The Globe and Mail

Go to the Globe and Mail homepage

Jump to main navigationJump to main content

Globe Investor

News Sources

Take control of your investments with the latest investing news and analysis

Press release from TheNewswire.ca

Happy Creek Options property to Newmont Mining Corp.

Wednesday, July 20, 2011

Happy Creek Options property to Newmont Mining Corp.14:00 EDT Wednesday, July 20, 2011(via Thenewswire.ca) July 20, 2011 - Vancouver, British Columbia - Happy Creek Minerals Ltd. (TSX-V: HPY, the "Company") has negotiated an Option agreement with Newmont Mining Corporation (Newmont) for the Company's Eye mineral claim in south central British Columbia (B.C.) Canada. The Eye property is located southeast of the Gold Fields-Fjordland JV area known as the Woodjam -Southeast project, and is about four kilometres northwest of the Company's Silverboss property. The Eye claim is a relatively small property (119 hectares or 1.2 square kilometres) that was originally acquired by the Company as part of the Gus property option in 2007. The Company has earned its 100% interest in the Gus and Eye property. Due to its relatively small size the property has not been a focus of the Company however, recognizing the potential of the general area, it was duly maintained since acquisition. "We are pleased to have Newmont demonstrate their interest in one of our properties, and we wish them success using their considerable exploration expertise" states David Blann, President and CEO of Happy Creek. "We have optioned out one of our properties and gained a major gold company as a neighbor to our 100% owned Silverboss property. The area has become attractive to major mining companies seeking bulk tonnage copper, molybdenum and gold deposits and we are well positioned with excellent results coming from several of our projects." To earn a 100% interest in the Eye property, Newmont must pay the Company a total of $368,000 in cash and perform $280,000 in exploration, in annual stages over a five year period. If Newmont elects to purchase the property it will grant to the Company an NSR (Net Smelter Royalty) of 0.5%, with payments up to a collective maximum of $1.5 million. In addition, Newmont will cover the underlying Royalty obligations to the previous owner. Happy Creek has a 100% interest in the 150 square kilometre Silverboss property that surrounds Xstrata's former Boss Mountain mine. On the Silverboss property, the Company has identified several large scale copper, molybdenum and gold targets. These zones comprise quartz vein swarm and stockwork containing geochemically positive to significant gold values. The Horse Trail zone has returned values of 0.10 to 1.69% copper, 0.108 to 0.637% molybdenum and 1.03 to 10.0 g/t gold. The Dogtooth zone has returned values of 0.30 to 5.0 g/t gold and up to 53.01 g/t gold, 343.0 g/t silver in grab samples and 9.29 g/t gold, 27.3 g/t silver over 1.17 metres in width. The Silverboss shaft has returned values of 9.25 g/t gold, 514.8 g/t silver and 2.52 percent copper and 6.21 g/t gold, 295 g/t silver and 6.76 g/t indium in grab samples. Approximately 300 metres to the east, a grab sample returned 1.24 g/t gold and 2.48% copper at the East Breccia zone. These positive copper and gold results in outcropping rock samples occur within large scale soil geochemical anomalies. Much of the Silverboss property remains underexplored, and additional surface work is planned this year. To the southeast of the Silverboss property, the Company also has a 100% interest in the Hen property, where recent prospecting has located an area containing copper and molybdenum in quartz veins within a granitic rock, and previous trenching of an adjacent skarn has returned 2.0 metres of 4.0 g/t gold, 4.0 metres of 2.0 g/t gold and grab samples up to 31.0 g/t gold occur. Soil geochemical sampling is underway on this new prospect. On behalf of the Board of Directors, "David E Blann" ____________________ David E Blann, P.Eng. President David Blann, P.Eng. is a Qualified Person as defined by National Instrument 43-101 and is responsible for the preparation and approval of the technical information disclosed in the news release. FOR FURTHER INFORMATION PLEASE CONTACT: David Blann, President, CEO Corporate Office: Phone: 604.662.8310 Email: Info@happycreekminerals.com Website: www.happycreekminerals.com Investor Relations: James Berard Phone: 604-687-2768 Toll free: 1-877-459-5507 Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. Copyright (c) 2011 Thenewswire.ca - All rights reserved.