ABBOTSFORD, British Columbia, July 22, 2011 /PRNewswire/ --
Nubian Resources Ltd. (NBR:TSX.V) is pleased to announce that it has signed a lease agreement with Timberwolf Minerals Ltd., a private corporation, to acquire a 100% interest in Timberwolf's Idaho Sedex lead-zinc-silver prospect area in Lemhi County, Idaho effective June 30th 2011.
Nubian paid the Lessor an upfront payment of USD $5,000 upon signature of the contract and will pay the Lessor a minimum annual payment on the anniversary date (June 30th 2011) of the signed agreement as follows:
a. Pay Lessor USD $10,000 on or before the first anniversary date, start of year two.
b. Pay Lessor USD $10,000 on or before the second anniversary date, start of year 3, and each successive year thereafter, for as long as Lessee maintains this Agreement in good standing.
c. From the start of production onward, Lessee shall pay Lessor USD $30,000 or a one percent (1%) NSR, whichever is greater. Each such payment shall be made on or before the successive anniversary of the execution of this lease. Royalty payments shall be made quarterly of each year. Lessee may purchase the NSR, on or before the Start of Year 6 of this Agreement for a final one-time buyout payment of USD $2,000,000 exclusive of all prior payments.
About the Idaho Sedex Property
The prospect area, which includes the historic Worthing-Kauffman mine, is located in the Birch Creek Mining District about 38 miles southeast of Leadore, Lemhi County, Idaho. Lead and silver were discovered in the district about 1880, and the district's mines were among the most important in Idaho in the eighties, and district production up to 1944 is estimated at about five million dollars in lead, silver and copper. Zinc was not recovered in early mining efforts. Most of the district ore production is oxidized.
The Birch Creek deposits have been characterized as structurally controlled replacements in steeply dipping lower Paleozoic quartzite. Recently, however, the U. S. Geological Survey has reclassified the origin of the ore as possible basin-margin, carbonate-shale-hosted, stratabound deposits along the eastern margin of an island-arc and inner-arc basin located to the west. The primary mineralization can be correlated with a modern "sedimentary-exhalative" deposit model. Regional metamorphism has in some cases remobilized the metals into structurally controlled deposits.
Within the prospect area, two prominent lead-zinc gossans, each 40-100 feet wide, dip nearly vertically along the structure and bedding. Beyond this zone, stockwork mineralization may extend in favorable stratigraphy for another 200-500 feet. The overall mineralized zone in this part of the prospect area varies from 400-1,000 feet wide following the structure a distance of over 5,000 feet. Twelve surface grab samples collected by Timberwolf, some less oxidized and with visible sulfides, averaged 0.67% lead and 1.72% zinc. Nubian has collected 19 additional samples of mineralized rock, results pending.
Nubian has staked 14 additional mining claims, bringing the total holdings to 18 contiguous claims (approximately 372 acres) and is gathering additional historic and modern geologic and prospecting data. The current land holdings cover all the known lead-zinc gossans. The company will conduct geologic mapping and sampling with the intention of formulating a drill exploration program.
Peter H. Hahn, C.P.G., a Qualified Person (QP) as defined by National Instrument 43-101 supervised the preparation of the technical information in this news release. The information presented is historical in nature and has not been verified for accuracy and completeness.
President and CEO Graham Chisholm comments: "We find the lead-zinc gossans attractive and worthy of further exploration and we are also interested in the copper prospects. Additional staking is currently taking place as well as additional surface grab sampling.
President & CEO
This release includes certain statements that are "forward-looking statements". All statements in this release, other than statements of historical facts that address future exploration, development and production activities, and other circumstances, events and developments that the Company expects, are forward-looking statements. Although management believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance, and actual results, events and developments may differ materially from those in the forward-looking statements. The occurrence of certain risk factors, the probability of which is unknown, may also affect actual results, events and developments expected by the Company.
Neither the 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.
SOURCE Nubian Resources Ltd.