Staccato, Bell Coast to develop Nevada gold properties
Bell Coast Capital Corp BCP
Shares issued 25,746,981 Jan 30 close $0.24
Tue 3 Feb 2004 News Release
See (CAT) News Release
Mr. Greg Hryhorchuk of Staccato reports
STACCATO AND BELL COAST CAPITAL FORMALIZE NEVADA AGREEMENT
Staccato Gold and Bell Coast have signed a formal agreement for the joint
development of a suite of five advanced exploration Nevada gold properties
recently acquired from High Desert Mineral Resources Inc., a subsidiary of
Royal Gold Corp.
Two of the properties are subject to joint venture agreements, one with
Barrick Gold Corporation and the other with Newmont Mining Corp. The
remaining three properties are subject to underlying option agreements.
All of the properties are in the highly prolific and highly prospective
Carlin and Battle Mountain/Eureka trends.
Staccato Gold is committed to adding shareholder value through the
acquisition and development of advanced stage, high-quality gold
exploration projects.
"We're pleased to have assembled in a short time such an impressive
portfolio of projects with some of the best partners in the industry," said
Robert Lipsett, president of Staccato Gold. "Each of these properties fits
perfectly our acquisition strategy -- combining the risk management of
advanced-stage projects with the raw potential of world-class locations."
Staccato will assume a majority interest in two of the properties and Bell
Coast will assume a majority interest in three.
Under the terms of the agreement, the joint venture is required to make
annual payments of $55,000 (U.S.) per year and to issue and allot 82,500
shares for each property for four years. Staccato has agreed to make all of
the cash property payments for the first year and will assume cash payments
on a pro rata basis for the ensuing years. Share payments for each of the
properties will be the responsibility of the majority interestholder. Up to
an additional $3-million (U.S.) may be due and payable if any one of the
properties is determined to have a resource of up to three million troy
ounces of gold.
Staccato and Bell Coast will pay a finder's fee in connection with this
transaction, subject to regulatory approval. Staccato will undertake a
financing immediately to advance these projects and to undertake a phase 2
drilling program at its Shebandowan greenstone belt property in Ontario.
A description of the five properties follows:
ICBM
Bell Coast will participate to the extent of a 54-per-cent interest in the
development of the ICBM property and Staccato will participate to the
extent of a 13.5-per-cent interest in the development of the claims through
a newly created US Nevada subsidiary, BH Minerals USA Inc. Barrick Gold is
entitled to participate to the extent of a 32.5-per-cent participating
interest in the further development of the ICBM claims. The ICBM property
is located in the Battle Mountain trend and consists of 65 lode claims
(1,300 acres) on BLM administered lands. Drilling to date has demonstrated
that potentially economic grade mineralization is present and work on the
property includes mapping, sampling, induced polarization and magnetic
geophysical surveys as well as 24 reverse circulation holes and one diamond
drill hole. The next phase of exploration is intended to focus on a
northeast trending structural corridor that extends from the Copper basin
property.
Copper basin
The adjoining Copper basin property consists of 130 lode claims (2,600
acres). The property is being developed under a joint venture agreement
entered into with Battle Mountain Gold Company (a subsidiary of Newmont)
under which Bell Coast will acquire up to a 48-per-cent participating
interest, and Staccato will acquire up to a 12-per-cent participating
interest. The remaining 40 per cent will be retained by Battle Mountain
Gold Company. Application has been made to permit a $375,000 exploration
program on the Copper basin claim for completion in the first half of 2004.
The anticipated program will consist of a maximum of seven reverse
circulation drill holes under the supervision of Charlie Ekburg, a former
staff geologist with Newmont and an in-house geologist that worked on the
Copper basin and ICBM properties in the 90s while the properties were being
developed by High Desert Mineral Resources Inc. Drilling will test the
extension of previously intersected zones (four holes) and an area of a
large, strong magnetic anomaly in an area of intersecting structural
patterns that have not been previously tested (three holes). Drilling is
scheduled to commence when permits are received, which is expected in
March, 2004.
Long Peak
The Long Peak property is located on the Battle Mountain Range in the
Eureka trend and covers the western extension of the magnetic and
structural anomalies noted on the Copper basin property. The property
consists of 42 unpatented mining claims covering 840 acres. Bell Coast will
earn an 80-per-cent interest with the balance (20-per-cent) held by
Staccato.
Hoosac
Staccato will earn an 80-per-cent interest in the Hoosac prospect with Bell
Coast earning a 20-per-cent interest.
The Hoosac property is located in the Battle Mountain Eureka trend and lies
eight kilometres south of Barrick's Ruby Hill Mine. The property consists
of 208 lode claims and comprises an area of over 3,640 acres. Under a
variety of operators including Pathfinder and Cambior, the project has
undergone more than 10,000 metres of drilling. The drilling encountered
widespread alteration and thick intervals of anomalous gold mineralization
ranging upward of 24 metres of 882 parts per billion.
Recent detailed mapping and geochemical sampling has identified mineral
controlling structures on the west side of Hoosac Mountain, never tested by
previous drill hole. A $300,000 (U.S.) drill program planned for 2004 will
focus on drilling these targets.
Dixie Flats
Staccato will earn an 80-per-cent interest in the Dixie Flats prospect with
Bell Coast earning a 20-per-cent interest.
The Dixie Flats prospect is located on the south extension of the Carlin
trend. Royal Gold's Evans mine project lies one mile to the northwest. The
prospect consists of 134 claims under lease plus an additional 1,280 acres
of fee ground. Dixie Flats is an excellent pediment play and was chosen
because of its proximity to Rain, Emigrant Springs and South Bullion
deposits. Twenty-three drill sites have been selected over coincident
geochemical/geophysical anomalies and the potential exists for similar
deposits to the Rain district (over three-million-ounce Au production) or
Gold Quarry (over 15-million-ounce Au production). A $275,000 drill program
is planned for 2004.
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