News

ASC Industries to acquire 50% interest in Regent Claims

June 14, 2004

ASC Industries Ltd. has negotiated an option agreement, subject to regulatory approval, to acquire a 50-per-cent interest in the Hobo Creek, Red Mountain, area group of claims (234 claims) owned by Regent Ventures Ltd. The Regent claims adjoin the company's Ice claims immediately to the north and northeast. The acquisition will result in a contiguous claim group comprising 286 claims totalling approximately 5,500 hectares.

In order to earn a 50-per-cent interest in the Regent claims, the company must:

expend not less than $300,000 in exploration costs on the property on or before Nov. 30, 2004;
expend not less than $800,000 of cumulative exploration costs on the property on or before Nov. 30, 2005;
expend not less than $1.5-million of cumulative exploration costs on the property on or before Nov. 30, 2006; and
grant to the optionor 350,000 share purchase warrants exercisable at 55 cents for a one-year period.

Regent Ventures Ltd. will retain a 1-per-cent net smelter royalty with respect to its claims.

This acquisition provides for a contiguous exploration target that will enable the company to fully exploit the potential of this property. During 2003, one deep drill hole (DDH03-39) was completed jointly with Regent Ventures Ltd. on the BX claims just north of ASC Industries' claim boundary with the BX claims. This hole confirmed that gold-bearing structures hosting the Treadwell vein structure are persistent and continuous structures with gold veins returning five-gram-per-tonne to 10-gram-per-tonne gold values. This structure is parallel to and one kilometre east of the Jethro structure. The fault structure continues southeast onto the Ice claims. DDH03-39 produced 2.74 grams per tonne gold over 0.80 metre; 1.01 grams per tonne gold over 12 metres; 2.12 grams per tonne gold over 6.55 metres; 2.04 grams per tonne gold gold over 1.10 metres; and 11.3 grams per tonne gold over one metre at the bottom of the hole. In addition 16.97 ounces per tonne silver occurred together with the high gold values at depth. The 2004 drilling program will further test the Treadwell structure.

The company has mobilized its crew and commenced logistical support for the 2004 drilling season. Approximately 2,500 metres of drilling is planned to further test the Jethro structure, which in a 2003 drill hole (DDH03-12) produced an average 0.88 over 102 metres. The hole contained highlights of 15.35 grams per tonne gold over 2.29 metres and 8.71 grams per tonne gold over one metre.

In addition the company has negotiated a reduction of the NSR on the Ice claims from 4 per cent to 2 per cent. One per cent of the NSR may be purchased from the vendor for $1-million.

Stock options

The company has allocated 750,000 incentive stock options to directors and consultants. The stock options will be exercisable at 55 cents per share for five years and are subject to regulatory approval.