Toronto, ON, August 17, 2011 – Honey Badger Exploration Inc. (TSX Venture:TUF) ("Honey Badger” or the "Company") announces it has signed a letter of agreement with Eastmain Resources Inc. (TSX:ER) (“Eastmain”) to acquire up to a 60% undivided right, title and interest in Eastmain’s “Radisson” gold property, located within the James Bay Mining District of Northern Quebec, 550 km north of Matagami.
This underexplored 10,698-hectare Archean-aged gold property lies within the La Grande Sub-Province, a volcanic-sedimentary rock assemblage similar to the Opinaca/Eastmain belts, which respectively host the Roberto and Eau Claire Gold deposits, several kilometres to the southeast. The Radisson project covers over 15 kms of favourable gold-bearing corridors hosting multiple gold occurrences. The property is located 10 km west of the LG2 highway.
The key attributes of the Radisson Property and historic highlights of the surrounding area include the following:
- The Radisson Property is a district-scale property with promising and widespread gold, copper and silver values. It is a gold property with excellent infrastructure nearby (paved road, power corridor).
- Radisson is positioned approximately 130 kilometres northwest of Goldcorp’s Roberto Deposit (3.15 million ounces of measured and indicated gold resources at an average grade of 11.92 grams per tonne (gpt) and 6.25 million ounces of inferred gold resources at an average grade of 12.93 gpt1), and about 150 kilometres northwest of Eastmain’s Eau Claire Deposit (Measured and Indicated Resource of approximately 3,354,000 tonnes with an average grade of 5.39 grams per tonne gold (g/t) for 582,000 ounces gold. In addition, 5,322,000 tonnes with an average grade of 5.96 g/t gold, classified as Inferred Resources, contain 1,020,000 ounces2).
- A gold-bearing trend of over eight km, with historic channel samples ranging from 5.5 to 9.8 gpt gold, was identified at Radisson by Noranda in 1992-93.
- The Discovery Lake discovery is encompassed within the Radisson property (currently held by Amesco). This polymetallic occurrence contains gold, silver, copper lead and zinc mineralization, including high-grade values of 34 gpt gold and 340 gpt silver. The discovery zone appears to be situated near the basalt/metasediment contact, which extends onto the Radisson property for several kilometers to both the east and west.
1Press Release: Eastmain Reports Updated NI 43-101 Mineral Resources Estimate for Eau Claire Gold Deposit. April 26, 2011.
2Goldcorp Inc. Website. http://www.goldcorp.com/operations/eleonore_old/. Eleonore Old. August 16, 2011.
Kirk McKinnon, President and CEO of Honey Badger stated, “We are very pleased to have concluded a Letter of Agreement outlining the principle terms of an agreement between Honey Badger and Eastmain. Eastmain’s seasoned management and very knowledgeable team of geologists possess an in-depth understanding of the area. This insight was the catalyst for them to acquire the Radisson project; a highly prospective property containing numerous gold showings and numerous gold targets. We look forward to continuing the strong dialogue between our respective management and geological teams as the exploration moves forward.”
The Radisson Property
Modern VTEM Survey and Soil Sampling Carried Out Over Property in 2007
The most recent exploration work conducted by Eastmain includes a modern VTEM survey as well as a soil and rock-sampling program completed over the western half of the property. The soil and rock-sampling program identified a series of anomalous gold areas that warrant additional exploration work. The VTEM survey identified 9 targets that had not been previously explored. These EM anomalies are coincident with anomalous gold values in both soil and rock samples. Two additional gold showings were also identified by Eastmain during the 2007-2009 exploration programs and data compilation. Those areas represent high priority targets that Honey Badger will explore in the short term.
Figure 1. Claim map with soil samples and gold anomalies.
