Golden Dory Resources to Increase Stake in Iron Horse Project to 100%
GANDER, NEWFOUNDLAND - January 17, 2013 - Golden Dory Resources Corp., TSX.V: GDR ("Golden Dory" or "GDR") and Metals Creek Resources Corp., TSX.V: MEK ("Metals Creek" or "MEK"), are pleased to announce that, pending TSX Venture Exchange approval, and the execution of a definitive amending agreement, Golden Dory will increase its ownership of the Iron Horse Project in the Labrador Trough (the "Property") to 100% by meeting specific conditions as outlined in a revised agreement. The Property is host to two new and potentially significant Iron Ore discoveries made by Golden Dory and Metals Creek in late 2012 on the 400 claim (10,000 ha) property located approximately 50 kilometres east of the common carrier rail line servicing the Schefferville Mining District. A total of eight holes were drilled in 2012 testing two of four previously untested magnetic anomalies (Anomalies A through D), and all holes successfully intersected significant thicknesses of iron formation including hole GLAA12-02 which returned 354 metres grading 27.8% Fe from Anomaly A in the northern portion of the property.
Work to date has focused on testing the magnetic targets as defined by previous airborne surveying. In 2013, the Company plans to focus on identifying potential DSO (Direct Shipping Ore) targets that management believes to exist on the property as evidenced by numerous large blocks of high grade iron ore assaying in excess of 53% Fe. This higher grade material has not been intersected in the eight holes drilled to date. The Company is currently seeking bids to complete an airborne gravity survey to facilitate identifying DSO targets.
The New Agreement
Golden Dory and Metals Creek have agreed to amend their existing Option and Joint Venture Agreement dated May 18, 2012 (the "JVOA") to provide for GDR to accelerate its interest in the Property to 70% and then for GDR to purchase the remaining 30% residual interest from MEK (the "Residual 30% Interest").
The JVOA will be amended to provide that GDR will accelerate increasing its interest in the Property to 70% by issuing 2,500,000 common shares to MEK without having to comply with a previous term which required GDR to complete a NI 43-101 report resulting in a minimum of 50 million tonnes of product. Upon GDR acquiring the 70% interest in the Property MEK's royalty interest in the Property will be reduced to 0.9% NSR. As part of the amended JVOA, GDR will also purchase MEK's Residual 30% Interest by: a) issuing 15 million common shares to MEK; b) paying $1 million to MEK upon completion of a bankable feasibility study on the Property; and c) issuing to MEK an additional 1% NSR on the Property. For the purposes of clarity, upon GDR acquiring all of MEK's interest in the Property, MEK will retain, in the aggregate, a 1.9% NSR in the Property.
Kevin Keats, President and CEO of Golden Dory, commented; "We felt that with our success to date on the project combined with a steadily rebounding Iron Ore market, the timing was right for us to maximize our stake in Iron Horse. The fundamentals are pointing to a robust Iron Ore sector and we wanted to ensure we were positioned to take full advantage of the situation. Iron Horse should start to draw more attention from the major players as we move the project forward in 2013. With two discoveries to date and other targets yet to be tested, we feel the Iron Horse Project may house what could potentially become a new mining district in Canada's premiere iron ore producing region."
About Golden Dory
Golden Dory Resources Corp. (TSX.V-GDR) has several mineral projects in its portfolio. In 2012, the Company took over as operator of the Iron Horse Project (previously known as the Gabbro Lake Project) for which Golden Dory can earn up to a 70% interest in the joint venture, subject to obtaining TSX Venture Exchange approval to allow it to earn a 100% interest. Strategically located in the eastern portion of the Labrador Trough, the Iron Horse Project is 50 km from the rail line servicing the Schefferville mining camp and 8 km from an all-weather access road. Within the Iron Horse property, the magnetic data defines the targets (Anomalies A through D) as a structurally folded and faulted iron formation and shows a number of areas that may be thickened by the structural complexity. To date, drilling has discovered iron-rich mineralization at Anomaly D and Anomaly A. (See geophysical map on homepage at www.goldendoryresources.com). Adding depth to the Company's portfolio of assets are its gold projects, namely the Huxter Lane-Brady Project in Newfoundland & Labrador, Canada; the Long Canyon (Pequop South) and Reef properties in Nevada, USA. The Company is also seeking partners on its earlier stage gold, uranium and high grade base metal properties in Newfoundland.
For further information, please contact Kevin D. Keats, President and CEO of Golden Dory at (709) 256-4201, or Jeremy Hill, CHF Investor Relations 416.868.1079 ext. 238 or email Jeremy@chfir.com. This news release has been reviewed and approved by Timothy Froude, P. Geo., a "Qualified Person" under National Instrument 43-101.
About Metals Creek
Metals Creek Resources Corp. is a well-funded junior exploration company incorporated under the laws of the Province of Ontario, is a reporting issuer in Alberta, British Columbia and Ontario, and has its common shares listed for trading on the Exchange under the symbol "MEK". Metals Creek have recently formed a 50/50 joint venture with Goldcorp, to continue exploring the Ogden Gold property, including the former Naybob Gold mine located 6 km south of Timmins, Ontario. MEK will be the operator and subsequent programs will be funded on a 50/50 basis while both companies contribute its share of required funding in the Ogden Gold Property. The Corporation is also engaged in the identification, acquisition, exploration and development of other mineral resource properties, and presently has mining interests in Ontario, Yukon, and Newfoundland and Labrador. Additional information concerning the Corporation is contained in documents filed by the Corporation with securities regulators, available under its profile at www.sedar.com.
For further information, please contact Alexander (Sandy) Stares, President and CEO of Metals Creek at (709) 256-6060 or email: astares@metalscreek.com.
Neither the 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.
Investors are cautioned that trading in the securities of these Issuers should be considered highly speculative. Except for historical information contained herein, this news release contains forward-looking statements that involve risks and uncertainties. Actual results may differ materially. The Issuers will not update these forward-looking statements to reflect events or circumstances after the date hereof. More detailed information about potential factors that could affect financial results is included in the documents filed from time to time with the Canadian securities regulatory authorities by Golden Dory and/or Metals Creek.
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