LOI Signed For Highland Project

 

VANCOUVER, BC - Fortune River Resource Corp. reported that it has signed a Letter-of-Intent with Christopher James Gold Corp. for Fortune River's Highland project, one of its six low-sulfidation gold/silver properties in the Walker Lane gold trend of western Nevada.

Christopher James may earn a 51% interest in the property by spending US$4,000,000 over a six-year period, which will include paying underlying annual minimum royalties and claim-holding fees. Christopher James may earn a further 19% interest, for a total of 70%, by producing a bankable feasibility study by the end of year six. This option may be extended for up to two years by paying Fortune River US$100,000 and spending a minimum of US$1,000,000 per year. The project is subject to an underlying royalty of 3% NSR, of which 1% can be purchased for US$1,000,000. Fortune River will be project manager initially, continuing as long as mutually agreed.

The initial program will consist of re-logging all previous holes, in order to further refine the 3D geologic model, and then permitting a series of drill sites to test extensions of the known high-grade pod, explore blind veins discovered during 2006/7 drilling, and explore an undrilled area with recently identified mineralized float. Drilling is expected to begin late fall of this year or spring of 2010.

The Highland project consists of 120 lode mining claims covering approximately 970 hectares on land managed by the Bureau of Land Management. It lies immediately south of a large Tertiary-age caldera where late-stage or younger felsic volcanic domes formed with associated low-sulphidation, epithermal gold/silver mineralization.

Drilling by Fortune River at Highland has intersected veins with bonanza grades locally; hole H02013, for example, intersected 1.5m of 66.9g/t gold and 397.7g/t silver within a 12.2m intercept of 9.5g/t gold and 109.4g/t silver (true thicknesses estimated at 65% of interval). Other targets that have received little or no drilling have been identified on the property, which is extensively covered by relatively thin alluvium. During 2007 and 2008, Newcrest Resources Inc. drilled 14 relatively shallow, reverse-circulation holes (2,895 meters) to help define vein distribution in gravel-covered areas at the Main Target and Northwest Target areas. Newcrest also completed four core holes (a total of 1,652 meters) within the Main Target. Newcrest intersected several auriferous veins, with the highest gold grade being a 0.24 meter intercept grading 15.980g/t Au (17.005g/t repeat, unknown true thickness) along a blind splay of the A vein.

The company’s address is Suite 1100, 1199 West Hastings Street, Vancouver, BC, V6E 3T5. (604) 899-2515.