. Warner Gruenwald, P.Geo. and VP Exploration for Altair Ventures Inc.
The option agreement and share consolidation are subject to acceptance for filing by the TSX Venture Exchange.
Prospect Valley Project
Effective January 3rd 2012, Altair and Berkwood Resources Ltd. (formerly Consolidated Spire Ventures Ltd.) have mutually agreed to terminate their two stage option agreement, originally announced on July 20, 2009 with respect to Berkwood’s Prospect Valley gold project near Merritt BC.
The Altair website will be updated shortly. In the meantime, for further information, please contact Justin Schroenn at (604) 780-1371, 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.