Golden Touch Resources Corp. - News Release
08.11.2010 | CNW
VANCOUVER, Nov. 8 /CNW/ - Golden Touch Resources Corp. ("Golden Touch" or the "Company", formerly known as GFE Capital Corp.) (TSX-V Symbol: GOT) is pleased to announce that it has signed a non binding letter of intent (the "LOI") to purchase 100% of the issued capital of Jab Resources SH PK ("Jab Albania"). Jab Albania is the wholly owned Albanian subsidiary of Jab Resources Limited of Australia ("Jab Australia"). In consideration of the acquisition of Jab Albania, the Company will, subject to the acceptance of the TSX Venture Exchange, issue 8,146,887 common shares in the capital of Golden Touch (the "GT shares") and pay CAD $200,000 to Jab Australia. The Company has been advised that Jab Australia intends to dividend out the GT Shares to its shareholders. Golden Touch paid Jab Australia a non refundable $20,000 payment upon the execution of the LOI.Jab Albania is the holder of a portfolio of exploration permits totaling approximately 140 sq km, located in Northern Albania. Jab Albania has already spent in excess of US$5 million on exploration within the permit areas, which has resulted in the outlining of significant gold, platinum group elements (PGE) and chromite mineralization.
Golden Touch is currently conducting due diligence with regard to this proposed acquisition including site visits, title confirmation and corporate records review. Golden Touch and Jab Albania have agreed to use their best efforts to negotiate a definitive purchase and sale agreement by November 19, 2010. Golden Touch advises that until such time as it is satisfied with its due diligence enquiries and the parties have entered into a formal share purchase agreement, there is no guarantee that the transaction will occur as stated or at all.
Jab Australia commissioned Mathison Geoscience Pty Ltd. to prepare of a National Instrument 43-101 compliant technical report (the "Report") on the Albanian Exploration Projects held by Jab Albania, which Report dated September 30, 2009 and revised February 18, 2010 is filed and available for review on SEDAR under Jab Australia's company profile.
The following commentary from Jab Albania provides a summary of the information on the Albanian Exploration Projects. Readers are cautioned not to rely entirely on this summary, but are encouraged to review the Report in its entirety.
GOLD
Exploration for gold has located near surface gold mineralization within a major regional structural breccia zone that can be defined over a strike length of 20 km. Along this strike interval geochemical surface soil sampling has defined a number of gold in soil anomalies over approximately ten kilometres of the strike. One anomaly coincides with an area previously drill tested in the 1980's for "sulphide bearing silica"(silica). The silica was used as a flux material for a copper smelter. The other nine kilometres remains untested.
The sulphide bearing silica (silica) occurs as pods within the breccias which dips northwards at around 30 degrees. The silica located in each hole was selectively sampled and assayed for a range of elements, of which only gold was found to be present in significant quantities.
The results of 157 diamond holes, ranging in diameter 74-146 mm, have been verified and compiled into a data base of historical information. Most of the holes were drilled on a 40 m x 40 m grid (some areas 20m x 20m) over a length of 700 metres along the strike of the breccia, with scattered holes out to a length of 1,300 metres.
From these holes 246 separate assays (average down hole interval one metre), have been compiled by Jab Albania into a data base and evaluated. The best gold bearing down hole intervals being:
Hole Intercept downhole (M) Intercept thickness (m) Grade (g/t Au)
415 59-65.9 6.9 9.5
64 26.5 - 34.5 8.0 7.2
224 48-53.5 5.5 10.4
26a 41.5 - 43.5 2 21.8
62 55-59.6 4.6 6.4
224 44-44.8 0.8 29.4
540 45-46.8 1.8 10.25
274 56-56.6 0.6 23.7
The gold mineralisation is open in both directions along strike, as well as to depth. The prospective breccia zone dips at about 30 degrees to the north beneath a thin layer of colluvium.
High grade gold mineralization occurs in at least four areas, each of which could reflect a mineralized pipe, originally fed from depth, that have been developed within major structural dilation zones within the breccia.
Surface sampling by Jab Albania has indicated that gold occurs not only in the silica pods but elsewhere in the breccias. The geological logs suggests that the breccias may average 10 metres in width.
Jab Albania has completed a trench over the only known outcrop on the property, which has defined mineralization in excess of 6 metres in width with an average gold grade of 6.3 g/t Au.
Jab Albania is of the view that the evaluation of the prospective breccia zone within any drill hole is incomplete and hence there is potential for verification drilling to locate additional gold mineralization even within the section drilled.
PLATINUM
JAB Albania has defined PGE mineralization within a 6 km long structural breccia zone in north eastern Albania. Within this zone previous drilling has outlined mineralization.
