• TSX-V:ECR 0.08 (0)
  • Volume 254650

Press releases



October 28, 2010

Cartier Signs LOI for its Rivière Doré Copper Property

Val-d’Or, Quebec, October 28, 2010 – Cartier Resources Inc. (TSX-V: ECR) (“Cartier”) is pleased to announce that it has signed a Letter of Intent (“LOI”) for its Rivière Doré property, located south-east of the town of Val-d’Or in the province of Quebec. Cartier has signed a binding LOI with Copper One Inc. (TSX-V: CUO) (“Copper One”), a corporation incorporated under the laws of British Columbia. Subject to customary conditions and a legal, technical and business due diligence, both parties have agreed to work towards signing a definitive agreement on or before January 15th 2011. The definitive agreement between Cartier and Copper One will be structured to optimize the exploration and development of the Rivière Doré copper project.

Under the terms of the LOI, Copper One is granted an Initial Option to acquire an undivided 51% interest in the Rivière Doré property by making cumulative exploration expenditures of $5,000,000 on or before December 31, 2015, including a firm first year commitment of $750,000 and paying $250,000 and issuing to Cartier 350,000 common shares of Copper One. Upon the valid exercise of the Initial Option, Copper One shall have an Additional Option to acquire a further 24% interest in the Rivière Doré property by continuing until the completion of a definitive feasibility study or making further cumulative expenditures of $20,000,000 by or before December 31, 2020.

The following schedule summarizes the terms of the LOI:

  • Initial Option (to acquire 51%):
    • First Year (ending December 31st, 2011): a firm commitment for work expenditures of $750,000;
    • Years Two through Five (ending December 31, 2015); cumulative work expenditures of $5,000,000 (with expenditures being approximately $1,062,500 per year); and
    • Payment of $250,000 and issuance of 350,000 common shares of Copper One.
  • Additional Option (to acquire 75%):
    • Completion of a definitive feasibility study; or
    • Years Six through Ten (ending December 31, 2020): cumulative work expenditures of $20,000,000 (with minimum expenditures of $1,000,000 in each year after December 31, 2015)

Cartier will manage the exploration program during the Initial Option period. After the first year of the Initial Option, Copper One may elect to operate the project. If it elects to do so, Copper One will make an annual cash payment to Cartier of $50,000 for each year that it shall operate the project during the Initial Option. The proposed agreement contemplates that a joint venture will be formed once Copper One has vested at 51% or 75%. The parties also agree that the definitive agreement will include negotiated terms for the joint venture agreement.

“Dealing with a company whose core business is copper provides the best opportunity for success on Rivière Doré,” commented Philippe Cloutier, President and CEO of Cartier. “We are very pleased with the design of this agreement as our partner’s investment is focused towards expanding on the 2009 surface discoveries and explore numerous other targets on the property.”

About Copper One Inc.

Copper One is focused on developing high-value copper deposits in leading mining jurisdictions. The company is led by a diverse team of explorers, developers, and operators with major company experience and a clear understanding of the business of mining. Copper One also holds a significant portfolio of copper properties in the prolific copper-producing regions of Arizona and New Mexico, including its flagship Lone Mountain copper oxide project which is currently in the permitting process for a major drill program anticipated in 2011.

Copper One and Cartier are preparing an aggressive exploration program that will include drilling the discovery area and exploring several new strategic targets on the property. The ease of access and lay of the ground allow for exploration on the property on a year-round basis for trenching and drilling.

Figure: Location of the Rivière Doré Copper-Nickel Property

Quality Assurance/Quality Control

The Rivière Doré exploration program is conducted under the supervision of Mr. Philippe Berthelot, P. Geo., Cartier’s Vice President – Exploration, a qualified person as defined by National Instrument 43-101. Cartier has implemented and adheres to a strict Quality Assurance/Quality Control program which includes mineralized standards and blanks for each batch of samples. Assay samples are taken from drill core sawed in half with one half sent to a commercial laboratory and the other half retained for future reference. Analyses are either performed by Techni-lab S.G.B. Abitibi inc. in Sainte-Germaine, Quebec, or by ALS-Chemex in Val-d’Or, Quebec, both of which are accredited laboratories.

The technical information in this news release has been reviewed and approved by Mr. Thomas R. Kilbey, Copper One’s Vice President – Exploration, a certified professional geologist and a qualified person as defined by National Instrument 43-101.

About Cartier Resources

Cartier is an exploration company focused on gold and currently holds significant land holdings in the prolific Abitibi Gold Belt in Quebec. The company’s portfolio of properties consists of wholly-owned projects which are managed by a team of geologists who have a proven track record of making significant discoveries.

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For further information please contact:

Philippe Cloutier

President and CEO
Cartier Resources Inc.
Telephone: 819 874-1331

Fax: 819 874-3113
info@ressourcescartier.com

www.ressourcescartier.com

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this press release.