Join        Login             Stock Quote

Transition Metals Consolidates Property West of AuRico Gold's Young-Davidson Mine and Provides Details Concerning Recent Option Agreements

Thursday, April 5, 2012 2:02 PM


SUDBURY, ON, April 5, 2012 /CNW/ - Transition Metals Corp. (XTM - TSX.V) announced it has optioned a 100% interest in six staked claims (336 ha) in Doon Township, Larder Lake Mining District Ontario from Ashley Gold Mines Ltd. ("Ashley"). The optioned claims (see map below) are adjacent to property staked by Transition in Q1 2011 and form a combined land package approximately 1,472 ha in size. The property covers Archean metavolcanics and Temiskaming metasediments  along the interpreted extension of the Cadillac-Larder Lake fault zone, approximately 15 km southwest of AuRico Gold's Young-Davidson mine (3.83 Moz*), near Matachewan. Previous work conducted on the property by Western Mining Corp. identified a number of high quality untested gold in till anomalies and geophysical targets along strike from a bedrock showing on the Ashley property that returned gold assays between trace and 2.34 g/t gold (MNDM assessment file number 41P15NW0014).

"We're excited to have consolidated such a favourable property position near the Young-Davidson mine," said Scott McLean, CEO of Transition Metals. "We've had success exploring greenstone belts along prospective trends in this area, including our recent discovery on the Haultain property near Gowganda."

Under the terms of the Option Agreement with Ashley, Transition has the right to earn a 100% interest in the claims subject to a 2% Net Smelter Royalty (NSR) by making cash payments of $30,000, issuing 30,000 common shares to Ashley, and incurring $250,000 in work expenditures by the third anniversary of the agreement. Transition retains the right to purchase up to 1% of the NSR for $1.0 million.

Other Recent Transactions

On January 9, 2012, Transition entered into an option agreement with Marko Moudrak, an individual residing in Toronto, to acquire a 100% interest in 5 claims (224 ha) located near Espanola in Mongowin Township, Sudbury Mining District Ontario, subject to a 2% NSR (see press release dated March 26, 2012). To earn its interest, Transition must make cash payments of $15,000 and issue 25,000 common shares to the property vendor and incur $15,000 worth of work expenditures on the property by the second anniversary of the agreement. Transition retains the right to purchase up to 1% of the NSR for $1.0 million.

On February 10, 2012, Transition entered into an option agreement with John and Josiah Payne, registered title holders of patented surface and mining rights in Tudhope Township, in the district of Timiskaming, Ontario.


Related Stories

  • No Stories Found


Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.