February 21, 2006 - ATAC Resources Ltd. (TSX-V: ATC) announces that it has agreed to option its Golden Revenue, Nitro and Sey properties to Northern Freegold Resources Ltd., a private company that is in the process of going public. All three properties are gold projects located in the Carmacks area of central Yukon.
Under terms of the agreement, Northern Freegold has the optional right to earn a 50% interest in all three properties by making: a) cash payments totalling $185,000; b) share issuances totalling 1,000,000 common shares; and, c) work expenditures totalling $2,000,000 on or before December 31, 2008. Upon completion of earn-in, a 50-50 joint venture will be formed.
The three optioned properties are all situated within the Tintina Gold Belt and are part of a well mineralized trend that includes the Casino copper-gold-molybdenum deposit, the Minto copper-gold deposit, the Carmacks copper deposit, the Freegold Mountain gold deposit and the former Mt. Nansen gold-silver mine.
The Golden Revenue property is the most advanced of the three projects. It contains two main drill targets (Discovery and Nucleus Zones) within a largely unexplored 15 sq km area of moderately to strongly anomalous, multi-element soil geochemical response. The Discovery Zone hosts bulk tonnage and high grade gold mineralization, often accompanied by copper and tungsten. It has not received significant exploration since 1991. The most recent drilling on the property was done in 2004 at the Nucleus Zone. It partially defined a zone of near surface bulk tonnage gold mineralization and produced some of the best results from the property to date, including 1.35 g/t gold across 110.81 m. The second last hole in the program identified a new target west of the gold zone. This discovery is blind to surface and consists of porphyry style copper-gold mineralization. The inclined discovery hole intersected the copper-gold mineralization at a depth of 74.70 m below surface and continued for an intersected length of 57.83 m, producing a weighted average grade of 0.23% copper and 0.37 g/t gold. The hole was terminated for budgetary rather than geological reasons. The casing was left in the hole so it can be extended. The porphyry discovery is open to extension at depth and laterally in three directions.
The Nitro property is located 8 km west of Golden Revenue and covers a number of undrilled copper-gold soil geochemical anomalies. The Sey property lies 7 km east of Golden Revenue. It hosts gold-arsenic-silver soil anomalies that have never been drilled. In 2004 excavator trenching at the Sey property discovered a bulk tonnage gold zone and a higher grade silver-gold vein that yielded 3.25 g/t gold and 573 g/t silver across 1.8 m.
ATAC is a well funded junior mining company focussed on gold. It’s business model entails acquiring quality gold prospects, advancing them to drill stage and then attracting strong partners to move them toward production. At present ATAC has seven properties under option and all are scheduled to be explored in 2006. The Company continues to research and acquire additional properties. It currently has three other projects considered to be drill ready and available for option.
More complete information regarding the Golden Revenue and Sey properties is available on ATAC’s website at www.atacresources.com. To find out more about the Company or its various other projects, 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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