LITHIC OPTIONS STOKE MOUNTAIN COPPER-ZINC-SILVER PROPERTY IN QUEBEC
June 20, 2005
Lithic Resources Ltd. (LTH-TSX Venture) (the “Company”) is pleased to announce that it has signed an option agreement whereby it can earn a 100% interest in the Stoke Mountain copper-zinc-silver property centred about 20 kilometres northeast of the town of Sherbrooke in southeastern Quebec. A variety of roads surround and cross the property allowing for easy access.
The property is situated in the Dunnage tectonic zone where it extends into Quebec from Newfoundland and New Brunswick. The Dunnage zone is known for hosting the Buchans VMS (volcanogenic massive sulphide) deposit from which 16.2 million tonnes (mt) of ore grading 14.5% zinc, 7.6% lead, 1.3% copper, 126 gpt silver and 1.37 gpt gold were mined by Asarco from 1928 to 1984. Other significant VMS deposits and occurrences in the zone include Aur Resources’ Duck Pond deposit with reserves of 4.1 million tonnes at an average grade of 3.3% Cu, 5.7% Zn, 59 gpt Ag and 0.9 gpt Au (in development) and Messina Minerals’ Boomerang VMS discovery on its Tulks South property.
Previous work on the Stoke Mountain property located a number of VMS occurrences hosted in a very prospective sequence of mafic flows, felsic fragmental rocks and black shales belonging to the Ordovician Ascot Weedon Formation. Elsewhere in the region, the Ascot Weedon hosts numerous small VMS deposits mined in the past, including the Cupra-d’Estrie (2.43 mt at 3.28% zinc, 2.74% copper, 38 gpt silver), Solbec (2.06 mt at 4.57% zinc, 1.57% copper, 48.6 gpt silver) and Suffield (1.39 mt at 7% zinc, 0.9% Cu, 0.5% lead, 91.2 gpt silver and 2.7 gpt gold).
Between 1997 and 1999, Phelps Dodge carried out grid-based mapping, soil sampling and IP (induced polarization) surveying over portions of the property, ultimately drill-testing a variety of IP targets. Several zones of base metal mineralization were intersected, including 5.1 metres grading 6.34% copper and 27.3 ppm silver consisting of disseminated and stringer chalcopyrite mineralization in a strongly chloritized mafic volcanic rock thought to represent footwall style VMS alteration. Another target about 100 metres distant returned a 0.35 metre intercept of bedded massive sulphides and barite which graded 2.4% zinc, 2.5% lead, 52.6 gpt silver and 850 ppb gold.
The Company believes the property is under-explored and has excellent potential for an economic, base metal VMS deposit with significant precious metals values on the basis of its geological setting, more than a 15 kilometre strike length of favourable stratigraphy and the presence of well-defined VMS-style mineralization and alteration. It plans an initial program of compilation, detailed geological mapping, geochemical soil sampling and whole rock geochemistry to further refine targets and identify new ones, to be followed by drilling.
The terms of the agreement are such that the Company can earn a 100% interest in the property from the vendors, subject to a 2% NSR royalty, by making cash payments totalling $155,000, issuing a total of 425,000 shares and spending $975,000 on exploration over a period of four years. The first year obligations include a cash payment of $15,000 and the issuance of 50,000 shares on signing along with an expenditure commitment of $75,000. One half of the NSR royalty may be purchased by Lithic at any time for $500,000. The agreement is subject to approval by the TSX Venture Exchange.
For further information please contact Chris Staargaard at 604-687-7211 or visit www.lithicresources.com.
LITHIC RESOURCES LTD.
President and CEO
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.