Replies to post #3301 on Ed's Thread

[Tackler]

Hi Bean, you still following BTP?

Beartooth options 70% interest in Doornfontein

2007-04-09 14:55 MT - News Release

Mr. Michael Johnson reports

BEARTOOTH PLATINUM CORPORATION ANNOUNCES OPTION AGREEMENT ON SOUTH AFRICAN PLATINUM PROPERTY

Beartooth Platinum Corp. has signed an option agreement to acquire a 70-per-cent interest in the Doornfontein property currently owned by Lenaka Mining (Pty.) Ltd., a private South African company. Lenaka Mining holds the platinum group metals (PGM) mineral exploration rights to the Doornfontein property, a land package totalling approximately 7,500 hectares located approximately 10 kilometres west of Lonmin's Limpopo mine property in the Limpopo province of South Africa.

Michael D. Johnson, PGeo, president and chief executive officer, commented: "Beartooth Platinum Corp. is always looking for exceptional opportunities in platinum group metal (PGM) exploration. This property may have been overlooked in the past; however, due to our work in the Bushveld complex last year, the anomaly was discovered by our team of geologists. We intend to determine if it is a suitable addition to our PGM portfolio."

Beartooth plans an aggressive field geophysical program to further delineate the structure and the extent of the anomaly, with the goal of identifying the best location for drilling. It is anticipated that an initial drill program to confirm the presence of Bushveld rocks on the property will commence in the fall.

Under the terms of the deal, Beartooth will pay 100 per cent of the costs to the bankable feasibility stage. After that point in time, Lenaka Mining will pay 30 per cent and Beartooth 70 per cent of all costs to production.

The Doornfontein property comprises five farms that overlie a significant, regional-scale, magnetic anomaly that occurs along the interpreted north rim of the Bushveld intrusive complex. This anomaly occurs centrally between known occurrences of Bushveld mafic rocks in the northern and eastern limbs of the intrusion and lies beneath Karoo supergroup cover rocks; therefore, the nature of the bedrock source of the anomaly is unknown. The anomaly is oriented in an east-west direction and is continuous over a 25-kilometre strike length.

The Doornfontein magnetic anomaly was noticed during the acquisition of regional geophysical data in support of Beartooth's 2006 exploration efforts on the Zebediela project, which lies to the east. As with Zebediela, the target at Doornfontein is the Bushveld Critical zone rocks beneath Karoo cover. The Critical zone of the Bushveld complex hosts the Merensky and UG-2 platinum-bearing reefs, the most productive and profitable PGE deposits in the world.

The Doornfontein area is covered by a high-resolution airborne magnetic survey completed by the Council for Geoscience of South Africa in 2004. South African government geophysicists interpret the anomaly as reflecting Bushveld Upper zone rocks beneath the younger strata of the Karoo supergroup. An independent consulting geophysicist contracted by BTP to review the airborne magnetic data also concluded that the most likely source of the anomaly was Bushveld mafic rocks. Due-diligence research indicates that three short drill holes targeting coal seams in the Karoo supergroup were completed in the Doornfontein area but none of these penetrated to the source of the magnetic anomaly. The anomaly is therefore untested.

BTP believes that the most likely source of the Doornfontein anomaly is Bushveld mafic rocks. The size of the anomaly and its layered structure, coupled with the fact that it has yet to be tested by drilling, makes the Doornfontein project an exciting new acquisition for the company.

In addition, the company plans on raising up to $3-million through a non-brokered financing of units priced at 11 cents per unit. Each unit would consist of one common share and one common-share purchase warrant. Each common-share purchase warrant would entitle the holder to purchase a common share of the company at an exercise price of 15 cents for a period of two years following closing. The proceeds from the private placement would be used by the company for exploration and development of its properties, and for general working capital purposes. The private-placement financing remains subject to regulatory approval.