North of 60 Mining News - The mining newspaper for Alaska and Canada's North

Independence Gold Corp. May 17 outlined plans to acquire up to a 100 percent interest in the Rosebute gold property from Taku Gold Corp. Located 58 kilometers south of Dawson City, Yukon Territory, and immediately west of Independence's Henderson property, Rosebute encompasses two gold discoveries known as the Norwest and Hudbay zones.

The Norwest Zone - located in the northern portion of the 14,387-hectare (35,550 acres) property - is defined by three gold-in-soil anomalies within a roughly 2,000 meter diameter.

One hole drilled in 2012 cut 22.6 meters averaging one gram per metric ton gold.

Located 3,000 meters southwest of Norwest, the Hudbay Zone consists of at least three, north trending gold-in-soil anomalies that are open along strike.

The southern end of the Hudbay Zone is especially robust, hosting an area roughly 500 by 350 meters with soil sample values typically greater than 60 parts per billion gold.

Trenching here in 2012 encountered 6.2 g/t gold over five meters; 1.2 g/t gold over 10 meters; and 1.5 g/t gold over 20 meters.

Independence Gold President and CEO Randy Turner said, "The Rosebute property makes an excellent addition to our portfolio of drill-ready exploration targets in the White Gold district.

Our strong cash position will allow us to immediately begin evaluating this property in combination with continued exploration work at the company's Denali and Sunset gold discoveries at the Boulevard project." Pursuant to a letter of intent, Independence can acquire a 75 percent interest in Rosebute by making staged cash payments totaling C$295,000; issuing Taku 1 million Independence shares; and investing C$2 million on exploration over a three-year period.

Upon completion of the 75 percent earn-in, Taku will have the right to elect to participate as a 25 percent joint venture partner, or elect to sell the remaining interest to Independence for C$500,000 and an additional 1 million Independence shares.

If Taku elects to sell, it would retain a 1 percent net smelter royalty on the property, with Independence having the right to buyback half of the royalty for C$500,000.

In addition, Rosebute is subject to a 2 percent underlying royalty, with the right to purchase 1 percent for C$2 million.

Author Bio

Shane Lasley, Publisher

Over his more than 16 years of covering mining and mineral exploration, Shane has become renowned for his ability to report on the sector in a way that is technically sound enough to inform industry insiders while being easy to understand by a wider audience.

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