Benton Resources has recently acquired by option and staking a large land package that includes the past producing Hope Brook Gold Mine located on the southwest coast of Newfoundland. The Company has staked the favourable gold-bearing trend that hosts the Hope Brook deposit for approximately 30 kilometres and has entered into an option agreement with Quinlan Prospecting (Q.P.) of Newfoundland to acquire 3 separate claim blocks, one of which includes the Hope Brook gold deposit. To earn a 100% interest in the 3 claim blocks Benton will make cash payments to Q.P. totaling $170,000 and issue 200,000 shares over 4 years. The Company will pay a finder's fee to a third party for being introduced to the project of 25,000 shares and 25,000 warrants exercisable for 24 months at a price of $1.00. The optioned claim blocks and the staked claims are subject to a 2% NSR payable to Q.P. (the "NSR") with an advance royalty payment of $10,000 owing per year to a maximum of $100,000 commencing upon Benton having exercised the option to acquire the 3 claim blocks. Benton has the right to purchase 50% of the NSR for $1 million.
The Company's management is excited about this unique opportunity as the Hope Brook deposit was the Province of Newfoundland's largest gold deposit and it is management's view that there is significant potential to discover additional mineralization of economic importance in the area. The Hope Brook deposit operated from 1987 to 1997 and produced 752,826 ounces of gold plus a copper concentrate from 1993 to 1997. Previous exploration by Royal Oak Mines proximal to the mine during the last few years of operations resulted in the discovery of several areas of significant gold mineralization including the 240 zone, located approximately 1km southwest and on strike of the Hope Brook deposit. Historical drilling at the 240 Zone returned grades of up to 3.88gpt over 41 metres and 6.98gpt over 5.8 metres and shallow drilling along strike from the former open pit area intersected up to 14.3 meters of 4.64gpt (NL Gov assessment files). Since the closure of mining operations in 1997 little or no exploration has been carried out for gold in the area.
The Company is planning an aggressive and extensive exploration program, and has begun an extensive regional compilation of the entire belt which will incorporate all existing drill holes, mine workings, geology and assay results of the mine area. A large airborne survey will be flown over the entire project as soon as possible, to be followed up with ground exploration programs including geological mapping, prospecting and diamond drilling. The company will keep their shareholders informed as this project moves along.
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