Kent Exploration Inc announced that through its wholly owned subsidiaries, Archean Star Resources Australia Private Limited and Archean Star Resources Inc has entered into an Option Agreement with Teck Australia Private Limited to earn 100% of Teck's interest in the Gnaweeda Gold Project in the northern Murchison Province of Western Australia. Teck currently has the right to earn a minimum 70% interest in the Project from Chalice Gold Mines Limited.
Teck reported that since 2006, it has conducted limited RC drilling that returned significant gold intersections at depths ranging from 17 meters to 280 meters including 4 meters at 17.7gram per tonne which includes a 1 meters intersection of 59.27 gram per tonne, 5 meters at 13.49 gram per tonne, 5 meters at 11.64 gram per tonne, 3 meters at 11.87 gram per tonne, 3 meters at 4.85 gram per tonne and 3 meters at 4.39 gram per tonne. Newcrest and Australian Gold Resources identified extensive gold and arsenic anomalies in historic intersections on the property in an area along a 15 kilometers strike and up to 750 meters wide.
Following up on the recommendations in the recently completed NI-43-101 report on the Gnaweeda property and subject to permit approvals, an approximately 15 hole diamond drill program, consisting of up to 1,100 meters on the Turnberry prospect and 400 meters on the Bunarra prospect is planned for early in 2010. An approximately AUD 50,000 geological program including locating the planned drill holes, is projected for completion by approximately the end of December 2009.
Archean will be the operator of the Project during the option period. Ms Nancy Reardon the Company's senior consulting geologist for Australia and New Zealand is responsible for the Company's exploration program on the Project. The Gnaweeda Project which lies approximately 640 kilometers northeast of Perth and 35 kilometers northeast of the town site of Meekatharra comprises a package of 2 exploration licenses over a strike length of 28 kilometers of the Gnaweeda Greenstone Belt. Three gold deposits in excess of 1 million ounces each, Bluebird, Meekatharra and Reedy, occur within the adjacent Meekatharra Mt Magnet Greenstone Belt.
To earn its 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 Phase I exploration program to be completed by March 31st 2010. Once the Company has earned its interest in the Project, Teck has the right to claw back 75% of the Company's interest by spending 2.5 times the Company's exploration expenditures.
