At 1.5-2 cents it might be worth taking a pure risk but as always, it's better to miss a few cents on the rise and be sure about your investment. It might not be all that easy to get shares because they only have about 35 million.
Snowfield Development Corp. ("Snowfield" or the "Company") is pleased to announce that it has negotiated and executed an Option Agreement for the Nahmint Property ("Nahmint Property Option Agreement") dated November 27th, 2012. This Nahmint Property Option Agreement is based on the initial Letter of Intent Agreement dated January 17th, 2011 (see NR11-05 on February 21st, 2011) between the Company and Nahminto Resources Ltd. ("Nahminto") and Karen Sui Hang Woo ("Woo"), (collectively the "Vendors") under which the Company can earn a 90% undivided ownership interest in the Nahmint Property (the "Nahmint Property") located in the Alberni Mining Division, Vancouver Island, British Columbia. The Nahmint Property consists of 14 Crown grants and 21-cell mineral claims totaling 9,551.98 hectares. Final approval for the Nahmint Property Option Agreement is subject to the acceptance of the TSX Venture Exchange (the "Exchange").
Under the terms of the Nahmint Property Option Agreement, the Company will follow the original terms of the Letter of Intent Agreement to make total cash option payments to the Vendors of $550,000 over five years which includes a $25,000 signing bonus. As of the date of this Option Agreement, the Company will have paid the Vendors, Option payments of $145,000, with an additional $50,000 to be paid by December 31st, 2012, for a total of $195,000. The remaining schedule of cash payments will be as follows: $97,500 for the year 2013, $100,000 for the year 2014, $118,000 for the year 2015, and $19,500 for the year 2016.
The Company shall issue up to 4,500,000 common shares to the Vendors, subject to the approval of the Exchange. As of the date of this Option Agreement the Company has issued to the Vendors a total of 875,000 shares and by the end of December 31st, 2012, the Company will issue an additional 500,000 shares for a total of 1,325,000 share Option payments. The remaining schedule of share payments will be made in the year 2013 in the amount of 1,000,000 common shares; in the year 2014, 500,000 common shares and in the year 2015, 1,125,000 common shares.
The Vendor cash payments and share issuances will be allocated to Woo 60% and Nahminto 40% upon payment or distribution.
The Company will also expend total minimum exploration work commitments on the Property of $1,350,000 over the term of the option (as per the original Letter of Intent). As of the April 30th, 2012 Audited Financial Statements, the Company had incurred expenditures of $209,462 on the Nahmint Property. As per the Nahmint Property Option Agreement, the Company will undertake minimum exploration work on the Nahmint Property in the amount of $300,000 for the year 2013, $400,000 for 2014, and $450,000 for 2015.
Upon completion of the terms of the Option Agreement, the Company will have earned a 90% undivided ownership interests in the Nahmint Property.
The Nahmint Property is a large contiguous, early stage copper +/-gold-silver-zinc-molybdenum-tellurium exploration property located along the sheltered tidewaters of Barclay Sound, Vancouver Island.
The Nahmint Property geology consists of a flat-lying sequence of layered rocks of Triassic to Jurassic age, including Karmutsen volcanics, Quatsino limestone, Parson Bay volcanics and sediments, and LeMare Lake volcanics. These layered rocks have been intruded and domed from beneath by a batholith or large sill of Jurassic Island Intrusive granodiorite and related stocks and dikes. Steeply dipping, northwest-trending faults have deformed and offset the layered and intrusive rocks both vertically and horizontally. This represents the ideal geological setting on Vancouver Island for porphyry copper-gold-molybdenum and related copper, iron and gold skarn deposits.
The Nahmint Property hosts three historic past producers of direct-shipping, high grade copper-silver-gold ore which yielded a total of 3,274 tonnes averaging 8.15% copper, 34.4 g/t silver and 0.61 g/t gold. Those ore producers consisted of the following occurrences:
- Three Jays produced 1,981 tonnes @ 7.52% copper, 38.0 g/t silver and 0.97 g/t gold from 1898 to 1902
- Monitor produced 1,288 tonnes @ 9.08% copper, 28.8 g/t silver and 0.05 g/t gold from 1900 to 1918
- Sunshine produced 5 tonnes @ 17.4% copper and 43.6 g/t silver in 1916
These past producers were discovered, developed and mined in an era predating modern mineral deposit models and mining techniques. Recorded production occurred between 1900-1902 and 1916-1918. The above numbers are historical numbers and not NI 43-101 compliant. It is worthy of note that no exploration by diamond drilling has been documented on the Nahmint Property, which has good road access to the northern and western boundaries by four-wheel drive vehicle and there are extensive logging roads over most of the area.
