WINDY KNOB RESOURCES LIMITED ACN 122 417 243 Level 17 Exchange Plaza 2 THE ESPLANADE PERTH WA 6000 Telephone: 08 9223 9898 Facsimile: 08 9221 5107 www.windyknobresources.com.au 16 January 2008 The Manager Company Announcements Office ASX Ltd 4th Floor, 20 Bridge Street SYDNEY, NSW 2000 TITIRIBI PROJECT ACQUISITION The Directors of Windy Knob Resources Limited (‘Windy’ or the ‘Company’) are pleased to advise the Company has entered into a binding terms sheet with De Biera Goldfields Inc. (‘De Beira’ or ‘DBGF’) to acquire its rights and obligations to earn a 65% project interest in the Titiribi Project in the district of Antioquia, northern Colombia (Refer Figure 1). The transaction is subject to the completion of due diligence and statutory and regulatory approvals. Titiribi is an important historic gold-silver producing region with a mining history extending over 200 years. The Titiribi Project consists of various concessions in excess of 3,000 hectares surrounding the Titiribi township (Refer Figures 2 and 3). Results from a limited drill program completed in late 2007 by DBGF along the southern boundary of the Cerro Vetas anomaly include: CV001: 70 metres @ 0.48 g/t Au & 0.24% Cu from 130 metres 97 metres @ 0.47 g/t Au & 0.26% Cu from 270 metres CV003: 320 metres @ 0.40 g/t Au & 0.20% Cu from 137 metres Windy considers these results to be highly significant and is currently reviewing data and preparing budgets for a drilling program in 2008. Please note that the potential quantity and grade of the mineralisation is conceptual in nature. There has been insufficient exploration to define a mineral resource and the Company is uncertain as to whether further exploration will result in the determination of a mineral resource. For personal use only
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WINDY KNOB RESOURCES LIMITED For personal use only · CV001: 70 metres @ 0.48 g/t Au & 0.24% Cu from 130 metres 97 metres @ 0.47 g/t Au & 0.26% Cu from 270 metres CV003: 320 metres
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WINDY KNOB RESOURCES LIMITED ACN 122 417 243
Level 17 Exchange Plaza
2 THE ESPLANADE PERTH WA 6000
Telephone: 08 9223 9898 Facsimile: 08 9221 5107
www.windyknobresources.com.au
16 January 2008 The Manager Company Announcements Office ASX Ltd 4th Floor, 20 Bridge Street SYDNEY, NSW 2000
TITIRIBI PROJECT ACQUISITION The Directors of Windy Knob Resources Limited (‘Windy’ or the ‘Company’) are pleased to advise the Company has entered into a binding terms sheet with De Biera Goldfields Inc. (‘De Beira’ or ‘DBGF’) to acquire its rights and obligations to earn a 65% project interest in the Titiribi Project in the district of Antioquia, northern Colombia (Refer Figure 1). The transaction is subject to the completion of due diligence and statutory and regulatory approvals. Titiribi is an important historic gold-silver producing region with a mining history extending over 200 years. The Titiribi Project consists of various concessions in excess of 3,000 hectares surrounding the Titiribi township (Refer Figures 2 and 3). Results from a limited drill program completed in late 2007 by DBGF along the southern boundary of the Cerro Vetas anomaly include: CV001: 70 metres @ 0.48 g/t Au & 0.24% Cu from 130 metres 97 metres @ 0.47 g/t Au & 0.26% Cu from 270 metres CV003: 320 metres @ 0.40 g/t Au & 0.20% Cu from 137 metres Windy considers these results to be highly significant and is currently reviewing data and preparing budgets for a drilling program in 2008. Please note that the potential quantity and grade of the mineralisation is conceptual in nature. There has been insufficient exploration to define a mineral resource and the Company is uncertain as to whether further exploration will result in the determination of a mineral resource.
