VANCOUVER, BRITISH COLUMBIA--(Marketwired - Jun 4, 2013) - Windfire Capital Corp. (TSX VENTURE:WIF) ("Windfire" or the "Company") is pleased to announce that it has signed a binding Letter of Intent (the "LOI") with Triangle City Mining (Proprietary) Limited ("Triangle City") to acquire a 74% ownership interest in the Madonsi Gold Project, located in Limpopo Province, Republic of South Africa. The project comprises certain mineral properties, including the Kirsten 212LT ("Madonsi/Osprey Mine") and Malamulele 234 LT consolidated farms ("Boltman") (the "Rights") currently wholly owned by Triangle City. The properties cover a northwest width of about 2.6 km and a northeast length of about 8.3 km, comprising 2,008.8 hectares.
Limpopo Province is located in the northeast portion of South Africa and the properties cover the historically past-producing Madonsi (Golden Osprey) gold mine, situated in a detached greenstone remnant of the main Giyani greenstone belt. The Madonsi gold project is situated approximately 3 km from the Malamulele business center. Malamulele is a city with a population of approximately 400,000 and is located 37 km north of the town of Giyani, The town of Giyani and the immediate area, is a region of numerous former gold producers, with gold production in excess of 0.5 million ounces and currently being actively explored by TSX-V listed Giyani Gold Corp. The remaining 26-per-cent interest in the Madonsi gold project will be owned by local South African partners. The transaction is structured in this manner in order to comply with legislated Black Economic Empowerment ("BEE") policies for development of these mineral rights.
The Madonsi Mine was the second largest gold producer in the Giyani Greenstone Belt from 1935 to 1968, after the Klein Letaba Mine, currently being explored by Guyani Gold Corp. It is estimated 2.5 metric tonnes (t) of gold were recovered (80,400 gold ounces). The mine was reopened in 1982 as the Golden Osprey mine, and produced 0.55 tonnes Au (16,700 oz Au) from 1987 to 1991. At least ten shafts are known to exist on the property with a maximum depth of 156 metres and an average depth of 34 metres below surface. The surface mining infrastructure was removed in 1999, however electrical power and water are still available on site.
The geology of the region comprises Archean aged, granite-greenstone terrane of the northern extremity of the Giyani Greenstone Belt ("GGB") succession. The gold is hosted in two main mineralized shear zones known as the eastern and western ore bodies. In the eastern ore body, gold mineralization has been drilled to a depth of 360 metres, in association with pyrrhotite and pyrite, in a fine quartz stockwork associated with deformed lenses of Banded Iron Formation ("BIF"). The western ore body is hosted in quartzose shears at the contact between amphibolite and a feldspathic unit.
(The data on the Madonsi Mine are historic in nature, and while relevant to the tenure and style of mineralization, they have not been confirmed or verified and are not to be relied upon.)
The acquisition of the Madonsi gold project in South Africa represents an important acquisition for the Company. The Company feels that the Giyani greenstone belt has similar features and characteristic to the Abitibi Greenstone Belt in Northern Ontario which has produced over 170 million ounces of gold and is still actively mined and explored (source: Wikipedia (http://en.wikipedia.org/wiki/Abitibi_gold_belt)). While the Madonsi gold project has historically produced significant gold (+100,000 ounces), there are numerous gold targets that have not been adequately explored or drilled. Archean gold systems are known for great strike and depth potential, with strike lengths up to 5 Km and depths up to 2 km. Examples include: the Dome, Hollinger and McIntyre mines in Timmins. (Source:USGS Open File Report 94-250). Despite some limited mining activity in the 1980-1990's on the Madonsi gold project, there does not seem to have been application of modern geophysical methods that can aid in the definition of gold targets, such as VTEM (Versa?Çïtile Time Domain Electromagnetic Surveying) and IP (Induced Polarization Surveying). The Company is currently reviewing and compiling data to propose a comprehensive and detailed exploration program.
Once all due diligence is completed to the satisfaction of both parties, the parties will enter into a Definitive Agreement (subject to the prior approval of the TSX Venture Exchange (the "Exchange")).
The technical information in this news release has been prepared in accordance with the Canadian regulatory requirements set out in National Instrument 43-101 and reviewed on behalf of Windfire by R. Tim Henneberry, P.Geo., a Qualified Person as that term is defined in NI 43-101.
Windfire Capital Corp.
Clive Massey, President and CEO
Except for historical information contained herein, this news release contains forward-looking statements that involve risks and uncertainties. Actual results may differ materially. The Company will not update these forward-looking statements to reflect events or circumstances after the date hereof. More detailed information about potential factors that could affect financial results is included in the documents filed from time to time with the Canadian securities regulatory authorities by the Company.