BOISE, ID, United States, via ETELIGIS INC., 11/12/2014 – – Gold Torrent, Inc. (“Gold Torrent”) (OTCQB: GTOR) is pleased to announce that it has signed an Exploration and Option to Enter Joint Venture Agreement (“Agreement”) with Miranda Gold Corp. ("Miranda") on Miranda’s Willow Creek gold project in Alaska.
The Agreement provides that Gold Torrent shall earn an initial 20% interest in the Willow Creek gold project by incurring an initial work commitment of $1.07 million before November 5, 2015 for costs related to management, planning, engineering, permitting, economic studies, exploration and development of the project. Gold Torrent is the manager of the project. Upon completion of the initial work commitment, Gold Torrent can then either terminate the agreement or exercise an option to enter into a joint venture limited liability company (“JV”) with Miranda under the following principal terms:
– Miranda shall assign the underlying eighty-year lease that includes 8700 acres of both patented mining claims and non-patented state claims on the Willow Creek project to the JV;
– Gold Torrent will solely fund the next US$8.93 million of expenditures on the JV to earn a 70% interest in the JV in two stages over the next two years and Miranda will retain a 30% participating interest in the JV; and,
– Gold Torrent shall be entitled to 90% of the cash distributions from all production at the Willow Creek project until it recovers its US$10 million initial capital investment, 80% of the cash distributions from production thereafter until it recovers any of its initial investment that exceeds $10 million, and thereafter shall be entitled to 70% of project cash distributions. Miranda shall be entitled to 10%, 20% and 30%, respectively, of the Willow Creek cash distributions.
Gold Torrent plans to initiate discussions with appropriate state and federal agencies regarding project development plans and permitting. The initial earn-in period work will include planning and engineering, resource calculations, permitting, social and economic studies with a goal to bring the Coleman gold resource into production as soon as possible. Expansion and exploration drilling is planned during construction. Additionally, during commercial production Gold Torrent expects to expand the initial known mineral resource well beyond the current levels.
The Willow Creek Project:
The project is located 75 mi (121 km) miles north of Anchorage, Alaska and is accessible by well-maintained roads that can be used year round. The Willow Creek Project covers the majority of the Willow Creek mining district and contains 75-patented lode-mining claims and 62 State of Alaska lode-mining claims for a total of approximately 8,700 acres (3,520 hectares). The resource occurs on patented claims with permitting to be issued by the State of Alaska
The Willow Creek mining district is notable as the second largest historic lode gold producer in Alaska. Before 1950, the Willow Creek district alone had produced 5% of Alaska’s lode gold. Recorded gold production between 1911 and 1942 was 667,000 ounces at a grade of 1.2 ounces per ton (41.1 g Au/t). Then the War Production Board Limitation Order L-208, issued on Oct. 8, 1942, forced the closing of mines here and all over the nation due to WWII.
Willow Creek gold is reported to be free milling with greater than 80% recovery by gravity and recoveries up to 97% reported from combined gravity and flotation processing. The gold is found in low-sulfide mesothermal quartz veins, hosted in a tonalite intrusion associated with an east west, shallow to moderate north dipping shear zone. Both vein and shear material can have significant gold mineralization. Gold is commonly coarse and often visible in high-grade vein material. The central vein can be traced for over 1.2 mi (2 km) and there are approximately 1.2 miles (2 km) of additional veins reported on the project.
Extensive drilling was completed at the Coleman Mine, one of three main previously mined gold deposits in the Willow Creek project. On September 11, 2014 Miranda announced a maiden NI43-101 compliant mineral resource estimate for this mineralized area as follows:
– Measured and indicated resources of 62,100 troy ounces gold contained in 78,700 tonnes at an average grade of 24.6 grams per tonne using a cutoff of 7.0 grams per tonne. An additional 4,100 troy ounces are reported in the Inferred category
– The resource estimate is for the upper Coleman deposit and is based on assays from 132 diamond core holes that were drilled from the surface between 2005-2009
– The resource is up-dip of the historic Coleman underground mine workings and varies in thickness from 0.8 to 10.9 feet (0.25 to 3.5 meters) and averages 2.6 feet (0.83 meter)
– The resource is very compact within an area of approximately 430 feet by 560 feet (140 meters by 182 meters)
– There is good potential to increase the size of the deposit by exploring areas down-dip, and both east and west along strike of the Coleman deposit
Miranda Gold Corp. is a gold exploration company active in Nevada, Alaska and Colombia, whose emphasis is on generating gold exploration projects with world-class discovery potential. Miranda performs its own grass roots exploration and then employs a joint venture business model on its projects in order to maximize exposure to discovery while minimizing exploration risk. Miranda has ongoing relationships with Agnico Eagle Mines Ltd., Prism Resources, Montezuma Mines Inc., and Red Eagle Mining Corporation.
About Gold Torrent:
Gold Torrent, Inc. (OTCQB: GTOR) is an OTC Bulletin Board listed company led by individuals with extensive experience in public company management, mine development, mine operations and finance. The company is focused on acquiring ownership in late-stage exploration to development-stage gold mining projects and/or royalty or streaming interests in low capital intensity, late-stage mining projects in North America. Gold Torrent is supported by a technical and advisory team with over 150 years of combined experience including in Alaska and the Yukon.
Data disclosed in this press release have been reviewed and verified by Gold Torrent’s Executive Vice President G. Peter Parsley, C.P.G., B.Sc. Geology, and Qualified Person as defined by National Instrument 43-101.
Cautionary Note to U.S. Investors Concerning Estimates of Indicated and Inferred Resources:
This press release uses the terms "indicated resources" and "inferred resources" which are defined in, and required to be disclosed by, NI 43-101. We advise U.S. investors that these terms are not recognized by the United States Securities and Exchange Commission (the "SEC"). The estimation of indicated resources involves greater uncertainty as to their existence and economic feasibility than the estimation of proven and probable reserves. U.S. investors are cautioned not to assume that indicated mineral resources will be converted into reserves. The estimation of inferred resources involves far greater uncertainty as to their existence and economic viability than the estimation of other categories of resources. U.S. investors are cautioned not to assume that estimates of inferred mineral resources exist, are economically minable, or will be upgraded into measured or indicated mineral resources. Under Canadian securities laws, estimates of inferred mineral resources may not form the basis of feasibility or other economic studies.
Disclosure of "contained ounces" in a resource is permitted disclosure under Canadian regulations, however the SEC normally only permits issuers to report mineralization that does not constitute "reserves" by SEC standards as in place tonnage and grade without reference to unit measures. Accordingly, the information contained in this press release may not be comparable to similar information made public by U.S. companies that are not subject NI 43-101.
Cautionary Note Regarding Forward Looking Statements:
This news release contains forward-looking statements regarding future events and Gold Torrent’s future results that are subject to the safe harbors created under the U.S. Private Securities Litigation Reform Act of 1995, the Securities Act of 1933, as amended (the "Securities Act"), and the Securities Exchange Act of 1934, as amended (the "Exchange Act"), and applicable Canadian securities laws. Forward-looking statements include, among others, estimates of resources. These statements are based on current expectations, estimates, forecasts, and projections about Gold Torrent’s exploration projects, the industry in which Gold Torrent operates and the beliefs and assumptions of Gold Torrent’s management. Words such as "expects," "anticipates," "targets," "goals," "projects," "intends," "plans," "believes," "seeks," "estimates," "continues," "may," variations of such words, and similar expressions and references to future periods, are intended to identify such forward-looking statements. Forward-looking statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond our control, including such factors as the results of exploration activities and whether the results continue to support continued exploration activities, unexpected variations in ore grade, types and metallurgy, volatility and level of commodity prices, the availability of sufficient future financing, potential changes to royalties and taxes imposed by the Alaska government and other matters discussed under the caption "Risk Factors" in our Annual Report on Form 10-K/A for the fiscal year ended December 31, 2013, and our other periodic and current reports filed with the SEC and available on http://www.sec.gov. Readers are cautioned that forward-looking statements are not guarantees of future performance and that actual results or developments may differ materially from those expressed or implied in the forward-looking statements. Any forward-looking statement made by us in this release is based only on information currently available to us and speaks only as of the date on which it is made. We undertake no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise.
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SOURCE: Gold Torrent, Inc.