Benton given regulatory green light for Bamoos option
2005-10-12 10:21 MT - News Release
Mr. Stephen Stares reports
BENTON RESOURCES CORP. (TSX-V: BTC) GETS APPROVAL FOR GROUND DIRECTLY ADJACENT TO MARATHON PGM DEPOSIT AND MOBILIZES A DRILL RIG TO THE PROPERTY
Benton Resources Corp. has been given regulatory approval for its option agreement with Bamoos Minerals Inc. (an affiliate of Teck Cominco Ltd.). The option agreement allows Benton to purchase a 100-per-cent interest in one mining lease comprising 16 units. The lease is flanked by Benton's Bermuda property to the north and Marathon PGM Corp.'s property to the south. The Marathon Cu-PGE deposit has been delineated by diamond drilling up to the southern boundary of Benton's newly acquired lease and the potential to expand that deposit northward is considered high. To date, a total of 77 grab samples have been collected over an area measuring approximately 2,000 metres along strike by 500 metres wide with assays grading up to 6.3 grams per tonne TPM (Pd plus Pt plus Au, 4,907 parts per billion Pd, 1,093 Pt and 524 Au). Forty-seven of the samples assayed higher then one g/t TPM. Copper values assayed up to 0.95 per cent and silver up to 13 g/t. Data collected to date clearly indicate that the copper and PGE mineralization continues for at least two kilometres to the north. Benton is currently mobilizing a drill to the property to aggressively test the potential northern extension of the Marathon deposit, which has a resource estimate of 1.9 million ounces combined Pt plus Pd plus Au and 270 million pounds of copper (see Stockwatch on March 30, 2005).
Under the terms of the option agreement, Benton can earn a 100-per-cent interest (subject to a 2-per-cent net smelter royalty and a 50-per-cent back-in clause) by spending $400,000 in exploration expenditures over four years and issuing 300,000 units of Benton's stock to Bamoos Minerals Inc. Each unit will consist of one share and one warrant. The warrant will entitle Bamoos to purchase one common share of Benton at a price of 29 cents per share for a period of two years from issuance. The Benton shares and warrants comprised in the units will be subject to hold periods in accordance with the TSX Venture Exchange policy and Canadian Multilateral Instrument 45-102. In the event that Benton completes its obligations to earn 100-per-cent interest in the property, Bamoos Minerals Inc. would have the right to back-in to the property for a 50-per-cent interest by incurring two times the exploration expenditures spent by Benton up to a maximum of $1.5-million. A finder's fee of 25,000 shares is payable in respect to the option agreement.
Benton would also like to provide an update on progress at the Saganaga gold property, west of Thunder Bay, Ont. Mechanical trenching is exposing several new gold showings that have been found over the last week. Grab samples from these showings assayed up to 11 g/t gold and channel sampling of the new mineralization is currently in progress.
Assay results for both the Bermuda/Bamoos property and the Saganaga property will be released as they are received.
Clinton Barr (PGeo), vice-president, exploration, for Benton, is the qualified person responsible for this release.
We seek Safe Harbor.
K.D.
