Ratel Gold finalizes spin out RTL.T and changes name

Well good news on the Ratel front, on January 4th 2011, I will own 6600 shares of St. Augustine Gold and Copper and 3667 shares of Ratel Group on January 7th. The spin off is 5 new shares of Ratel Group for every 9 shares of Ratel Gold or 0.555 to 1.

Ratel Gold Ltd. has now received shareholder approval and conditional listing approval from the Toronto Stock Exchange for the spinout of its African property interests into Ratel Group Ltd., a new TSX-listed company.
Shareholders of record of Ratel Gold as of the close of business on Jan. 6, 2010, will be entitled to receive five common shares in the capital of Ratel Group for every nine common shares held in Ratel Gold pursuant to the spinout reorganization, as more particularly set forth in the management information circular of Ratel dated Nov. 19, 2010.
It is anticipated that Ratel Group will commence trading on the TSX at the open of markets on Tuesday, Jan. 4, 2010, under the symbol RTG. Ratel Gold will continue trading under the symbol RTL until completion of the transactions approved by shareholders on Dec. 23, 2010. It is anticipated that the spinout reorganization will take place on Jan. 7, 2011, in conjunction with the completion of the acquisition by Ratel of the interests in the King-king project and the issuance of new shares in Ratel Gold and Ratel Group. As part of the proposed transactions, it is intended that the name of the company will be changed to St. Augustine Gold and Copper Inc., which will trade under the new TSX symbol SAU.

Back on the bid of Emgold EMR.V

I have joined the bid of Emgold again at $0.23/share. I have noticed that it has been the top page view on my blog recently. Just a hunch or a statistical anomaly? 

Re adjusting the exit on Catalyst Copper CCY.V

As stated earlier I purchased Catalyst on the speculation of their NI 43-101 results. The market  seems pretty ho hum on the results and the Company stated that 10 million warrants were exercised recently, effectively putting a cap on any price appreciation. I guess the hype was generated to soak up the warrants.

I have also notice house #1 Anonymous selling hard into the market. Usually anyone that uses house #1 Anonymous is trying to disguise their identity, in other words someone usually close to the deal. People only use #1 Anonymous when they want to sell but never use it to buy. The reason is they want to show support in the market by having their brokerage revealed on the buy side, yet hide their moves on the sell side.

I have decided to put a sell order at $0.20/share and trade Catalyst out flat. From what I hear the Company wants to do some infill drilling and raise money in the summer. That is a long time off in this market.

I will throw Catalyst on the watch list. It would take consistent 3-4 million shares a day to make the stock move higher.

Roca Mines back in business ROK.V

Some good news on Roca Mines today, the Company will start up the MAX Mine again in the new year.

I would expect the selling pressure to ease once we get through year end and into 2011.

ROCA Completes Rehabilitation Work at MAX Mine

TSX.V: ROK
     VANCOUVER, Dec. 20 Roca Mines Inc. (TSX-V: ROK) ("Roca" or "the
Company") announces that crews have completed planned rehabilitation work at
the MAX Molybdenum Mine.  All of the mine bulkheads and landings within the
ventilation/manway raise have been repaired and upgraded to ensure safety and
improve efficiency of the ventilation system.
     Crews have also completed the installation of new underground ventilation
fans and associated equipment on the 950m level.  The new system will
facilitate ventilation of the lowest planned workings of the mine and meet the
requirements for ventilation of all mobile diesel equipment.
     The mine will return to a temporary shutdown through the holidays and
crews will monitor equipment and underground pumping requirements during this
period.  The Company plans to conduct an inspection of the recent
rehabilitation work and review all aspects of the mine with BC's Chief Mines
Inspector and the mine's geotechnical consultants in January 2011.  Updates on
production timing and other planned activities for the MAX Molybdenum Mine
will be provided in early 2011.

Quietly accumulating Stoneshield Capital STS.V at $0.15/share

This past week I have been adding to my Stoneshield Capital position. I currently have 90500 shares and I am still bidding on another 7000, for a total of 97,500. I also own 40,000 warrants at $0.185/share.

This position is the largest in my accounts as far as leverage goes, every penny up or down creates a $1350 swing in my net worth.

