December 27, 2007
ATW Venture Corp (ATW: TSX-V) (Frankfurt: A3N), (“ATW” or “the Company”), is pleased to announce that it has closed its purchase of 100% of the Burnakura Gold Mine Project and its assets (collectively, the “Burnakura Project”) located in the West Yilgarn goldfields of Western Australia.
ATW paid for the purchase of the Burnakura Project by:
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Paying to the Vendors cash consideration of AUD$4,000,000;
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Issuing to the Vendors 5,000,000 ATW common shares which are subject to a hold period expiring on April 18, 2008; and
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Issuing to the Vendors 5,000,000 ATW warrants exercisable for a period of three (3) years at an exercise price of $0.79. The shares underlying the warrants are subject to a hold period expiring on April 23, 2008.
A finder's fee of 450,000 shares was payable to an arm's length party in connection with the acquisition of the Burnakura Project.
INFORMATION REGARDING THE BURNAKURA PROJECT AND ITS PRODUCTION AND OWNERSHIP HISTORY
Project Location
The Burnakura project is located in the western part of the Yilgarn craton, Western Australia, home to deposits of gold, nickel, bauxite, mineral sands and tantalum. Past production from the western Yilgarn exceeds 17,000,000 ounces of gold production.
The project lies in the Murchison gold mineral field some 50 kilometres south of township of Meekatharra, population of approximately 1000 people. Meekatharra is a mid west town accessed by a paved highway 764 kilometres north of the capital city Perth. The town is a major supply centre for pastoral and mining in the Murchison district.
Current Ownership & History
The project is currently owned by two parties Extract Resources Limited (EXT) and Tectonic Resources NL (TTR). Extract originally purchased the project and brought Tectonic in as an operating partner. In 2005, Extract and Tectonic agreed to commence underground production by creating a portal and decline access to ore below the "NOA 2 open cut". Milling began late 2005 and ceased early 2007.
A change in commodity focus for both companies (in particular, a wish for Extract to focus on uranium and Tectonic to focus on base metals) led to their decision to divest the asset and enter into the Agreement with ATW.
Prior to underground production from 2005 to 2007, the Burnakura Project was mined during the 1990’s for shallow open cut oxide to supplement an existing operation some 25km away.
Current JORC Resources
In 2005 and subsequently, Extract and Tectonic publicly released JORC compliant estimates of the resources or reserves at the Burnakura Gold Mine.
These estimates and the news releases of Extract and Tectonic are available from various sources. Extract Resources Limited (ASX: EXT) and Tectonic Resources NL (ASX: TTR) are both publicly traded companies in Australia, trading on the ASX.
The Company cautions readers that, while NI 43-101 and CIM Guidelines do accept JORC estimates when they are reconciled to CIM Guidelines and, in particular, to CIM definitions and classifications, the JORC estimates made available by Extract and Tectonic have not been reconciled to CIM Guidelines, nor have the estimates (or the geology associated with them) been independently confirmed by the Company.
As stated above, the Company is presently completing an NI 43-101 geological report (the "Report") to provide both itself and investors with NI 43-101 compliant information regarding the Burnakura Project.
Investors are also cautioned that most of the JORC resources reported by the Vendors of the Burnakura Project lie above 100m in depth and little drilling has been completed below 100m (in fact, only 1.6% of the total drilling).
Historically, controls on the mineralization have been poorly understood. East-west structural controls played an important part of in hydrothermal fluid movement and gold deposition. Grades up to 25g/t have been intersected in these zones. Due to the paucity of core drilling below surface, these domains have not been modeled. It is only recent underground mining that has highlighted the importance of these structures.
Potential Exploration
The potential of the Burnakura Assets has not been fully ascertained or explored and the Company intends to conduct further exploration in conformity with recommendations to be made in the Report.
While the exact exploration program the Company would undertake has not been determined yet, and will not be determined until the Report is completed, the Company will likely incorporate known structural information obtained from underground mining and implement a drilling program.
ADDITIONAL COMMENTS
The planned acquisition of the Burnakura Project reflects ATW’s goal to develop into a junior producer with a portfolio of properties at various stages of development. When completed, the Burnakura Project acquisition would be the most advanced of the Company's properties but the Company will continue to explore and develop its Argentina and British Columbia properties.
"This is an exciting opportunity for ATW," says Brent Butler, President and CEO. "When we succeed in closing and in bringing the Burnakura Project back to production we will have, in our first year, become a junior gold producer. We look forward to the challenges we are facing in the coming year."
Brent Butler, President and CEO of ATW Venture Corp. is the qualified person under National Instrument 43-101 and has reviewed the contents of this news release.
For more information, please visit the company website at www.atwventure.com or contact Luke Norman at 604 662-8184.
ATW VENTURE CORP.
“Brent Butler”
Brent Butler
President & CEO
“The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.”
“This news release may contain forward –looking statements. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements.”
“This news release does not constitute an offer to sell or a solicitation of an offer to sell any securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "US Securities Act") or any state securities laws and may not be offered or sold within the United States or to US Persons unless registered under the US Securities Act and applicable state securities laws or an exemption from such registration is available.” |
