TORONTO, ONTARIO, Oct. 28, 2009 (Marketwire) -- White Pine Resources Inc. (TSX VENTURE:WPR) ("White Pine"), is pleased to announce it has signed a letter of agreement for the acquisition of the MZ Gold Property located in the Boston Creek gold mining district south of Kirkland Lake, Ontario. Recent grab samples from a newly discovered silicified-pyritized gold-bearing zone have yielded gold values as high as 67.1 g/t Au (1.96 oz/t) and 49.4 g/t Ag. No visible gold was noted.
The MZ Gold Property, consisting of 608 hectares, can be acquired from two local prospectors for considerations of cash, shares and exploration expenditures in the following timetable:
On Signing $20,000 cash plus 50,000 shares, $100,000 in
Year 1 Anniversary $20,000 cash plus 100,000 shares, $150,000 in
Year 2 Anniversary $20,000 cash plus 100,000 shares, $150,000 in
exploration (earns 50%)
Year 3 Anniversary $20,000 cash plus 100,000 shares, $500,000 in
Year 4 Anniversary $120,000 cash plus 400,000 shares, $500,000 in
exploration (earns 100%)
Royalty 2% NSR- buy back 1% for 1 million
Total $200,000 plus 750,000 shares, $1.4 million in
A 2% NSR has been retained by the prospectors with the option of 1% being purchased by White Pine for $1 million.
The Boston Creek gold mining district has had sporadic gold production from 5 gold mines dating back to 1918. The MZ Gold Property lies adjacent to and in between two former producers, the Cathroy-Larder Mine and the Gold Hill Mine. The Cathroy-Larder Mine, now owned by Mirado Nickel, has extensive underground workings to the 500 vertical foot level and has had open pit production in the past.
'The Boston Creek gold mining district is poorly understood and has had limited exploration over the years' stated Mike Kilbourne, P.Geo and White Pine's President. "White Pine has been looking to acquire a promising gold property in a historic mining district for the last 6 months. Exploration programs of line-cutting, ground geo-physics, trenching and drilling will commence immediately."
Forward looking statements: Certain information set forth in this news release may contain forward-looking statements that involve substantial known and unknown risks and uncertainties. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond the control of WPR, including but not limited to the impact of general economic conditions, industry conditions, volatility of commodity prices, risks associated with the uncertainty of resource and reserve estimates, currency fluctuations, dependence upon regulatory approvals, the unavailability of future financing and exploration risk. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and as such, undue reliance should not be placed on forward-looking statements.
Shares Outstanding: 23,292,659
Neither 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.