I expect good things in Stoneshield for 2011 as there is more news to come and the Company will want to do a financing at higher prices in the new year.

As my friend Karen always likes to say "go big or go home"

Catalyst Coppers CCY.V La Verde resource estimate

Catalyst Copper came out with their resource estimate, now lets see if the market thinks it has the goods to go higher.

This is the meat of the news release.

Using a 0.2% copper cut-off grade, the East and West Hill deposits at La Verde contain Measured and Indicated Resources of 210.5 million tonnes averaging 0.46% total copper (TCu) contains 2.1 billion pounds of copper. An Inferred Resource of 130.8 million tonnes grading 0.46% TCu contains 1.3 billion pounds of copper.

Reasoning behind Catalyst Coppers CCY.V promotional push

On Friday I posted that I took a position in Catalyst Copper due to a promotional push, the Company is apparently waiting for a NI 43-101 resource estimate on their La Verde property.

I have to give kudos to Vanguard Shareholder Solutions for sourcing this obscure blog that has mentioned their client. Vanguard has contacted me and provided this update.

Within the next few weeks, they are going to come up with a NI 43-101 compliant resource calculation.This number will determine if, when and how the company advances to pre-feasibility, feasibility and production. The market has already digested the assay results, but the resource calculation is important.

CCY has discovered significant intersections of copper mineralization including 0.55% Cu over 527.6 meters and 0.48% Cu over 440.9 meters. The six twinned holes on the West Hill added an additional 1322 meters of depth to the historical 1731 meters of drilling. So with mineral intersections of half a kilometer, a sizable resource calculation seems likely.

In fact, the latest drill results confirm that the West Hill mineralization zone extends deeper than the historical data indicates, and that average grades are higher at depth. There has been speculation that CCY may have two mountains of copper which are joined at the base.

Catalyst CEO John Greenslade has been in the news lately. He just raised $823 million for Baja Mining (TSX:BAJ) toward the construction and development of the Boleo project in Mexico. The deal involved the Export-Import Bank of the United States, the Korea Development Bank, and an assorted group of commercial banks, including Barclay's.

 

Baja Mining Chart

All the hype aside if the Company's NI 43-101 is well received I will hold out for a higher sell price.

Viper Gold VPR.V well structured gold shell.

My broker offered me a opportunity to participate in Viper Gold's recently announced 1,500,000 private placement at $0.25/share. I did my usual due diligence and found that Viper has a favorable share structure and a 50% interest in a Peruvian exploration property. I opted to purchase the stock at $0.25/share on the open market rather than being subject to the mandatory 4 month hold.

First off Viper Gold is a relatively new issue that has only 6,550,000 shares outstanding, I consider this quite tightly held. With a stock price of $0.25/share the market has given Viper Gold a market cap of $1.6 million.
The Company has yet to see any significant price appreciation or share distribution to date.

Viper Gold's Peruvian property that they have optioned is called the Corongo Property that has shown some good samples recently including 7.6 grams per tonne gold and 245.8 g/t silver with 0.26 per cent copper from a four-metre continuous channel sample.

The Corongo property is located in the Department of Ancash in the Republic of Peru, approximately 400 kilometres north of Lima. The property covers an area of 3,100 hectares and comprises 11 contiguous claims. The Corongo property is located in a portion of the Western Cordillera of Peru that hosts numerous precious and base metal deposits, including Barrick Gold Corp.'s Pierina and Lagunas Norte gold mines and Compania Minera Antamina SA's Antamina copper-zinc mine.

To me Viper Gold seems to have the right pieces in place to make a decent win in the new year. 

Speculating on Catalyst Copper CCY.V

I took a position on Catalyst copper today at $0.18/share for purely speculative reasons. I understand that management is over in Europe doing a dog and pony show. From what I hear they are going to try and move the stock to the $0.40/share range to refinance the coffers.

Catalyst is promoting their La Verde copper property down in Mexico that was optioned from Teck and are currently waiting for a NI 43-101 report.

My strategy with Catalyst  is a purely speculative trade, if they get the stock to $0.35/share I will be selling.

Stoneshield Capital STS.V next steps

Now that Stoneshield Capital has announced a major property acquisition the next step will be another financing.

