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Sustut agreement between Doublestar Resources and Northgate Minerals extended
VANCOUVER, Dec. 8 /CNW/ - By a Purchase Option Agreement dated June 21,
2004, Doublestar Resources Ltd., (DSR, TSX - V) agreed to sell the Sustut
Copper property to Northgate Minerals Corporation in return for a series of
payments ($500,000 paid) that were tied to certain milestones being achieved
in the development of the Sustut project. The Agreement was scheduled to
expire on December 31, 2006.
The Company and Northgate are both of the opinion that the project is
best maintained under the terms of the 2004 Agreement. Therefore, the
companies have agreed to extend the Agreement by amending its expiry date to
December 31, 2012. There are no other changes to the Agreement.
Doublestar's interest in the Agreement is tied to the series of milestone
payments under which $1,205,000 may be received, and a sliding scale royalty
of $2.00 per tonne of ore that may be mined (at copper prices above US$1.40).
The Sustut project was drilled to feasibility by the Company in 2001-2,
and one zone on the property was estimated to contain 4,676,000 tonnes of
mineralization at a grade of 2.02% copper and 6 grams silver per tonne in a
designed open pit (AMEC, Pincock, Allen & Holt - 2003).
About Doublestar Resources
Doublestar Resources Ltd. is a Canadian mineral resource company and
leading owner and developer of advanced and grass roots precious and base
metal and industrial mineral properties. The Company seeks to create solid
shareholder returns in an environmentally responsible fashion to benefit
future generations. For more details, call Doublestar Investor Relations at
604 688-7377, or visit Doublestar on the web at www.doublestar.net.
This news release may contain forward looking statements based on
assumptions and judgments of management regarding events or results that may
prove to be inaccurate as a result of exploration or other risk factors beyond
its control. Actual results may differ materially from the expected results.
The TSX Venture Exchange has not reviewed and does not accept responsibility
for the adequacy or the accuracy of this news release.
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