Commander Optionee Commences Work at Storm Copper Property
VANCOUVER, BC - Commander Resources Ltd. (CMD-TSX.V, "Commander") reports that Aston Bay Ventures, who have optioned and are earning into Commander's Storm copper property, have mobilized to site on Somerset Island, Nunavut and commenced the 2012 work program. Aston Bay is currently a private company, which has the right to earn up to 70% interest in the property by funding $15 million in exploration expenditures, as detailed in Commander's News Release dated November 23, 2011.
Aston Bay's plans for 2012 include staking of approximately 75,000 acres, surface sampling, geological mapping and prospecting in and around the identified VTEM EM anomalies that were identified in 2011 (as detailed in Commander's news release dated December 15, 2011). Drill core from historic work on both the Storm copper and Seal zinc prospects will be examined and resampled to provide complete assay data for missing or incomplete results in the historic data base. As metal prices for both copper and zinc were near historic lows when these prospects were drilled, extra core sampling will be undertaken outside previous assayed zones if sulphide mineralization is visible. Additionally, the geological team will conduct confirmation sampling, geological mapping in and along the general trend of the Storm mineralization and collect bulk samples from both Storm and Seal mineralization that are large enough for preliminary metallurgical test work.
The Storm copper prospects presently consist of four drill tested zones containing high grade chalcocite and bornite mineralization. Drill intercepts grading up to 5.05% Cu over 53 metres and 0.96% Cu over 96 metres were encountered by previous operators, Cominco Ltd. At the Seal zinc zone, a historic "geological resource" of 2 million tonnes grading 8% zinc and 30 g/t silver was estimated from the drilling by Cominco geologists in 1997. This is a historic estimate only and, while indicative of the presence of mineralization, it should not be relied upon. Strong alteration zones surrounding this deposit may allow for discovery of further zinc mineralization.
Additionally, Commander reports that the Option Agreement with Aston Bay has been amended to reflect the change in market conditions for junior resource companies that has occurred since the agreement was signed. The amendment will provide Aston Bay more flexibility with respect to the timing and size of their IPO. Under the terms of the original agreement Aston Bay was required to spend $6 million dollars, consisting of a minimum of $2 million per year over three years, and to complete a public listing by December 31, 2012 in order to earn an initial interest of 50.1% in the Storm Copper Property. Under the amended agreement, Aston Bay will be required to spend $6 million over 4 years, with a minimum of $1 million in each of the first 2 years, and complete a public listing by March 31, 2013. Aston Bay will issue 1 million shares to Commander by August 31, 2012 and an additional 0.5 million shares by December 31, 2015. In the original agreement Aston Bay was required to deliver 1 million shares by December 31, 2014. These issuances are in addition to the 2 million shares that were received by Commander upon signing the Option Agreement.
Bernard H. Kahlert, P. Eng, VP of Corporate Development is the Qualified Person as defined by National Instrument 43-101 who has reviewed and approved the technical disclosure contained in this release.
COMMANDER RESOURCES LTD. is a diversified exploration company that employs project generation and leverage strategies to develop Canadian resources for, either, sale or joint venture. By employing this strategic approach Commander is able to systematically enhance shareholder value while managing the risk associated in exploration and development.
COMMANDER trades on the TSX Venture Exchange under the symbol "CMD". For additional information, please visit the Company's website at http://www.commanderresources.com.
On behalf of the Board of Directors,
President & CEO
For further information, please call:
Cathy DiVito, Investor Relations
Toll Free: 1-800-667-7866
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.