TORONTO, ON / ACCESSWIRE / October 9, 2019 / Razore Rock Resources Inc. ('Razore Rock' or the 'Company') (CSE:RZR) wishes to announce that it has signed an Option Agreement with True North Gems Inc. ('True North') to earn up to a 70% working interest in the True Blue Property in the Yukon Territory.
The True Blue Property consists of 68 mining claims in the Ketza-Seagull district of the Southern Yukon in the Watson Lake Mining District comprising 13.3 square kilomtres. The property is located approximately 166 km northeast of Whitehorse.
The occurrence of rare earth element ('REE') mineralization in the region of the True Blue Property was first discovered in 1956 when regional uranium exploration identified the presence of radioactive fluorite and barite in a syenite stock. This discovery was further confimed when additional REE showings were described from the results of exploration programs conducted in 1976.
Exploration work conducted at True Blue Property in 2010 defined a coherent REE anomaly collected from soil sampling traverses across the airborne radiometric anomaly coincident with a mineralized dyke. From the 147 soil samples retrieved from the True Blue Property in 2010, twelve (12) sample analyses were in the top 5% (>95th Percentile) of the population of sample results collected as part of the regional exploration program.
These anomalous results range in value from 850 to 1862 ppm, some of which contribute to what is described as a coherent Total Rare Earth Element plus Yttrium (TREE+Y) anomaly on the True Blue Property (Fumerton, S., and Halpin, K. (2010). Geological report on the True Blue Project describing the geology, geochemistry and REE mineralization of the Shark Property).
See table below for detailed results of the REE soil analyses.
A field program of prospecting and remote sensing is currently underway at the True Blue property.
Razore Rock can earn a 70% interest in the Property by incurring expenditures in the aggregate amount of $300,000 over three years and issuing an aggregate of 600,000 common shares with 200,000 shares to be issued on closing; a further 200,000 shares to be issued on or before November 30, 2020; and a further 200,000 shares to be issued on or before November 30, 2021. True North is undertaking an exploration program on a group of claims that includes the True Blue Property. Razore Rock has agreed to reimburse True North for its pro-rata share of the costs of the exploration program in the amount of approximately $50,000 based upon assessment work to be filed by True North on the Property in the amount of approximately $50,000. Once the Company earns its 70% interest, the parties will form a joint venture and contribute pro-rata (Razore Rock 70%, True North 30%) to the further exploration and development of the Property. If a party is reduced to a 10% or less interest in the Property, that party's interest will be reduced to a 2% net smelter returns royalty with the right of the remaining party to acquire a 1% net smelter returns royalty at any time for the payment of $1,000,000.