Lakota Resources announces next Monday, diamond drilling to start at ...

Tag : diamond

LAK: TSX-V
TORONTO , Oct. 9 /CNW Telbec/ - Ian F.T. Kennedy, President and CEO of LakotaResources Inc. (LAK: TSX-V) (the "Company") is pleased toannounce that drilling on its Tembo Property will commence next Monday, October 13, 2008 . Further, the previously announced non-brokered private placementof common share units has been closed and final approval has beenreceived from the Toronto Venture Exchange. The Company has also received notice from MDNInc. of its intention to reduce the Company's interests in theIsambara JV to a 1% NSR as provided for in the joint ventureagreement.
TEMBO DRILL PROGRAM TO START NEXT MONDAY
Next Monday, October 13, 2008 , Lakota will commence an initial, 2,000 metre diamond drillprogram of 12 holes at the Tembo Project in Tanzania on one of the prime targets for gold in quartz vein mineralisationwithin the Archaean green stone sequence. The Tembo property iscontiguous to, and six kilometres west of, Barrick's Bulyanhulugold mine.
The Tembo property itself is 112 square kilometres in size andLakota has spent, directly or indirectly, more than $2-million (U.S.) in exploration on the property, with more than 40,000metres of rotary air-blast (RAB) and reverse circulation (RC)drilling and 35,000 samples taken. Tembo has more than 40 goldanomalies at the base of the overburden or in the underlyingsaprolite in addition to several artisanal gold sites, all of whichare untested by drilling. Regardless, next week's diamond drillingprogram will be focussed on the principal area of historic goldworkings within the property, in the part of a major regionalstructure that Lakota has termed the 'sweet spot'. The target area,Target 7, lies immediately beneath extensive artisanal workingswhere local Tanzanian miners have been extracting gold from quartzveins for more than 40 years.
The Target 7 area lies within a former Primary Mining License, PML625 which was purchased by Lakota in 2000. It was only dissolvedinto Lakota's surrounding licence in late 2007, once protractedestate issues of the previous owner were resolved. The drill targetarea has not been tested geochemically, nor drilled as Lakota didnot have access until estate issues were resolved. Lakota now hasfull access to the area and the artisanal miners have, byagreement, decamped from the property.
The drill program will consist of approximately 2,000 metres ofdiamond drilling in 12 holes, each of which is anticipated to be150-200 metres in length spread over at least 400 metres of strike.Within this area, an east-west zone of gold-bearing quartz veinshas been identified as well as at least four northwest-trendingmineralized crossing structures. The appended map illustrates theextent of the Artisanal workings. Each black square is a shaft inhard rock and the circles represent shafts in the eluvial rubble.It is anticipated that the drilling will begin on the southernportion of the target with DD holes 4 and 5. (see http://files.newswire.ca/357/PLANNING.TARGET.7.1.xls for the appended diamond drill hole Map) The map grid is on a 100meter spacing.
All samples for assay will be taken by Lakota to SGS African AssayLaboratories in Mwanza, Tanzania , for preparation and gold analysis by fire assay.
FINAL EXCHANGE APPROVAL OF PRIVATE PLACEMENT
Lakota is pleased to confirm that the previously announcednon-brokered private placement of 7,208,943 common share units hasbeen closed and final approval has been received from the Toronto Venture Exchange. The non-brokered private placement of commonshare units was at a purchase price of $0.17 per unit comprising 1 common share and 1/4 common share purchasewarrant exercisable at $0.30 for a period of one (1) year from closing date for gross proceedsof $1,225,520 . All securities issued in connection with this financing will besubject to a hold period of four months plus one day from the dateof issue of the share and warrant certificates. After giving effectto this private placement there are 59,509,966 shares of theCompany issued and outstanding.
An aggregate cash commission of $32,980 was payable, and 48,500 broker warrants issuable, to IntegralWealth Securities Limited and Capital Canada Limited.
The net proceeds of this Private Placement will be used to fund theCompany's Tembo drilling programs and for other permitted generalcorporate purposes.
ISAMBARA/SIMBA JV.