Terms of the Titiribi Acquisition The Titiribi Project is currently 100% owned by GoldPlata Resources Sucursal–Colombia Inc. (‘Goldplata”), with DBGF having the right to earn a 65% interest in the project by meeting certain expenditure commitments pursuant to a joint venture agreement (‘JV Agreement’) with Goldplata. These rights and obligations will be assigned to Windy by the payment of USD $1,000,000 and the issue of 3,250,000 ordinary shares to DBGF. In order to meet its obligations under the JV Agreement with Goldplata, Windy must spend USD $210,000 by 6 May, 2008, and a further USD $3,500,000 by 6 May 2009. Upon meeting these commitments, Windy will be entitled to a 65% interest in the Titiribi Project. The Titiribi Project Area From a historic perspective, Titiribi is a well known mining district. Historic production is estimated at between 1.5 and 2.0 million ounces of gold equivalent, with significant zinc, copper and lead production as well. Historic production has mainly been associated with high-grade gold-silver replacement-like mantos and fault-controlled veins contained within schists and continental-marine sediments. Low-grade mineralisation is widespread throughout the district, being found as auro-argentiferous disseminations and replacements within silici-clastic portions of the sedimentary sequences, and as porphyry-style disseminations and stockworks within hypabyssal intrusions. The district is located at between 900 and 2,100 metres above sea level and the climate is mild and sub-tropical. The region is mainly pastoral and almost completely covered with pastures and crops. The project is accessible by sealed roads to the town of Titiribi, from which point numerous gravel roads provide access to the Project. Titiribi is a traditionally cultured town of around 15,000 inhabitants which subsists on a mixed agricultural (coffee, sugarcane, dairy cattle) and artisanal mining economy (including precious metals and coal). Power, water and all required infrastructure is immediately available throughout the region. Exploration on the Titiribi Project The Titiribi Project has been reviewed by Gold Fields Limited (1998), who conducted a limited drilling program of 16 drill holes, and Rio Tinto Limited (2004), both of whom confirmed the existence of a large tonnage, low grade gold-copper mineral occurrence. Exploration on the Titiribi Project recommenced in 2006 under the JV Agreement between GoldPlata and De Beira. To date this exploration has consisted of some sixteen (16) diamond drillholes along with various soil and rock chip sampling. The exploration consisted of three (3) holes on the Cerro Vetas prospect (Refer Appendix 1) and thirteen (13) holes on the Chisperos prospect. Cerro Vetas is the main porphyry of the three that were defined by Gold Fields Limited in the 1990’s. Three holes (CV001-CV003) were drilled between June and August 2007 for a total of 1,547 metres. All holes encountered strongly altered dacites displaying typical porphyritic textures.
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The holes were drilled from a platform which was located at the south western extents of the magnetic and IP geophysical anomalies and were designed to complement the Gold Fields drilling and better define the southern margins of the Cerro Vetas porphyry. Two of the three holes successfully encountered mineralised zones with porphyritic textures and significant alteration. The third of these holes, CV002, was directed away from the geophysical anomaly in an effort to target the margins of the system, the lack of mineralised material in this hole is currently interpreted as being material outside of the Cerro Vetas porphyry. Significant results from this drilling include: CV001: 70 metres @ 0.48 g/t Au & 0.24% Cu from 130 metres 97 metres @ 0.47 g/t Au & 0.26% Cu from 270 metres CV003: 320 metres @ 0.4 g/t Au & 0.2% Cu from 137 metres Windy considers these results to be highly significant and is currently reviewing data and preparing budgets for a drilling program in 2008. Management Appointments The Company is pleased to advise, subject to completion of the transaction, Mr Klaus Eckhof and Mr Andrew McIlwain have agreed to accept board positions with Windy, with Mr Eckhof to serve as Chairman. Mr Eckhof (MAusIMM) is a senior exploration geologist who has global contacts and has been instrumental in sourcing and developing successful projects in Australia, Africa, Russia, South America and the Philippines. He was formerly President and Chief Executive Officer of Moto Goldmines Limited, a company which is listed on the Toronto Stock Exchange, and within 4 years from Mr Eckhof’s appointment discovered just under 20,000,000 ounces of gold and completed a Bankable Feasibility Study (BFS) in the Democratic Republic of Congo (DRC).
Mr McIlwain has over 20 years experience in the mining industry. He is a qualified mining engineer and has held technical, senior management and executive roles within Mount Isa Mines Limited, Central Norseman Gold Corporation Limited, WMC Resources Limited and Lafayette Mining Limited. Mr McIlwain brings operational and corporate experience in a variety of fields including establishment of operational sustainability, project development and both equity and conventional debt financing. He most recently held the position of Managing Director of Lafayette Mining Limited and is currently Chairman of Emmerson Resources Limited.
The Company has further engaged the services of Mr Mick Montgomery as consultant geologist. Mr Montgomery has 14 years experience in exploration and evaluation of mineral properties. He is principal of Geosure Geological Consultants Pty Ltd and a Member of the Australasian Institute of Mining and Metallurgy, and has the appropriate qualifications, experience and independence to be considered a competent person as defined by Canadian Instrument 43-101 and as a competent person by the Australian Valmin and JORC Codes.
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Mr. Montgomery has visited the Titiribi Project site on several occasions, the latest being during September 2007. Mr. Montgomery has worked on behalf of De Beira as a technical consultant to the Titiribi Project and was a member of the Technical Review Group which reviewed and approved budget expenditure on the Project. Issue of Options to Proposed Directors and Consultants It is proposed, subject to shareholder approval and completion of the acquisition of the Titiribi project interest, to issue a total of 3,250,000 options to proposed directors and consultants of Windy on the same terms and conditions as the existing company options (ASX Code WKRO), being an exercise price of 20 cents on or before 31 December 2009. Placement The Company has also resolved to place 3,750,000 ordinary shares at an issue price of 30 cents per share to sophisticated investors to raise $1,125,000 before costs. A 6% fee is payable of these monies. For further information please contact: David Parker, Company Secretary, Windy Knob Resources Limited, Tel: (08) 9223 9898 Windy Knob website: www.windyknobresources.com.au Scientific or technical information in this news release has been prepared under the supervision of Mr Mick Montgomery, a consultant of the Company. Mr Montgomery has sufficient experience which is relevant to the style of mineralisation under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves” (the JORC Code). Mr Montgomery consents to the inclusion in this report of the Information, in the form and context in which it appears.