Considering the last financing was done at $0.125/share, I am positive that Management will finance the Company at the +/- $0.30/share range. Since we are in a hot financing market right now it would be advantageous for the Company to raise $3 million plus.

The Company will probably encourage the 7.5 million warrants that are exercisable at $0.185/share if they get the price up. Stoneshield also applied to further extend 5 million $0.25/share warrants that were set to expire in November this year.

From what I hear there is the prospect of another property announcement.

With the news today and what the Company needs to do going forward I will probably buy some more stock at $0.15/share.

Stoneshield Capital Corp. STS.V signs Risby property agreement

Last week I heard rumblings of Stoneshield Capital making some kind of property acquisition, today they delivered on a copper/silver/lead/zinc property in the North West Territories.

STONESHIELD SIGNS OPTION TO ACQUIRE UP TO A 100% INTEREST IN THE RISBY COPPER/SILVER/LEAD/ZINC PROJECT IN THE NORTHWEST TERRITORIES, CANADA
Stoneshield Capital Corp. has signed an option with Andesite Capital LLC to acquire up to a 100-per-cent interest in the Risby copper/silver/lead/zinc project located near the Yukon border in the Northwest Territories, Canada.

The Risby project, located within the MacKenzie Mountains about 80 kilometres east of the MacMillan Pass in the Yukon Territories, comprises 93 claims totalling approximately 89,040 acres (360 square kilometres). The southern claim blocks are located at the northern boundary of the Redstone copper/silver deposit owned by Western Copper Corp., host to an inferred resource of 33.6 million tonnes of 3.92 per cent copper (Cu) and nine grams per tonne (g/t) silver (Ag) (National Instrument 43-101-compliant; contained metals of 2.94 billion pounds Cu, 9.8 million ounces Ag). The Redstone deposit is estimated to be continuous over a surface area of 3.6 kilometres in length, 2.4 kilometres in width with an average thickness of 0.8 metre. The Redstone deposit is a laterally persistent, stratabound, blanket-like deposit, very similar to other sediment-hosted copper deposits, such as the Kupferschiefer in Poland and the copper belts of Zambia and the Congo. Sediment-hosted deposits are among the largest in the world and contain approximately 25 per cent of the world's copper resources. Many of the copper occurrences on the Risby project have similar stratabound geologic characteristics to the Redstone deposit and these deposits.

Director Allen Ambrose commented: "The Risby project is situated in a belt of sedimentary rock several hundred kilometres in length that is host to numerous base metal prospects. The district-scale size of the land package with extensive mineralization, already encountered in several areas, further highlights the highly prospective potential of this region to host copper, lead and zinc mineralization. Stoneshield will be well positioned in this emerging region of the Northwest Territories that has had only limited exploration in the recent past."
The separate property blocks are divided into two main groups based on two main explorations targets: those of sediment-hosted copper affinity, termed the Proterozoic copper/silver properties; and those of Mississippi Valley-type affinity, termed the Paleozoic lead-zinc properties.

The copper/silver properties
The primary exploration target comprises sediment-hosted copper occurrences within Proterozoic sediments that are scattered over the 300-kilometre-long Redstone copper belt. The property includes claims within two of six structural embayments that host copper mineralization. Copper mineralization is typically hosted near the contact between an oxidized clastic sediment footwall and a reduced carbonate sediment hangingwall, which is typical for these deposits.

Numerous sedimentary copper occurrences have been discovered on two separate claim blocks. The Keele block is the largest of the claim blocks and contains five main copper showings and four other untested occurrences. The June showing was drill tested in the mid-1970s by Shell Canada Ltd. and returned drill results including 52 metres of 2.3 per cent Cu. Drilling at the Jay showing returned drill results including 12 metres of 2.7 per cent in one Shell drill hole. Both areas require additional drilling to determine the extent of the mineralization. Drilling by Phelps Dodge at the Ann showing resulted in 3.5 metres of 1 per cent Cu and 1.6 metres of 1.2 per cent Cu in two separate holes. This zone is considered to be open in all directions. All three of these showings (June, Jay and Ann) are hosted within the transitional stratigraphy between the underlying redbeds and overlying carbonates (typical for redbed copper deposits) and the same stratigraphic horizon as the Redstone deposit.
The Nite and Hammer/Pat Creek showings are hosted within carbonates that are stratigraphically higher than the June, Jay and Ann and contain copper mineralization that is structurally complex. Assays from surface exposures range from 13.7 metres of 1 per cent Cu in a trench to an average sample value of 1 per cent to 1.2 per cent Cu over 400 metres of surface strike length. Three holes drilled by Phelps Dodge in 2007 each penetrated one-metre-to-two-metre-thick mineralized intervals grading from 1 per cent to 2 per cent Cu.

