VANCOUVER, BRITISH COLUMBIA--(Marketwire -02/29/12)- GREENLIGHT RESOURCES INC. (TSX-V: GR.V - News)(OTC.BB: PRZCF.PK - News)(Frankfurt: PH0.F - News) is pleased to announce that it has entered into an option agreement with S. Farrell & Associates Limited, whereby GreenLight is granted an option to acquire a 100% interest in the Christmas Island gold and graphite property located in the County of Cape Breton, Nova Scotia.
A summary of the property is as follows:
-- Large 2,720 acre claim block, multiple near-surface target areas, for
gold, copper & graphite. Numerous anomalies, the longest of which is
greater than a kilometre in length.
-- Includes gold (up to 5oz/t) and graphite (up to 4% disseminated)
showings identified from trenching & (up to 20% graphite in shear
-- Excellent infrastructure with road access to the property.
The 2,720 acre Christmas Island gold and graphite property is underlain by highly altered Precambrian George River Group volcanics, gneissic rocks, schist and altered carbonate (marble) and younger, late Precambrian biotite granodiorite. Previous exploration conducted on the property identified gold associated with mineralized quartz veins and silicified schist zones in northeast trending shear zones cutting both the granodiorite and the George River Complex rocks. Historical assays of up to 5.06 ounces per ton gold and up to 10.2 pounds per ton copper have been reported from a 2007 prospecting program. Several trenches on the property have exposed massive graphite and graphite schist (up to 20%) as well as well as massive pyrite and pyrrhotite. Graphite potential also exists for disseminated flake graphite (up to 4%) in the marble units that have been identified on the property. Two magnetometer surveys were conducted over two sections of the property and have indicated anomalies the largest greater than one kilometer in length. An IP survey was conducted over the immediate area of the Au showing and the results indicate that the gold zone may be part of a larger system as outlined by an open high chargeability/low resistivity IP anomaly.
Readers are warned that "historical records" referred to in this release have been examined but not verified by a "Qualified Person". Further work is required to verify that the historical assays referred to in this release are accurate.
Future exploration will include compilation of all the historic data from the property and trenching of the known gold zone/IP anomaly. It is also anticipated that the current IP grid will be expanded to the northeast and southwest in order to better define this this significant feature.
Patrick Forseille, P. Geo., a Qualified Person as defined by NI 43-101 is responsible for the technical information contained in this release.
Graphite is a conductive, chemically inert mineral that is a key component to almost all batteries, fuel cells, brake pads, and is also a critical component in both the metallurgical and electrical industries. Graphite is similar to rare earths minerals in that they are largely monopolized by China. Current and planned production of high quality graphite is only a small fraction of the projected requirements of the battery and automotive industries. Global consumption of natural graphite has increased from approx. 600,000 in 2000 to 1.2 MM t in 2012. Demand for graphite has been increasing by approximately 5% per year since 2000 due to the ongoing modernization of China, India and other emerging economies, resulting in strong demand from traditional end uses such as the steel and automotive industries. Graphite also has many important new applications such as lithium ion batteries, fuel cells and nuclear and solar power that have the potential to create significant incremental demand growth.
To earn its 100% interest, GreenLight will be required to make total cash payments of $60,000, issue a total of 350,000 common shares of the Company and incur exploration expenditures of $300,000 over three years.
The Company also announces that it is has negotiated a non-brokered private placement of up to 5,000,000 units at a price of $0.10 per unit in the capital stock for total gross proceeds of up to $500,000. Each unit will consist of one common share and one share purchase warrant. Each share purchase warrant will entitle the holder thereof to purchase one additional share of the Company at a price of $0.15 per share for a period of two years from the closing date of the private placement. Closing of this placement is conditional upon approval of the TSX Venture Exchange. A finder's fee may be payable.
On Behalf of the board of directors
Christopher R Anderson, CEO - President
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