Post by Franko10 ™ on Feb 21, 2005 19:45:10 GMT -5
GOLDEN ARCH RESOURCES LTD.
#928 – 470 Granville Street, Vancouver, BC V6C 1V5
Phone: (604) 681-8222 Fax: (604) 681-8282
GAI: TSX Venture
GARCF: O.T.C
Exemption 12g3 - 2(b)
SEC File # 82-659
NEWS RELEASE
September 13 2002
#928 – 470 Granville Street, Vancouver, BC V6C 1V5
Phone: (604) 681-8222 Fax: (604) 681-8282
GAI: TSX Venture
GARCF: O.T.C
Exemption 12g3 - 2(b)
SEC File # 82-659
NEWS RELEASE
September 13 2002
JOINT VENTURE ON GOLDEN ARCH’S ARIZONA PROJECTS
Golden Arch Resources Ltd. is pleased to announce that an agreement in principle has been reached with Redhawk Resources Inc. whereby Redhawk will earn an interest in Golden Arch’s four Arizona precious metal projects. Under the terms of the agreement, Redhawk can initially earn a 70 percent interest in the Malachite Silver Project, a 50 percent interest in both the Jupiter Gold and the Placeritos Gold Projects, and a 30 percent interest in the Gold Bullion Mine Project, by spending a total of CDN$228,000 on or before December 1, 2003, and certain other considerations outlined below:
1) Upon Regulatory Approval deliver to Golden Arch CDN$10,000 and 50,000 Redhawk shares.
2) Spend a committed CDN$228,000 on or before December 1, 2003 on a mutually agreed work program, which will be spent approximately equally on all four Projects.
3) Pay the underlying owners of the projects US$12,000 on or before March 22, 2003.
4) On an optional basis:
a) Deliver to Golden Arch a further 150,000 shares of Redhawk on or before Jan.1/04
b) Pay US$20,000 to the underlying property owners, and deliver 50,000 Redhawk shares to Golden Arch, on or before March 22, 2004. These road-accessible projects are located in Pima County, Arizona, approximately 80-km southwest of Tucson. Following Redhawk’s earn-in, each Project will become a Joint Venture. Standard dilution clauses will apply to non-contribution to the Joint Ventures. The agreement contains an area of common interest clause and a right of first refusal clause on each party’s interest. A small sliding scale Net Smelter Return is payable to the State of Arizona on any production. The underlying owners retain either a 1 percent Net Smelter Return interest on production from the Projects or a 20 percent NPI. The NPI would take effect after all costs, including all exploration and other pre-production costs and capital and operating cost recoveries, are calculated.
Malachite Silver Project: Oxidized silver and copper mineralization is the focus of the Malachite Silver project. The Malachite Silver project is a silver/copper mineralized silicified contact metamorphic deposit (a silver/copper skarn deposit) hosted by a Jurassic calcareous siltstone adjacent to the contact with a granite intrusive. Within the mineralized area a character sample was taken, which assayed 15.1 ounces of silver and 0.97 per cent copper per ton. Several acres of similar looking malachite stained rock is intermittently exposed in outcrop.
Jupiter Gold Project: The Jupiter Gold Project is underlain by a 7,000 foot by 400 foot rock chip and soil anomaly, which is open to extension. Rock chip samples graded up to approximately 1 opt gold. Hosted by Jurassic age conglomerates, the gold and silver mineralization is contained within quartz veins and veinlets, and disseminated within a zone of silicification. One hand-dug trench was sampled on bedrock with continuous samples averaging 6.6 foot in length. The trench ran 0.036 opt gold over the entire length of 210 feet, including 0.21 opt gold over 6.6 feet, and 0.05 opt gold over 92 feet. Another trench, located approximately 1600 feet to the south of the first trench, ran 0.027 opt gold over the entire length of 230 feet, including 0.03 opt gold over 197 feet, 0.067 opt gold over 26 feet, and 0.124 opt gold over 13 feet. Towards the northern end of the Jupiter Project there is an area of extensive veining, including the areas of the old Jupiter and Iowana Mine underground workings. Production of several hundreds of tons is reported from intermittent operations from the 1930’s and 1940’s of material grading about 0.75 opt gold and 12 opt silver. The combination of these mineralized vein workings, and the visual evidence of surface workings on other veins scattered along the Jupiter Gold trend, suggests the possibility of areas of higher-grade mineralization occurring within areas of lower-grade mineralization. This has the potential of enhancing the overall grade of any large low-grade deposit that may be established on the Jupiter Gold Project. In 1974, 35 crude rotary percussion holes were drilled in the vicinity of the Jupiter Mine, ofwhich 27 had very anomalous gold values. In 1990, 7 reverse circulation holes were drilled between the Gold Bullion Mine and the Jupiter. At least 3 holes were drilled into rocks not known to host gold mineralization and 3 had anomalous gold values.
Placeritos Gold: A 4000 foot long rock chip and soil anomaly, which is open to extension, is the focus of the Placeritos Project. Rock chip samples graded up to 1.25 opt gold. Also hosted by Jurassic age conglomerates, the gold and silver mineralization is contained within quartz veins and veinlets, and in dissemination within a zone of silicification. Other than rock chip and soil sampling, the Placeritos project has seen very little work. A character sample was taken on the Placeritos property that assayed 0.61 opt gold. This suggests the possibility of areas of higher grade mineralization occurring within larger areas of lower grade mineralization which potentially may enhance the overall grade of any large low grade deposit that may be established on the Placeritos project.
Gold Bullion Mine: The Gold Bullion Mine Project is a high-grade gold vein project that was sporadically developed underground and mined from approximately 1880 to 1916. There are at least three apparently related veins at the Gold Bullion. The Gold Bullion itself is at least 300 feet long; however, surface observation suggests the vein is significantly longer. The mine workings are to a depth of at least 250 feet with multiple levels. Apparently about 3,000 tons were produced prior to 1916. In a 1913 report on the property the mining engineer reported that his sampling was restricted to above the 165-foot level, below which the mine was flooded.
The samples were taken from the main shaft and three levels. The vein width appears to be between 3-5 feet where sampled, with grades running from 0.25 opt gold and 28.0 opt silver to 1.6 opt gold and 28.0 opt silver. Surface observations suggest widths up to 10 feet. The sampling suggests an average grade of 0.75 opt gold-equivalent for the Gold Bullion vein. The engineer reported similar grades from the other veins that were sampled in other workings that were not connected underground with the Gold Bullion vein. Except for the historical data set out above, a Qualified Person has verified the technical data disclosed herein. The agreement is subject to Regulatory Approval.
The Pima County Projects Joint Venture represents an opportunity for Golden Arch to finance the initial exploration of four high-priority precious metals projects in an area with good infrastructure. With the projects only a short distance from one another, it will be possible to run a cost-efficient exploration program on a year-round basis.
On behalf of the Board of Directors
“Les Kjosness”, President