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Bearing Resources Ltd. (“Bearing”, or the “Company”) (TSX VENTURE:BRZ) is pleased to announce that the Company has entered into an option agreement with Eastfield Resources Ltd. (“Eastfield”) to earn up to a 65% interest in the 12,113 hectare Zymo copper-gold project (“Zymo”), located 45 kilometres west of the town of Smithers, British Columbia. Exploration work carried out to date at Zymo, including surface sampling, geophysical testing and core drilling has identified a large copper-gold porphyry system. Four distinct porphyry targets have been identified over an open ended nine kilometre by three kilometre area defined by a coincident copper in soil and induced polarization (“IP”) chargeability anomaly.
The Zymo property has been explored by a number of companies since its discovery in 1997. The property is largely underlain by clastic sedimentary rocks of the Skeena (early Cretaceous), Bowser (middle-late Jurassic) and Hazelton (early Jurassic) Groups, that have been intruded by granite and diorite of the Eocene Nanika and late Cretaceous Bulkley Intrusive suites. Alteration comprises widespread iron carbonate alteration in the surrounding sediments and strong sericite-pyrite alteration within intrusive rocks and nearby sediments. The zones of mineralization are associated with silicification, both as flooding and veins, k-feldspar, chlorite and magnetite alteration.
The Hobbes Zone is the most advanced target identified to date and has been tested with nine drill holes over a distance of 600 metres; all intersecting copper/gold mineralization. The best hole drilled to date was ZY-08-9 that returned 72.0 metres (core length) of 0.72% copper and 0.54 g/t gold within a longer interval that returned 159 metres grading 0.44% Cu and 0.32 g/t gold. In addition to the Hobbes Zone other zones on the property include the URC Zone, 1.5 kilometres to the west and the FM zone located 4.0 kilometres to the east of the Hobbes Zone. All zones exhibit similar surface expressions. In addition, prospecting in 2010 discovered a new target located 1.5 kilometres to west of the URC Zone outside of any existing grid work where a mineralized float sample returned 0.74% copper and 0.70 g/t gold.
Subject to financing, Bearing plans to execute an extensive exploration program in 2011 that will include expanded geochemical and IP surveys, in particular over the new 2010 discovery as well as delineation drilling of the Hobbes Zone, first drill testing of the URC Zone and targets within the FM Zone.
To earn an initial 51% interest Bearing will make cash payments totaling $500,000 ($100,000 on signing) and issue 500,000 Bearing shares (100,000 shares on signing) and complete exploration expenditures totaling $8,000,000 over a five year period. Bearing may earn an additional 9% interest by completing a feasibility study and maintaining minimum annual expenditures of $500,000. Should Bearing make the decision to put the property into production, Bearing will have an option to earn an additional 5% interest by paying $10,000,000, issuing 2,000,000 Bearing shares and arranging project financing for the mine development. The option agreement remains subject to the approval of the TSX Venture Exchange.
Rob Cameron, Vice President Business Development, commented, “The Zymo project exhibits all the characteristics of a classic copper-gold porphyry system. We believe that the project offers tremendous exploration upside and the potential to delineate a large bulk tonnage copper-gold deposit similar to other recent discoveries in British Columbia such as the Red Chris property of Imperial Metals Corporation (“Imperial”). The Zymo project will be complementary to our existing project portfolio in British Columbia and we are planning to carry out an extensive exploration program at Zymo in 2011.”
Robert Cameron, P.Geo., who is a qualified person within the context of National Instrument 43-101, has read and takes responsibility for this news release.
Read the full news release here.
