Cougar Minerals Corp. to Acquire Senator Stewart Projectadmin
February 7, 2014 – Cougar Minerals Corp. – TSX-V: COU ("Cougar" or the "Company") is pleased to announce that it has entered into an Assignment of Mining Lease Agreement with Quest Minerals Corporation (the "Assignment Agreement") for the acquisition of Senator Stewart Property (the "Project") located in Idaho, USA. The transaction is arm’s length to the Company.
Under the terms of the Assignment Agreement Cougar will acquire all rights under the lease agreement from Quest Minerals, Inc. a private Idaho company, which currently holds the agreement with Silver Bowl, Inc. for the Senator Stewart property by paying $75,000USD in cash and issuing 1,000,000 common shares, subject to TSX venture Exchange approval. In addition Cougar will assume all underlying payment obligations including governmental taxes, levies and fees and an advance royalty payment of $10,000 annually. Cougar will be obligated to perform a minimum of $100,000 in assessment work before December 2015 and an additional $50,000 in assessment work minimum per year thereafter. The Senator Stewart Property is subject to a 2% net smelter return royalty payable to Silver Bowl Inc.
The Senator Stewart property is located in the Coeur d’Alene Silver District in Idaho, adjacent to properties which comprise the famous Bunker Hill Mine. The Bunker Hill Mine produced over 161 million ounces of silver, 6.3 billion pounds of lead and 2.6 billion pounds of zinc from 36 million short tons of ore, at average grades of 4.5 ounces per ton silver, 8.7% lead, and 3.6% zinc.
The Senator Stewart property also hosted the Senator Stewart Mine located on the northwest projection of the main Bunker Hill lode. Production records are incomplete, but it is known that from 1909 to 1916 the Senator Stewart Mine produced 8.4 million ounces of silver and 168 million pounds of lead from about 1 million short tons of ore, at average grades of 8.4 ounces per ton Ag and 8.4% lead (Zn production was not recorded). Readers are cautioned that the while the Company believes that the historical production and grade information is relevant, the information has not been verified by the Company and is presented for background information only.
In the 1970s the mine exploration team hypothesized that the Senator Stewart vein projected on dip to the deeper Mac vein, which was a major producing vein in the Bunker Hill from the 1960’s onward. The Senator Stewart vein had been mined down to approximately 2,600 feet above sea level and the Mac vein up to 800 feet above sea level, so the prospective zone between the top of the Mac vein and the bottom of the Senator Stewart workings has a vertical dimension of approximately 1,800 feet (figure 1).
Figure 1: Bunker Hill Mine Area Long Section
Click Image To View Full Size
Historic drill logs reveal that the exploration team drilled and successfully intersected a high grade silver/lead vein which appears to be the downward extension of the Senator Stewart vein and the upward extension of the Mac. Attempts to further drill this zone were abandoned after a dispute over the ownership of this discovery. Cougar plans to replicate and expand the exploration done in the 1970’s.
The lease of the Senator Stewart represents an exciting and potentially highly rewarding opportunity to discover and develop a major lead/silver ore body that could be toll milled at one of the nearby milling facilities in Idaho’s Silver Valley.
Murray Nye stated, "This new acquisition should allow Cougar Minerals to advance significantly in building a first-class exploration portfolio and generating significant shareholder value through future exploration and development."
Readers are cautioned that the Company has not been able to verify the information on the adjacent Bunker Hill property and it may not necessarily be indicative of the mineralization on the property. There is no guarantee that economically significant mineralization will be identified in the prospective zone noted in figure 1.
Mr. Larry Segerstrom, P.Geo and Director, is a Qualified Person as defined by National Instrument 43-101 – Standards of Disclosure for Mineral Projects. Mr. Segerstrom has reviewed and approved the disclosure of technical information contained in this news release.
The transaction remains subject to TSX Venture Exchange approval. All securities issued pursuant to the Transaction will be subject to applicable resale restrictions of four months and one day from the date of issue. A finder’s fee in the maximum allowable under TSX Venture Exchange policies will be payable in shares of the Company upon closing.
About Cougar Minerals Corp.
Cougar is a junior exploration company focused on the discovery and development of economic mineral deposits.
Additional information on Cougar Mineral can be found on the Company’s website at www.cougarminerals.com and by reviewing the Company’s page on SEDAR at www.sedar.com.
On behalf of the Board of Directors
COUGAR MINERALS CORP.
For more information, please contact:
Cougar Minerals Corp.
Murray Nye, President/CEO
s/ "Murray Nye"
The TSX Venture Exchange, nor its Regulation Services Providers (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. The information in this release may contain forward-looking information under applicable securities laws. This forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those implied in the forward-looking information.
Posted: February 7th, 2014 under ACCESSWIRE.