| ||August 02, 2006|
Commander Options Its Olymic-Rob Copper-Gold-Uranium Property
| ||Commander Resources Ltd. (CMD-TSX Venture) has signed a Letter of Intent (LOI) with Fjordland Exploration Inc. (FEX-TSX Venture) on its wholly-owned Olympic-Rob Property ('Olympic-Rob") in the Yukon Territory, Canada. The Olympic-Rob Property, comprised of 176 claim units covering about 3,675 hectares, is 100% owned by Commander Resources Ltd. |
Under the terms of the agreement, Fjordland may earn an initial 60% interest in the property by paying Commander $250,000 in cash, issuing 1.6 million treasury shares of Fjordland to Commander and incurring exploration expenditures on the property totaling $7 million over a five year period ending December 31, 2011. Of this, $50,000 and 350,000 treasury shares are payable to Commander upon receipt of regulatory approval and Fjordland must incur $600,000 in exploration expenditures by December 31, 2007, including a minimum of 2,000 metres of drilling. At least $75,000 in exploration must be completed by December 31, 2006.
Once Fjordland has earned a 60% interest, a joint venture will be formed or, within 60 days of vesting, Fjordland may elect to earn an additional 20% interest, for a total of 80%, by issuing to Commander either 1 million shares or $3 million cash, and by carrying all further costs through to completion of a bankable feasibility study. Upon completion of a bankable feasibility study, a final lump sum payment of $7 million cash is payable to Commander for Fjordland to vest its 80% interest. If Fjordland vests at 80%, then Commander will have the election at any time up to commencement of commercial production, to convert its 20% interest into a 2% NSR subject to a buy-down provision to 1% for $10 million cash payable to Commander.
If Fjordland elects not to increase its interest to 80%, Commander may then elect to earn back 20% to an aggregate 60% interest by funding 100% of the next $3.0 million in exploration expenditures on the property.
If a 60:40 JV is formed, each party shall fund its share of on-going costs pro-rata. Should either party's interest be reduced below 10%, its interest shall convert to a 10% NPI.
If the agreement terminates prior to Fjordland vesting an interest, the property will be returned to Commander with a minimum two years of assessment work filed with the Yukon Government.
The Olympic Property covers two hematite-magnetite breccia complexes covering a 10 kilometre square area as illustrated on the Company's website. Widespread copper mineralization occurs within the matrix and fractures of the breccia bodies. Historical sampling on the property returned significant copper values from the western portion of the breccia complex with the more significant samples reporting assays of 5.0% Cu/1.5 metres, 7.0% Cu/4 metres and up to 21.4% Cu from chip-channel and grab samples.
Within the Rob breccia, on the southern portion of the property, significant uranium values are known from outcrop samples that were collected in 1977 and 1979 by Union Miniere Exploration and Mining Corporation Limited (UMEX). The historic data reports uranium values in soils greater than 1.5 ppm uranium over the central part of the grid coincident with a copper-in-soil anomaly. Within the core of the uranium soil anomaly, 21 of the rock samples collected assayed greater than 0.01% U308 and eight samples contained greater than 0.06% U308. The highest values recorded in that survey were 1.57% U308, 1.01% U308, 0.54% U308, 0.46% U308 and 0.32% U308 with 0.3 to 1.8% copper.
The geological sequence on the combined Olympic-Rob Property has similar geology, age, geometry and trace element signatures to that which hosts the giant Australian Olympic Dam deposit which contains about 2 billion tonnes grading 1.6% copper, 0.6 grams per tonne gold and 0.06% U308. In addition to copper and gold, Olympic Dam is one of the world's largest uranium producers and contains the single largest uranium reserves in the world.
Please refer to the Company's website for location and property geology maps at www.commanderresources.com.
On Behalf of the Board of Directors,
Kenneth E. Leigh
President & CEO
For further information, please call:
Cathy DiVito, Corporate Communications
Commander Resources Ltd.
Telephone (604) 685-5254 Toll Free Canada/U.S.: 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.
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