Business & Finance
Business and Finance
Business and Finance
Mon, July 19, 2010 ICN Resources Ltd.: Rockland-Pine Grove Property Acquired
VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 19, 2010) - ICN Resources Ltd. ("ICN" or the "Company") (TSX VENTURE:ICN), is pleased to announce that it has signed a Letter Agreement to acquire rights to 100% of the Rockland-Pine Grove Property ("Rockland"). Acquisition is via mineral lease on 111 claims, in the Pine Grove mining district, located approximately 35 kilometres south-southeast of Yerington, Nevada in the Walker Lane mineral belt.
The property has geological and geochemical characteristics of epithermal gold deposits, including both high grade veins as well as larger, bulk tonnage mineralization. An inactive underground mine, the Rockland Mine, reportedly produced 50,000 tons of gold ore grading approximately 0.5 opt Au (17.1 g/t) from veins related to a Tertiary rhyolite flow-dome complex. Other hydrothermally altered rhyolite domes occur in the district, many of which contain silicification and brecciation, accompanied by stockwork and banded chalcedonic quartz veins. These characteristics suggest comparison to epithermal vein systems at the nearby Aurora and Bodie districts in Nevada and California respectively, each with over 1.5 million ounces of historic Au production from veins grading up to 1 opt Au.
Four target areas have been identified thus far within the project area, including two areas that have undergone historic drill testing (Rockland and East Zone), and two target areas that have not been drill tested (North Vein and WTW) with samples up to 30 g/t Au).
The Rockland area was last explored by BHP Minerals in the late 1980's BHP completed underground sampling, surface rock sampling and reverse circulation drilling (historic, non-43-101 data with limited documentation). Subsequent soil and rock sampling indicate possible extension of the Rockland mineralization to the northeast. The following selected drill intercepts are from a 1988 summary report by BHP, and the original analytical results and summary methodology are not available. They are reported here as historical results, to indicate that further exploration is warranted in order to determine potential of the gold system.
| Hole Number | From (m) | To (m) | Interval (m) | Gold (ppm) |
| RK-11 | 10.7 | 47.3 | 36.6 | 1.12 |
| RK-17 | 65.6 | 68.6 | 3.0 | 8.54 |
| RK-18 | 22.9 | 25.9 | 3.0 | 5.1 |
| Note: Intervals reported at a cutoff grade of 0.3 ppm over 3 metres | ||||
The Rockland mineralization described here has not been tested since the 1980's and these non-43-101 compliant results need to be confirmed.
The East Zone target area lies two miles east of the Rockland mine, and has seen exploration drilling by Hecla (1989), Inmet (late 1990's) and Romarco (2006-2008). Mineralization similar to the Rockland Mine was encountered deeper, as seen in the table below. The following selected drill results are from wide-spaced drilling and are non-43-101 compliant. However the long drill intersections in excess of 1 g/t indicate the size and strength of the system, and the possibility exists that shallow or narrower high grade zones may be located.
| Hole Number | From (m) | To (m) | Interval (m) | Gold (g/t) |
| PG-13 | 160.0 | 187.5 | 27.4 | 1.38 |
| PG-15 | 169.2 | 178.3 | 9.2 | 1.70 |
| PG-32 | 352.0 | 438.9 | 86.9 | 1.08 |
| PG-36C | 278.3 | 292.0 | 13.7 | 1.48 |
| Note: Intervals reported at a cutoff grade of 0.3 ppm over 3 metres | ||||
The two exploration targets that have not been drill tested contain gold values from surface sampling, and exhibit characteristics of epithermal gold deposits. Northwest of the Rockland mine is the newly discovered North Vein, a poorly exposed set of crustiform quartz veins extending 3,000 feet along a northeast trend. Rock chip samples contain up to 1.5 ppm Au and 17.6 ppm Ag. In the WTW target area, west of the East Zone target area, rock chip samples containing 1.0 to 30 ppm Au occur along a 1200 by 700 foot zone within a broader east-west trending zone of hydrothermal alteration.
These four distinct target areas, Rockland, East Zone, WTW and North Vein will be the focus of data compilation, review and field evaluation prior to defining drill targets. The drill results included herein do not comply with NI 43-101 standards and additional data will be acquired where possible. The historic results will be reviewed in detail, and confirmation drilling will be planned where necessary.
The executed and binding Letter Agreement calls for a US$ 5,000 payment upon signing (paid) and another US$ 5,000 payment upon receipt of TSX approval for the transaction. A formal and standard exploration and mining lease agreement will be prepared within 30 days, and calls for a US$ 40,000 payment upon execution. Annual minimum payments, either as lease payments or NSR royalty payments (3% NSR), whichever are greater, escalate to US$ 100,000 on the forth year anniversary, July 15, 2014. The initial year one work commitment is US$ 25,000, with subsequent annual work commitments totaling US$ 525,000 by the end of year six.
Carl Hering, President and CEO of ICN comments that, "It is rare that one gets the opportunity to explore a volcanic system of this size, with historic ore grade intercepts and two totally untested target areas with strong surface gold values. This property provides ICN the opportunity to explore a very large mineral system in the productive Walker Lane belt of Nevada, with significant untested and hidden potential."
ICN is primarily focused on volcanic hosted exploration opportunities in Nevada, but is initiating evaluation of other potential projects in established mineral belts elsewhere in the United States. Corporately, the Company is continuing with its transition in management, and is seeking to add an Advisory Board.
On Behalf of the Board of Directors of ICN Resources Ltd.
"Carl Hering"
Carl Hering, President & CEO
ICN Resources Ltd.
The forward-looking information contained in this press release is made as of the date of this press release and, except as required by applicable law, ICN does not undertake any obligation to update publicly or to revise any of the included forward-looking information, whether as a result of new information, future events or otherwise. By its very nature, such forward-looking information requires Icon to make assumptions that may not materialize or that may not be accurate. This forward-looking information is subject to known and unknown risks and uncertainties and other factors, which may cause actual results, levels of activity and achievements to differ materially from those expressed or implied by such information.
Neither TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy of this release.
