Gravity West Enters Purchase Agreement With Mike Magrum And Mountain Island Exploration Ltd. To Acquire 100 Percent Interest In Uranium, IOCG Potential Property
Livio Susin, President, is pleased to announce that Gravity West Mining Corp. (TSX VENTURE: GRW) has entered into a purchase agreement with Mike Magrum and Mountain Island Exploration Ltd. to acquire a 100-per-cent interest in a property with uranium and IOCG potential located in the Great Bear Lake area, approximately 430 kilometres north of Yellowknife, NWT.
The property is located 10 kilometers north of the Contact Lake property owned by Alberta Star Development Corp. The property comprises 19 claim blocks with a total area of approximately 35,000 acres.
The terms of the purchase agreement for a 100-per-cent interest in the property require the company to make cash payment of $200,000. The property is subject to a 2.0-per-cent net smelter return royalty. The company has the right to reduce the royalty to 1 per cent by paying the vendors $1-million.
Alberta Star has been an active explorer in the Great Bear Lake area of the Northwest Territories for IOCG targets. In 2006, they carried out a major exploration program, including drilling. It is understood that property holders in the Great Bear Lake area plan aggressive exploration programs for 2007.
The Olympic Dam or IOCG model is proposed as the main exploration target on Gravity West’s properties in this part of the Great Bear magmatic zone.
The Olympic Dam deposit at Roxby Downs in the Gawler craton of southwest Australia consists of dike-like, hematite-rich diatreme breccias in granite and felsic volcanics and has a reported resource of 2.32 billion tonnes of 1.6 per cent copper, 0.5 gram per tonne gold, 3.5 grams per tonne silver and 0.4 kilogram per ton uranium oxide (U3O8).
Features of the mineralization and geology in the Great Bear magmatic zone indicate similarities with the Olympic Dam IOCG deposit. Four constants postulated by Skirrow (1999) exist in both areas: tectonothermal evolution; host sequence composition; existence of two contrasting hydrothermal fluid types that allow for co-existence of magnetite and hematite; and a setting within a deep, crustal-scale fault system.
These and other similarities conclude that the Gravity West properties are situated in a geological setting that has the potential to host high-unit-value polymetallic mineralization associated with large-tonnage, IOCG-type deposits, as well the potential to host Echo Bay-type, high-grade U3O8 and silver mineralization.
This news content was configured by WebWire editorial staff. Linking is permitted.
News Release Distribution and Press Release Distribution Services Provided by WebWire.