21 diamond drill holes (diameter 91mm-127 mm) have been drilled over a strike length of 250 metres, mostly on a 20m x 20 m grid. From these holes Jab has been able to verify 135 assays results considered significant (>0.1 g/t Pt, each of which typically represents a one metre downhole intervals.
Significant drill holes include:
Hole Intercepted (m) Intercept width (m) Grade Pt (g/t)
74 0-3.5 3.5 3.0
16 34.8-35.8 1.0 3.3
47 16.5 -21.5 5.0 1.52
80 51-54 3.0 1.9
57 71-72 1.0 1.0
70 45-48.8 3.3 0.9
Recent trenching indicates the zone prospective for PGE's are 5-14 metres wide averaging 1.5-2 g/t Pt.
The trench intercepts are much wider than those of the drilling, suggests that the full width of the prospective zone has not been fully evaluated by the drilling.
Mineralogy suggests that Pt makes up around 80% of the PGE and most of the rest is Pd. There is also around 28% Cr2O3 associated with the PGE zones.
CHROMITE
JAB Albania has undertaken an exploration program to evaluate chromite mineralization over an area of about 100 sq km of north eastern Albania. The program included an evaluation of historic drill results of work conducted by the Albanian government as well as trenching and drilling conducted by Jab Albania. Jab Albania completed 57 reverse circulation holes (diameter 114-127 mm for 3834 metres to test a small part of the total prospective chromite bearing area within its permit areas.
From the drill program a total of 3,204 samples were sent to the ALS Laboratory in Romania for analysis. All the drill holes intersected chromite mineralisation, providing the impetus to commence independent studies of the mineralogy and metallurgy of the mineralization as well as resource estimates, open pit optimization and environmental studies.
From these investigations Jab Albania prepared an internal pre feasibility study into the development of an open pit and underground chromite mine and downstream processing project and was able to demonstrate that, subject to further drilling, a viable project could be established.
In the 1980's Albania was the world's third largest supplier of chromite ore. About one million tonnes of ore have been previously mined from within Jab Albania's tenements, all from the selective mining of direct shipping chromite ore from narrow outcropping high grade pods.
JAB Albania's drilling suggests that substantial areas of disseminated mineralization occur around the high grade pods, with a view to establish large tonnage lower grade open pit mines, supplemented by more selective higher grade selective underground mines, target the larger pods present. By including lower grade material Jab Albania found that tonnage of mineralization could be substantially increased over previous estimates.
Jab Albania is of the view that the areas considered prospective for chromite occur in four separate locations within the permits, totaling 25 kms of strike. The Company is also of the view that to date only a small part of the potential chromite bearing area has been drill evaluated and that further drilling could establish a substantial resource ahead of the development of a significant mining and ore processing operation.
The metallurgical test work has suggested that a chromite concentrate with an attractive Cr:Fe ratio could be produced from a first stage processing plant, that would be suitable for conversion to a high carbon ferrochrome at a grade above 60% Cr, which could be developed as a second stage plant.
The technical content of this news has been reviewed and prepared by Robert Murdoch, a member of Australasian Institute of Mining and Metallurgy and also Australian Institute of Geoscientists, a qualified person within the definitions of National Instrument 43-101. Mr. Robert Murdoch is the executive director of Jab Resources Limited the owner of Jab Albania.
On Behalf of the Board of Directors Golden Touch Resources Corp.
David Schmidt
President
This news release includes "forward-looking information", as such term is defined in applicable securities laws. The forward-looking information includes, without limitation, statements regarding the extent and timing of its exploration programs, exploration program budgets and exploration results. This forward-looking information is given as of the date of this news release. Users of forward-looking information are cautioned that actual results may vary from the forward-looking information contained herein. While the Company has based this forward-looking information on its expectations about future events as at the date that such information was prepared, the information is not a guarantee of the Company's future performance and is 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 information. Such factors and assumptions include, amongst others, the effects of general economic conditions, the price of lithium, 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 information. In addition, there are also 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 information. Known risk factors include, among others, risks relating to exploration and development; the ability of the Company to obtain additional financing; the Company's limited operating history; the need to comply with environmental and governmental regulations; political and economic instability and general civil unrest in Bolivia; potential defects in title to the properties; fluctuations in currency exchange rates; fluctuating prices of commodities; operating hazards and risks; competition; and other risks and uncertainties. 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 information, 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 information 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 information. The Company is under no obligation to update or alter any forward-looking information except as required under applicable securities laws.
NEITHER THE 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 NEWS RELEASE.
For further information:
For information with respect to the Company or the contents of this news release, please contact David Schmidt at (778) 373-0341
http://www.goldentouchresources.com