The lead/zinc properties
The Mississippi Valley-style lead-zinc mineralization is hosted in structural and hydrothermal dissolution features in Devonian carbonates and occurs in numerous locations within three separate claim blocks (KAP, Boom, AdyJo). The KAP area contains drill intercepts by Cominco Ltd. of 9.5 metres of 25 per cent Zinc (Zn) and 13.5 metres of 16 per cent Zn. Gravity survey anomalies have been only partially tested by drilling. Nine high-grade zinc samples contained an average of 0.019 per cent gallium and 0.077 per cent germanium, both rare metals in high demand.
The qualified person for Stoneshield under National Instrument 43-101 is Mr. Ambrose, PGeo.

The option agreement
Under the terms of the option agreement, Stoneshield can acquire an initial 75-per-cent undivided interest in the Risby project by incurring a total of $3-million in exploration expenditures on the Risby project as follows: $600,000 in expenditures on the Risby project to be incurred in the first year following TSX Venture Exchange acceptance of the option agreement, $1-million in expenditures in the second year and $1.4-million in expenditures in the third year. In addition, Stoneshield will make cash payments of $40,000 to Andesite within 10 business days of acceptance, $60,000 to Andesite on the first anniversary date of acceptance and $100,000 to Andesite on the second anniversary date of acceptance as well as issue to Andesite 500,000 shares of the company within 10 business days of acceptance, 500,000 shares on the first anniversary date of acceptance and 500,000 shares on the second anniversary date of acceptance.

Stoneshield has a further option to acquire an additional 25-per-cent undivided interest (for a total 100-per-cent interest) in the Risby project by either: paying to Andesite $3-million; or incurring an additional $3-million in expenditures by the fifth anniversary date of acceptance, paying to Andesite $100,000 on the third anniversary date of acceptance and $100,000 on the fourth anniversary date of acceptance, and issuing to Andesite one million shares on the third anniversary date of acceptance and one million shares on the fourth anniversary date of acceptance. Andesite shall retain a 2 per cent net smelter returns royalty.

Purchased more Ratel Gold at $1.45 today

Ratel gold seems to forging ahead with it's 60% interest in the King King property in the Philippines. Not only has CGA Mining has taken a significant position in Ratel Gold.
It appears that Bank of Montreal, CIBC and Dundee Securities likes Ratel Gold also by raising $40 million at $1.22/share.

RATEL GOLD ANNOUNCES UPSIZING AND PRICING OF C$40 MILLION MARKETED PRIVATE PLACEMENT
Ratel Gold Ltd. has upsized its previously announced offering to 32.8 million subscription receipts at a price of $1.22 per subscription receipt for gross proceeds of $40,016,000. The offering is being sold by a syndicate of agents led by Bank of Montreal's BMO Capital Markets and including Canadian Imperial Bank of Commerce and Dundee Securities Corp.
Ratel is currently undertaking a series of transactions, including the acquisition of a right to earn up to a 60-per-cent interest in the King-king property and the spin-out of its interests in the Segilola gold project in Nigeria, the Mkushi copper project in Zambia and the Obuasi joint venture in Ghana. The proceeds of the offering will be held in escrow, pending satisfaction of various escrow release conditions, including the closing of the acquisition, Toronto Stock Exchange approval of the offering and other approvals as may be required by the TSX. Each subscription receipt will represent the right to receive one postspin-out common share of Ratel, without the payment of any additional consideration, upon the satisfaction of the release conditions.
The offering is expected to close on or about Dec. 22, 2010, and the acquisition is expected to close on or before Jan. 6, 2011, with the satisfaction of the escrow release conditions shortly thereafter (or such later date being one day following satisfaction of any required shareholder approval). If the escrow release conditions have not been satisfied within 60 days of the closing of the offering, the proceeds of the offering will be refunded to the holders of the subscription receipts issued under the offering.
The net proceeds of the offering will be used for the preparation of a feasibility study on the King-king project in the Philippines, possible advancement of the settlement process with Benguet Corp. and general working capital and administrative purposes.
Geoff G. Jones, FAusIMM, CP, MEng, chief executive officer of Ratel and a qualified person under 43-101, has reviewed the contents of this press release.

