Investorideas.com newswire, commentary for mining sector

Thursday, January 27, 2011

Mining News; Running Fox Resource (TSX VENTURE:RUN) (PINK SHEETS:RFXRF) (FRANKFURT:C8Q) to Acquire 100% of High Grade Brett Gold Project

VANCOUVER, BRITISH COLUMBIA - January 27, 2011 (Investorideas.com Mining stocks newswire) - Steven Schurman, P. Geol (US), CEO, Director, reports:
Running Fox (TSX VENTURE:RUN) (PINK SHEETS:RFXRF) (FRANKFURT:C8Q) is pleased to report that it has entered into an agreement, subject to regulatory acceptance, to acquire the remaining 50% of the Brett Gold Project from Mosquito Consolidated Gold Mines.
This will result in Running Fox owning 100 % of the Brett Gold Project.
Key terms include one million dollars cash and three million common shares, with a closing date of 30 days after regulatory acceptance, and MSQ has reserved a sliding scale net smelter royalty of between 2 % to 8%, tied to the price of gold, which in the current price range of between $1,000 to $1,500 US per ounce, the royalty would be 5%. Also, there is a legacy royalty of 2% on two of the claims, and Running Fox has granted MSQ the same sliding scale royalty as above on two of its solely owned claims adjacent to the north.
Running Fox retains the right to purchase one-half of the royalty for one million dollars per percentage point at any time up till one year after commercial production commences.
Running Fox also has a Right of First Refusal on any sale of all or part of the royalty to a third party.
Following the above share issuance, Running Fox will have approx. 49 million shares outstanding. The Company has recurring cash flow and after recent progress, very little debt.
Brett Property Geology
The Brett property has been interpreted to be a classic epithermal, high grade gold vein system with gold and silver mineralization occurring in northwest and northeast trending shear zones. The geology of the Brett property appears to be similar to gold deposits that occur in volcanic rocks found to the south in the Republic Mining District of Washington State.
Gold and Silver:
While the Brett Gold Project is best known for high grade gold, it also has silver potential.
Most of the silver drill grades, while significant, were not reported as the price of silver was low. The silver component however can be illustrated by the results of a previous bulk tonnage sample.
The Project 's 291 ton bulk sample was processed by Teck Cominco's smelter facility in Trail, BC from simple surface excavated pits.
The Teck Cominco smelter receipts for the whole bulk sample proved ore averaged 28 grams per tonne gold plus 64 grams per tonne silver.
The drill intercepts in this news release include the gold only.
Between 1985 and 2004 core and reverse circulation drill holes tested the high grade gold mineralization identified as the "Main Shear Zone".
A key drill intercept included:
- RC93-19 which intercepted 16.76 meters that graded 35.79 grams gold per tonne. This intercept included two splits of 3.01 meters grading 57.88 grams gold per tonne and 4.57 meters grading 107.88 grams gold per tonne.
The 2004 drilling program intersected significant gold bearing intersections in 15 of the 17 holes drilled including:
DDH# 04-01 intersected 10.2 meters grading 5.28 grams per ton including 1.6 meters grading 29.6 grams per ton gold, and,
DDH# 04-02 intersected 11.6 meters grading 10.39 grams gold per ton including 3.1 meters grading 34.02 grams per ton gold; and,
DDH# 04-12 intercepted 1.3 feet meters grading 176 grams per ton gold in a new shear zone.
This new zone, located on a tuffaceous bed, is located 53 metres east of the main shear zone and represents a totally new zone as none of the previous drill holes went as far east as this hole. The zone is cut off by several postmineral dikes in the core, possibly indicating the presence of a second parallel shear structure. If so, this would be the first confirmation of bonanza high-grade gold values (greater than one ounce per ton gold) on a parallel shear structure, opening the possibility that similar high-grade zones may be present, along the numerous other shears identified during surface work. The entire strike length of the new shear structure is unexplored as none of the previous drill holes were near its projection.
Trenching:
Numerous trenches have returned very high gold grades, some are selected below that have been noted as locations for follow-up and further trenching or diamond drilling:
Trench #From (meters)To (meters)Length (meters)Gold grams/t
TR93-77005.565.5612.67 grams
And 93-TR9575.667.531.8723.84 grams
87-TR41.953.351.4 63.01 grams
87-TR210 2.42.470.27 grams
Some significant Brett drill intercepts include
(* Note: gold grades reported only, see comment above re silver):
Drill HoleFrom (meters)To (meters)Length (meters)Gold grams/t
DDH04-12 148.9 150.2 1.3176.28
R88-11 41.15 50.30 9.15156.99
 57.90 65.50 7.65 169.59
R93-12 35.05 36.58 1.5263.01
R93-17 38.10 41.15 3.05 56.16
89-92 130.15 131.29 1.14 54.45
89-91 134.51 135.76 1.25 43.01
R93-19 30.48 47.24 16.76 35.79
87-29 45.65 54.27 8.62 25.24
DDH04-01 45.6 47.2 1.60 21.96
DDH04-02 63.5 75.1 11.60 10.39
DDH04-16 34.5 36.0 1.50 9.74
R88-17 16.76 24.38 7.62 7.67
See Top 40 Gold Intercepts on website
The 2004 a soil geochemical survey identified numerous and as yet untested gold in soil anomalies as much as 2,000 meters north of the Main Shear Zone drilling which appear to trend in the same northeast and northwest direction as the gold mineralization found in the shear zones around the Main Shear Zone. Gold mineralization found in a road cut 3,000 meters north of the Main Shear Zone drilling assayed 9.5 grams per ton gold. Running Fox believes that these untested soil anomalies represent significant exploration targets that are similar in geology and grade of gold mineralization to that found around the Main Shear Zone.
Running Fox will be planning a 2011 exploration campaign at the Brett property that will also include drilling and trenching of soil anomalies, as the prior program opened up large areas for exploration and the development of additional gold bearing zones.
Complete maps, geochem, and drilling history are available for review/download on the Running Fox website.
The project has significant early stage block calculations on a small portion of one shear zone-- and there are many shear zones, running under large undrilled geochem zones with good gold values over large areas, (see Geochem in Assessment Report).
Following further drilling a new 43-101 Technical Report will be requested that will include all drilling and a qualifying resource calculation.
See the Early Block Model on the website, as well as the brief 3D Geological and drillhole movie on website www.foxgold.ca
Steven Schurman, CEO, Professional Geologist (US), is the named Qualified Person for the technical contents of this news release.
* Note: Source for all drill intercepts are 43-101 Technical Report, and Brett Gold Assessment Report available at www.foxgold.ca and on SEDAR.
On behalf of the Board of Directors: Steven Schurman, P. Geol (US), CEO, Director
The Company relies on legislation applicable to forward looking statements, seeking safe harbour
For more information, please contact
Running Fox Resource Corp.
Steven Schurman
CEO, Director
1 303 619 5234
www.foxgold.ca
Disclaimer/ Disclosure: The following is a paid featured news story on Investorideas.com ($500 to be the top news story of the day)
Post a Comment

Investorideas.com mining stocks newswire