Owner
Post by Franko10 ™ on Mar 2, 2005 8:19:12 GMT -5
June 11, 2002
BATTLE MOUNTAIN - EUREKA TREND PROJECT ACQUIRED
The Board of Directors of J-Pacific Gold Inc. (the “Company”) is pleased to announce that, subject to regulatory approval, the Company has entered into a lease with option to purchase agreement for the twenty unpatented claims of the HC Property in Eureka County, Nevada. The agreement with KM Exploration LLC of Elko, Nevada will include thirty additional unpatented mining claims staked by the Company adjacent to the original twenty. The agreement grants all mineral and mining rights to the property for a ten-year term, which is renewable for additional ten-year terms. The Company made a payment of US$8,470 upon signing the agreement and is to make additional advanced minimum royalty payments (AMR) of US$10,000 in year two, US$15,000 in year three, US$20,000 in year four, and US$30,000 in year five and each subsequent year to maintain the agreement. In addition, the Company is to issue 20,000 common shares upon regulatory approval and 30,000 common shares at the first anniversary of the agreement. Following the cumulative expenditure of US$500,000, the Company has an option by paying US$20,000 to purchase 100% of the property, subject to royalty payments. A three percent Net Smelter Royalty interest is retained by KM Exploration LLC, of which two percentage points are purchasable by the Company for US$1,000,000 per percentage point. The AMR payments are deductible from any production royalties that might be payable to KM Exploration LLC.
The HC Property is strategically located approximately three miles southeast of the Buckhorn Mine, on the prolific Battle Mountain/Eureka Gold Trend in northern Nevada, a state that ranks third in gold production after South Africa and Australia. The target at HC results from refined stratigraphic interpretations indicating that the highly prospective Devonian (Devils Gate Formation) – Mississippian (Web Formation) contact is at shallow depth. The structural setting, surface alteration and geochemical signature at HC are similar to the occurrences in the Rain Subdistrict on the Carlin Trend. At least 12,000 feet of strike length have been staked to cover the core of the relatively shallow target. Limited previous drilling has helped define the structural setting but did not penetrate the target horizon. The Company plans to carry out limited additional geologic mapping and sampling to refine the target location, to be followed by an initial drilling campaign.
The HC project is another property acquired by the Company in its program to assemble and explore superior opportunities. The Company's approach is to acquire high potential exploration projects in mining friendly jurisdictions, to perform a focused evaluation to identify the prime targets, and to quickly drill-test these targets. We intend to retain a property only if the initial drill results are favourable.
On behalf of the Board of Directors,
“N. Ferris”<br>President and CEO
The TSX Venture Exchange has neither approved nor disapproved the information contained herein.
BATTLE MOUNTAIN - EUREKA TREND PROJECT ACQUIRED
The Board of Directors of J-Pacific Gold Inc. (the “Company”) is pleased to announce that, subject to regulatory approval, the Company has entered into a lease with option to purchase agreement for the twenty unpatented claims of the HC Property in Eureka County, Nevada. The agreement with KM Exploration LLC of Elko, Nevada will include thirty additional unpatented mining claims staked by the Company adjacent to the original twenty. The agreement grants all mineral and mining rights to the property for a ten-year term, which is renewable for additional ten-year terms. The Company made a payment of US$8,470 upon signing the agreement and is to make additional advanced minimum royalty payments (AMR) of US$10,000 in year two, US$15,000 in year three, US$20,000 in year four, and US$30,000 in year five and each subsequent year to maintain the agreement. In addition, the Company is to issue 20,000 common shares upon regulatory approval and 30,000 common shares at the first anniversary of the agreement. Following the cumulative expenditure of US$500,000, the Company has an option by paying US$20,000 to purchase 100% of the property, subject to royalty payments. A three percent Net Smelter Royalty interest is retained by KM Exploration LLC, of which two percentage points are purchasable by the Company for US$1,000,000 per percentage point. The AMR payments are deductible from any production royalties that might be payable to KM Exploration LLC.
The HC Property is strategically located approximately three miles southeast of the Buckhorn Mine, on the prolific Battle Mountain/Eureka Gold Trend in northern Nevada, a state that ranks third in gold production after South Africa and Australia. The target at HC results from refined stratigraphic interpretations indicating that the highly prospective Devonian (Devils Gate Formation) – Mississippian (Web Formation) contact is at shallow depth. The structural setting, surface alteration and geochemical signature at HC are similar to the occurrences in the Rain Subdistrict on the Carlin Trend. At least 12,000 feet of strike length have been staked to cover the core of the relatively shallow target. Limited previous drilling has helped define the structural setting but did not penetrate the target horizon. The Company plans to carry out limited additional geologic mapping and sampling to refine the target location, to be followed by an initial drilling campaign.
The HC project is another property acquired by the Company in its program to assemble and explore superior opportunities. The Company's approach is to acquire high potential exploration projects in mining friendly jurisdictions, to perform a focused evaluation to identify the prime targets, and to quickly drill-test these targets. We intend to retain a property only if the initial drill results are favourable.
On behalf of the Board of Directors,
“N. Ferris”<br>President and CEO
The TSX Venture Exchange has neither approved nor disapproved the information contained herein.
