Inspiration Mining Corporation
Inspiration Mining Corporation – Acquisition of the Barton Syndicate Property
Corporate-news announcement sent by DGAP.
The sender is solely responsible for the contents of this announcement.
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Inspiration Mining Corporation – Acquisition of the Barton Syndicate Property
TSX.V – ISM
TORONTO, Sept. 21 /CNW/ – Inspiration Mining Corporation (the “Corporation”)
is pleased to announce that it has entered into an arm’s length agreement to
lease the Barton Syndicate Property, Salt Lake and Tooele Counties, Utah.
Pursuant to the lease, the Corporation has been granted a 25 year lease to all
of the mining claims situated on the property. In addition, the Corporation is
required to pay annual stand-by royalty payments commencing in 2009 with
payments escalating from $5,000 US per year to $25,000 US per year by 2029.
The lease period may be extended so long as the Corporation makes annual
royalty payments of not less than $25,000 US per year. The Corporation was
also granted the right to purchase the Barton Syndicate Property at any time
during the lease period for a sum of $10 million US less any payments made to
the leasors. Closing of this transaction is subject to regulatory approval.
In consideration for the lease, the Corporation has agreed to issue an
aggregate of 200,000 common shares to the vendors at a deemed price of $0.25
per common share and has granted a 5% net smelter royalty (less all costs
associated with mining, milling, processing, transportation and refining).
Under the lease, the Corporation is required to expend an aggregate of
$600,000 in expenditures with $100,000 in the first year and a further
$100,000, $150,000 and $250,000 in the second, third and fourth years,
respectively.
The Barton Syndicate Property is approximately 35 km southwest of Salt Lake
City. The property is located about 6.4 km north-northwest of Kennecott’s
Bingham Canyon copper-goldmolybdenite mine, the world’s largest man-made
excavation. The past-producing Melco gold mine also owned by Kennecott is
located approximately 600 m northeast of the Barton Syndicate claims. The
claims are located in rugged topography at the head of Dry Fork Canyon, on the
eastern slope of the Oquirrh Mountains. Elevations on the property range from
about 1,980 m in the east to 2,440 m in the west part of the property. The
claims are accessed by gravel and unimproved roads north of the Bingham Canyon
Mine.
The following information is a summary. For complete details and results of
past exploration programs, readers are encouraged to refer to the Qualifying
Report on Barton Syndicate Property, Salt Lake and Tooele Counties, Utah, USA
For Inspiration Mining Corporation dated July 30, 2004 prepared by G.A. Harron
P.Eng., P. Geo., a “qualified person” as set out in National Instrument
43-101. A copy of the geological report is available through the SEDAR website
(http://www.sedar.com).
Permian age Freeman Peak Formation quartzites and quartzitic sandstones
underlie the Barton Syndicate Property. The Kirkman-Diamond Creek Formation,
also of Permian age stratigraphically overlies the Freeman Peak Formation. It
is dominantly calcareous sandstone with occasional beds of limestone, dolomite
with chert nodules and orthoquartzite. Dykes of mafic volcanic rocks similar
in composition to the Bingham intrusion are located in the northwest part of
the property. Southwest trending normal and reverse faults considered as
mineralization controls at the adjoining Melco gold mine project onto the
property.
The Barton Syndicate Property consists of 31 unpatented, contiguous lode
claims covering 608.94 acres (246.44 ha) located Sections 9 and 10, Township
3 S, Range 3 W, Salt Lake Base and Meridian, Utah, USA. The bulk of the lands
are in the West Mountain Mining District, Salt Lake County, with a minor land
position in adjacent Tooele County, Utah. All discovery monuments have been
surveyed and photographed. The Barton Syndicate owns the mineral rights to
these claims and Kennecott Utah Copper Corporation (Rio Tinto plc) owns the
surface rights.
Historical exploration programs by Kennecott Utah Copper Corporation (and
affiliated / successor corporations) identified several gold and arsenic
geochemical anomalies on the property. A 1989 induced polarization /
resistivity survey conducted to the northeast of the property identified a
resistivity “low” anomaly that is spatially coincident with the Melco and
Barneys Canyon gold mines. This geophysical feature extends onto the property
and has been partially tested with two reverse circulation drill holes, which
returned weakly anomalous gold, arsenic and mercury values, consistent with
geochemical associations noted at the neighbouring gold mines. Sediment hosted
gold mineralization at the Melco and Barneys Canyon mines are best described
as “Carlin-type” deposits. Preproduction reserves at Barneys Canyon were
calculated at 8.6 million tonnes grading 1.64 g/t gold and 2.8 million tonnes
grading 2.4 g/t gold at Melco. In the 1988-2001 period production from the two
mines aggregated 43,540 kilograms (1.4 million ounces) of gold.
Exploration for this type of deposit is best accomplished through integrated
programs of geologic mapping, soil and rock geochemistry and geophysical
surveys. These programs are used to identify surface mineralization,
alteration patterns and mineralization control structures prior to drill
testing.
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release.
/For further information: about the Corporation, please contact Randy Miller,
President of the Company, at (905) 853-7400; For further investor relations
inquiries, please contact Dan Boase, First Canadian Capital Corp., at
(416) 742-5600/
end of message, (c)DGAP 27.10.2004
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WKN: 909977; ISIN: CA45772J1093; Index:
Listed: Freiverkehr Berlin-Bremen
271642 Okt 04
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