Nuukfjord Acquires North Carolina Gold Assets-Drilling to Commence in 30 Days
Thursday, September 9th, 2010
Nuukfjord Gold Ltd. (TSX:NUU) is pleased to announce that it has acquired multiple gold properties in North Carolina. To reflect the expansion beyond Greenland, the Company has also changed its name to Revolution Resources Corp. (“Revolution”) (TSX:RV) and will trade under the new symbol TSX: RV, effective September 8th, 2010.
“This is an important time for Revolution, reflected by the acquisition of the Champion Hills Gold Project in North Carolina,” stated Revolution President and CEO Aaron Keay, “The Company is fortunate and excited with the significant opportunity the Champion Hills Gold Project provides and we look forward to initiating our exploration program immediately.”
The Champion Hills Gold Project is comprised of multiple historic pits and workings that received limited drilling by major mining companies in the late 1980’s. The prospects occur within a 25 kilometre long trend of historic mines and prospects. Minimal modern exploration has occurred within this belt. Drill results at one prospect including:
– 90-1: 97 meters averaging 0.93 g/t Au
– 90-2: 59 meters averaging 1.30 g/t Au
– 90-3: 151 meters averaging 0.51 g/t Au
– 91-8: 30 meters averaging 1.0 g/t Au
Revolution is currently mobilizing the technical team to commence surface mapping and sampling, as well as site preparation for core drilling. The prospects are located on private land with a 2,500 meter Phase I drill program slated to commence within 30 days.
The prospects occur within the Carolina Slate Belt, which hosts most of the major gold mines in the Southeastern U.S. Significant deposits include the Ridgeway Mine, which produced 1.5 million ounces of gold from 1988 to 1999, and the Haile Mine, which is currently being extensively expanded by Romarco Minerals, (a company with a market capitalization of approximately US$1 billion). The Champion Hills Gold Project is geologically analogous to these deposits, whereby gold mineralization is hosted within quartz-sericite-pyrite altered volcanic rocks, associated with northeast trending shear zones.
Minimal modern exploration has occurred in the Carolina Slate Belt, generally due to the previous complex land tenure with multiple small private landowners throughout the Southeastern United States. Gold was discovered in the Champion Hills area in the early 1800’s, with small scale production from many small operations. Mining continued in the area through the 1930’s depression era. Noranda explored Champion Hills for shallow, open-pit gold deposits from 1989 to 1992, completing 20 core holes totalling 2,483 meters. This drilling encountered multiple drill intercepts averaging over 0.5 to 1.3 g/t Au over long intervals, including several holes that were abandoned in mineralization at depth.
The Company acquired a 90% interest in the Champion Hills Property for total consideration of 2,000,000 shares and US$375,000. The properties were acquired from a non-arm’s length private company (controlled by Aaron Keay, Rob McLeod and Michael Williams) which has been amassing parcels of land from private owners for the past 12 months. Revolution has a right of first refusal on the additional 10% of the Champion Hills Gold Project. The Company will assume multiple arms-length, third-party Option and Lease Agreements (“Agreements”) with private land owners covering the Champion Hills Gold Project. The Agreements include annual cash payments of US$200 per acre to the land owners over a five year term, as well as a payment of US$1per foot drilled. After five years or at any time prior, Revolution may enter into a Lease Agreement, paying the land owners a US$200 per acre advance royalty. Revolution may purchase the land for 150% of the appraised value. Upon commencement of commercial production, Revolution will pay a 2% Net Smelter Returns Royalty. The transaction is subject to approval from the Toronto Stock Exchange.