In September 2002 , Lakota and Jope Business Associates Limited (Jope) entered into ajoint venture agreement with MDN Inc. of Montreal on certain properties variously known as Isambara or Simba in Tanzania . MDN, as operator, incurred sufficient expenditures on theproperties to earn a 70% interest in the property, the 30% balancebeing held 50:50 as between Lakota and Jope. MDN has continued toexplore the properties. MDN afforded Lakota and Jope theopportunity to contribute their proportion of the explorationexpenditures totalling approximately $US800,000 in order to retaintheir interests in the joint venture. To date, Lakota and Jopedeclined the offer to participate. Yesterday, MDN exercised itsrights under the joint venture agreement to dilute the interests ofLakota and Jope to a 1% net smelter return. The exploration andtherefore expenditures on Isambara/Simba continue and Lakotaconsidered continued fiscal participation was not the best use ofLakota's limited cash resources as it focuses on its ownexploration projects and particularly, the imminent drilling atTembo.
About the Company
Lakota Resources Inc. is a junior mineral exploration company. Forcomplete details on the Company, and its partners, managementencourages investors and interested parties to view its publicdocuments filed on SEDAR at www.sedar.com .
CAUTIONARY STATEMENT ON FORWARD-LOOKING INFORMATION
The TSX Venture Exchange does not accept responsibility for theadequacy or accuracy of this release. No stock exchange, securitiescommission or other regulatory authority has approved ordisapproved the information contained herein. All statements, otherthan statements of historical fact, in this news release areforward-looking statements that involve various risks anduncertainties, including, without limitation, statements regardingthe future plans and objectives of Lakota Resources Inc. There canbe no assurance that such statements will prove to be accurate.Actual results and future events could differ materially from thoseanticipated in such statements. These and all subsequent writtenand oral forward-looking statements are based on the estimates andopinions of management on the dates they are made and are expresslyqualified in their entirety by this notice. Lakota Resources Inc.assumes no obligation to update forward-looking statements shouldcircumstances or management's estimates or opinions change.
Certain information contained in this Press Release, including anyinformation as to our future financial, operating or explorationperformance and other statements that express management'sexpectations or estimates of future performance, constitute"Forward-Looking Statements" within the meaning ofSection 21E of the United States Securities Exchange Act of 1934, as amended and "ForwardLooking Information" within the meaning of applicable Canadiansecurities legislation..
All statements, other than statements of historical fact, areforward-looking statements. The words "believe","expect", "will", "anticipate","contemplate", "target", "plan","continue', "budget", "may","intend", "estimate" and similar expressionsidentify forward-looking statements. Forward-looking statements arenecessarily based upon a number of estimates and assumptions that,while considered reasonable by management, are inherently subjectto significant business, economic and competitive uncertainties andcontingencies.
The Company cautions the reader that such forward-lookingstatements and/or forward looking information involve known andunknown risks, uncertainties and other factors that may cause theactual financial results, performance or achievements of theCompany to be materially different from the Company's estimatedfuture results, performance or achievements expressed or implied bythose forward-looking statements and, the forward-lookingstatements are not guarantees of future performance. These risks,uncertainties and other factors include, but are not limited to:changes in the worldwide price of gold, or other commodities (suchas, fuel and electricity); fluctuations in currency markets;changes in interest rates or gold lease rates; risks arising fromholding derivative instruments; ability to successfully completeannounced transactions and integrate acquired assets; legislative,political or economic developments in the jurisdictions in whichthe Company carries on business; operating or technicaldifficulties in connection with exploration, development or miningactivities; employee relations; availability and increasing costsassociated with exploration or mining inputs and labour; thespeculative nature of exploration and development, including therisks of obtaining necessary licenses and permits and diminishingquantities or grades of reserves; adverse changes in our creditrating, contests over title to properties, particularly title toundeveloped properties; and the risks involved in the exploration,development and mining business. Accordingly, readers should notplace undue reliance on forward-looking statements and/or forwardlooking information
The Company disclaims any intention or obligation to update orrevise any forward-looking statements whether as a result of newinformation, future events or otherwise, except as required byapplicable law.
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release.
%SEDAR: 00008258E
For further information: Ian Kennedy, President and CEO, (416)598-7700; Renmark Financial Communications Inc.: Jeffery Szita,jszita@renmarkfinancial.com, Henri Perron,hperron@renmarkfinancial.com, (514) 939-3989, Fax: (514) 939-3717,www.renmarkfinancial.com
© CNW Group