Ironwood Gold Corp. (OTCBB: IROG) IROG Makes it Four Properties – Teck’s Backing Means Big Time Faith in Their Abilities

irog

Ironwood Gold Corp.
(OTCBB: IROG)
StockGuru ProfileCompany Website

This has been a very good week for a Company that we have learned knows exactly what they are doing — so much so that Teck has joined forces with them.

This week the Company announced it entered into a Letter of Intent to acquire a 100% interest in mining operations on 20 unpatented lode claims commonly known as the Cherry Creek property in Nevada.

Within the project area, mineralization appears to remain strong on the unpatented claims which were previously controlled by Sterling Mining and make up the property which would be held by Ironwood Gold.

This comes fourth property is in addition to the THREE properties already owned by Ironwood Gold Corp.

Ironwood Gold Corp. has three substantial claims in Nevada, including one in the Carlin Trend, the nation’s richest orebody:

  • Rock Creek
  • Cobalt Canyon
  • Haystack

IROG employs for very strong criteria for their mining properties:

  1. The property must be adjacent to, or within the confines of, a district with an established history of economic mineral production.
  2. The project must be located in a stable, mining-friendly political jurisdiction.
  3. Previous work on the property must have established a very high probability of developing, and advancing to pre-feasibility stage, a minimum one-million gold-ounce equivalent resource.
  4. Having satisfied these first three criteria, the project must qualify for financing to bankable feasibility.

Based on the very strong and historical relationship with Teck, we know there are some knowledgaable and major  forces that respect Teck’s ability.  So do I.

First Agreement with Teck – Rock Creek (source Edison Research)

In December 2009, Ironwood acquired the right to earn a 100% interest in Rock Creek according to an option agreement between Teck and Kingsmere Mining, which was subsequently assigned to Ironwood.
September 2010. This minimum expenditure will be incurred as part of the $0.83m budgeted for Phase 1 of the exploration budget. Once Ironwood has achieved this, Teck can, at any time, earn
back:

  • 51% by solely funding $9m in exploration;
  • A further 14% (bringing its stake to 65%) by solely funding a further $9m in exploration.

If Ironwood spends $6m and Teck has not yet exercised its option, the latter has 60 days to exercise its initial 51% earn-back. In addition, Teck has a 2.5% net smelter royalty (NSR) which expires if it earns 51% of the project.

Second Agreement with Teck – Haystack (source Edison Research)

In addition to its option to acquire Rock Creek, Ironwood has a similar option to acquire the Haystack project from Teck subject to minimum expenditure of $0.1m by 30 September 2010. At any time after Ironwood has exercised this option, Teck can earn back 51% by solely funding $6m in exploration. In addition, by spending a further $6m, Teck can increase its stake to 65%. However, if Ironwood’s expenditure reaches $4m and Teck has not exercised its option, the latter has 60 days to trigger its initial 51% earn-back. Haystack is also subject to a 2.5% NSR.

Teck Resources, Limited

Teck is a diversified resource company committed to responsible mining and mineral development with major business units focused on copper, steelmaking coal, zinc and energy. Headquartered in Vancouver, Canada, its shares are listed on the Toronto Stock Exchange under the symbols TCK.A and TCK.B and the New York Stock Exchange under the symbol TCK. Further information about Teck can be found at: www.teck.com.

Ironwood controls 100 percent of the claim through the exploration phase, with Teck having a buy-back option of up to 65 percent of the project in return for financing and mining operations.

The Assignment Agreement provides that the Ironwood acquires the undivided 100% right, title and interest in and of the Claims by making certain expenditures on or in respect to the exploration and development of the Claims. As such, Ironwood’s rights under the Agreement are subject to certain rights providing for Teck to earn back into the Claims by making certain expenditures on or in respect to the exploration and development of the Claims and further subject to certain royalties payable to Teck.

_____________________

Ironwood Gold Corp.

7047 East Greenway Parkway
Suite 250
Scottsdale, AZ 85254
United States – Map
Phone: 888-356-4942
Website: http://www.ironwoodgold.com

About: Ironwood Gold Corp. is a mineral exploration and development company building a portfolio of prospective properties containing known deposits of strategic precious metals in politically stable, mining-friendly North American districts with recognized production histories.

Notice Regarding Forward-Looking Statements This news release contains “forward-looking statements” as that term is defined in Section 27A of the United States Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. Statements in this press release which are not purely historical are forward-looking statements and include any statements regarding beliefs, plans, expectations or intentions regarding the future. Such forward-looking statements include, among other things, the development, costs and results of new business opportunities. Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, the inherent uncertainties associated with new projects and development stage companies. These forward-looking statements are made as of the date of this news release, and we assume no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements. Although we believe that any beliefs, plans, expectations and intentions contained in this press release are reasonable, there can be no assurance that any such beliefs, plans, expectations or intentions will prove to be accurate. Investors should consult all of the information set forth herein and should also refer to the risk factors disclosure outlined in our annual report on Form 10-K for the most recent fiscal year, our quarterly reports on Form 10-Q and other periodic reports filed from time-to-time with the Securities and Exchange Commission.

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