Mr. Akash Patel reports
DISCOVERY VENTURES INC. SIGNS A LETTER OF INTENT TO ACQUIRE THE WILLA GOLD DEPOSIT
Discovery Ventures Inc. has signed a letter of intent to enter into negotiations and to complete technical due diligence with the intent of acquiring up to 80-per-cent interest in the mineral claims located in the Slocan mining district of British Columbia known as the Willa deposit. The mineral property consists of 5,328 hectares and is located south of the town of Silverton, B.C.
The deposit has been extensively explored and developed to by several operators, including Noranda, Rio Algom, BP Minerals, Bethlehem Resources Corp., Northair Mines Ltd. and Hudson Bay Mining & Smelting. An extensive database is under review which covers work that includes 596 drill holes totalling 189,000 feet (57,250 metres) of core drilling and 8,500 feet (2,575 metres) of underground workings, extensive geophysics and sampling consisting of 17,150 analyses for gold, copper and silver.
The Willa deposit is primarily identified as a subvolcanic breccia-hosted type deposit (L01, B.C. Mineral Deposit Profiles). A subvolcanic intrusive is located near or above a porphyry hydrothermal system. This creates a pyrite and silica-rich mineralized stockwork breccia closely spaced to sheeted veins with local massive to disseminated replacement zones. The mineralization is usually polymetallic (copper-silver-gold (arsenic-antimony)).
This letter of intent will serve as the basis for negotiating a definitive agreement. Company president Akash Patel comments, "We believe the Willa project will offer Discovery Ventures shareholders significant value in today's exciting gold market."
The agreement may be effected in one of several different ways, most likely an option to acquire the claims by Discovery Ventures from 0951719 B.C. Ltd. The parties will jointly determine the optimum structure for the transaction in order to best satisfy regulatory and other considerations, including mutually agreed upon performance based milestones.
The agreement purchase payable by Discovery to 0951719 B.C. shall consist of an agreed upon consideration by both parties. The closing conditions will include the completion of a National Instrument 43-101-compliant technical report on the Willa property and subsequent approval by the exchange. The due diligence period shall be a maximum of 30 days.
We seek Safe Harbor.
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