Newton to Acquire Kaolin Clay Property in Tanzania
11.06.2013 | FSCwire
Vancouver, British Columbia CANADA, June 11, 2013 /FSC/ - Newton Gold Corp. (NWG - TSX Venture) is pleased to announce that it has signed a letter of intent with a private company to acquire a 100% undivided interest in the 137 square kilometre Pugu Hills kaolin clay property located approximately 30 km from the capital city of Dar es Salaam, Tanzania.The Pugu Hills property is believed to contain one of the largest kaolin deposits in Africa with numerous historic, non 43-101 compliant, resources estimating greater than 2 billion metric tonnes of kaolin.
The Pugu Hills deposit is made up from a succession of Neogene aged sediments with a combined thickness of 80 to 100 metres. Mining at Pugu Hills started in 1942 with the product being used locally and for brick and tile manufacture. Various companies then mined the resource in different areas until 1994 with both kaolin clay and silica sand being produced. The kaolin clay was sold to rubber and pharmaceutical factories and silica sand was used in glass manufacturing. The open pit quarry on the property currently measures 250 by 140 metres and was exploited to only a depth of 20 metres. This open pit allows for unparalleled access to test the various chemical properties of the deposit and take bulk samples for advanced testing.
Historic analyses indicate that the Pugu Hills deposit contains greater than 30% aluminum oxide and greater than 45% silicon dioxide. A table showing historic analysis of the kaolin clays from Pugu Hills is provided below:
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SiO2 TiO2 Al2O3 Fe2O3 MgO CaO Na2O K2O LOI Total
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48.53 0.79 35.68 1.01 0.22 0.40 0.06 0.12 13.08 99.89
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48.02 0.55 36.38 1.42 0.02 0.09 0.06 0.18 13.48 100.20
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50.46 0.90 34.06 1.45 0.08 0.11 0.08 0.36 12.37 99.87
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46.70 0.13 36.33 1.77 0.26 0.08 0.26 13.35 98.88
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46.80 1.06 36.49 1.52 0.05 0.06 0.04 0.10 14.30 100.42
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52.40 0.53 33.10 0.14 0.02 0.03 0.10 0.14 12.34 98.80
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Chemical analyses (data in wt, -%) of Pugu Hills washed kaolin samples (various authors, areas and exploration campaigns) and of commercial kaolin produced by Pugu Kaolin Mines Ltd., last row (from Salim 1992).
NOTE: The grades provided in this news release may not represent the entire deposit and should be considered preliminary in nature.
The deal:
Newton has the right to acquire a 100% undivided interest in the Property in two stages with Stage 1 to earn an initial 65% interest and Stage 2 to earn the remaining 35%. The option agreement is subject to Exchange approval.
To exercise Stage 1 of the Option, and earn a 65% interest in the Property, Newton shall pay Orion $250,000 and issue 3.5 million shares over an eighteen month period to the vendor with the first share issuance being 500,000 with five days of signing the definitive agreement.
To exercise Stage 2 of the Option, to acquire the remaining 35% interest in the Property (for a total of 100%) Newton will pay Orion an additional $125,000 and issue an additional 3.5 million shares to the vendor.
Upon the completion of the Option there will be a 3% NSR on the Property that will not have a fixed purchase price.
NOTE: There is insufficient NI 43-101 compliant data to define a NI 43-101 compliant mineral resource for the Pugu Hills deposit at this time. The resource has been estimated numerous times by reputable geologists but are given at this time as only as a measure of the potential for the project to host a significant kaolin deposit.
About Newton Gold Corp
Newton Gold Corp. is an exploration company with advanced exploration projects and a royalty interest in a further project. The Company has an experienced management team with a growth strategy to develop a diversified portfolio of exploration projects that can be taken into production. The Company's main objective is to add shareholder value through cost efficient exploration, strategic acquisitions, joint ventures, and effective marketing while maintaining a lower risk profile through project diversification and sound financial management.
Paul Lemmon, P.Geo, is Newton Gold's Qualified Person, according to National Instrument 43-101, for the Pugu Hills Property and has reviewed and approved the technical data contained in this news release.
ON BEHALF OF THE BOARD OF DIRECTORS
"Mark A. McLeary"
President
Neither 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 release.
Forward Looking Statements: The above contains forward looking statements that are subject to a number of known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those anticipated in our forward looking statements. Factors that could cause such differences include: changes in world commodity markets, equity markets, costs and supply of materials relevant to the mining industry, change in government and changes to regulations affecting the mining industry. Forward-looking statements in this release include statements regarding future exploration programs, operation plans, geological interpretations, mineral tenure issues and mineral recovery processes. Although we believe the expectations reflected in our forward looking statements are reasonable, results may vary, and we cannot guarantee future results, levels of activity, performance or achievements.
Newton Gold Corp.
Suite 400 - 409 Granville Street
Vancouver, BC, V6C 1T2
Telephone: (604) 678-2531