I sold out a position in Lithium One LI.V today to acquire more shares of Ratel, I will probably sell the balance of my Gunpoint Exploration GUN.V to further enhance my position in Ratel Gold.

Sold the balance of my Mineral Mountain Resources MMV.V today

I originally wrote about Mineral Mountain Resources back on October 6th when I bought 10000 shares at $0.37/share. I also posted on October 28th that I took a 54% profit on half my position. I left the balance of my shares in an open order at $0.70/share, which I sold today for a further 89% return.

At this point I will put Mineral Mountain on a watch list as the private placement that was closed back on September 16th. will come free trading by mid January 2011.

High Frequency Trading and Seafield Resources.

I found this Stockwatch article on high frequency trading and a reference to the huge volumes on Seafield Resources, SFF.V

It is interesting as the volume traded for Seafield in the last 2 days should have pushed the stock price over $1.00/share in my experience. It is suggested the volume does not reflect new shareholders putting away stock for future price appreciation.

This is the conclusion of the article posted on Stockwatch.

One TSX-V-listed company, Seafield Resources Ltd., is exhibiting what the United States Securities and Exchange Commission calls the "hot potato volume effect." This is when HFTs buy or sell to one other very rapidly. Eventually the stock will land in the hands of a fundamental investor, someone willing to hold the stock for more than a few seconds. On Friday, Dec. 3, Seafield rose 34 cents to 57 cents on 91.35 million shares. On Monday it continued its unnatural ways, adding six cents to 63 cents on 45.48 million shares. Opponents to HFT say the hot potato effect helps order execution but does not add true liquidity to the market. U.S. Commodity Futures Trading Commission chairman Gary Gensler has said repeatedly that "volume does not equal liquidity." Themis Trading's Joe Saluzzi agrees; he says playing hot potato is similar to circular trading, in which a group of traders work together trading a stock to make it look like the stock is on its way up before dumping it.

Playing hot potato sounds very similar to wash trading.

Considering the above I will step aside on Seafield until normalcy returns.

Sold at the open, Seafield Resources SFF.V

I sold my Seafield position from Friday at the open this morning at $0.74/share. My target repurchase price is around the $0.55/share range. The return on Seafield was a quick 94%. To bad I can't pull that off everyday.

Further Information on spinning out Ratel Golds African properties

The news of Ratel's King King acquisition dated October 18, 2010 Ratel indicated their intentions on spinning out their original African projects into a new company.

Ratel also plans to undertake a spin-off of the existing African assets of the Company, by way of an entitlement issue back to shareholders, with the entitlement date to be established prior to completion of the above mentioned transactions.

Further information has been filed on December 3rd. on Sedar in respect to the above mentioned spin off.

Ratel announced that it has transferred its African Properties to Ratel
Group, which is currently a wholly-owned subsidiary of the Company. In
connection with the spin-out, Ratel Group will undertake a financing by way of
subscription receipts to fund its future activities and to satisfy TSX original
listing requirements. The subscription receipts issued in connection with the
Spin-out Financing will be exchanged for shares of Ratel Group upon
completion of the spin-out. It is anticipated that insiders of the Company will
participate in the Spin-Out Financing up to their pro-rata ownership of Ratel.

