VANCOUVER, UK -- (Marketwire) -- 01/26/11 -- RUNNING FOX RESOURCE CORP. TSX-V 'RUN' OTC
'RFXRF' Frankfurt 'C8Q'
A development stage high grade gold and silver property located in
southeastern
British Columbia, Canada
Wednesday January 26, 2011 Steven Schurman, P. Geol (US), CEO, Director,
reports:
Running Fox is pleased to report that it has entered into an agreement,
subject
to regulatory acceptance, to acquire the remaining 50% of the Brett Gold
Project
from Mosquito Consolidated Gold Mines (TSX-V - MSQ )
This will result in Running Fox owning 100 % of the Brett Gold Project.
Key terms include one million dollars cash and three million common shares,
with
a closing date of 30 days after regulatory acceptance, and MSQ has
reserved a
sliding scale net smelter royalty of between 2 % to 8%, tied to the price
of
gold, which in the current price range of between $1,000 to $1,500 US per
ounce,
the royalty would be 5%.
Also, there is a legacy royalty of 2% on two of the claims, and Running Fox
has
granted MSQ the same sliding scale royalty as above on two of its solely
owned
claims adjacent to the north.
Running Fox retains the right to purchase one-half of the royalty for one
million dollars per percentage point at any time up till one year after
commercial production commences.
Running Fox also has a Right of First Refusal on any sale of all or part of
the
royalty to a third party.
Following the above share issuance, Running Fox will have approx. 49
million
shares outstanding. The Company has recurring cash flow and after recent
progress, very little debt.
Brett Property Geology
The Brett property has been interpreted to be a classic epithermal, high
grade
gold vein system with gold and silver mineralization occurring in
northwest and
northeast trending shear zones. The geology of the Brett property appears
to be
similar to gold deposits that occur in volcanic rocks found to the south
in the
Republic Mining District of Washington State.
Gold and Silver:
While the Brett Gold Project is best known for high grade gold, it also has
silver potential.
Most of the silver drill grades, while significant, were not reported as
the
price of silver was low. The silver component however can be illustrated by
the
results of a previous bulk tonnage sample.
The Project 's 291 ton bulk sample was processed by Teck Cominco's smelter
facility in Trail, BC from simple surface excavated pits.
The Teck Cominco smelter receipts for the whole bulk sample proved ore
averaged
28 grams per tonne gold plus 64 grams per tonne silver.
The drill intercepts in this news release include the gold only.
Between 1985 and 2004 core and reverse circulation drill holes tested the
high
grade gold mineralization identified as the 'Main Shear Zone'.
A key drill intercept included:
- RC93-19 which intercepted 16.76 meters that graded 35.79 grams
gold per
tonne. This intercept included two splits of 3.01 meters grading 57.88
grams
gold per tonne and 4.57 meters grading 107.88 grams gold per tonne.
The 2004 drilling program intersected significant gold bearing
intersections in
15 of the 17 holes drilled including:
DDH# 04-01 intersected 10.2 meters grading 5.28 grams per ton including
1.6
meters grading 29.6 grams per ton gold, and,
DDH# 04-02 intersected 11.6 meters grading 10.39 grams gold per ton
including
3.1 meters grading 34.02 grams per ton gold; and,
DDH# 04-12 intercepted 1.3 feet meters grading 176 grams per ton gold in
a new
shear zone.
This new zone, located on a tuffaceous bed, is located 53 metres east
of the
main shear zone and represents a totally new zone as none of the
previous
drill holes went as far east as this hole. The zone is cut off by
several
postmineral dikes in the core, possibly indicating the presence of a
second
parallel shear structure. If so, this would be the first
confirmation of
bonanza high-grade gold values (greater than one ounce per ton gold)
on a
parallel shear structure, opening the possibility that similar high-
grade
zones may be present, along the numerous other shears identified during
surface
work. The entire strike length of the new shear structure is unexplored as
none
of the previous drill holes were near its projection.
