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Sanatana Resources Inc
Symbol STA
Shares Issued 152,229,834
Close 2018-10-17 C$ 0.025
Market Cap C$ 3,805,746
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Sanatana to acquire Tirua project in Solomon Islands

2018-10-24 11:47 ET - News Release

Mr. Peter Miles reports

SANATANA ANNOUNCES LETTER OF INTENT TO ACQUIRE PORPHYRY COPPER-GOLD PROJECT IN THE SOLOMON ISLANDS

Sanatana Resources Inc. has provided the details of the acquisition of the Tirua project to its shareholders.

The Tirua project, hosted in the 15-kilometre-wide (68 square kilometres in area) Tirua volcanic caldera, is located on New Georgia Island in the Western Province of the Solomon Islands, part of the South Pacific archipelago of volcanic islands around the Ring of Fire. This chain of islands is renowned for hosting large copper and gold deposits, extending from Papua New Guinea in the northwest to Fiji to the southeast, most notably the giant epithermal Ladolam gold deposit on Lihir Island and the copper-gold porphyry Panguna deposit on Bougainville, immediately west of New Georgia Island.

Pursuant to a prospecting agreement, which is subject to TSX Venture Exchange approval, signed with Trevor Wright, Sol Mar Por Pty. Ltd, Brian D. Edgar, and Stadnyk and Partners, the company, through its Solomon Islands wholly owned subsidiary ExSol SI Ltd., has received notice of a letter of intent from the Ministry of Mines, Energy and Rural Electrification to issue a prospecting licence subject to the completion of surface access agreements, which will allow for exploration of the Tirua project.

A presentation outlining and detailing the Tirua project will be posted shortly on Sanatana's website.

Sanatana will be working with Trevor Wright, MSc (geology), who has approximately 20 years experience in gold and copper projects in the Southwest Pacific. Mr. Wright and his team, which brings expertise in community relations, support and logistics, will partner with Sanatana's Buddy Doyle, who spent eight years in Papua New Guinea and was instrumental in the discovery, definition and decision to mine phases of the world-class Lihir gold mine. Mr. Wright undertook surface and geophysical studies at Tirua that led to a six-hole drill program being conducted. This and other limited work have demonstrated that the Tirua caldera has gold and copper mineralization, much of which, including significant targets developed by Mr. Wright, remains untested and underexplored.

Highlights of past exploration:

  • Drilling -- the best intervals from 11 drill holes ran 62 metres of 0.45 per cent copper from surface and three metres of 2.52 grams per tonne gold from 98 metres;
  • Trenching -- 15 metres of 1.16 grams per tonne gold (open);
  • Maximum rock-chip float samples of 37.7 grams per tonne gold, 201 grams per tonne silver and 0.25 per cent copper;
  • Maximum soil samples of 10.7 grams per tonne gold, 322 grams per tonne silver and 0.29 per cent copper;
  • Completion of airborne magnetic and radiometric survey over the entire caldera highlighting a distinct ring structure;
  • Widespread alteration and porphyry copper-goldand epithermal gold mineralization associated with geophysical/structural interpretations.

Note that previous exploration was conducted between 1983 and 2013, and the data have been verified by Mr. Wright from open-file reports obtained from the Ministry of Mines, Energy and Rural Electrification. These samples may not be indicative of future results.

Peter Miles, president and chief executive officer of Sanatana, stated: "We are excited to acquire the Tirua project. In our opinion, the limited work done at Tirua to date has shown it to have extensive and significant mineralization in a world-class underexplored geological setting. Sanatana is in a unique position to maximize the potential of the project by combining Buddy's knowledge of caldera geology and logistics gained through his experience at Lihir and Trevor's similar experience at Tirua."

Buddy Doyle, vice-president of exploration, stated: "The Tirua project is in a geological setting with a large mineralized alteration system that has seen only minimal historic drill testing, leaving many high-priority exploration areas and specific targets untested. I look forward to helping with the future exploration of this exciting opportunity."

Sanatana's exploration and management teams are planning to visit the Tirua project shortly in order to plan exploration and to begin the process to acquire the necessary surface access agreements, which are expected to be in hand before Christmas.

The terms of the agreement are:

  1. Within 10 business days of the issuance of the prospecting licence, 25 million shares of the company will be issued to the vendors.
  2. Within 10 business days of the receipt by the company of a resource report prepared in accordance with National Instrument 43-101, Standards of Disclosure for Mineral Projects, indicating a minimum resource of one million ounces of gold (or gold equivalent if other metals are considered to be economic), 3.75 million additional shares of the company will be issued to the vendors.
  3. Within 10 business days of the receipt by the company of a resource report prepared in accordance with NI 43-101 indicating a minimum resource of two million ounces of gold (or gold equivalent if other metals are considered to be economic), 3.75 million additional shares of the company will be issued to the vendors.
  4. Within 10 business days of the receipt by the company of a resource report prepared in accordance with NI 43-101 indicating a minimum resource of three million ounces of gold (or gold equivalent if other metals are considered to be economic), 3.75 million additional shares of the company will be issued to the vendors.
  5. Within 10 business days of the receipt by the company of a resource report prepared in accordance with NI 43-101 indicating a minimum resource of four million ounces of gold (or gold equivalent if other metals are considered to be economic), 3.75 million additional shares of the company will be issued to the vendors.

The information in this news release was prepared under the supervision of Buddy Doyle, BAppSc (geology), MAusIMM, vice-president of exploration for Sanatana. Mr. Doyle is a qualified person for the purposes of NI 43-101 and has reviewed and approved the technical information disclosed in this news release.

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