| ||March 29, 2012|
Troymet Options Uranium-Rare Earth Property
| ||March 29, 2012 - Troymet Exploration Corp. (TSXV:TYE) ("Troymet" or the "Company") reports it has negotiated an option, subject to acceptance by the TSX Venture Exchange, to acquire a 100% interest in the Thelon project, which is located in Nunavut Territory from a director of the Company. As a result, the transaction is a non-arm's length transaction. Under the terms of the option, Troymet will (i) pay the optionor $5,000 on signing and on each anniversary date while the option is valid and in good standing; (ii) pay 2% of all exploration expenditures to the optionor until a production decision is reached; and (iii) maintain the leases in good standing (~$27,700/year). The optionor will receive a 2% gross royalty on any production from the project properties. One half (1/2) of 1% of the royalty can be purchased for $1 million at any time; one-third of the remaining royalty (1/2 of 1%) can be purchased for an additional $2 million at any time. |
The Thelon project is located approximately 150 km northwest of Baker Lake, Nunavut Territory. Agnico Eagle's new Meadowbank gold mine is located ~150 km east of the project. AREVA's pre-production stage Kiggavik uranium deposit is located 90 km southeast of the project while Uranium North Resources Corp.'s Amer Lake uranium deposit is located ~100 km to the north. The Thelon project (11 mineral leases - 7,213 ha) covers 5 properties prospective for high-grade uranium and rare earth mineralization. The properties contain a mix of uraniferous boulder trains, anomalous rock geochemistry and anomalous lake sediment geochemistry. The uranium mineralization is similar to the high-grade "unconformity-type" mineralization currently being mined in the Athabasca area of Saskatchewan and the Kombolgie area of Australia.
Rare earth elements ("REE") are associated with fluorapatite and phosphatic sandstone + uranium on the Thelon project, however, the REE potential of the phosphatic mineralization has never been evaluated. Troymet analyzed six float samples from 2 of the 5 target areas at the ALS Minerals' Vancouver laboratory using a lithium meta-borate fusion and inductively coupled plasma mass spectrometry ("ICP-MS"). The analyses confirmed the presence of a full range of light REE and heavy REE in the samples tested. Further exploration is required to confirm the REE potential of the Thelon project. Troymet is primarily interested in the Thelon project for its REE potential. However, the property also contains a number of highly attractive uranium drill targets including Area 7 with a radioactive boulder train (non-phosphatic and illitic) with several hundred boulders and values ranging from trace to 18.85 % U3O8. The Thelon project option is a strategic acquisition given the current REE market and supply situation. Troymet intends to seek a partner to fund exploration and development on the Thelon project.
Troymet's primary focus, in 2012, is its 100% owned (8,854 ha) Key project in British Columbia where a $1 million exploration and diamond drilling program is scheduled to commence in May. The program is fully funded and permitted and will commence once the property is clear of snow. The Key project has significant discovery potential and is road accessible. It is strategically located immediately adjacent to New Gold Inc.'s Blackwater gold deposit which contains (N.R. March 7, 2012):
- Indicated gold resource: 174 million tonnes at an average grade of 0.98 grams per tonne containing 5.5 million ounces of gold at a 0.4 gram per tonne cut-off grade
- Inferred gold resource: 92 million tonnes at an average grade of 0.78 grams per tonne containing 2.3 million ounces of gold at a 0.4 gram per tonne cut-off grade
Troymet will be exhibiting at the Calgary Energy and Resource Investment Conference on March 30-31, 2012. Please visit us at booth 208. Troymet will also be exhibiting at the 25th annual KEG Conference and Tradeshow in Kamloops on April 3-4, 2012. Please visit us in the Columbia Room.
Kieran Downes, P. Geo., a qualified person as defined by National Instrument 43-101, has reviewed and verified the technical information provided in this release.
TROYMET EXPLORATION CORP.
Kieran Downes, Ph.D., P.Geo.
President, CEO & Director
For further information, contact:
Tel: 1-888-456-4952 or firstname.lastname@example.org
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release. This press release may contain certain forward-looking information. All statements included herein, other than statements of historical fact, is forward-looking information and such information involves various risks and uncertainties. There can be no assurance that such information will prove to be accurate, and actual results and future events could differ materially from those anticipated in such information. A description of assumptions used to develop such forward-looking information and a description of risk factors that may cause actual results to differ materially from forward-looking information can be found in the company's disclosure documents on the SEDAR website at www.sedar.com. The company does not undertake to update any forward-looking information except in accordance with applicable securities laws.
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