Happy Creek Options Silver Dollar property to Explorex Resources Inc.
May 12th, 2016 – Vancouver, British Columbia. Happy Creek Minerals Ltd. (TSXV: HPY) (the “Company”) has granted an Option to Explorex Resources Ltd (“Explorex”) for the Silver Dollar Property, located in the Camborne mining camp, approximately 45 kilometres southeast of Revelstoke, B.C.
Under the Terms of the Option Agreement, Explorex can earn a 100% interest in the Property, subject to a 1% Net Smelter Royalty retained by the Company, by making the following payments, share issuance and exploration work commitment:
1) $20,000 cash within 5 days of TSX Exchange Approval for closing of a proposed Explorex financing;
2) a minimum $100,000 work commitment within 6 months of signing (the “Due Diligence Period”);
3) 300,000 shares within 20 days after Due Diligence Period;
4) 300,000 shares within 12 months after the Due Diligence Period; and
5) 1,000,000 shares within 18 months after the Due Diligence Period.
David Blann, P.Eng., President of Happy Creek Minerals states: “The Silver Dollar property contains documented historical production, drill and surface results with high gold grades that we have largely confirmed with our own work. With the positive results that are near surface and part of a large-scale, well-defined structural corridor, the potential of this property is excellent and we look forward to Explorex’s success.”
About the Silver Dollar property
The Silver Dollar property is 3,160 hectares (31.6 square kilometres) in area and located approximately 45 kilometres southeast of Revelstoke, B.C. It is situated within the historical Camborne mining camp dating from around the early 1900’s. A number of mineral showings and past-producing gold-silver-lead-zinc, and gold-silver prospects are in spatial proximity to the Camborne fault and occur over a distance of approximately twelve kilometres. There is road or access trails through most of the length of the property.
The reader is cautioned that historical data has not been verified by a QP under NI43-101 (1). In 1933, the Gillman shipped between one and 14 tonnes of ore grading 62 grams per tonne gold, 62 grams per tonne silver. In 1947, the Silver Pass Development Syndicate processed six tonnes of ore and recovered 9,860 grams of silver, 1,378 kilograms of lead and 1,009 kilograms of zinc. In 1984, a drill hole on the Silver Dollar zone returned 2.10 metres grading 229.0 g/t silver, 1.0 g/t gram per tonne gold, 10.95 per cent zinc, 4.04 per cent lead and 0.29 per cent copper. Initial due diligence by the Company in 2013 returned samples containing 50.30 g/t gold, 216 g/t silver and 4.49 g/t gold, 4496 g/t silver. Important base metal results include a1.8 metre chip sample returning 16.8% zinc, 3.9% lead, 1.67 g/t gold and 241.0 g/t silver. These results have largely confirmed those found in historical reports.
At the north end of the property, historical production and shipment (1) from the Goldfinch in 1903 was1,316 tonnes averaging 15.9 g/t gold, 4.3 g/t silver. Granges Exploration. Ltd conducted drilling between 1985 and 1989. A number of encouraging drill results included 41.2 metres of 2.32 g/t gold starting from 4.57 metres downhole, with a higher grade portion of 3.4 metres of 23.0 g/t gold. A review of historical drill logs suggests that between higher grade zones there are broad intervals containing geochemically elevated gold values often ranging from 0.5 to 1.0 g/t gold. Other drill holes report intervals of up to 0.85 metres containing 141.58 g/t gold and visible gold is noted in drill logs.
In 2015, Happy Creek Minerals conducted a detailed soil sampling program to the south of the Goldfinch which identified two sub-parallel and strongly positive zones of gold in soil extending 500 metres that remain open in extent. On the southern-most grid line, nine of ten continuous samples were over 111 ppb gold and up 2,500 ppb gold. This corresponds to a zone, approximately 225 metres in width, that remains open to the south and east. Two adjacent lines to the north contain similar values up to 868 ppb gold over 175 and 100 metre width, respectively. Refer to the News Release dated January 27th 2016.
On behalf of the Board of Directors,
“David E Blann”
David E Blann, P.Eng.
Ron Birch: Phone: 250-545-0383
Toll Free: 1-800-910-7711
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.
David Blann, P.Eng. is a Qualified Person as defined by National Instrument 43-101 and is responsible for the preparation and approval of the technical information disclosed in the news release. (1) Historical results are published within B.C. Government Assessment Reports 9137, 16753, 17929, 31445 and Government of B.C. Production Report 082KNW076 and Minfile 082KNW076. Historical data for the prospects were performed under supervision of a Professional Engineer or a geologist, and believed to be of good quality, with drill core and underground sampling results from fire assay analyses by B.C. Certified Assayers. However, under NI43-101 policy historical information has not been verified by a QP, and as such cannot be relied upon and must be treated as historical in nature.
This press release contains “forward-looking information” within the meaning of applicable securities laws, including statements that address capital costs, recovery, grade, and timing of work or plans at the Company’s mineral projects. Forward-looking information may be, but not always, identified by the use of words such as “seek”, “anticipate”, “plan”, “planned”, “continue”, “expect”, “thought to”, “project”, “predict”, “potential”, “targeting”, “intends”, “believe”, “opportunity”, “further” and others, or which describes a goal or action, event or result such as “may”, “should”, “could”, “would”, “might” or “will” be undertaken, occur or achieved. Statements also include those that address future mineral production, reserve potential, potential size or scale of a mineralized zone, potential expansion of mineralization, potential type(s) of mining, potential grades as well as to Happy creek’s ability to fund ongoing expenditure, or assumptions about future metal or mineral prices, currency exchange rates, metallurgical recoveries and grades, favourable operating conditions, access, political stability, obtaining or renewal of existing or required mineral titles, licenses and permits, labour stability, market conditions, availability of equipment, accuracy of any mineral resources, anticipated costs and expenditures. Assumptions may be based on factors and events that are not within the control of Happy creek and there is no assurance they will prove to be correct. Such forward-looking information involves known and unknown risks, which may cause the actual results to materially differ, and/or any future results expressed or implied by such forward-looking information. Additional information on risks and uncertainties can be found within Financial Statements, Prospectus and other materials found on the Company’s SEDAR profile at www.sedar.com. Although Happy creek has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there can be no assurance that such information will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Happy creek withholds any obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, unless required by law.
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