Lovitt Resources Inc. Acquires Key Mineral Lease on Wenatchee Gold Belt
November 17 2009 - 2:37AM
Marketwired
Lovitt Resources Inc. (TSX VENTURE: LRC) ("LRC") is pleased to
inform shareholders that it has leased a 155 acre property on the
Wenatchee Gold Belt known as the Matthews Lease. The lease will be
in effect for 15 years and LRC has the option to purchase the
property anytime in the first seven and one half years for US$
5,000,000. Lease terms call for the immediate issuance of 60,000
shares of LRC, plus a payment of US$ 15,000 January 5, 2010. An
advance minimum royalty payment of US$ 20,000 is due November 1,
2011, followed by a similar payment of US$ 30,000 November 1, 2012
and the same amount every year thereafter for the life of the
lease. This lease is subject to the approval of the TSX Venture
Exchange where the company trades with stock symbol LRC.V.
The Wenatchee Gold Belt ("WGB") lies NW-SE for a length of 7.5
miles, open in both directions, with high grade gold intercepts at
both ends. The Cannon Mine is at the north end of the Belt on the
city limits of Wenatchee, WA, and the Lovitt Mine owned by LRC
adjoins the Cannon Mine to the south. The Cannon Mine produced 1.2
million ounces of gold from 1985-1994 and the Lovitt Mine produced
420,000 ounces of gold from 1950 to 1967. Silver over the known
extent of the WGB runs about 1.5 times gold values. LRC is
currently conducting exploration to evaluate production options on
the Lovitt Gold Mine patented claims.
The Matthews land, approximately 1.5 miles southeast of the
Lovitt Gold Mine, was first explored by Asamera Minerals (US) Ltd
in 1987 and 1988 when 34 diamond drill holes were completed.
Consolidated Ramrod drilled 12 additional diamond drill holes in
1992 and 1993. Considering that most drill holes were deep and
vertical, it is remarkable that over 75% contained significant gold
intersections. Historic data records the following more significant
gold intersections:
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From Length Gold Gold
Hole (ft) To (ft) (ft) (oz/ton) (g/t)
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MAT 2 1730 1745 15 0.154 5.28
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MAT 2 1845 1850 5 0.159 5.45
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MAT 4 2005 2030 25 0.272 9.33
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MAT 7 1590 1600 10 1.300 44.59
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MAT 7 2485 2490 5 0.175 6.00
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MAT 8 1790 1840 50 0.177 6.07
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MAT 8 1965 1970 5 0.168 5.76
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MAT 13 1775 1815 40 0.338 11.59
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MAT 14 1755 1760 5 0.195 6.69
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MAT 17 2015 2030 15 0.107 3.67
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MAT 20 1770 1800 30 1.357 46.55
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MAT 20A 1800 1815 15 0.320 10.98
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MAT 25 1595 1600 5 0.139 4.77
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MAT 25 1630 1635 5 0.345 11.83
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MAT 93-1 1865 1905 40 0.229 7.85
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MAT 93-3 1840 1845 5 0.184 6.31
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MAT 93-6 1655 1685 30 0.121 4.15
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MAT 94-8 2535 2540 5 0.108 3.70
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MAT 94-8 1630 1650 20 0.113 3.88
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MAT 94-8 1720 1730 10 0.225 7.72
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MAT 94-8 1760 1765 5 0.530 18.18
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MAT 94-10 1855 1880 25 0.119 4.08
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MAT 94-10 1925 1995 70 0.207 7.10
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MAT 94-10 2050 2060 10 0.160 5.49
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MAT 94-10A 1835 1840 5 0.113 3.88
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MAT 94-10A 1945 1970 25 0.486 16.67
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MAT 94-11 2040 2055 15 0.116 3.98
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The geology of the Matthews property is similar that encountered
in the Lovitt and Cannon gold mines. The area explored on the
Matthews Lease to date is 1500 feet by 750 feet, and contains
abundant, high grade, sediment hosted gold mineralization with
lesser rhyodacite, intrusively-hosted high-grade gold. Targets
consist primarily of high grade epithermal veins with adjacent high
grade sediment hosted mantos and high grade breccias pipes. Some
step out target locations were drilled 500 feet apart and require
infill drilling.
Both the Lovitt Gold Mine and Matthews Lease rely upon historic
data which cannot be used for mineral resource estimation without
further diamond drilling. Management of LRC believes that the
patented claims of the company hold the solution to future
development of the Wenatchee Gold Belt, since all parts of the belt
could be accessed by the construction of an exploration/production
drift from the Lovitt Mine workings, possibly the least intrusive
and easiest permitting approach to access the mineable gold and
silver in the area. The WGB has local access to cheap power,
skilled workmen and a major east-west national rail line with
materials infrastructure within two miles.
LRC previously announced a drill program for the Lovitt Gold
Mine and will now factor in a drilling program for the Matthews
lease to be conducted concurrently. Budget and financing options
for an expanded exploration program by LRC are currently under
study. This release was approved by LRC Director James M. Proudfoot
P Eng., a qualified person under NI 43-101.
Neither the TSX Venture Exchange nor its Regulatory 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.
Contacts: Lovitt Resources Inc. Lorne Brown President of the
Company (509) 668-8170 (604) 626-4748 (FAX) Website:
www.lovittresources.com