BURLINGTON, ONTARIO--(Marketwired - Aug 6, 2013) - GTA Resources and Mining Inc. (TSX VENTURE:GTA) is pleased to announce the discovery of a new gold occurrence on the Squid East project in the Matson Creek area in the Yukon. The initial phase of exploration consisted of a trenching program focused on a strong northwest trending gold plus pathfinder element soil anomaly located on the Squid East claim block. Chip sampling at the newly discovered "Exploits Zone" from recently completed trench E4-3 returned 1.96 grammes per tonne (g/t) gold over the entire 22 meter (m) trench length. Included in this is a higher grade interval of 6.39 g/t gold over 4.0 m. Individual chip samples within this zone were 2.0 meters long and ranged from 0.25 g/t to 8.55g/t gold. Trenching was limited to 22m within this portion of the trench due to frost conditions on both ends. Mineralization has not been cut-off in terms of defining the width of the zone and remains open in all directions. A follow up drill program is scheduled to begin in mid-August to follow-up on these encouraging results and better define the orientation and geometry of the newly discovered zone.
Bedrock mapped in the trenches consisted of heavily bleached and weathered broken rock which is considered to be in place and is typical for the White gold district. The host rock to the gold mineralization consists of sericite schist with local quartz veining, and local hematite alteration.
These initial results compare favourably to other significant initial trenching results in the White Gold District which includes Kaminak Gold Corporation's Coffee Project which returned initial trench assays of 2.3 g/t Au over 21.0 m (Kaminak News Release, August 13th, 2009).
Wayne Reid, President and CEO of GTA states, "These results clearly demonstrate the bedrock gold potential in this relatively unexplored portion of the Yukon. The length, grade and style of oxidized mineralization are quite similar to initial trenching results from other proven projects in the White Gold Belt. The projects existing infrastructure will ensure that future exploration will be cost effective and the 400 meter drill program scheduled for this month will give us a clearer picture of the geometry and potential of this new gold zone.
GTA can earn an initial 51% interest in the Squid East property from Metals Creek Resources Corp. (MEK) as previously announced in a press release dated 12 January 2013. Terms include cash payments of $60,000 over three years ($20,000 on signing), issuance of a total of 2,000,000 GTA shares over three years (200,000 on signing) and work expenditures of $2,000,000 over three years ($500,000 firm including a minimum 400 meters of drilling by the 1st anniversary). MEK will be the operator during the earn-in period. Once a 51% interest is earned by GTA, either a 51/49 joint venture will be formed, or GTA may elect to increase its interest to 70% by incurring additional payments of $210,000 and 400,000 GTA shares and expenditures of $1,000,000 by the 5th anniversary. GTA would assume operatorship once it had earned a 51% interest.
The Squid East property was initially staked in February, 2011 and is located proximal to the Matson Creek placer gold operations, approximately 90km southwest of Dawson City. A four wheel drive access road and airstrip service the placer camp and the current field work availed of the placer camp airstrip, accommodations and equipment to help carry out the program. During the trenching program, a six km access trail was completed from the Matson Creek four wheel drive road to the target area making access more cost effective.
Robert Duess, P. Geo, VP Exploration for GTA and a qualified person as defined in National Instrument 43-101, is responsible for this release, and supervised the preparation of the information forming the basis for this release.
GTA is a well funded publicly traded mineral exploration company. It is led by an experienced and successful management team and is focused on gold exploration in Canada. GTA currently has three exploration focused projects in its portfolio. Its flagship project, the Northshore Property, located near Schreiber, Ontario, is subject to an option agreement with Balmoral Resources Ltd. ("TSX VENTURE:BAR") whereby GTA can earn up to a 70% inter est. Secondly, GTA recently completed an option agreement with Metals Creek Resources Corp. ("MEK") to earn up to a 70% interest in the Squid East Property in the White Gold District, Yukon. The third project, the 100% owned Auden Property, is located near Hearst, Ontario and consists of 1596 claim units covering virtually an entire greenstone belt.
GTA has 25,731,855 shares outstanding of which insiders control approximately 30% of the outstanding shares. The Company's shares trade on the TSX Venture Exchange under the symbol "GTA."
On behalf of the board of directors
GTA Resources and Mining Inc.
Wayne Reid, President and CEO
For more information, please visit the corporate website at www.gtaresources.com
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 press release.
This press release contains forward-looking statements and forward-looking information (collectively, "forward looking statements") within the meaning of applicable Canadian and United States securities laws. All statements, other than statements of historical fact, included herein, including statements regarding the anticipated content, commencement, duration and cost of exploration programs, anticipated exploration program results, the discovery and delineation of mineral deposits/resources/reserves, the timing of the receipt of assay results, and business and financing plans and trends, are forward- looking statements. Forward-looking statements are typically identified by words such as: believe, expect, anticipate, intend, estimate, postulate and similar expressions or are those which, by their nature, refer to future events. Although the Company believes that such statements are reasonable, there can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. The Company cautions investors that any forward-looking statements by the Company are not guarantees of future performance, and that actual results may differ materially from those in forward-looking statements. Important factors that could cause actual events and results to differ materially from the Company's expectations include those related to weather, equipment and staff availability; performance of third parties; risks related to the exploration stage of the Company's projects; market fluctuations in prices for securities of exploration stage companies and in commodity prices; and uncertainties about the availability of additional financing; risks related to the Company's ability to identify one or more economic deposits on the properties, and variations in the nature, quality and quantity of any mineral deposits that may be located on the properties; risks related to the Company's ability to obtain any necessary permits, consents or authorizations required for its activities on the properties; and risks related to the Company's ability to produce minerals from the properties successfully or profitably. Trading in the securities of the Company should be considered highly speculative. All of the Company's public disclosure filings may be accessed via www.sedar.com and readers are urged to review these materials, including the latest technical reports filed with respect to the Company's mineral properties.
This press release is not, and is not to be construed in any way as, an offer to buy or sell securities in the United States.