Don't look now, but the famous CIM "zinc mine" seems to have re-surfaced:
Golden Arch Resources Acquires Wakefield Lake Zinc Deposit, Saskatchewan
1/22/2007
VANCOUVER, Jan. 22, 2007 (Canada NewsWire via COMTEX News Network) --
<< GAI: TSX Venture Exemption 12g3-2(b) GARCF: O.T.C SEC File No. 82-659 www.goldenarchresources.com >>
(TSX.V: GAI) - The Board is pleased to announce that the Company has reached an agreement to acquire an option to earn an 80% interest in the Wakefield Lake Zinc prospect in Northern Saskatchewan. Located approximately 200 km north of La Ronge, the property is situated in the northeast-trending Wollaston Lake metasedimentary belt, approximately 15 kilometers from provincial highway 905. The property consists of six claims covering 3,669 hectares and straddles a steeply dipping quartzite bed that hosts a concordant zinc deposit in a zone of heavy sulphides. Previously, seventeen diamond drill holes have intersected this blanket-type lens of zinc mineralized heavy sulphides, and have demonstrated its continuity over a strike length of 800 meters (2625 ft.) and down dip for approximately 160 meters (525 ft.) meters, and with a width of up to 40 meters (131 ft.). This zone of zinc mineralization appears to be open to depth.
Historic core drilling along the trend of quartzite hosted zinc mineralization, by major mining companies in the 1960's, has indicated other possible zones of concentration of material of similar grade; e.g. hole GL29 (1.32 percent zinc over true width of 46 meters).
An historical resource (2003) determination was recorded with the Saskatchewan Department of Mines as follows: 2,630,880 tonnes grading 3.67% zinc and 0.53% lead, using a 2% zinc cutoff. However, the investor is cautioned that this is historical data and has yet to be verified by the Company, within the context of Policy 43-101.
Follow-up drilling will be required to verify any additional resource and to confirm and expand the existing historical resource.
The Agreement
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Under the agreement with the Vendor, to earn an 80% interest in the property, Golden Arch Resources Ltd. must pay to the vendor 7,000,000 shares in the Company and perform $2,000,000 of work over a 60-month period as follows:
<< Shares ------ Upon signing 1,500,000 Within 24 months of regulatory approval 1,500,000 Within 36 months of regulatory approval 1,500,000 Within 48 months of regulatory approval 1,500,000 Within 60 months of regulatory approval 1,000,000 --------- TOTAL 7,000,000 Work Commitment --------------- Within 24 months of regulatory approval $500,000 Within 36 months of regulatory approval $500,000 Within 48 months of regulatory approval $500,000 Within 60 months of regulatory approval $500,000 --------- TOTAL $2,000,000 >>
After Golden Arch Resources Ltd. completes each tranche of work and share transfer (i.e. after 24, 36, 48, and 60 months as above), it will have earned successive 20% interests in the property.
Upon the property achieving commercial production, the Company will transfer to the vendor an additional 2,000,000 shares for every 20% interest it has earned up to a maximum of 8,000,000 shares. Only one claim has a net smelter royalty of 1%, payable to a third party.
Golden Arch will be the operator while it is still earning an interest and after, if it has the largest interest, and will be entitled to charge a 10% management fee on all expenditures on the property. After the first $500,000 work program is completed, the Vendor is required to contribute to cash calls as a participating 20% joint venture partner in order to retain its 20% working interest in the property. Any party, which does not contribute to the work program as required by the operator, will lose 5% interest in the property for every $125,000 of non-contribution which is funded by the other party.
The agreement is subject to the approval of the regulatory authorities.
On behalf of the Board
Les Kjosness, President & Director
Golden Arch Resources is a metals, oil, and gas exploration company headquartered in Vancouver, B.C., Canada. Its principal assets are the copper, gold, and silver Mildred Peak property (Arizona) and the lead, zinc, and silver-Abbott Wagner (BC) property. Mr. Richard Somerville P. Eng., and Director, a Qualified Person as defined by National Instrument 43-101, supervised the preparation of the technical information in this release.
SOURCE: Golden Arch Resources Ltd.
Les Kjosness: (604) 219-4050; Kirsti Mattson, (604) 202-2484, media
