TORONTO, Sept. 15, 2010 (GLOBE NEWSWIRE) -- Claim Post Resources Inc. (TSX-V:CPS) ("Claim Post" or the "Company") is pleased to announce that the Company has entered into an option agreement to earn up to 100% interest in 103 claim units and 12 patented claims (Racetrack Property Option) from Electra Gold Ltd. The claims are in Ogden Township and will add a 7 km western extension (12 km total length) to Claim Post's 100% owned Dayton Porcupine gold property, located 10 km south of Timmins, Ontario.
Under the option agreement, Claim Post is the operator of the Racetrack Property and, during a 4 year period, has the right to earn either 50% or 100% interest by incurring a series of cash payments or share issuances plus exploration expenditures, as per the following schedule:
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On signing: $20,000 cash plus 200,000 Claim Post shares and $120,000 of exploration work within 9 months;
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Second year: $50,000 cash payment or 200,000 Claim Post shares, at Claim Post's option; this earns Claim Post's 50% interest in the 115 units or claims;
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Third Year: $200,000 cash payment or issuance of 500,000 Claim Post shares, at Claim Post's option; and
- Fourth Year: $750,000 cash payment or issuance of 1,500,000 Claim Post shares, at Claim Post's option; this would complete the option to earn a 100% interest.
The Racetrack claims are subject to underlying NSR Royalties with royalty buyout clauses. The 103 staked units have a 2% NSR royalty, with $1 million buyout for 1% NSR and the 12 patented claims have a 3% NSR royalty with a $1 million buyout of 2% NSR.
Company's President and C.E.O., Charles Gryba commented: "We are pleased to have optioned the Racetrack Property. The combined Racetrack plus the Dayton Porcupine property give a continuous ~12km long property that converges towards the Porcupine Destor Fault to the west. The recently completed Insight Deep IP geophysics on Dayton Porcupine has indicated a 1000m wide splay type fault that extends west onto the Racetrack Property. Claim Post was using Deep IP to trace the Dayton Porcupine gold quartz system to depth and along strike, thus the Insight interpretation of a splay fault was a pleasant surprise."
Historically gold zones in the Timmins - Kirkland Lake camps are structurally controlled and are usually near porphyry intrusions; both the Dayton and the Racetrack properties have historically mapped porphyries. It will take several more sections of Insight deep IP to accurately map the splay fault location along strike through the Racetrack property. The splay fault interpretation was based on 9 Insight sections at 200m line spacing down to 450m depth x 2000m north south direction.
Claim Post has been concentrating on exploring the recently acquired Dayton and McLaren Porcupine gold systems in Deloro Township, immediately south of Timmins. Line cutting, deep IP and ground magnetic surveys have been completed on the Dayton Property – and have identified numerous new targets from 600m east to 1000m west of DD hole CPDP -10 -1 which intersected 1.7g/t gold over 13.4m true width. Diamond drilling of the 450m long Dayton gold system is scheduled to restart in September. (CPS - Press Release July 28th, 2010)."
Charles Gryba P. Eng. is the Qualified Person, as defined by NI 43-101, responsible for the disclosure in this news release.
Claim Post Resources Inc. is a Canadian based mineral exploration company and a reporting issuer in Ontario, Alberta and British Columbia. The Company currently holds a 100% interest in the mineral rights to about 1134 staked claim units and 51 patented claims (~180 km2 or 72 sq. miles), wholly within the city limits of Timmins, Ontario. The Racetrack option adds 103 staked claim units and 12 patented claims for a new total of ~200km2. The Company continues to stake ground as it becomes available. There are 26,457,165 common shares of the Company issued and outstanding, after making the Racetrack signing payment of shares.
Statements in this release that are forward-looking reflect the Company's current views and expectations with respect to its performance, business, and future events. Such statements are subject to various risks and assumptions, some, but not necessarily all, are disclosed elsewhere in the Company's periodic filings with Canadian securities regulators. Such statements and information contained herein represent management's best judgment as of the date hereof based on the information currently available; however actual results and events may vary significantly. The Company does not assume the obligation to update any forward-looking statement.
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.