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George's Lake Project, La Ronge, Saskatchewan
(mineral -- gold (Au))
The George's Lake gold property is located in the La Ronge , Saskatchewan , gold belt 15 Km SSE of the producing Seabee Gold Mine. The property hosts numerous quartz / tourmaline structures that contain very interesting gold values over significant widths. Limited drilling to date indicates gold values at depth below the surface showings. The local and regional geology of the area is a favorable host for gold mineralization. The nearby Seabee Mine has produced over 700,000 ounces of gold to date.
The original property totals 979 hectares or 1566 acres. War Eagle Mining Company Inc. (the "Company") has entered into a Letter of Intent with Yankee Hat Minerals Ltd. ("Yankee Hat") a British Columbia corporation, (TSX Venture Exchange: KHT), whereby Yankee Hat may acquire a 70% interest (the "Property"). To exercise its option Yankee Hat must incur exploration expenditures on the Property totaling $1,500,000 by December 31, 2010.
Under the terms of the Letter of Intent, Yankee Hat will be granted, subject to an existing 0.5-per-cent Net Smelter Return Royalty ("NSR") and a 10-per-cent carried interest owned by an unrelated party, sole and exclusive rights to earn up to 70-per-cent interest in the property in consideration of incurring a total of $1.5 million in expenditures on the property over a period of three years. Of the 10 per-cent carried interest, 5-per-cent may be purchased at any time for a payment of $2.0 million Cdn. and the 0.5 per-cent NSR can be purchased at any time for one-time payment of $250,000 Cdn.
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