Definitive Agreement on Woodjam "North" Gold-Copper Project

 

VANCOUVER, BC - Fjordland Exploration Inc. and Cariboo Rose Resources Ltd. reported that the Woodjam Joint Venture (WJV), comprising Fjordland (60%) and Cariboo Rose (40%), has signed an Option and Joint Venture Exploration Agreement granting an option to Gold Fields Horsefly Exploration Corporation, a member of the Gold Fields Limited group of companies, to earn up to a 70% interest in the northern portion of the Woodjam gold-copper property (Woodjam North Property). Gold Fields may earn an initial 51% interest by expending $7 million in exploration, and making $350,000 in cash payments to the WJV, over a three year period with a minimum expenditure of $1 million in the first year. Gold Fields may extend the option to earn a further 19% interest in the Woodjam North property by funding a further $12 million in exploration over a 4-year period.

To date, the WJV has spent approximately $7 million on the entire Woodjam property, including an estimated $4.7 million and $2.3 million on the Woodjam "North" and "South" Properties, respectively. The "North" Property (40,500 hectares) includes the Megabuck, Takom and Deerhorn zones; the "South" Property (7,500 hectares) includes the newly-discovered Southeast Zone.

The first year program, with a budget of about $3 million proposed by Gold Fields, consists of the following: A low-level airborne magnetic and radiometrics geophysical survey covering the entire area of the claim block. Grid-based line cutting and induced polarization geophysics focused on selected targets. Following data compilation and interpretation, a core drilling program of up to 6,000 metres is planned that will initially focus within the areas of known mineralization. Additional drill locations will be dependent on the compilation of geology, airborne-magnetic and IP results. Gold Fields has had crews on the Property for the past several weeks reviewing previous drill core, collecting soil samples and conducting geological mapping and prospecting programs. The exploration program is managed and financed by Gold Fields Horsefly Exploration Corp.

The company’s address is 510 Burrard Street, Suite 510, Vancouver, BC V6C 3A8, (604) 893-8365, fax: (604) 669-8336.