Consolidated Abaddon To Participate In Phase I Drill Program Underway On Seel Property In BC
Vancouver, BC - Consolidated Abaddon Resources Inc. (TSX.V: ABN) announces it has signed a Letter Agreement between the Company and Gold Reach Resources Ltd. (TSX.V: GRH) (Gold Reach), whereby Gold Reach grants to Consolidated Abaddon an option to earn a 10% interest in the Seel property by advancing $100,000 to Gold Reach in connection with its Phase I drill program on the Seel Property which has now commenced.
The Seel Mineral Claims are situated in the Central Interior of British Columbia, approximately 120 kilometres southwest of the town of Houston. The Seel property consist of 26 mineral claims covering approximately approximately 12,000 hectares (approximately 29,650 acres) and are contiguous with the operating Huckleberry poly metallic mine.
Consolidated Abaddon further agrees to grant Gold Reach the right to repurchase the Company's 10% interest in the Seel property on the following basis:
1. If Consolidated Abaddon elects to participate in the 2nd Phase of drilling in the New Year, Gold Reach can buy back Consolidated Abaddon's 10% interest by issuing to the Company 500,000 shares of Gold Reach.
2. If Consolidated Abaddon chooses not to participate in the 2nd Phase of drilling on the Seel property, Gold Reach can buy back the Company's 10% interest by issuing to Consolidated Abaddon 300,000 shares of Gold Reach.
Gold Reach had announced a 3,000-metre, 15-hole drill program on December 5, 2005. This program is now increased to a two-phase 4,000 metre, 18-hole drill program with the closing of this agreement.
The 2005 summer geophysical survey delineated a four-kilometre-long by 1.5-kilometre-wide chargeability anomaly. The work program included the establishment of an additional 44-line-kilometre grid bringing the cut grid on the Seel property to 66 line kilometres. The survey grid consists of lines from 1.5 kilometres to four kilometres in length with 100-metre and 200-metre line spacing. A 3-D induced polarization (IP) survey was performed on the entire grid. The 3-D modeling produced a prominent two-kilometre by 1.5-kilometre concentric or "doughnut-shaped" anomaly centred within the survey grid. A high-chargeability, low-resistivity ring with a high-resistivity, low-moderate chargeability core characterizes this central zone. The geophysical geometry of the central zone closely fits that of a classic porphyry-deposit model where a high-chargeability, high-pyrite halo and a high-resistivity, low-grade core are formed. In the classic porphyry model, the higher-grade material concentrates in a window situated around the low-grade core and within the pyrite halo.
Drill holes S04-06, S05-14, and S05-16 (as reported in news on Feb. 10, 2005, and April 5, 2005) skirted the window where the higher-grade material would be projected according to the classic model. Hole S05-14 intersected 263.1 metres grading 0.13 per cent copper (Cu), 0.10 gram per tonne (g/t) gold (Au), 0.016 per cent molybdenum (Mo) and 2.57 g/t silver (Ag), including 55.5 metres grading 0.22 per cent Cu, 0.25 g/t Au, 0.030 per cent Mo, and 4.9 g/t Ag. The current drill program will target this central Cu-Au-Mo-Ag zone and the hypothesized higher-grade window.
Another key target area to be drilled is located 500 metres to the east. The 2004-2005 drilling outlined an area enriched in Cu and Au mineralization where hole S05-08 intersected 102.1 metres grading 0.44 per cent Cu, 0.48 g/t Au, and 0.001 per cent Mo (as reported in news on Feb. 10, 2005). This Cu-Au zone remains open to the east.
Location maps and figures displaying the current geophysical model can be found on the Gold Reach website at www.goldreachresources.com.
The Company is pleased to announce that Donald Myers of Vancouver, BC, has consented to act as a Director of the Company and will no longer hold the position of Vice President of Corporate Communications. He has over twenty years of experience in public company management and corporate communications working with companies listed on the TSX Venture, NASDAQ, and Toronto Stock Exchanges. His background includes holding the position of Director and Officer of several junior public companies listed on the TSX Venture Exchange.
Consolidated Abaddon Resources Inc. is a Canadian uranium exploration company actively involved with the development of uranium properties in the ATHABASCA BASIN of northern Saskatchewan and the SIMS BASIN of northwestern Labrador. The Company is also developing a gold property in the RED LAKE gold camp of northwestern Ontario.
ON BEHALF OF THE BOARD OF DIRECTORS
James G. Pettit
For further information contact myself or:
Consolidated Abaddon Resources Inc.
Toll Free: 800-567-8181
THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THE CONTENT OF THIS NEWS RELEASE.
This news release contains certain "Forward-Looking Statements" within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact, included herein are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's expectations are disclosed in the Company's documents filed from time to time with the British Columbia Securities Commission and the United States Securities & Exchange Commission.
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