Messina Minerals Inc. (TSX VENTURE:MMI) has agreed, subject to regulatory approval, to acquire by purchase a 100% interest in a total of 2,950 hectares covering the north-eastern portion of the Tulks Volcanic belt located in central Newfoundland, Canada. Three contiguous properties are being acquired: the Sutherlands and Hungry Hill properties jointly from Merrex Gold Inc. ("Merrex") and Celtic Minerals Limited ("Celtic") in one agreement, and the Victoria Mine properties from Celtic in a parallel agreement.
The new claims are contiguous with and significantly add to Messina's 'Victoria' Project which now is comprised of 64 square kilometres of mineral lands prospective for copper-enriched volcanogenic hosted massive sulphide ("VHMS") deposits located approximately 20 kilometers from the Duck Pond copper-zinc mine and 1,800 tonnes per day mill owned by Teck Corporation.
The Victoria Mine property includes the turn-of-the-century copper mine which reportedly (from NF government records) produced some 60,000 tonnes of between 3% and 10% copper at the time (historic estimate). Near surface drilling from the 1950's to the 1980's by Asarco-Abitibi and also BP-Selco reportedly intersected copper and zinc sulphide mineralization. Work by Noranda in the 1990's focused on deep drilling widely spaced stratigraphic holes. Celtic acquired a 100% interest from Noranda in 1999 and focused exploration on documenting the along-strike potential of the productive horizon and identifying drill targets. During due diligence, Messina collected one grab sample of copper mineralization from old mine dump material which assayed 11.3% copper and 24 g/t silver.
The Hungry Hill and Sutherlands properties are contiguous with the Victoria Mine property and each host zinc-copper mineralized zones regionally correlative to the historic Victoria Mine prospective horizon.
Victoria Mine Agreement
The Victoria Mine property is comprised of 850 hectares held under mineral licence 17410M plus three Fee Simple mining grants originating circa 1915. Celtic has agreed to assign its 100% interest in the Victoria Mine property to Messina in consideration for the issue and delivery of 1,000,000 shares of Messina within 5 business days of receipt of regulatory approval. Noranda Inc. (now Xstrata) retains an underlying 2% net smelter return royalty interest.
Hungry Hill – Sutherlands Agreement
The Hungry Hill – Sutherlands property is comprised of 2,100 hectares held under mineral licences 6711M and 17104M. Celtic and Merrex have each agreed to assign 100% of their respective joint interests in the property to Messina in consideration for the issue and delivery of 500,000 shares of Messina within 5 business days of receipt of regulatory approval to each of Celtic and Merrex. Celtic and Merrex shall each retain a 1% net smelter returns royalty interest on the property; Messina shall be entitled to purchase at any time one-half (1/2) of the royalty (i.e. a royalty equal to one half of one percent of net smelter returns) from each of Celtic and Merrex in consideration of the payment of $500,000 for each one half of one percent purchased.
Each of the Victoria Mine and Hungry-Hill Agreements are subject to approval by the TSX Venture Exchange.
Upon completion of these acquisitions, Messina's Victoria Project will include several significant zones of copper mineralization in proximity to Teck's Duck Pond mine and mill.
Further Work
Upon acquisition and integration of data pertaining to these projects with Messina's own extensive database, exploration work planned for 2011 is expected to include examination of historical copper showings, mapping and prospecting of the stratigraphy, and location and surveying of prior drill collars, grids, and other features with the objective of confirming drill targets. A phase of follow-up diamond drilling is anticipated to follow up results.
Peter Tallman, CEO states, "The acquisition of the Victoria Mine, Hungry Hill, and Sutherlands property package adds a highly prospective area to Messina's land position in central Newfoundland. Celtic and Merrex have explored these properties diligently and have identified prospective areas that have similarities to Messina's Boomerang deposit. We welcome Celtic and Merrex as shareholders in Messina."
About Messina
Messina Minerals Inc. is a leading explorer for zinc-lead-copper-silver-gold massive sulphide deposits in Newfoundland, Canada on our extensive 450 square kilometer mineral lands, in a region known historically for its copper and zinc resources and where the Company has made massive sulphide discoveries including "Boomerang" and "Domino". See our website for more information.
Peter Tallman, P.Geo., CEO of Messina Minerals Inc. is the Qualified Person who has reviewed and is responsible for the technical data contained in this news release.
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.
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