Opawica Explorations To Acquire Enterprise Property

Mr. Blake Morgan reports


Opawica Explorations Inc. has entered into an option agreement to acquire up to a 100-per-cent interest, subject to a 2.5-per-cent net smelter return (NSR) royalty, in the Enterprise property located in the Exploits subzone of central Newfoundland and Labrador from Crest Resources Inc.

The Enterprise property is a gold property comprising 308 mining claims with a total area of 77 square kilometres. The property represents an exceptional geophysical, geological and structural triple junction target which the Crest development team identified, based on recently released mag data, cross-referenced with regional geology in the Exploits subzone belt. The Enterprise property features both epizonal gold targets and an undefined magnetic anomaly on the margin of a granitic body.

Analysis of new Newfoundland and Labrador geological survey mag and geologic data has identified an extreme mag high at the intersection of a large-scale intrusive, meta-sediments and inferred deep-seated dog-leg structural faulting. Rio Tinto performed airborne electromagnetic and magnetic surveys in 1979 and followed up with a minor drilling exploration program in spring of 1980, with one 86-metre drill hole in this claim group. Given the history of major miners exploring this region, the company believes these factors warrant a modern, second look on this ground.

The company may earn an initial 80-per-cent interest in the property by paying an aggregate of $1.45-million cash and incurring $5-million in work expenditures over a four-year period as follows: (i) $250,000 cash due upon signing the agreement; thereafter, optional commitments of (ii) $450,000 cash and incurring $1-million in exploration expenditures on or before the second anniversary of the agreement date; (iii) $250,000 cash and incurring a further $2-million in exploration expenditures on or before the third anniversary of the agreement date; and (iv) $500,000 cash and incurring a further $2-million in exploration expenditures on or before the fourth anniversary of the agreement date. Upon completing the above payments and expenditures, the company shall be deemed to have exercised the option and shall be entitled to an undivided 80-per-cent right, title and interest in and to the property, subject to the 2.5-per-cent NSR retained by Crest. Subsequent to the exercise date, the company may earn an additional 20-per-cent interest in the property by paying market price in cash or in kind based on an independent valuation of the property. The agreement is subject to any applicable approvals of the TSX Venture Exchange and the Canadian Securities Exchange.

Exploration, development and mine operating joint venture agreement

The company further announces that it has entered into an exploration, development and mine operating joint venture agreement with Crest whereby Crest will identify claims to be staked in the Newfoundland area, that are prospective for gold mineralization, and the company will pay for the costs of staking the same, and thereafter the parties will explore and develop the staked claims on a joint venture basis under which the company will hold an initial 70-per-cent interest and Crest will hold an initial 30-per-cent interest. The company has staked 906 claims under this agreement.

Yvan Bussieres, PEng, is the qualified person for Opawica Explorations and approves the technical content of this news release.

About Opawica Explorations Inc.

Opawica Explorations is a junior resource company engaged in the acquisition, exploration and evaluation of gold and base metal mineral properties in Canada. The company owns 100-per-cent interest subject to certain royalties in the Bazooka gold property located in the Beauchastel township approximately seven kilometres southwest of Rouyn-Noranda, Que. The Bazooka property comprises seven contiguous kilometres of strike length along the prolific Abitibi gold belt on the Cadillac Larder Lake break. The eastern border of the Bazooka gold property adjoins Yorbeau Resources Inc.’s Rouyn property and the western border adjoins Monarques Gold Corp.’s Wasamac gold property. The company also holds 100-per-cent interest subject to certain royalties in the McWatters gold property in the Rouyn-Noranda area and the Arrowhead gold property in the Joannes township, Que.

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