Since the soil and rock sampling program proved to be an effective exploration tool to identify gold-rich areas in the western portion of the property, Honey Badger is currently completing the soil and rock sampling programs over the remainder of the property (sampling lines shown on image), as the most recent geological interpretation suggests that the eastern portion of the property is very prospective area for gold mineralization. The Company will concurrently conduct a ground magnetic survey, as well as a geological mapping program of historic showings. The objective is to generate additional exploration targets and to drill test the best targets in the near term.
Figure 2. Interpreted geology of the "Radisson" property with gold anomalies.
Hadyn Butler states, "A magnetic interpretation of recent airborne surveys suggests that there are distinct deformation zones cross-cutting the greenstone belt at shallow angles coinciding with concentrations of gold-in-soil anomalies and gold-discovery outcrops. Complex refolded folds in the deformation zones are also apparent. With significant gold-in-rock and gold-in-soil targets along the length of this underexplored greenstone belt, the Property is very prospective for mesothermal gold deposits."
The Radisson property’s historic exploration programs suggest the potential to host multiple poly-metallic gold bearing mineralized zones. As an example, Dianor Resources in 1998-99 completed a reconnaissance geochemical program over the Miakadow Zone at the south-western portion of the Radisson property that identified anomalous values for copper, nickel and gold. Further work was recommended on five additional areas but no record has been located of this work being carried out.
In order to acquire 50% interest in the Radisson Property, Honey Badger must make the following payments to Eastmain within specified timelines outlined in the agreement:
i) cash payment in the amount of $50,000 within 5 days of regulatory approval;
ii) issue an aggregate of 5 million common shares of Honey Badger within 15 days of regulatory approval; and
iii) incur work expenditures on Radisson of $2,500,000 (including a minimum of 6,000 metres of drilling) over a three-year period from the Effective Date.
When Honey Badger has vested its initial option and earned a 50% interest in the Radisson property, Honey Badger shall have a one-time, 60-day option to increase its interest from 50% to 60% in Radisson by making an additional cash payment of $100,000 and incurring a further work commitment of $3,000,000, including a minimum of 6,000 metres of drilling over a two-year period from the execution of the second option.
The agreement is subject to respective Board and TSX Venture Exchange approvals. All securities issued with respect to this transaction are subject to a four-month hold period.
Jean-Philippe Desrochers, Ph.D., P.Geo. is a Qualified Person registered in Quebec as defined by NI 43-101 and has reviewed the technical information contained in this press release.
About Honey Badger Exploration Inc.
Honey Badger Exploration is a gold and base metals exploration company headquartered in Toronto, Ontario, Canada. The Company's common shares trade on the TSX Venture Exchange under the symbol “TUF”
For more information, please visit our website at http://www.honeybadgerexp.com
Honey Badger Exploration Inc.
Vice President of Business Development
Tel.: (416) 364-4029
Fax: (416) 364-2753
or Kirk McKinnon, President & CEO, or Richard Schler, Chief Operating Officer & CEO
This News Release contains forward-looking statements and forward-looking information (together, "forward-looking statements") within the meaning of applicable securities laws and the United States Private Securities Litigation Reform Act of 1995, with respect to its exploration results, the potential for discovery of additional mineralized zones and future exploration programs and budgets. These forward-looking statements are made as of the date of this news release. Users of forward-looking statements are cautioned that actual results may vary from the forward-looking statements contained herein. While the Company has based these forward-looking statements on its expectations about future events as at the date that such statements were prepared, the statements are not a guarantee of the Company's future performance and are subject to risks, uncertainties, assumptions and other factors which could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. Such factors and assumptions include, among others, the effects of general economic conditions, the prices of gold and copper, changing foreign exchange rates and actions by government authorities, uncertainties associated with legal proceedings and negotiations and misjudgments in the course of preparing forward-looking statements. In addition, there are known and unknown risk factors, which could cause the Company's actual results, performance or achievements to differ materially from any future results, performance or achievements expressed or implied by the forward-looking statements. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The Company is under no obligation to update or alter any forward-looking statements except as required under applicable securities laws.