Trenching:
Numerous trenches have returned very high gold grades, some are selected
below
that have been noted as locations for follow-up and further trenching or
diamond
drilling :
+------------+-------------+------------+---------------+--------------+
|Trench # |From (meters)|To (meters)|Length (meters)|Gold grams / t|
+------------+-------------+------------+---------------+--------------+
| | | | | |
+------------+-------------+------------+---------------+--------------+
|TR93-770 |0 |5.56 |5.56 |12.67 grams |
+------------+-------------+------------+---------------+--------------+
|And 93-TR957|5.66 |7.53 |1.87 |23.84 grams |
+------------+-------------+------------+---------------+--------------+
|87-TR4 |1.95 |3.35 |1.4 |63.01 grams |
+------------+-------------+------------+---------------+--------------+
|87-TR21 |0 |2.4 |2.4 |70.27 grams |
+------------+-------------+------------+---------------+--------------+
Some significant Brett drill intercepts include
(* Note: gold grades reported only, see comment above re silver) :
+------------+---------------+-------------+-----------------+------------+
| Drill Hole | From (meters) | To (meters) | Length (meters)| Gold grams/t|
+------------+---------------+-------------+-----------------+------------+
| | | | | |
+------------+---------------+-------------+-----------------+------------+
| DDH04-12 | 148.9 | 150.2 | 1.3 | 176.28 |
+------------+---------------+-------------+-----------------+------------+
| R88-11 | 41.15 | 50.30 | 9.15 | 156.99 |
| | | | | |
| | 57.90 | 65.50 | 7.65 | 169.59 |
+------------+---------------+-------------+-----------------+------------+
| R93-12 | 35.05 | 36.58 | 1.52 | 63.01 |
+------------+---------------+-------------+-----------------+------------+
| R93-17 | 38.10 | 41.15 | 3.05 | 56.16 |
+------------+---------------+-------------+-----------------+------------+
| 89-92 | 130.15 | 131.29 | 1.14 | 54.45 |
+------------+---------------+-------------+-----------------+------------+
| 89-91 | 134.51 | 135.76 | 1.25 | 43.01 |
+------------+---------------+-------------+-----------------+------------+
| R93-19 | 30.48 | 47.24 | 16.76 | 35.79 |
+------------+---------------+-------------+-----------------+------------+
| 87-29 | 45.65 | 54.27 | 8.62 | 25.24 |
+------------+---------------+-------------+-----------------+------------+
| DDH04-01 | 45.6 | 47.2 | 1.60 | 21.96 |
+------------+---------------+-------------+-----------------+------------+
| DDH04-02 | 63.5 | 75.1 | 11.60 | 10.39 |
+------------+---------------+-------------+-----------------+------------+
| DDH04-16 | 34.5 | 36.0 | 1.50 | 9.74 |
+------------+---------------+-------------+-----------------+------------+
| R88-17 | 16.76 | 24.38 | 7.62 | 7.67 |
+------------+---------------+-------------+-----------------+------------+
See Top 40 Gold Intercepts on website
The 2004 a soil geochemical survey identified numerous and as yet untested
gold
in soil anomalies as much as 2,000 meters north of the Main Shear Zone
drilling
which appear to trend in the same northeast and northwest direction as the
gold
mineralization found in the shear zones around the Main Shear Zone.
Gold
mineralization found in a road cut 3,000 meters north of the Main Shear
Zone
drilling assayed 9.5 grams per ton gold. Running Fox believes that
these
untested soil anomalies represent significant exploration targets
that are
similar in geology and grade of gold mineralization to that found
around the
Main Shear Zone.
Running Fox will be planning a 2011 exploration campaign at the Brett
property
that will also include drilling and trenching of soil anomalies, as the
prior
program opened up large areas for exploration and the development of
additional
gold bearing zones.
Complete maps, geochem, and drilling history are available for
review/download
on the Running Fox website.
The project has significant early stage block calculations on a small
portion of
one shear zone -- and there are many shear zones, running under large
undrilled
geochem zones with good gold values over large areas, (see Geochem in
Assessment
Report).
Following further drilling a new 43-101 Technical Report will be requested
that
will include all drilling and a qualifying resource calculation.
See the Early Block Model on the website, as well as the brief 3D
Geological and
drillhole movie on website www.foxgold.ca
Steven Schurman, CEO, Professional Geologist (US), is the named Qualified
Person
for the technical contents of this news release.
* Note: Source for all drill intercepts are 43-101 Technical Report, and
Brett
Gold Assessment Report available at www.foxgold.ca and on SEDAR.
On behalf of the Board of Directors: Steven Schurman, P. Geol (US), CEO,
Director
Running Fox Resource Corp.
1 303 619 5234 www.foxgold.ca
The Company relies on legislation applicable to forward looking statements,
seeking safe harbour
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Running Fox Resource Corp. via Thomson Reuters ONE
[HUG#1482710]
Running Fox Resource Corp.
1 303 619 5234
www.foxgold.ca
