Appleton Exploration Inc. Acquires Option on Manalo Gold Project in Mali and Arranges Non-Brokered Private Placement up to $700,000
February 20, 2009 - Vancouver, British Columbia. Appleton Exploration Inc. (AEX – TSX.V) has signed a Letter of Intent to earn a 100% interest, subject to a 2% Net Smelter Return (NSR) Royalty, from Delta Exploration Inc. (“Delta”) a wholly-owned subsidiary of Rockgate Capital Corp. (RGT – TSX.V) in the Manalo Gold Project in the Republic of Mali, Africa. The agreement is subject to TSX Venture Exchange approval.
Appleton may earn an initial 65% interest by making cash payments of US$50,000 over the next six months, issuing 1.5 million units over the next two years and completing US$2,500,000 in exploration over the next three years. The units are to be issued in three equal tranches and will consist of one common share of Appleton and one 24 month warrant, with each warrant being exercisable at 200% of the 10-day average closing price of the shares ending on the trading day preceding the date of issuance of the units, subject to any minimum price requirements of the TSX Venture Exchange. The first year exploration commitment is US$500,000.
Appleton may earn the remaining 35% interest by making a one time cash payment of CDN$1,500,000 to Delta. At Delta’s sole discretion, Delta may elect to receive the payment in the equivalent value of Appleton units. Appleton must also deliver an independent feasibility study or arrange for production financing prior to the 8th anniversary of TSX Venture Exchange acceptance.
Appleton also has the option to purchase one half of the NSR (1%) for CDN $1,000,000 within the first 12 months of production.
The road accessible Manalo project lies within the Archean Birimain Greenstone Belt of western Africa and consists of three exploration permits totalling 150 square kilometres. The main Manalo permit totalling 75 square kilometres has just been renewed and the other two permits Block 1 and Block 2 are awaiting confirmation of renewal by the government of Mali. The project lies 100 kilometres southwest of Bamako, the capitol, in southwestern Mali.
Delta Exploration Inc. has been exploring the Manalo project since 2004. Property wide airborne geophysics, property wide soil geochemistry and follow up ground geophysics has been conducted, which resulted in the discovery of six gold mineralized areas: Dialafara, Dialafara Nord, Manalo Nord E, Manalo Sud E, Mansaya and Siribada. A total of 15,115 metres of aircore and reverse circulation drilling (156 holes) and 363 metres of diamond drilling (3 holes) has been completed on the property to date.
The following exploration results have been reported by Delta Exploration Inc. in news releases dated January 15, 2008, April 17, 2008, and July 9, 2008.
Dialafara is a 3 kilometre, northwest trending zone consisting of two, steeply dipping quartz vein zones based on 40 drill holes totalling 4,469 metres. The southernmost section has been drill tested along a length of 1,300 metres and to depth of approximately 85 metres. The northernmost zone is offset approximately 500 metres to the east and has been drill tested along a length of 520 metres to depth of 110 metres. Drill intersections to 29.1 gpt Au over 6 metres have been recorded from the vein zones.
Of particular interest is MDL-08-036 which intersected 15.64 gpt Au over the bottom 16 metres in a silicified meta-psammite, mineralized with 2-3% fine grained pyrite.
A strong and persistent, northwesterly striking quartz vein system has been traced by quartz vein rubble crop for approximately 2 kilometres at Dialafara Nord. A total of 974.3 metres were drilled in a series of 8 holes. Drill intersections to 18.65 gpt Au over 1 metre have been recorded from this zone.
Manalo Nord Est consists of a northwesterly striking steep westerly dipping quartz vein zone that has been traced for a length of 500 metres before it trends off the Manalo property to the north. A total of 4,614 metres in 57 holes have tested the zone. Drill intersection highlights include: 18.48 gpt Au over 11 metres in MMN-06-029 and 12.06 gpt Au over 6 metres in MMN-07-012.
The northwesterly striking Manalo Sud Est quartz vein system has been traced 600 metres. Eleven holes totaling 1,057 metres were completed. The best intersection was 0.73 gpt Au over 5 metres from MSE-08-005.
The Mansaya area consists of two gold-in-soil anomalous areas. A total of 905 metres in 9 holes were completed in the north zone. A meta-psammite horizon shows consistent quartz sericite alteration and 1-2% pyrite. Holes MMS-08-007 through MMS-08-012 intersected this horizon with the best intersection of 0.80 gpt Au over 20 metres in MMS-08-008, suggesting a possible bulk tonnage target. Eight holes totaling 774 metres were completed in the southern area, which is more a vein zone. MMS-08-018 returned 10.71 gpt Au over 3 metres, the best value from the 8 holes.
The Sirabada zone consists of an area of extensive artisanal mine workings associated with intense clay alteration. Quartz veins and a pervasively seriticitized psammitic unit were intersected. A total of 2,335 metres were drilled in 21 holes to test gold-in-soil and chargeability anomalies. The results to date indicate gold is erratically distributed throughout the Sirabada zone. The best intersection was 2.61 gpt Au over 2 metres in MSB-08-013.
Appleton also announces that it has arranged a non-brokered private placement of up to 10,000,000 units, priced at $0.07 per unit, for gross proceeds of up to $700,000, subject to acceptance for filing by the TSX Venture Exchange. Each unit is comprised of one common share and one warrant. Each warrant will entitle the holder to acquire one additional common share at an exercise price of $0.10 per share for 12 months.
Finders fees and/or commissions may be paid in accordance with TSX Venture Exchange policies.
Securities issued pursuant to the private placement may be subject to a four month hold period. Proceeds of the private placement will be used for acquisition and exploration expenditures on the Manalo project.
On Behalf of the Board of Directors,
“R. Tim Henneberry”
R.Tim Henneberry, P.Geo.
President and CEO
For further information, please contact:
Tim Henneberry: (604) 694-0741
For Investor Relations Information contact:
Contact Financial Corp.
604.689.7422 | Toll Free 1.877.689.7411
R. Tim Henneberry, P.Geo. , President, CEO & Director of the Company, is the Qualified Person as defined in
National Instrument 43-101, who has reviewed and approved the technical content of this news release.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.