Hudson River Minerals Ltd. (“Hudson River”) (TSX-V:HRM) announces an agreement to purchase the Zarn Lake Gold Property located in the Patricia Mining Division in the Province of Ontario.
Hudson River has an option to purchase a 100% undivided interest in three unpatented mineral claims totaling 493 hectares. The claims, located in Zarn Lake Township, are accessible by road via Highway 642. The option is based on cash payments totaling $165,000, work comittments totaling $1 million and payments of HRM Common Shares totaling 500,000 with payments spread out over four years. The claims are also subject to a 2% NSR of which 1 percentage point can be repurchased for $1 million.
The Zarn Lake Property includes the former Alcona Gold Mine which was active in 1936-1937. During this time a shaft was sunk to 99 meters and two levels cut (55 and 93 meters). During the 1990s additional quartz veins with high-grade gold were identified. A more recent sampling program in 2010 returned anomalous gold (up to 3.0 gpt) in the wall rock adjacent to the known quartz veins and further high-grade gold within the known quartz veins with the highest grade returning 8.5 oz/t Au (~269 g/t Au). The main quartz vein has been traced for a distance of 600 meters and remains open in all directions. There are at least three known gold-bearing quartz veins on the property.
Hudson River will initiate a sampling and trenching program in late spring 2011 with a possible drill program in early fall 2011. Commenting on Zarn Lake, Hudson River President & CEO Steve Balch stated “the property is under-explored and fits nicely with our strategy of advancing grass-roots exploration programs. Access is good and exploration costs will be comparatively low. We look forward to advancing this excellent property quickly”.
This document may contain forward-looking statements relating to Hudson River’s operations or to the environment in which it operates. Such statements are based on operations, estimates, forecasts and projections. They are not guarantees of future performance and involve risks and uncertainties that are difficult to predict and may be beyond Hudson River’s control. A number of important factors could cause actual outcomes and results to differ materially from those expressed in forward-looking statements, including those set forth in other public filings. In addition, such statements relate to the date on which they are made. Consequently, undue reliance should not be placed on such forward-looking statements. Hudson River disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, save and except as may be required by applicable securities laws.