CGA Mining CGA.T takes a bigger stake in Ratel Gold RTL.T

I found this Early Warning Report for Ratel Gold on Sedar. The short of it is CGA Mining is backing Ratel Gold's interest in the King King acquisition. CGA is buying 50 million out of 83 million $0.30/share financing units. When completed CGA will own 67.5 million shares of Ratel or 26.3%. (My apologies for some of the formatting)

CGA Mining Limited (“CGA”)
Level 5, BGC Centre
28 The Esplanade
Perth, Western Australia 6000

Designation and number or principal amount of securities and the offeror's security holding percentage in the class of securities of which the offeror acquired ownership or control in the transaction or occurrence giving rise to the obligation to file the news release, and whether it was ownership or control that was acquired in those circumstances:

On November 30, 2010, CGA acquired beneficial ownership and control, through CGX Holding  Pty Ltd., of 50,000,000 subscription receipts (“Subscription Receipts”) of Ratel Gold Limited (“Ratel”) that are exercisable into common shares (“Shares”) in the capital of Ratel. The
Subscription Receipts were acquired through a non-brokered private placement (the “Private
Placement”). Under the Private Placement, 83,333,334 Subscription Receipts were issued. CGA acquired beneficial ownership and control of 50,000,000 Subscription Receipts, representing approximately 59.9% of the issued and outstanding Subscription Receipts and, upon exercise, 19.5% of the issued and outstanding Shares.

Each Subscription Receipt issued under the Private Placement is automatically exercisable into
one Share upon satisfaction of the escrow release conditions (the “Conditions”). The
subscription price of a Subscription Receipt was CDN$0.30. The Conditions include, among
other things, (i) Ratel obtaining sufficient shareholder approval of the Private Placement and (ii)
the satisfaction or waiver of all conditions precedent to the completion of Ratel’s acquisition (the
“Acquisition”) of the King-king property in the Philippines.

Designation and number or principal amount of securities and the offeror’s security holding percentage in the class of securities immediately after the transaction or occurrence giving rise to the obligation to file the news release:

Immediately after the Private Placement, CGA beneficially owns and controls 50,000,000
Subscription Receipts, representing approximately 59.9% of the issued and outstanding
Subscription Receipts. Upon the exercise of its Subscription Receipts, CGA will beneficially
own and control an aggregate of 67,500,000 Shares, representing approximately 26.3% of the
issued and outstanding Shares, including 17,500,000 Shares that it beneficially owned and
controlled prior to the Private Placement.

Seafield Resources SFF.V enjoy the ride!

I managed to get in on Seafield Resources this morning at $0.38/share, as always I never buy enough of the high fliers. They had a pretty spectacular news release of 449 meters of 1.29 gram per ton gold.

There was about 40 million warrants outstanding and I am sure a majority of them got exercised today with 70 million shares trading hands.

I would assume the Company will have no problem raising money going forward and I expect news of financing very soon. I also believe the share price will continue it upward ascent.

 

The news release:

Seafield Resources Ltd. has released assay results from the first three drill holes at its Miraflores property at the Quinchia gold project, Risaralda, Colombia. The Quinchia project contains a number of porphyry and porphyry breccia open pit targets including the breccia-style deposit at Miraflores.
The Miraflores deposit currently contains an inferred mineral resource of 18.6 million tonnes grading 1.3 grams per tonne gold at a cut-off grade of 0.5 g/t Au for a total of 776,000 ounces of gold. Using a cut-off of 0.3 g/t Au, the inferred resources expand to 976,550 ounces gold. The mineral resource estimate is based on 3,624 metres of drilling in 10 diamond drill holes carried out in 2006 and 2007 and 154 underground samples. The current diamond drill program was designed to expand the resources and better delineate the porphyry intrusion breccia body which hosts the gold mineralization. Core logging from several of the current holes shows that the breccia body is more extensive at depth than was inferred from previous drilling. A total of 4,132 metres were drilled in 12 holes during the recently completed program.
Of the first three holes reported here, holes QM DH-01 and QM DH-02 were drilled at an inclination of negative 60 degrees to define the projected margin of the breccia body whereas QM DH-03 was drilled at an inclination of negative 50 degrees to a depth of 596 metres from the northeast contact to the southwest contact through the centre of the breccia body. Significant assay results from these first three holes are in the attached table.

