VANCOUVER, British Columbia - June 13, 2012 - GREENLIGHT RESOURCES INC. (TSXV.GR) is pleased to announce that the TSX Venture Exchange (the "Exchange") has granted conditional acceptance for the acquisition by Elm Tree Minerals Inc. (Elm Tree) (TSX-V: ETM) of up to an 80% interest in the Keymet Property from GreenLight Resources Inc. ("GreenLight"). Elm Tree must file additional materials, including a 43-101 technical report on the property in order to received final acceptance for the transaction from the Exchange.
Mike Waggett, President and CEO of Elm Tree states, "Elm Tree is extremely happy with the work done to date by GreenLight Resources Inc. under the guidance of Chris Anderson, its President and CEO, on the Keymet Property, and considers itself fortunate to be exploring the historic Bathurst Region of New Brunswick, the # 1 mining jurisdiction in world according to the Fraser Institute".
The Keymet Property, New Brunswick
The Keymet Property consists of 162 mineral claims comprising 6,480 acres situated in the historic Bathurst Region of New Brunswick and hosts a former producing mine that was located on the property and numerous showings of gold, silver and base metal mineralization. Production commenced in 1954 and by 1956, the shaft was down to the 366meter level. Production ceased in 1956 when a fire destroyed the mine buildings. A total of 56,000 tons @ 0.25% Cu, 2.44%Pb, 2.59% Zn and 0.99 opt Ag was produced between 1954 and 1956. The properties have significant exploration upside for both high grade vein systems and lower grade bulk mineable mineralization.
An exploration program has been developed to explore two distinct types of mineralization which are found on the northern portion of the claims. They include the known Lead (Pb)- Zinc (Zn)-Copper(Cu)- Silver (Ag) veins (Keymet Mine type) and the newly discovered disseminated Gold (Au)- Silver (Ag) showings associated with zones of chloritic alteration and silicification. Trenching and geochem sampling will be conducted over these areas to further define targets. An 11 hole drill program totalling 2,050 meters is proposed for the late summer of 2012 to test various targets within these two zones.
Two new gold discoveries have been recently made by GreenLight's prospectors. The first is in outcrop 300 meters to the south west of the Keymet shaft where a 2 meter wide quartz-arsenopyrite (20% arsenopyrite) filled shear zone, which appears to be a splay fault off of the main Keymet shear, assayed 3.4 grams per tonne (gpt) Au. The second new discovery was made approximately 1,500 meters to the north west of the Keymet Shaft while investigating a series of historic Cu/Zn soil anomalies. In this area numerous large, angular boulders of silicified conglomerate and meta-wacke were found that contained 1-2% disseminated "needle" arsenopyrite. These boulders have been traced over a distance of 450 meters and appear to be aligned sub parallel to the strike of the Keymet vein system. No base metals are associated with this new showing which indicates that this is possibly a separate but parallel gold bearing zone within the overall Keymet base metal/silver vein system. Initial analysis indicates that the boulders run between 1.7 gpt to 51.0 gpt Au.
Additionally, there are several areas on the main claim block, to the south and east of the current work area, where outcrop of up to 3 grams per tonne Au are known to exist. During the upcoming season this area will be trenched and sampled with a view to developing new drill targets for the latter part of the field season. It is notable that there are two Au occurrences on the Keymet property located 800 meters east of the Gorilla Resources Corp., Elmtree Gold deposit (1.6 million tonnes @ 1.9 gram per tonne indicated). These two Keymet gold occurrences are geologically similar to the Elmtree Deposit where shear related quartz/carbonate/sulphide veins occur at the contact between Ordovician and Silurian sediments. Historic work by Lacana in 1985-1987 indicates the occurrence of 1.3 grams per tonne over 9 meters in a trench channel sample and between 3 and 4 grams per tonne over 1.9 meters in drill core. No work of significance has been done here since the Lacana work ended.
