Grey River Tungsten Asset Acquired by Great Atlantic
(via Thenewswire.ca)
VANCOUVER, British Columbia - September 14, 2012 - GREAT ATLANTIC RESOURCES CORP. (TSXV.GR) is pleased to announce it has signed a Letter of Intent with Playfair Mining Ltd. (Playfair) to acquire up to a 75% interest in the Grey River Tungsten property. The property is located adjacent to the fishing village of Grey River on the south coast of Newfoundland. This asset is Playfair's most advanced stage deposit and therefore is being advanced towards production. A NI 43-101 compliant Preliminary Economic Assessment was recently prepared by Golder Associates Ltd. which indicates that Grey River is a potentially viable project that will return a positive net discounted cash flow. No technical fatal flaws have been identified at this level of study.
"We have reviewed the PEA which is based on only two of over 300 veins and veinlets that ASARCO mapped over 50 years ago. The remaining veins have seen little significant work to date and provide additional excellent exploration opportunities."
Chris Anderson - President
Exploration History:
Tungsten mineralization was first noted near Grey River around 1956. Subsequent exploration by Asarco during 1957 to 1970 included surface geological mapping, trenching and diamond drilling on five of the better veins, driving a 6,300 foot long exploration adit into and along the Main (#10) vein, driving 20 short raises into the vein and collecting a 275 ton bulk sample for a number of metallurgical tests by Asarco and CanMet. Asarco had destined the project for production around 1970 but the drop in tungsten prices shelved the project.
Geology:
The immediate area is underlain by Ordovician-Silurian age metasedimentary amphibolites and quartz-mica schists and gneisses that predominate to the north. Bedding and foliation-banding strike E-W and dip steeply north. Extensive granitic rocks predominate north of the metasedimentary units. Pegmatites cut all rocks and can form considerable amounts locally. Three prominent fault sets occur; an E-W set is the strongest and brings metasedimentary rocks into contact (usually mylonitic) with the granitic rocks. A younger north to NE trending fault set is commonly occupied by quartz veins hosting the tungsten mineralization.
Mineralization:
The Grey River tungsten veins are typical fluorite-rich wolframite-quartz greisen vein deposits. Most of the tungsten mineralization is wolframite with a number of small scheelite occurrences known. GSC Economic Geology Report 32 (Geology of Canadian Tungsten Occurrences, R. Mulligan, 1984) lists the Grey River deposits as "one of the largest typical wolframite deposits in Canada" and states "in view of the geological environment and the presence of beryllium, molybdenum, fluorite and base metal deposits, it would be remarkable if there were not many more tungsten occurrences' (on the property).
The wolframite veins occur mainly in the metamorphic rocks but also in the granitic rocks to the north. Over 300 veins and lenses have been mapped on surface although to date only two or three appear significant enough to have been partially evaluated by Asarco. The Main (#10) Vein is from 0.9 to over 4.3 m wide and averages ~1.2 m wide (based on underground mapping) and has been traced for over 1,600 m long with the #10 ore shoot over 775m long. Over 240 m vertical thickness is defined above the adit. The vein increases in width with depth and appears to also increase in grade with depth. Tungsten grades substantially increase with face sampling and bulk sampling compared to drill hole grades; this is likely a result of poor drill core recoveries but is also due to a significant 'nugget effect'
About Tungsten
Tungsten is an extremely hard, heavy, steel-grey to white metal that is remarkable for its robust physical properties and vast uses and cannot be substituted in many industrial applications. Tungsten has the highest melting point of all metallic elements and is a strategic metal and emerging economies such as India and China are consuming increasing amounts of tungsten. The current price of tungsten is approximately US $20.00 per pound. Until 2005, China was the world's largest exporter of tungsten concentrate but rapid industrialization within China, structural economic changes, and changes in economic policies towards industry have resulted in the restriction of tungsten exports from China. China is now the world's largest consumer of tungsten. Escalating Chinese consumption, in conjunction with the ongoing demand in the world's principal economies along with the supply issues noted above, has resulted in increases in the price of tungsten by 70% over the last two years.
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 letter of intent, GR, as operator, can acquire a 75% undivided interest by making cash option payments of $500,000 over the next six months upon signing a definitive option agreement. GR will further issue 19.9% of its issued and outstanding shares to Playfair over a four year period. Playfair shall fund the first $500,000 in exploration costs. Upon the first share issuance, Great Atlantic shall have the right to appoint a board member to the board of Playfair. Either Playfair or Great Atlantic has the right to accelerate the terms of the agreement under certain conditions.
About Great Atlantic Resources Inc.:
Great Atlantic Resources Corp. is a Canadian exploration company focused on the discovery and development of mineral deposits in Atlantic Canada which is a sovereign risk free domain. Recently New Brunswick was announced as the number one mining region in the world. Great Atlantic has assembled the A-team of explorers in the region with decades of experience and known track records for discoveries. Currently the company is propelling forward under a project generation model with a focus on Antimony, Tungsten and Gold.
On Behalf of the board of directors
"Chris Anderson"
Christopher R Anderson,
CEO - President 604 488-3900
Read about Great Atlantic Resources Corp.: http://greatatlanticresources.com/corporate-overview/
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