TORONTO, ONTARIO--(Marketwire - Sept. 19, 2012) - Strike Minerals Inc. (TSX VENTURE:STK) ("Strike" or the "Company") announces that the Company has issued 3,000,000 common shares to purchase mining equipment to be used to place the Edwards gold mine property into production. The shares have been issued at $.07 per share reflecting the share price at the time of agreement.
Strike has been finalizing underground plans and a budget to commence underground production at Edwards. The acquisition of this equipment, primarily small tools and support materials from a contractor, will assist in the development of the project.
The Company is continuing underground development on both the 60m and 90m levels of the mine that has included approximately 124m of drifting on three new mineralized veins. As a result the Company now has approximately 1,000 tonnes with an average grade of 13.70 g/t stockpiled on surface.
Strike Minerals is a TSX-V listed company that is engaged in the exploration and development of precious metal properties in Canada. Its primary property is the former producing Edwards Gold Mine property in the Goudreau - Lochalsh Gold Camp near Wawa Ont. Historic production in the camp between 1930 and 2001 is estimated at 500,000 ounces. Between 1996 and 2001 underground development was completed through a decline to a depth of approximately 290 m and mining over the period resulted in 145,000 oz being produced from the Edwards property at an average grade of 0.39 opt. Subsequent drilling on the property has delineated an additional five zones that have significant gold mineralization. At present Strike has dewatered the underground workings below the 140m level and is now continuing underground development on both the 60m and 90m level with a plan to be in production in 2012.
Strike also has a large land position in the Hemlo West area near Schreiber, Ontario. The property has a number of historic producers that produced small tonnages of very high grade gold mineralization, averaging approximately 18-25 g/t gold, between 1935 and 1937 generally associated with shear zones in the region. These shear systems have seen very little modern exploration, and drill testing at or near a prominent syenite volcanic contact is considered highly prospective for the discovery of additional gold mineralization. Strike's initial drilling at Harkness-Hays resulted in a number of mineralized intersections that contained visible gold. Strike will continue a program of surface geological and alteration mapping on the Property with a goal of increasing the understanding of the geologic and structural relationships on the Property and continue drill testing to assess the extent and value of the mineralization.
Certain information set forth in this news release may contain forward-looking statements that involve substantial known and unknown risks and uncertainties. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond the control of Strike, including, but not limited to, the impact of general economic conditions, industry conditions, volatility of commodity prices, risks associated with the uncertainty of exploration results and estimates and that the resource potential will be achieved on exploration projects, currency fluctuations, dependence upon regulatory approvals, and the uncertainty of obtaining additional financing and exploration risk. There is no assurance that the Company's exploration projects will add to Strike's resource base in the short-term, or at all. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.