March 10, 2011 12:18 AM EST
SOUTH LAKE TAHOE, CA -- (MARKET WIRE) -- 03/10/11 -- Siga Resources Inc (http://sigaresourcesinc.com) (OTCBB: SGAE) -- President and CEO Edwin Morrow announced today that Siga has completed a renegotiation of its agreement to acquire the Lucky Thirteen Placer, near Hope, BC. Under the new agreement, Siga is acquiring 100 Percent of the Lucky Thirteen Placer Gold project as opposed to 80 percent that the earlier agreement provided. The new agreement is between Siga Resources Inc, and Mr. Peter Osha, the owner of the Lucky Thirteen placer.
Siga has agreed to acquire the property and place the project in production. The purchase price is $1.5 Million payable over 4.5 years, and Osha retains a 3% net smelter royalty. The commitment includes an initial approx $400,000 recommended evaluation program, which will commence when weather allows.
The Lucky Thirteen Placer claim is 168 ha (415 acre) in size. Near Hope, BC, the deposit is located on the historic Union Bar, located on the north bank of the Fraser River. The targeted deposit covers an area of approximately 50 ha (124 acres) of the placer claim. A 2007 report by T. Sadlier Brown and P. Geo performed a complete review, analysis and organization of all available historic records from government files, previous owners and operators.
The potential of the Union Bar was summarized: The gross sand and gravel resource was estimated to contain approx 12 million cubic yards. While all of the gravel resource may not contain economic values in precious metals, Brown reported that the more recently documented sampling programs in the tested area of the gravel bar estimated approximately 250,000 oz of gold and an undetermined but possibly significant amount of platinum group metals (PGEs) contained in approx 4 million cubic yards of sands and gravels. This estimate shows a gold-only value of approximately .06 oz/cubic yard, or a gross value of $72 per in place yard.
Brown recommended an evaluation program to develop systematic new data on the previously sampled area, and to extend the evaluation into the balance of the placer deposit to determine its ultimate size based on current metals prices.
The evaluation program planned will grid sample via excavator approx half the placer outcrop down to a depth of at least 20 feet and deeper if field conditions allow. This program will develop new data to calculate reserves in both previously tested areas and adjacent sand and gravel.
The permit for the evaluation program was received in mid January 2011.
Forward-Looking Statements You should not place undue reliance on forward-looking statements in this press release. This press release contains forward-looking statements that involve risks and uncertainties. Words such as "will," "anticipates," "believes," "plans," "goal," "expects," "future," "intends," and similar expressions are used to identify these forward-looking statements. Actual results could differ materially from those anticipated in these forward-looking statements for many reasons.
Siga Resources Inc
President and Director
Phone: 1-530 577-4141
Fax: 530 548 7369
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Source: Siga Resources Inc