Corsa Outlines 2008 Exploration Program for Sy Gold Property
Vancouver, B.C. – Corsa Capital Ltd. (CSO:TSX-V) today announced the 2008 exploration plan for the Sy Gold Property, Nunavut, Canada. The property consists of 44 mineral claims totaling 460 sq km, and is situated 870 km east of Yellowknife and 300 km southwest of Rankin Inlet. Corsa has an option to earn up to a 60% interest in the Sy Project from Kaminak Gold Corporation (KAM: TSX-V). 2008 exploration activities are focused on identifying potential drill targets for the 2009 field season.
Work at the Sy Project is set to commence in August and will consist of prospecting and soil/till sampling. GeoVector Management Inc. of Ottawa, Ontario will manage the exploration program. Budgeted expenditures for the program are currently set at CDN$350,000. Supply, logistical and operating costs have been substantially reduced through the use of a nearby operator’s exploration camp and some common geotechnical personnel.
Corsa completed a small exploration program in 2007 on the Sy Property. Assay results confirmed historic work done on the property by previous operators and identified several new gold and base metals targets. (See Prospectus on www.sedar.com)
One advantage Corsa has over previous operators is the possession of a comprehensive geophysical dataset from an airborne survey which was flown over the Sy Property in 2006 by Kaminak. Fieldwork in 2007 proved that the new geophysical data works very effectively as an exploration tool; target areas for 2008 were generated from this data. Five such target areas will be the focus of the 2008 prospecting and geochemical sampling work.
About the Sy Property
The geology of the “Sy Greenstone Belt” is similar to other gold-bearing greenstones in the Kivalliq Region of Nunavut, including the greenstone belts that host the Meadowbank and Meliadine gold deposits. Each of these belts contains abundant gold-bearing banded iron formation that has undergone significant shearing and deformation. The Sy greenstones have seen only minor exploration compared to these adjacent belts-only about 1% of the belt has been evaluated due to poor outcrop exposure.
Limited historical exploration by Homestake Ltd. in this poorly exposed belt resulted in the discovery of at least 20 individual high grade gold occurrences over a strike length of 30 km. Known mineralization is related to sheared and altered iron formation. Historical surface samples from the “SY-13 Grid” returned assays as high as 38.8 g/t Au. Approximately 3000 m of drilling in 1986/87 confirmed the continuity of gold mineralization and yielded intercepts of 3.38 g/t Au over 3.50 m and 3.18 g/t Au over 7.00 m. Visible gold was noted in both these holes and described in detail on drill logs. Significantly anomalous, historical surface samples and historical drill intercepts (>5.0 g/t Au) were also reported from the “SY-4”, “KR-10”, and “WAD Grids”. Visible gold was also noted from each of these occurrences.
Disclosure of a technical nature contained in this release has been reviewed and approved by Mr. Joe Campbell, P.Geo. of Geovector Management Inc. who serves as the Qualified Person under the definition of National Instrument 43-101. Historical exploration information and assay results were collected before the introduction of NI 43-101. The Company has no way of verifying the results, thus the historical data should not be relied upon.
The Sy Property Agreement
As part of a Letter Agreement signed on July 20, 2007, Corsa can earn a 51% interest in the Sy Property from Kaminak by making $1,000,000 in exploration expenditures on the Sy Property and issuing 300,000 Units of Corsa to Kaminak before December 31, 2010. As part of this Agreement, the Company has now issued Kaminak 100,000 Corsa “Units.” (See Corsa news release on April 22, 2008). Each Unit consists of one common share and one common share purchase warrant. Each warrant is exercisable for a 12 month period following the date of issuance at a price per common share determined by the weighted average closing price of the common shares of Corsa for the 20 consecutive trading days immediately prior to issuance, or such other price which is acceptable to the pertinent regulatory authorities.
To earn a total cumulative project interest of 60% in the Sy Property, Corsa has the option to make additional exploration expenditures of $1,000,000 on the property and issue an additional 100,000 Units of Corsa to Kaminak prior to December 31, 2011.
If Corsa meets its $1,000,000 expenditure obligation and issues 300,000 Units to Kaminak by December 31, 2010, a Joint Venture will be formed with Corsa holding a 51% working interest and Kaminak holding a 49% interest. Corsa then has the option to increase its working interest in the Joint Venture to 60%, leaving Kaminak with a 40% working interest in the Sy Project. The parties will contribute to Joint Venture expenditures pro rata in accordance with their interests held. Non-contribution by either party will result in pro rata dilution of interest down to a minimum of 5%, which will then be converted to a 5% net profits interest (“NPI”). The mineral rights to the Sy Property do not include diamond rights, which are held by Indicator Minerals Inc. and Hunter Exploration Group. There is a 2% net smelter royalty/gross over-riding royalty (“NSR/GOR”) payable to Hunter Exploration Group. Corsa will be project operator for exploration programs at the Sy Property.
About Corsa Capital
Corsa Capital Ltd. is a Vancouver, BC based mineral resources company. Between the management team, board of directors, and advisory board, Corsa has a wealth of relevant experience in mineral resource property acquisition, exploration and development. The Company intends to leverage this experience to acquire additional properties and build a valuable portfolio of projects. Please visit www.corsacapital.com for more information.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
Certain disclosures in this release, including management's assessment of Corsa’s plans and the Sy Property, constitute forward-looking statements that are subject to numerous risks, uncertainties and other factors relating to Corsa's operation as a mineral exploration company that may cause future results to differ materially from those expressed or implied in such forward-looking statements. Readers are cautioned not to place undue reliance on forward-looking statements. Corsa expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise.