Stakeholder Acquires Sourdough Hill Silver Property in Keno Hill Silver Camp, Yukon
VAL D'OR, QUEBEC--(Marketwire - Oct. 24, 2012) - Stakeholder Gold Corp. ("Stakeholder") (TSX VENTURE:SRC) is very pleased to announce that it has entered into an arm's length agreement with a syndicate of local prospectors (the "Vendors") whereby it may earn a 100% interest in the 23-claim Sourdough Hill property located in the Keno Hill Silver Camp of central Yukon approximately 330 km north of Whitehorse.
The Keno Hill Silver Camp is historically one of the world's highest-grade silver districts with past production from more than 35 deposits. Between 1913 and 1989 the Camp generated more than 217 million ounces of silver from over 5.3 million tons of ore with average grades of 40.52 ounces per ton of silver, 5.62% lead and 3.14% zinc (Geology Yukon Minfile database) making it the second-largest historical silver producer in Canada. In 1989, falling metal prices forced United Keno Hill Mines Ltd. ("UKHM") to discontinue mining. In February 2006, UKHM's assets were purchased by Alexco Resource Corp. ("Alexco") and in January 2011 silver production resumed in the Camp with the opening of Alexco's Bellekeno silver-lead-zinc mine and mill complex. Today, the Camp continues to boast significant mineral resources at grades far in excess of most of the world's primary silver producers.
The Sourdough Hill property lies directly south of and adjacent to the operating Bellekeno mine where Alexco reported silver production of 514,879 ounces during the second quarter of 2012 as well as 4.5 million pounds lead and 1.2 million pounds zinc (Alexco Press Release - October 15, 2012). Current silver resources for Bellekeno are stated at 8,091,000 ounces indicated and 1,143,000 ounces inferred (www.alexcoresource.com). Its proximity to Bellekeno is not necessarily indicative of any mineralization on the Sourdough Hill property. However, there is no record of systematic, modern exploration work and Stakeholder intends to complete a comprehensive exploration program on the property with the goal of discovering an economic deposit of silver-lead-zinc.
Under the terms of the agreement, Stakeholder will have the option to earn a 100% interest in the Sourdough Hill property by paying $300,000 cash, issuing one million shares and completing $1,000,000 of work scheduled over a four year period. The agreement is subject to approval by the TSX Venture Exchange upon which Stakeholder will make an initial payment of $25,000 and issue 200,000 shares to the Vendors. The property will be subject to a 2% net smelter returns royalty (the "Royalty"). Stakeholder will have the right to purchase one-half of the Royalty (i.e. 1.0% NSR) for $1,000,000. The Vendors will receive a $15,000 annual advance royalty payment to start when a measured mineral resource equal to or greater than 2.0 million ounces of silver equivalent using a cut-off grade of 15 ounces silver per ton is disclosed in a National Instrument 43-101 compliant report.
"This is a major change in direction for Stakeholder from grassroots, helicopter-borne exploration in the relatively unproven White Gold area to the well-established Keno Hill Silver camp with its long history of mining and excellent infrastructure," commented Mark Fekete, President and CEO.
Shares Issued 40,971,641
To view the map of the Sourdough Hill property, please click on the following link: http://file.marketwire.com/release/Sourdough_Hill.jpg
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This release may contain forward-looking statements that are subject to known and unknown risks and uncertainties that could cause actual results to vary materially from targeted results. Such risks and uncertainties include those described in the Company's periodic reports including the annual report or in the filings made by the Company from time to time with securities regulators. The Company undertakes no obligation to publicly release the result of any revision of these forward-looking statements to reflect events or circumstances after the date they are made or to reflect the occurrence of an unanticipated event.
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