12/13/2004
Everton and Azimut sign agreements for four claim blocks near the Eléonore gold discovery in James Bay, Quebec
Everton Resources Inc. (�Everton�) and Exploration Azimut Inc. (�Azimut�) announce the signing of two letters of agreement regarding four claim blocks held 100% by Azimut in which Everton can acquire up to 65% interest (details below). The blocks occupy key positions near the major El�onore gold discovery made by Virginia Gold Mines in the James Bay region of Quebec.
The blocks comprise 546 claims and cover 28,492 hectares. Quebec�s Ministry of Natural Resources, Wildlife and Parks has confirmed the acquisition of 412 of these claims, and confirmation of the remainder is pending. The agreements cover the following claim blocks:
Block A (283 claims): located immediately north of the El�onore property, Block A is 16.5 km long and lies within the possible northern extension of a gold trend oriented NNE and measuring 8 km long by 3 km wide. The auriferous Roberto and Roberto East zones, both of which lie within this corridor, are only 3 km from Block A. Geological, geophysical and geochemical data suggest the possibility of discovering the continuation of the gold-bearing corridor within Block A.
Block A-East (43 claims): located NNE of El�onore, these claims display favourable geochemical and geophysical signatures.
Block B (168 claims) and Block B-North (52 claims): located east of El�onore, these two blocks display a strong 7-km long geochemical arsenic anomaly (lake bottom sediments) within a geological and geophysical context comparable to that of El�onore.
Terms of the agreements
- For blocks A and A-East, Everton can acquire a 50% interest from Azimut during a maximum 5-year period under the following conditions:
- Cash payment of $50,000 upon signing the agreement, $20,000 on the first and second anniversaries, and $30,000 on the third, fourth and fifth anniversaries for a total of $180,000.
- Exploration work totalling $300,000 the first year (firm commitment), $500,000 the second and third years, $700,000 the fourth year and $800,000 the fifth year for a total of $2,800,000.
For blocks B and B-North, Everton can acquire a 50% interest from Azimut during a maximum 5-year period under the following conditions:
- Cash payment of $40,000 upon signing the agreement, $20,000 on the first, second and third anniversaries, and $30,000 on the fourth and fifth anniversaries for a total of $160,000.
- Exploration work totalling $200,000 the first year (firm commitment), $400,000 the second and third years, and $500,000 the fourth and fifth years for a total of $2,000,000.
Everton will be the operator of the project.
Upon acquiring a 50% interest, Everton will have the option of gaining an additional 15% interest by delivering a bankable feasibility study. The conditions of acquisition for the additional interest are identical for both agreements (blocks A and A-East, and blocks B and B-North) but would apply separately:
- Cash payment of $20,000 per year for five years and minimum work expenditures of $100,000 worth of work until completion of a bankable feasibility study within the 5-year period.
- This period can be prolonged by Everton for up to three years by paying Azimut $50,000 per year.
If Everton decides not to exercise this additional option, Everton will provide Azimut with $100,000 in cash as final payment. In the case that the interest of either partner is reduced to less than 10%, the interest would be converted to a 2% NSR royalty, of which 1% may be bought back for $1,000,000.
Both Everton and Azimut recognize El�onore as a major gold discovery that may eventually lead to the establishment of a mining camp. The various permits that were acquired by Azimut occupy key positions directly along strike of the El�onore discovery or are in peripheral locations that bear similar signatures.
Please click here to view the property location map
Please click here to view the geochemical anomalies map
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The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release. The Company�s Shares are listed on the TSX Venture Exchange and trade under the symbol �EVR�.
For more information, please contact
Andre Audet
Chairman and CEO
[email protected]
Tel: 613 769 1248 Fax: 613 241 6005
www.evertonresources.com
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