Cariboo Rose Resources Ltd. (TSX-V: CRB) began trading on December 4, 2006 following the completion of a plan of arrangement with Wildrose Resources Ltd. in which several mineral properties and $1,000,000 in cash were transferred into Cariboo Rose from Wildrose Resources Ltd. Cariboo Rose now owns and operates five mineral exploration projects in Western Canada four of which are in option agreements and one which is in a joint venture.
Cariboo Rose adheres to a business model where exploration financing leverage is achieved by optioning out interests in projects at an early and more risky exploration stage of exploration and then initiating a joint venture when the higher risk exploration is completed. It is only at this time that Cariboo Rose will start to share on-going project costs. An additional benefit of this strategy is that significant cash and marketable securities are received as option payments. Historically, these option payments have exceeded the Company’s administration costs. A summary of current option agreements is as follows:
Canadian Creek (Yukon)
Dajin Resources Corp.
MaxTech Ventures Inc.
Hawthorne Resources Inc.
$140,000 in cash
A summary of current Joint Venture agreements and terms is as follows:
Partner/ % Interest
|Woodjam Joint Venture|
Fjordland Exploration Inc. 60%
Woodjam – This gold/copper project is located in south-central British Columbia, 40 kilometres south of Imperial Metals’ Mt. Polley mine with which Woodjam shares many similar attributes including a suite of generally alkalic Triassic-Jurassic intrusives and related volcanics. Fjordland Exploration Inc. earned a 60% joint venture interest in Woodjam early in 2006 after completing $1,500,000 in exploration, paying $150,000 and issuing 200,000 shares. Woodjam represents an unusual porphyry copper style of occurrence with an extraordinarily high gold to copper ratio - statistically 1:1,600 such that mineralization grading 0.16% copper consisting of weak but pervasive disseminated chalcopyrite and minor bornite statistically contains 1.00 grams per ton gold. Highlights of recent drilling include hole 05-43 which returned 92 metres grading 1.00 g/t gold and 0.22% copper and hole 05-47 which returned 58 metres grading 1.08 g/t gold and 0.20% copper. Drilling in 2004 included hole 04-32 which intersected 378 metres grading 0.81 g/t gold and 0.12% copper, and hole 04-37 which intersected 397 metres grading 0.82 g/t gold and 0.12% copper. A 530 metre hole was completed in the Takom Zone in November of this year with assaying still in progress. Mineralization targeted at Woodjam is modeled after Newcrest Mining’s Cadia Hill deposit in Australia and Northgate Exploration’s Kemess deposit in B.C. Cadia Hill commenced production in 1996 with a 210 million tonne resource grading 0.72 g/t gold and 0.18% copper and Kemess in 1999 with a 200 million tonne resource grading 0.22% copper and 0.63 g/t gold.
Combined optionee and joint venture exploration expenditures completed in 2006 were approximately $1,400,000 and it is anticipated that a comparable amount will be spent in 2007. J.W. (Bill) Morton P.Geo is the qualified person as defined in national Instrument 43-101 who takes responsibility for this news release.
J.W. Morton, P.Geo.
President, Cariboo Rose Resources Ltd.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. This news release may contain certain “Forward-Looking Statements” within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact, included herein are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company’s expectations are disclosed in the Company’s documents filed from time to time with the TSX Venture Exchange, the British Columbia Securities Commission and the US Securities and Exchange Commission.