Vancouver, BC / ACCESSWIRE / March 12th, 2014 / True Grit Resources Ltd. (NEX-TGI.H) ("True Grit" or "the Company") is pleased to announce that the TSX Venture Exchange has accepted for filing the option-to-purchase agreement (the "Agreement") with Redstar Gold Corp. (TSX.V:RGC) ("Redstar") under which True Grit can acquire 100% of Redstar's assets in Nevada. These assets consist of a 100% interest in 10 projects (the "Projects") in Nevada as well as the AngloGold-Ashanti database (the "Database") purchased by Redstar in 2005. (Refer to news release of January 27th, 2014)
The TSX Venture Exchange has also accepted for filing that the Company has completed a bridge loan financing for $200,000. In connection with the loan there were 800,000 bonus share issued to the lenders. The funds will be used for the initial payment to Redstar as well as beginning exploration work in Nevada focused initially on the Cook's Creek property. The Company has also issued 2,500,000 common shares of True Grit to settle outstanding debt of $125,000. Both the bonus shares and the debt shares are subject to restriction on resale until June 25th, 2014.
ABOUT THE NEVADA ASSET
The Database that True Grit acquired covers Nevada, Utah, Idaho and California. It includes extensive proprietary exploration files created by AngloGold-Ashanti and its predecessors, as well as significant regional geological, geochemical and geophysical data, much of it also proprietary and significant amounts of exploration information added by Redstar. In addition to advancing the existing targets through surface geologic work, geophysical surveys and drilling at the 10 projects in Nevada, True Grit will immediately begin indentifying new priority target areas for acquisition using the Database.
Dr. Jacob Margolis, Redstar's U.S. Exploration Manager since 2005, will continue to work with True Grit on the existing projects and the generation of new projects. Dr. Margolis previously worked for AngloGold-Ashanti and was instrumental in developing and advancing Redstar's Nevada projects.
The Nevada projects that were acquired include both sediment- and volcanic-hosted gold systems on important mineralized trends, including the Carlin and Cortez trends. High-priority projects include Cooks Creek, a sediment-hosted system eight miles west of the world-class Pipeline deposits being mined by Barrick Gold. An 8 hole drill program is planned for 2014 that will follow up on historic drilling that intersected 21.3m (70 feet) grading 2.317 g/t gold (0.068 opt) from 18.3 to 39.6m as well as on the recently-discovered, undrilled Dinner Zone which has yielded surface rock-chip values to 2.45 ppm Au. Cooks Creek has been under option for several years by True Grit and the Agreement supersedes the prior option agreement.
Other projects include Seven Devils, a volcanic-hosted epithermal gold system along the "Western Nevada Rift" trend that includes the Goldbanks (Kinross Gold), Sandman (Newmont Mining) and Sleeper (Paramount Gold and Silver) deposits. The gold system at Seven Devils is at least 6,000 feet long and contains surface gold values to 3.47 ppm. The Oasis project near the Goldfield district in western Nevada contains a porphyry gold system with extensive low-grade gold mineralization open at depth and along strike (e.g., 96.1m grading 0.26 ppm Au and 30.5m grading 0.4 ppm Au) and increasing copper at depth with the gold. The Gold Cloud project along the southeastern portion of the Cortez trend contains a 2-km-long zone of carbonate veins and silicification (jasperoid) with gold to 2.8 ppm. The mineralization occurs at a range front and appears to represent the upper-most or lateral edges of a larger gold system yet to be explored at depth or under the pediment alluvial cover in the adjacent valley that is known from geophysics to be shallow.
Dr. Jacob Margolis, a qualified person as defined by National Instrument 43-101, has reviewed this news release.
On behalf of the Board,
TRUE GRIT RESOURCES LTD.
Allan Williams
Allan W. Williams
President and CEO
Forward-Looking Information This release includes certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical facts, that address events or developments that True Grit Resources Ltd. (the "Company") expects to occur, are forward-looking statements. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in the forward-looking statements. Factors that could cause the actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration successes, and continued availability of capital and financing, and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and actual results or developments may differ materially from those projected in the forward-looking statements. Forward-looking statements are based on the beliefs, estimates and opinions of the Company's management on the date the statements are made. Except as required by applicable securities laws, the Company undertakes no obligation to update these forward-looking statements in the event that management's beliefs, estimates or opinions, or other factors, should change.
Neither the TSX Venture nor its Regulation Service Providers as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release