Base Metal Targets
The Company's geologists have recently taken grab samples from the dump rock at the Keymet shaft and a typical Pb/Zn sample from the ore dump ran 549 gpt Ag, 2.35%Cu, 33.90%Pb and 22.90%Zn. A specimen of massive pyrite with stringer chalcopyrite, galena, sphalerite and arsenopyrite assayed 415 gpt Ag, 4.22% Cu, 1.23% Pb, and 1.48% Zn. Currently, a 3D model of the underground workings has been put together based on historic level plans and sections. Based on historic geophysical and geochemical data, there is good evidence that a series of three and possibly four, parallel vein systems occur on the property. These are the North, Central, Keymet, and South veins.
The North vein, which lies approximately 500 meters to the northeast of the Keymet Vein, has been identified over a strike length of 2400 meters by trenching on the southeast and drilling on the northwest. Grab samples taken at the discovery trench in 1989 assayed 57.5%Pb, 6.12% Zn and 20.5 opt Ag. Soil geochemistry indicates that this vein(s) is traceable over a strike length of at least 1,585 meters.
The Central vein system, 250 meters north of the Keymet vein, has been drilled at three locations outside of the mine area. The first is 850 meters northwest of the Keymet mine whereas single hole intersected a narrow vein within a wide zone of silicification and bleaching that ran 0.64% Cu, 14.6% Pb, 5.6% Zn, 5.1 opt Ag over 0.15 meters. Additional drilling 500 meters further to the northwest intersected the same alteration zone which ran 0.15%Cu, 3.68%Pb, 2.02%Zn and 3.68 opt Ag over 3.5 meters. As with the North vein system, soil geochemistry indicates that the Keymet vein is traceable for a total of 2,400 meters. This is confirmed by airborne EM and IP.
The Keymet vein has been traced by drilling (1947-1952) with wide spaced holes over a distance of 2,400 feet from the shaft area and continues for a further 1,600 feet to the "Old Silver Mine" vein. This vein was discovered in 1882 at which time reports indicated grab sample assays of 71.1% Pb, 33.75 opt Ag and 1.28 opt Au. Sometime around 1909 a shaft was sunk to a depth of 20.1 meters and a drift put in along the vein. No further development was recorded. Samples from outcrop and float taken by GreenLight's geologist at the Old Silver Mine ran up to 139 gpt Ag, 1.51%Cu, 6.27%Pb and 3.26%Zn including one sample of the outcrop that assayed 14.5%Zn. This showing has never been drilled.
The South vein system is located 650 meters southwest of the Keymet Vein and is defined by two showings and soil geochemistry over a strike length of 1,900 meters. The eastern occurrence is described as a series of veins and breccias carrying galena and sphalerite. Drilling was carried out in 1970 and the best intersection was 3 feet of 13% combined Pb/Zn and 1.8 opt Ag. Nineteen hundred meters to the northwest, grab samples taken in the early 1960's ran as high as 0.5%Cu, 5.85%Pb, 7.41%Zn and 4.52 opt Ag.
Readers are warned that "historical records" referred to in this release have been examined but not verified by a "Qualified Person". Further work is required to verify that the historical assays referred to in this release are accurate. Patrick Forseille, P. Geo., a Qualified Person as defined by NI 43-101 is responsible for the technical information contained in this release.
To earn a 70% undivided interest in the Property, Elm Tree must, in stages over three years, pay $250,000 in cash and issue 2,750,000 shares (500,000 to be issued to Greenlight upon TSX approval of this agreement) to GreenLight and incur $2,000,000 in expenditures on exploration and development of the Property. To earn an additional 10% interest, for a total 80% undivided interest in the Property, Elm Tree must complete a bankable feasibility study, or equivalent, for obtaining production financing for the Property. Upon Elm Tree earning its interest in the Property, GreenLight and Elm Tree have agreed to form a joint venture for the further development of the Property. The Property is subject to a 2% net smelter return royalty. Half of the royalty, 1%, may be purchased at any time upon the payment of $1,000,000.
About GreenLight Resources Inc.:
GreenLight is focused on exploring Atlantic Canada, which is a sovereign risk free, resource rich domain.( New Brunswick recently announced as the #1 region in the world to do mining by the Fraser Institute in March of 2012 ) GreenLight is sourcing, and advancing several projects under a project generation model, addressing a wide range of specialty and traditional commodities such as, Graphite, Tungsten, Antimony, Base Metals and Precious Metals.
On Behalf of the board of directors
Christopher R Anderson,
CEO - President 604 488-3900
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