ATAC Resources Ltd. Farms Out its Eleventh Property
June 6, 2006
June 6, 2006 - ATAC Resources Ltd. (TSX-V: ATC) is pleased to announce that it has optioned two of its properties located near Dawson City, Yukon, to Klondike Silver Corp. Work has already begun at the Idaho Creek property and will begin soon at the Connaught property.
Including these option agreements, ATAC now has 11 of its 15 properties under option to other companies. The various option agreements are scheduled to result in at least $1.8 million in exploration expenditures during 2006. The optioning companies will also collectively make (or have made) cash payments to ATAC totalling $190,000 during 2006 and will issue (or have issued) ATAC a total of 2,100,000 of their shares during 2006. ATAC is the operator for about half of the exploration programs, including Idaho Creek and Connaught.
Idaho Creek is situated in western Yukon within the Dawson Range, a well mineralized sub-camp of the productive Tintina Gold Belt. Klondike Silver has the optional right to earn a 50% interest by issuing a total of 500,000 shares to ATAC and completing $2 million of exploration expenditures on the property over a 3 year period. The property features a 5 km long, 500 to 1500 m wide soil geochemical anomaly that is moderately to strongly anomalous for several metals. The core of the geochemical anomaly approximately coincides with a zone of potassic alteration that is marked by elevated radiometric, magnetic and electromagnetic response. Peak values from the soil geochemical survey are 122 ppm silver, 6550 ppm gold, 6180 ppm lead, 2620 ppm arsenic, 2300 ppm zinc and 1110 ppm antimony. Mineralized rock samples have returned values to 1258 g/t silver and 13.3 g/t gold. The anomalies and mineralization occur on frozen and mostly vegetated hillsides. Outcrops are rare and an attempt at bulldozer trenching was frustrated by the deep frozen soil. The property has never been drilled. A crew is currently cutting line in preparation for an induced polarization survey that will be closely followed by a 1000 m, reverse circulation drill program.
The newly staked Connaught prospect is located within the Sixtymile Placer Gold Camp. Klondike Silver can earn a 50% interest by paying ATAC $50,000, issuing it a total of 500,000 shares and making exploration expenditures totalling $1 million over a three year period. The Connaught prospect hosts seven silver-gold veins within a 13 km by 5 km area of anomalous geochemical response that approximately coincides with a pronounced magnetic high. Although the area has good road access, follow up work has been limited to trenching and a few drill holes along lightly vegetated ridge tops. Where exposed, the veins are typically 0.3 to 2 m wide and grade 100 to 1000 g/t silver with 0.3 to 2 g/t gold. Comparison of the geochemical and geophysical signature at Connaught to those at other mineral prospects in the district suggests that the veins lie within the cupola of an intrusion and that they may be underlain by more extensive stockwork style mineralization. The 2006 exploration program is designed to ready the property for a major drill program in 2007. It will consist of closely spaced stream sediment sampling and VTEM surveys followed by systematic excavator trenching and construction of spur roads for drill access.
Besides working on the optioned properties, ATAC intends to explore its wholly owned Mackenzie Gold project using its own funds. This project consists of three Northwest Territories Prospecting Permits that grant ATAC the exclusive right to explore a 48,615 hectare area for a period of three years. The project area lies at the southeast end of the Tintina Gold Belt in the Mackenzie Mountains of southwestern Northwest Territories. Geology consists of Paleozoic carbonaceous clastic sedimentary rocks, carbonate strata and volcanic rocks that are intruded by barely unroofed mid-Cretaceous granitic plutons. The area has a long history of coarse gold recovered by prospectors but no significant placer mining has ever been attempted due to the lack of road access. The appreciable alluvial gold accumulations in the project area are especially important because they are the only significant placer gold deposits in the glaciated portion of the Yukon and northern B.C. miogeocline. Despite highly anomalous (up to 6600 ppb) gold stream sediment sampling results obtained from large drainages in the area by major companies in the 1980s, little secondary effort has been made to evaluate the potential sources of the alluvial gold.
For information concerning ATAC or its properties please visit www.atacresources.com or contact Graham Downs at 604-688-2568 or 1-800-598-4155.
ATAC RESOURCES LTD.
Per: Robert C. Carne, President
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