October 31, 2005 - Robert C. Carne, President of ATAC Resources Ltd. (TSX-V: ATC) is pleased to report it has signed an agreement with Bannockburn Resources Inc. which will allow Bannockburn to earn up to a 75% interest in ATAC’s Klaza gold-silver property 50 km west of Carmacks, Yukon Territory.
The Klaza property was staked by ATAC in winter 2005. It comprises 24 mineral claims last explored in the late 1980s. Geological mapping, prospecting soil geochemistry, EM-16 surveys and trenching have defined three main gold-silver bearing vein systems (BRX, Klaza and BYG Zones) on the property. The only zone that has been partially drill tested is the BRX Zone, which has been traced for 850 m along strike. In total, 824 m of drilling were completed with the best hole returning 5.6 g/t gold and 13.69 g/t silver over 8.9 m, including a higher grade section running 22.24 g/t gold and 45.41 g/t silver over 1.5 m. The other holes, some of which had poor core recovery and others that never intersected the desired vein target, returned only anomalous gold values.
The Klaza Zone lies 1 km to the north and has been traced by trenches for 250 m along strike with a gold-in-soil geochemical anomaly extending more than 100 m further along strike in both directions. The widest trench exposure returned 3.83 g/t gold and 83.67 g/t silver over 8 m, while the highest assay yielded 39.07 g/t gold and 92.38 g/t silver over 1.1 m.
The BYG Zone occurs midway between the two other zones and has been exposed in two trenches located 180 m apart. The highest assay from this zone yielded 5.47 g/t gold and 21.77g/t silver over 3.3 m.
Under terms of the agreement, Bannockburn can earn 75% interest in the project by spending $500,000 on exploration before September 29, 2008, including a minimum $100,000 expenditure by September 29, 2006 and issuing one million common shares, or that number of common shares equal to $1,000,000, to ATAC, at Bannockburn’s option, on or before September 29, 2008.
Upon Bannockburn earning a 75% interest, ATAC can elect to re-acquire a 25% interest in the project by completing exploration expenditures of twice the amount spent by Bannockburn and forming a 50-50 joint venture. Failing that, ATAC and Bannockburn will form a 25-75 joint venture. Bannockburn will be the operator of either joint venture. Should either party not participate in an exploration work program, its interest will be diluted and should either be
diluted to a 10% working interest, its interest will be converted to a 2% net smelter return royalty.
Bannockburn has announced that it plans to compile all the historic data in an effort to outline the tonnage potential of the high grade gold-silver veins and then complete an IP geophysical survey aimed at defining potential bulk tonnage targets.
The foregoing disclosure, including results of the previous exploration, has been reviewed by ATAC’s president, Robert C. Carne, P.Geo., a qualified person for the purpose of NI43-101.
ATAC is a well funded junior mining company focussed on gold and is using its expertise to identify and acquire promising new plays. For information concerning the Company or its various projects that are available for option, please contact Graham Downs at 604-688-2568 or 1-800-598-4155; or email [email protected].
ATAC RESOURCES LTD.
Per: Robert C. Carne, President
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