Hole        From (m)      To (m)     Interval    Gold (g/t)

QM DH-01        70.9        82.9         12.2          0.66
               139.8       218.0         78.2          0.48
               264.5       270.5          6.0          0.59
               425.5       437.0         11.5          0.45
QM DH-02        59.2        93.2         34.0          0.80
QM DH-03        53.1       502.1        449.0          1.29
including      231.8       241.8         10.0          2.87
including     282.55       306.5        23.95          9.18

Note: Hole QM DH-03 contains some samples with bonanza
grades of up to 71.04 g/t Au over 2.0 m. The 
length-weighted average grades in the table are uncut, and 
where appropriate, grades are also shown cut to 20 g/t Au.

Geologically, the Miraflores breccia body consists of a number of variably mineralized, separate, intrusive porphyry breccia phases with the better gold mineralization being associated with a later clean breccia phase which is cemented by vuggy quartz, carbonate and epidote associated with pyrite, sphalerite, chalcopyrite and galena with local visible gold.
Seafield president Anthony Roodenburg stated, "With the best hole ever drilled on the Miraflores project, we are very optimistic that we will see an increase in the inferred resource, and our continuing exploration and drilling on the other porphyry targets on our large property will allow us to further increase resources in the district."

Hilltown Resources HLT.CNSX significant transaction!

I originally posted on Hilltown Resources on November 2nd. that the Company was looking for a project of significance. Today we got the announcement.

HILLTOWN SIGNS LOI ON IRON ORE PROJECT IN BRAZIL
Hilltown Resources Inc. has signed a letter of intent dated Nov. 29, 2010, with Tecstones Geologia Ltda. and Rubens Favarato of Brazil to option 11 mineral claims comprising 13,085 hectares located in Bahia state, Brazil. Hilltown can acquire the claims by (i) incurring exploration expenditures of $1.6-million (U.S.) in three years: year one -- $200,000 (U.S.), year two -- $400,000 (U.S.) and year three -- $1-million (U.S.); (ii) paying approximately $2,455 to keep the claims in good standing to 2012 and (ii) reimbursement of the owners' acquisition and exploration costs to a maximum of approximately $89,100.

The claims are subject to royalties which can be purchased by the company.
The iron ore royalty is 2.5 per cent of net sales proceeds (minus freight costs). The iron ore royalty can be purchased by the payment of either: (i) prior to drilling, $2-million (U.S.) or (ii) after drilling, an amount equal to $1.00 (U.S.) per tonne of iron ore above 60-per-cent-grade iron ore measured resource, with phosphorus levels of less than 0.06 per cent.
The manganese royalty is 2.5 per cent of net sales less freight which can be purchased for $1-million (U.S.) per percentage point for a total of $2.5-million (U.S.).
The base metals royalty is a 2-per-cent net smelter return which can be purchased for $1-million (U.S.) per percentage point for a total of $2-million (U.S.).
The claims are on Proterozoic-age marine meta-volcanic (greenstones) and meta-sedimentary stratigraphic sequences that include significant segments of banded iron formation (BIF). Exploration targets on the claims include small- to medium-sized (approximately 100,000 to two million tonnes), high-grade (approximately 40 per cent to 50 per cent Mn) submarine exhalative manganese deposits associated with submarine sediments and volcanics, and small- to medium-sized (10 million to 50 million tonnes), high-grade (greater than or equal to 50 per cent Fe) BIF iron deposits. Strike lengths of prospective BIF covered by the claim blocks range up to 12 kilometres. Access and potential ore transport logistics are considered good throughout most of the areas of interest.
The technical information disclosed in this press release has been reviewed, verified and compiled by Dr. Kent Ausburn, PGeo. Dr. Ausburn is a qualified person as defined by National Instrument 43-101 (NI 43-101). Dr. Ausburn has over 29 years of mineral exploration experience and holds the following degrees and professional memberships:

• PhD economic geology -- University of North Carolina -- Chapel Hill;
• MS economic geology -- Florida State University -- Tallahassee;
• BS geology -- Florida State University -- Tallahassee;
• Member -- Society of Economic Geologists -- 28 years;
• Registered professional geologist -- state of California, United States -- since 1992.

Hilltown is terminating its option of the Jackson Manion claims located in the Red Lake mining division of Ontario. The results of this summer's exploration program were reported in Hilltown's Stockwatch news release dated Sept. 7, 2010.