Greenlight Acquires Macdougall Road Antimony Project (Up to 12.2% Antimony)
(via Thenewswire.ca)
VANCOUVER, British Columbia - May 25, 2012 - GREENLIGHT RESOURCES
INC. (TSXV.GR) is pleased to announce that it has signed a definitive
agreement with a New Brunswick resident to acquire the MacDougal Road
Antimony property located in western New Brunswick.
The property covers 15 contiguous claim blocks covering 600 acres
after the discovery of massive stibnite veins cutting highly altered
basic flows found in sub crop along the MacDougall Road in Carleton
County, NB. The antimony (Sb) occurrence lies on the Woodstock
Fault, a northeast trending, regional scale structure. This fault
separates Cambro-Ordovician metasediments and basic and felsic
volcanics to the south side of the fault and Ordovician-Silurian age
calcareous metasediments and limestones to the north. The Woodstock
fault trends into the Gold-Antimony project at Golden Ridge (located 6
kilometres from the MacDougal Road property ) where the mineralization
is controlled by splay structures emanating from The Woodstock Fault
zone. The mineralization at MacDougall Road appears to occupy tension
gashes or ladder veins within the sheared and altered basic volcanics
adjacent to the fault zone. Limited assaying of the showing area has
returned 0.17% Sb in apparently barren altered basic volcanics and
12.2% Sb in the mineralized zone.
Patrick Forseille, P. Geo., a Qualified Person as defined by NI 43-101
is responsible for the technical information contained in this
release.
The Deal
Under the terms of the agreement, Greenlight can acquire a 100%
undivided interest by making cash option payments of $30,000 over two
years and issuing 150,000 shares over the next two years. Upon TSX
approval, Greenlight will pay $5,000 cash and issue 50,000 shares.
Antimony Market
Antimony is principally used in flame-retardant materials for
textiles, plastics and rubber. Since 2008 the price of antimony has
increased by 100% due to the tight control China possesses on the
market producing about 85% of the world total in 2000. According to
the US Geological Survey in 2010, current global reserves of antimony
will be depleted in 13 years which has led to a sharp increase in the
price of antimony. The world flame retardant market is expected to
grow by 6.1% per annum by volume to 2014 and in China, the largest
consumer of antimony, it is expected to grow by 9.8% to account for
26% of the world consumption by tonnage. Further the increase in
price is also in-part due to China's dwindling reserve base and the
closure illegal mining and production in China. Reported production
of antimony in China fell in 2010 and is unlikely to increase in the
coming years while the country's demand for the product has not fallen
with the production.
Since the beginning of 2011, supplies of antimony have been traded
between US$12,700 per tonne to US$16,750 per tonne. In the coming
years, it is estimated that the price of antimony trioxide will rise
to a steady US$14,500 per tonne and are expected to reach US$20,000
per tonne as the market deficit continues to widen.
If Chinese domestic demand increases at an exponential rate, then
domestic production will be diverted to the domestic market, causing
an increase in price and demand for international antimony supplies.
China and other countries will look towards foreign alternatives to
supply their markets. This will provide opportunities for new antimony
mines in Canada to fare very well in the international market.
The Company also announces that it has terminated its option and joint
venture agreement on the Brazil Lake property in Nova Scotia. Results
to date have not warranted further exploration and the Company will
focus its exploration efforts on its diversified property portfolio.
About GreenLight Resources Inc.:
GreenLight is focused on exploring Atlantic Canada, which is a
sovereign risk free, resource rich domain.( New Brunswick recently
announced as the #1 region in the world to do mining by the Fraser
Institute in March of 2012 ) GreenLight is sourcing, and advancing
several projects under a project generation model, addressing a wide
range of specialty and traditional commodities such as, Graphite,
Tungsten, Antimony, Base Metals and Precious Metals.
On Behalf of the board of directors
"Chris Anderson"
Christopher R Anderson,
CEO - President 604 488-3900
______________________________________________________________________
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Read about GreenLight Resources Inc.:
http://greenlightresources.com/corporate-overview/
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