Some assays of rock samples taken in 2009 and 2010 are detailed below. Sample taken from a 0.2 meter thick exposure of skarn mineralization in the Monitor Shaft area returned 3.41% copper, 0.223% lead, >1% zinc, 1096 ppm (1.1 kilos/tonne) tellurium, 58.2 g/t silver, 225 ppb (0.225 g/tonne) gold, 29.3% iron and 26.6% sulphur.
- Sample taken from a broken fragment of iron/zinc/copper skarn approximately 96m north of the Monitor Shaft returned 40% magnetite, 40% sphalerite, 10% chalcopyrite and 5% pyrite, and yielded 12.3% zinc, 1.3% copper, 0.17% lead, 43.4 g/t silver, 106 ppm cobalt, 177 ppm bismuth, 42.5 ppm mercury, 1200 ppm tellurium, 67 ppb gold, 49.7% iron and 6.4% sulphur.
- Sample taken from a 0.2 meter thick exposure of pyretic quartz east of the Monitor Shaft contained chlorite, jarosite, chalcopyrite, pyrite and hematite hosted in basalt or andesite, and yielded 1.02% copper, >1% lead, >1% zinc, 934 ppm tellurium, 45.6 g/t silver, 50 ppb gold, 28.3% iron and 5.27% sulphur.
Upon acceptance for filing of this Nahmint Property Option Agreement with the Exchange, a full Nahmint Property 43-101 technical report prepared by Jacques Houle, P. Eng. dated October 15th, 2010 will be available on Snowfield's SEDAR filings.
Excerpts from the above referenced 43-101 technical report read: "Only a small fraction of the Nahmint Property has been prospected to date and much more work is clearly justified. The Property represents a large, early stage project with many known high-grade occurrences of copper+/-silver-zinc-cobalt-tellurium-gold and iron (magnetite) and extensive exposures of limestone and some marble. Project logistics are excellent with the protected tidewaters of Alberni Inlet along two sides of the Property and an extensive logging road network providing access to much of the Property and to the nearby resource-oriented community of Port Alberni. Modern systematic exploration techniques have only recently been utilized on the Property, with much success. The potential exists on the property to discover both metallic and industrial mineral deposits of economic significance, including both high-grade skarn deposits and large, disseminated porphyry copper deposits. The Nahmint Property should be re-evaluated based on its regional geological setting compared to other similar settings worldwide which host past or currently producing mines, with consideration to mineral deposit types and models. Today's geological literature is much more extensive than it was at the times when the mineral occurrences in the area were being actively developed and mined. Some of the key points to consider in such a comparison would be:
- Jurassic age intrusive associated deposits and mineral districts
- Skarn, and possible related porphyry and epithermal mineral deposit types
- Accessory elements, minerals and mineralogy in other similar deposits
- Industrial mineral and/or dimension stone limestone/marble deposits
Using today's and projected future estimates of metal prices for copper, silver, gold, iron and possibly molybdenum, zinc, cobalt, tellurium, and rhenium, along with limestone and marble, reasonable exploration target models should be established for the entire Nahmint Property. The Property clearly warrants continued systematic exploration programs, data compilation and evaluation."
Tellurium is an extremely rare element that has traditionally been used to improve the machinability of copper and steel. Tellurium is a semi-conductor with unusual properties and in recent years its uses have increased and it is now in demand in the solar-panel industry, the electronics industry (including CD and DVD coatings), and the auto industry. The world supply cannot be accurately gauged, but the steep increase in price from USD$30 per kilogram in 2000 to approximately USD$110 - 140 in 2012 would suggest that supply is not keeping up with demand, and predictions are that this demand will increase sharply.
While Snowfield was performing work on the Nahmint Property under the original Letter of Intent a preliminary airborne survey was conducted on a portion of the Nahmint Property, the Three Jays area during the September 2011 (see NR11-17 on December 7th, 2011 and NR12-04 on February 7th, 2012).
Results of the airborne survey confirmed an east-west magnetic anomaly with a strike length in excess of 900 meters and a width of 400 meters approximately 700 meters north of the Three Jays mine workings. This anomaly also has and east-west strike.
A further limited airborne geophysical survey was carried out over the 3 Jay's area of the Nahmint Property in February of 2012. The magnetic data from this survey was sent to Geosci Data Analysis Ltd. for further processing (see NR12-07 on February 23rd, 2012). The interpretive report showed an east-west elongated magnetic high, some 1,400 metres long and 500 metres wide north of the 3 Jay's which has been interpreted as an intrusive plug extending from the near surface to greater than ½ km in depth. This signature has some of the characteristics of a porphyry system.
Details of the Company's planned exploration programs for the Nahmint Property will be announced following the acceptance for filing of the ensuing formal Option Agreement by the Exchange.
The Company's geological consultant, Marvin A. Mitchell, P. Eng, a qualified person under National Instrument 43-101 has approved the contents of this news release.
ON BEHALF OF THE BOARD
"Albert (Rick) Timcke"
President and Director
SNOWFIELD DEVELOPMENT CORP.
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