Discovery Ventures Inc. Enters Into a Definitive Agreement to Acquire the Willa Gold Deposit
VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 19, 2012) - Discovery Ventures Inc. ("Discovery", "DVN" or the "Company") (TSX VENTURE:DVN) wishes to announce that further to its news release of October 18, 2012, it has entered into a definitive option agreement (the "Option Agreement") with 0951719 B.C. Ltd (the "Optionor") to acquire up to an 80% interest in the Willa property, consisting of 5,328 hectares located in the Slocan Mining Division, British Columbia, south of the town of Silverton B.C. (the "Property"), subject to the Optionor's underlying option agreement with and a 2.5% NSR in favour of the registered owners (the "Option").
Pursuant to the Option Agreement, the Company may exercise the Option by providing written notice of its intent to exercise the Option after making certain payments and share issuances to the Optionor and incurring work expenditures on the Property as follows: i.upon execution of the Option Agreement: paying $50,000; ii.within 5 business days of receiving approval of the transaction by the TSX Venture Exchange ("TSXV Approval"): paying $150,000 and issuing 1,000,000 shares; iii.on or before the 1st anniversary of receiving TSXV Approval: paying $350,000, issuing 4,000,000 shares and incurring $500,000 of work on the Property; iv.on or before the 2nd anniversary of receiving TSXV Approval: paying $1,000,000, issuing 6,000,000 shares and incurring $500,000 of work on the Property; v.on or before the 3rd anniversary of receiving TSXV Approval: paying $1,450,000, issuing 7,000,000 shares and incurring $500,000 of work on the Property.
Once the Company has exercised the Option, it has a right of first refusal to purchase the remaining 20% interest held by the Optionor at fair market value, thus giving the Company a 100% interest in the Willa project.
If in the event there is a sale of mineralized material from the Property prior to the exercise of the Option, the net proceeds, subject to the 2.5% NSR, shall be divided between equally between the Company and the Optionor. After the exercise of the Option, the net proceeds, subject to the 2.5% NSR, shall be divided according to the parties' respective interests.
Since the early 1890's the Slocan mining region has hosted more than 20 mining/milling operations and some 200 additional mines that have shipped ore to custom mills and smelters.
The mineral property consists of 5,328 hectares located 8 kms south of the town of Silverton, B.C.. It is strategically located in one of the most highly mineralized regions of British Columbia for both base and precious metals. The Willa Deposit is situated in the southern portion of the Selkirk Mountains, within the highly metallised Omineca Crystalline Belt, consisting of Paleozoic and Mesozoic volcanic, sedimentary and plutonic rocks.
Completed underground mine workings consist of two adit levels, an internal level with two declines and two raises connecting the levels. The main haulage level (1025) runs for 900 meters and is equipped with 60lb rail.
Cumulative historical exploration expenditures on the Willa project exceed $15 million. These expenditures were incurred by several operators, including Noranda, Rio Algom, BP Minerals, Bethlehem Resources Corp., Northair Mines Ltd. and Hudson Bay Mining & Smelting. Work completed includes 596 drill holes totalling 189,000 feet (57,250 metres) of core drilling and 8,500 feet (2,575 metres) of underground workings, extensive geophysics and sampling consisting of 17,150 analyses for gold, copper and silver. A pre-feasibility study and a 550 tonne metallurgical bulk sample were completed in 2004.
The Companies that conducted the previous exploration and development programs ensured that all work was compiled and archived to the highest standard. The database has been preserved, is fully intact, and has been extensively reviewed by Discovery and its geotechnical team. A NI 43-101 historical resource calculation was completed on the Willa Deposit in 2005, as reported by David Makepeace PEng. This resource used a 3.5 g Au/mt cut-off grade and only considered measured and indicated categories. The resource is as follows:
2005 Technical Report (grade cut-off 3.5 g Au/mt):
In 2003 a NI 43-101 resource was completed by Geospectrum Engineering (David Makepeace PEng.) and is presented for comparative purposes. Other than the 2005 presented resource, there are no current compliant resources in the project. The 2005 and the 2003 resource estimates are considered to be "Historic Resources" as they have not been confirmed or updated to meet a current NI 43-101 standard.
Discovery Ventures is not treating any of the 2005 and 2003 estimates as a current NI 43-101-compliant resource. The Company has not yet undertaken the work necessary to have the historical 2005 and 2003 estimates verified by a Qualified Person. All other "reserves" and "resources" described and documented by previous operators are considered to be "Historic Resources" under NI 43-101. The properties will require future exploration and verification to convert "Historic Resources" into current NI 43-101-compliant resources, which the Company intends to carry out in due course. The historical estimates should not be relied upon.
Of critical importance is that the geologic logging, drill hole surveying, drill hole and underground assaying, or any of the metallurgical testing on the deposit was not verified during the recent site visit by the Company's Qualified Person. Thus, these 2003 "resource summaries" are not relevant or reliable and presently only qualify under NI 43-101 Technical Report guidelines as "Historic Resources."
Resource figures based upon the Makepeace March 2003 Report, are as follows:
2003 Technical Report (grade cut-off 3.5 g Au/mt):
2003 Technical Report (grade cut-off 2.5 g Au/mt):
2003 Technical Report (grade cut-off 1.5 g Au/mt):
The Resource estimates (Makepeace, 2003) were made with Surpac software, with: •Cut-offs of 1.5g/t, 2.5 g/t and 3.5g/t gold
•Rock bulk density of 2.9 t/m3
•Capping of erratically high gold assays to 34.3 g/t
The 2003 estimates were based upon a database including data from 556 core holes totalling 50,890m, 2,570m of underground workings and 17,150 analyses for Au, Cu, and Ag.
President of the company Akash Patel stated: "Discovery is very excited about the opportunity to develop a project with the past developments including a NI 43-101 resource with a measured component. This resource along with the previous exploration expenditures in excess of $15 million will be the foundation on which to build the next phases of mine development."
Discovery Ventures' mission is to explore for and develop gold, silver, and copper mineral deposits in the Province of British Columbia, Canada. Along with the Willa deposit, the Company is also developing three other mineral projects including the Redbird/Rabbitt claims located in southern British Columbia in the Similkameen Mining Division; the Bralorne claims located in southern British Columbia in the Lillooet Mining Division who's mining camp historic gold production totalled 4.15 million ounces