VANCOUVER,
Nov. 14, 2013 /CNW/ - Discovery
Harbour Resources Corp. (TSXV:DHR) ("Discovery" or the "Company")
announces that its joint venture partner, Northern Shield Resources
Inc. ("Northern Shield") (TSXV:NRN), has entered into an option
agreement (the "Option Agreement") with Great Lakes Resources LLC
("Great Lakes"), a private US based company, whereby Northern
Shield granted Great Lakes an option (the "Option") to acquire a
24% interest in the Wabassi Joint Venture (the "Interest") by
paying $400,000 to Northern Shield on
signing of the Option Agreement, incurring $1.5 million in exploration expenditures by
December 31, 2014, and paying a
further $600,000 to Northern Shield
on exercise of the Option. Upon Great Lakes exercising the
Option, the Wabassi Joint Venture will be jointly held by the
Company (51%), Northern Shield (25%) and Great Lakes (24%), and it
is expected that Northern Shield will continue as contracted
provider of logistics and staff to the Wabassi joint venture (the
"JV").
Concurrent with entry into the Option Agreement,
Great Lakes entered into an option agreement (the "Re-Option
Agreement") with the Company whereby Great Lakes granted the
Company an option to acquire the Interest (the "Re-Option").
The Re-Option is exercisable until February
28, 2014 by the Company paying Great Lakes the aggregate
amount Great Lakes has paid Northern Shield under the Option
Agreement up to the date on which the Re-Option is exercised.
The Company, Great Lakes and Northern Shield
also entered into a tri-partite agreement which sets out the terms
and conditions on which the parties will operate the Wabassi Joint
Venture. If the Re-Option is exercised such that the Company holds
a 75% interest in the Wabassi Joint Venture and Northern Shield
holds a 25% interest, the parties will revert to the terms of the
option and joint venture agreement between the Company and Northern
Shield dated as of March 16,
2010.
A 10 to 11 hole drill program totaling 2,800
meters is underway at Wabassi; up to four of these holes will test
the extension of the copper-zinc-silver mineralization at Anomaly E
while the remaining holes will test regional targets with similar
geophysical signatures to Anomalies E and A2, the two volcanogenic
massive sulfide discoveries from 2011 and 2010, respectively. In
particular the program has completed ground geophysical surveys at
Anomaly Q that define and support the initial drill tests of that
very compelling target. Anomaly Q is located in the area previously
affected by a claims dispute (see the Company's News Release dated
August 23, 2013. A favorable decision
for the Company, from the Ministry of Northern Development and
Mines following a claims dispute hearing in Sudbury was announced in that release).
"The Option Agreement ensures that Discovery and
Northern can execute on a robust fall/winter ground geophysical and
drilling program, whilst the Re-Option Agreement provides an avenue
for Discovery to increase its participating interest at Wabassi in
the event of compelling results and successful financing: the
Re-Option is a very generous opportunity provided to the Company by
Great Lakes," stated Ian Graham,
President and CEO of the Company.
The exploration program at Wabassi is being
overseen by Christine Vaillancourt,
a Qualified Person under National Instrument 43-101.
Samples are being analyzed by ALS Global in
Vancouver, BC, for Au by Fire
Assay with ICP-AES finish and base metals by four acid digestion
and ICP-AES.
Michael J. Senn,
a licensed professional geologist and director of Discovery, is a
Qualified Person as defined in National Instrument 43-101 and has
reviewed, approved and is responsible for the scientific and
technical information in this news release.
Great Lakes is a private US company controlled
by Richard B. Gilliam, a director
and significant shareholder of the Company. The Company's exercise
of the Re-Option remains subject to approval of the TSX Venture
Exchange.
ON BEHALF OF THE BOARD OF DISCOVERY HARBOUR
RESOURCES CORP.
"Ian
Graham"
Ian Graham
President, CEO, Corporate Secretary and Director
Disclaimer for Forward-Looking
Information
Except for statements of historical fact, this
news release contains certain "forward-looking information" within
the meaning of applicable securities law. Forward-looking
information is frequently characterized by words such as "plan",
"expect", "project", "intend", "believe", "anticipate", "estimate"
and other similar words, or statements that certain events or
conditions "may" occur. Forward-looking information in this press
release includes, but is not limited to, statements regarding
expectations of management regarding: (i) the Option and Re-Option
and TSX Venture Exchange approval thereof, (ii) the operations of
the Wabassi Joint Venture, (iii) the planned exploration program,
(iv) the mobilization of crews for the proposed work program, (v)
the timing and duration of the proposed work program, (vi) the
budget for the proposed work program, (vii) the geophysical
surveys, magnetic surveys and drilling expected to be completed at
the Wabassi property, (viii) the mineralization at the various high
priority targets on the Wabassi property and elsewhere on the
Wabassi property, (ix) the interpretations of prior exploration
results, and * the expected results from the proposed work program.
Although the Company believes that the expectations reflected in
the forward-looking information are reasonable, there can be no
assurance that such expectations will prove to be correct. Such
forward-looking statements are subject to risks and uncertainties
that may cause actual results, performance or developments to
differ materially from those contained in the statements including,
without limitation, the risks that: (1) the Company may not obtain
required permits, (2) the Company may not have sufficient financing
to carry out its plans, (3) the Company may run into drilling
difficulties or other difficulties in carrying out the proposed
work program, (4) the Company may not have sufficient experienced
labour, (5) despite encouraging results there may be no commercial
mineralization on the Company's projects, (6) Great Lakes may not
be able to exercise the Option for any reason whatsoever, (7) the
Company may not be able to exercise the Re-Option for any reason
whatsoever, and (8) the TSX Venture Exchange may not approve the
Re-Option for any reason whatsoever. Except as required by law, the
Company does not intend to update these forward-looking
statements.
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.
SOURCE Discovery Harbour Resources Corp.