ICN Resources Ltd TSXV:ICN announced results from its Goldfield Bonanza Project in Nevada. Results include
6.63 g/t gold over 13.7 metres
(including 28.32 g/t over 1.5 metres)
1.68 g/t over 36.6 metres
2.3 g/t over 21.3 metres
1.63 g/t over 13.7 metres
1.56 g/t over 12.2 metres
0.79 g/t over 18.3 metres
ICN may earn an 80% interest in the project under a December 2010 option agreement with Lode Star Gold Inc, a private Nevada corporation. ICN has paid Lode Star US$50,000 and issued the company 500,000 units, each consisting of one ICN common share and one full share purchase warrant. Each warrant entitles the holder to purchase one additional ICN common share for a period of two years at an exercise price equal to 110% of the average closing market price of ICN’s common shares over the five-day period prior to the date of issuance. To earn its 80% interest, ICN will pay Lode Star US$3 million in cash, issue three million units and complete US$5 million of exploration over four years. If ICN completes all requirements of the option, a standard mining joint venture will be formed.
VP of Business Development Tasso Baras tells ResourceClips.com, “Since May we’ve been putting out some spectacular numbers on this property, primarily from one zone, for example 46 metres and 97 grams. [On May 17, ICN reported 96.3 g/t over 45.6 metres, including 1,454.3 g/t over 2.9 metres.] But this announcement releases numbers from a totally new area that’s never been drilled before. Are they as high-grade as some of the other numbers we put out? No, but they’re still decent intercepts for that particular area.
All our projects now are in Nevada. We like the jurisdiction. The management team has a lot of experience there, and we’ve got a good team of people with boots on the ground—Tasso Baras
“We have to go back and drill more to get a better understanding, but we’re starting to prove up the modelling here. This property has never been drilled except for one location, so we’re starting to drill to the north, to the south, in areas that have never been touched before. These numbers are the first, and we’re encouraged by what we see.
“We have more results to come from the high-grade area,” he adds. “We’re stepping out and trying to find out how big it can be and how far it goes out. We could have a resource estimate by 2Q 2012.
“All our projects now are in Nevada. We like the jurisdiction. The management team has a lot of experience there, and we’ve got a good team of people with boots on the ground. I can’t say this company will stay Nevada-focused, but I think it’ll stay focused on North America. We’ll see what opportunities come up in other parts of the States, but you certainly won’t see us in Africa or exotic places like that,” Baras says.
“Our Hogg Ranch Project is joint-ventured with Pacific Rim TSX:PMU. They’re working on that now. They have to spend $8 million to earn 65%. There are some other properties that we sold to Paramount Gold and Silver TSX:PZG for about $1 million in stock. We retained the Rockland Property, but we can’t get to that until after winter. It’s at a higher elevation. Right now our focus is the Goldfields Project.
“Hogg Ranch, like Goldfields, is a former mine,” he points out. “About 250,000 ounces came out of there. I think Nevada has been staked quite thoroughly. There have been times when people have drilled and then walked away. But now that gold’s at these levels, some of these projects that didn’t make economic sense at $800 gold are looking attractive at $1,600 gold. A lot of these projects are older stories that have come back to life.”
ICN’s Goldfields Project borders International Minerals’ TSX:IMZ Goldfield Project, which has measured and indicated resources estimated at 31.3 million tonnes grading 1.2 g/t gold for 1.25 million gold ounces and an inferred resource estimated at 7.7 million tonnes grading 1.6 g/t for 385,000 ounces. The International Minerals project is scheduled to complete feasibility and begin an environmental impact study by mid-2012. Heap leach production is projected for 2015.
“It’s an interesting area,” Baras says. “Historically, it’s produced about four million ounces from two million tonnes of rock.
“Apart from the property, you have to look at our team,” he emphasizes. “Carl Hering runs the company. He’s got a great track record, and he’s been involved in a lot of discoveries. The last one was Brett Resources, which was sold to Osisko TSX:OSK. We’ve got Tim Searcy, CEO of Auryx TSX:AYX, which just got sold to B2Gold TSX:BTO, George Brack, who was head of Scotia Capital’s global mining division and director of some very large companies like Redback Mining, which was bought out by Kinross TSX:K. And we also have Raymond Threlkeld, who runs Rainy River TSX:RR. So we’ve got a great team who all have fantastic track records.”
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VP of Business Development
by Greg Klein