Kent Exploration Inc. announces that through its wholly owned subsidiaries, Archean Star Resources Australia Pty Ltd and Archean Star Resources Inc, it has been advised by Teck Australia Pty Ltd that Teck has provided notice to Chalice Gold Mines Ltd (Chalice), an ASX-listed company, of the exercise by Teck of the Second Option of the Agreement between Teck and Chalice on the Gnaweeda Gold Project in the northern Murchison Province of Western Australia.
Through exercise of the Second Option Teck has earned an additional 19% of the property in addition to the current holding of 51% for a total holding of 70%, and has entered into a 70%/30% Joint Venture with Chalice, which has the option to convert its 30% participating interest to a NSR royalty, whereby Teck will hold 100% of the property.
The Gnaweeda Gold Project lies approximately 640km northeast of Perth and 35km northeast of the town-site of Meekatharra, and comprises a package of two exploration licenses over a strike length of 28km of the Gnaweeda Greenstone Belt. Since 2006, Teck Australia Pty Ltd conducted limited Reverse Circulation drilling (<300m deep) that returned significant gold intersections at depths ranging from 17m to 280m, including; 4m at 17.7g/t Au, (including a 1m intersection of 59.27g/t Au), 5m at 13.49g/t Au, 5m at 11.64g/t Au, 3m at 11.87g/t Au, 3m at 4.85g/t Au and 3m at 4.39g/t Au. Newcrest and Australian Gold Resources identified extensive gold and arsenic anomalies in historic drill intersections on the property in an area along a 15km strike and up to 750m wide.
To earn 100% of Teck's interest in the Gnaweeda Project, the Company is required to fund AUD$3 million in exploration expenditures over 4 years, with a AUD$200,000 first phase exploration program (of which approximately AUD$150,000 has been expended to date) to be completed by March 31, 2010. Once the Company has earned its interest in the Project, Teck has the right to earn-back 75% of the Company's interest by spending 2.5 times the Company's exploration expenditures.
A first phase, approximately 1,500 meter drill program, is planned to commence the first week of March, 2010.
Kent Exploration Inc is a junior exploration company that has an Option Agreement to earn 100% of Teck's interest in Chalice Gold Mines Limited's Gnaweeda Gold Project in West Australia and has acquired the Alexander River, Paparoa and Lyell gold projects in the highly prolific Reefton gold field in New Zealand.
The Company has an option to earn a 100% interest in the Silver Hills property, a silver/lead/zinc prospect in south-eastern British Columbia, and has a 100% interest in the Courtney Lake property, a silver/lead/zinc prospect in north-east Saskatchewan. The Company has a 100% interest in Coal Prospecting Permits covering approximately 92,000 ha in east-central Saskatchewan, a 100% interest in a mining lease option on the Flagstaff Mountain property, a gold/silver/zinc/barite prospect in eastern Washington state, a 100% interest in the mining lease option on the Ivanhoe Creek property, a Midas-style gold/silver target in Nevada's Carlin Trend, and 50% of a 100% interest in the Ivanhoe Creek placer claims covering a bentonite deposit.