Redzone Resources Enters into an Agreement to Acquire the Wells Vanadium Project in British Columbia
Date: Dec 6, 2018
VANCOUVER, British Columbia, Dec. 05, 2018 (GLOBE NEWSWIRE) — RedZone Resources Ltd. (TSX-V: REZ, Frankfurt: REZ, OTC:REZZF) (the “Company” or “RedZone”) is pleased to announce that it has entered into a binding purchase agreement to acquire the Wells Vanadium Project. The Wells Vanadium Project consists of two mineral tenures which total 1,225 Ha and are located 20 kilometres east southeast of Barkerville, B.C. Access to the property is by 35 km of logging roads via Cunningham Creek.
Previous work by Cominco Ltd. analysed 44 rock samples, collected over a 2-kilometre by 1-kilometre area, for their vanadium content and reported in B.C. Assessment Report 15,366. Eleven samples were found to contain greater than 1,000 ppm vanadium and values ranged up to 1,852 ppm (0.33% V205). The mineralization is found in phosphatic black clastic sediments of the Black Stuart Formation. The results from previous programs were collected in the 1980’s prior to the implementation of National Instrument 43-101. There is no record of analytical standards or duplicates in the reviewed assessment report. The qualified person has not verified the scientific and technical information and data disclosed in the news release.
To acquire 100% of the Wells Vanadium Property:
- On signing, $10,000 CAD and 150,000 shares
- 1st anniversary, $20,000 CAD and 200,000 shares
- 2nd anniversary, $20,000 CAD and 200,000 shares
- 3rd anniversary, $25,000 CAD and 250,000 shares
- 4th anniversary, $25,000 CAD and 300,000 shares.
The property is subject to a 2% NSR, of which 1% can be bought back for $1 million CAD. RedZone has the option to exit the purchase agreement any time prior to the fourth anniversary.
Year one work on the project will involve resampling of the anomalous rock chip samples collected by the previous operator, follow up stream sediment sampling and ridge and spur soil geochemistry. Property access is expected by late May.
