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JBZ Capital Inc. enters into letter of intent to acquire interest in potash exploration project in the Northern Territory, Aust

^{Published on 2011-08-23 06:26:10 - Market Wire}
 

VANCOUVER, Aug. 23, 2011 /CNW/ - JBZ Capital Inc. (TSX-V: JBZ) ("JBZ"), or the ("Company") is pleased to announce that its wholly-owned subsidiary, Strata Minerals Ltd. ("Strata"), has entered into a form of letter of intent agreement, known as a Heads of Agreement ("HOA"), with Australian based Universal Splendour Investments Pty Ltd ("USI"), in connection with USI's potash exploration project in the Gulf of Carpentaria region in the Northern Territory of Australia (the "Project").

The HOA provides Strata with an exclusive three month period to conduct due diligence on the Project, following which Strata has the option to enter into a joint venture with USI (the "JV") to explore and develop the Project.  Under the proposed terms of the JV, Strata can earn a 90% interest in the Project in exchange for spending AUD$250,000 on exploration and, subject to approval of the TSX Venture Exchange, issuing USI one million common shares of JBZ at a deemed price to be determined by the market price of JBZ's common shares at the time of issuance.  If a feasibility study is commenced on the Project, USI may elect not to fund its pro rata share of the JV costs.  USI's remaining interest in the JV would then be converted to a 2.5% net profit interest over future mineral production, other than manganese, and Strata would own to a 100% interest in the Project.  Strata is expected to act as manager of the JV and the JV is expected to hold all mineral rights on the Project, other than manganese.

Nigel Gellard, JBZ's President and CEO, stated, "The Gulf of Carpentaria project is strategically located approximately 25 km from the northern coast of Australia, and, as set forth below, has historical exploration results showing significant levels of potassium mineralisation in drill holes and surface samples.  This is an attractive opportunity for the Company to pursue with the potential to be an important addition to our current portfolio of projects focused on agricultural nutrients in the South East Asia region."

Gulf of Carpentaria Project

Location

The Project lies along the western side of the Gulf of Carpentaria in the Northern Territory state of Australia. The exploration licence area (the "EL"), located approximately 25 km from the northern coast of Australia, was granted to USI in October of 2009.  The EL covers an area of approximately 161 km².

Historical Exploration

The EL has been the subject of previous exploration for a wide range of commodities by a number of companies including CRA Exploration Pty Ltd (now Rio Tinto PLC) ("CRA"). The focus of the historic exploration was on manganese, copper, base metals, uranium and diamonds. CRA conducted surface mapping, stream sediment sampling and drilled four RC holes and three diamond holes within the EL in the late 1990's.  Subsequently, the stream sediment samples, RC holes and one of the diamond holes where assayed for a wide range of elements.  Assay results from CRA's diamond drill hole DD95GC007, which is located within the EL, was reported by CRA in December 1997 as showing high levels of potassium almost from surface to approx 170 metres deep.  Several intervals are reported to contain over 5% potassium with the best individual sample returning over 7% potassium (see Table 1 below).  Remaining core from the CRA diamond drill hole DD95GC007 has been stored and is still available for inspection and sampling.  In addition, assay results from the four CRA RC holes are reported to show consistent anomalous grades of potassium from surface to an average depth of 100 metres.  Six CRA stream sediment samples are also reported to contain levels of anomalous potassium at surface.  The occurrence of these potassium values in the CRA diamond core, RC and stream sediments are considered to be significant. However, these results require verification by re-assaying and further metallurgical analyses.

Table 1: Historic Assay Results for Potassium Mineralisation from CRA Diamond Drill Hole DD95GC007.

Geology

The geology of the EL was reported by CRA as being dominated by outcrops of the Palaeoproterozoic, Echo Sandstone.  Several members of the sandstone are reported to exist within the EL. The members vary in composition from fine-grained siltstone and dolomite through to coarse boulder conglomerates. The high-energy deposition environment is the more typical for the unit. There is a minor amount of recent sediment present in the central and southern part of the tenement.

A qualified person, within the meaning of National Instrument 43-101, has not done sufficient work to classify the foregoing historical exploration data as a current mineral resource or reserve and the Company is not treating the historical estimates as a current mineral resource or reserve.

Proposed Exploration

During the due diligence period the assessment of the project will include a re-examination of the historic CRA geological logs and assay data.  It will also be necessary to capture all available historic data and accurately locate and plot the historic drill hole locations.  At the same time it is proposed to collect samples from the historic CRA drill hole DD95GC007 that is in storage and have these re-assayed to confirm the previous results.  Importantly, it will be necessary to conduct preliminary metallurgical test work to see if the potassium can be separated from the host rock cost effectively. If the historic results are confirmed, a detailed exploration program will need to be designed and implemented to establish the full extent of the potassium mineralisation.

This press release has been approved and reviewed by Dean J. Besserer, B.Sc., P. Geol., consultant to the Company, who is a qualified person as defined by National Instrument 43-101.

ON BEHALF OF THE BOARD OF DIRECTORS

"Nigel Gellard"
President, CEO

The TSX Venture Exchange has in no way passed upon the merits of the proposed transaction described herein and has neither approved nor disapproved of the contents of this news release.  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.

About JBZ and Strata
JBZ, through its wholly-owned subsidiary, Strata, is an emerging, Australasia focused, agricultural nutrient company exploring for commercial scale phosphate rock mineralization deposits.  Armed with the objectives of becoming a supplier to the global fertilizer industry and generating wealth for its shareholders, Strata is currently advancing five phosphate exploration projects in Western Australia and Queensland and intends to broaden its focus to other agricultural nutrients including potash and lime. For further information, please refer to the Company's website at [ www.strataminerals.com ].

Forward-Looking Statements
Certain statements included herein constitute forward-looking statements. The words "will", "expect", "intend", "anticipate", "propose" and "may" and similar expressions identify forward-looking statements. Forward-looking statements include, among other things, statements regarding the Company and its subsidiary.  Forward-looking statements are necessarily based upon a number of estimates and assumptions. While such estimates and assumptions are considered reasonable by the management of the Company, they are inherently subject to significant business, economic, competitive and regulatory uncertainties and risks, including the Company and its subsidiary being satisfied with its due diligence on the Project, the Company's working capital availability, and approval by the TSX Venture Exchange of any shares issued by the Company and accordingly may not occur as described herein or at all. Investors are cautioned that forward-looking statements are not guarantees of future performance or events and, accordingly are cautioned not to put undue reliance on forward-looking statements due to the inherent uncertainty of such statements.