June 15, 2012 Vancouver, BC – Northcliff Resources Ltd. (“Northcliff”) (TSX: NCF) announces that it has fulfilled its earn-in obligations for a 70% interest in the Sisson tungsten-molybdenum project (“Sisson Project”) under the Sisson Development Joint Venture Agreement (“JVA”) with joint venture partner, Geodex Minerals Ltd. (“Geodex”) (TSX.V: GXM).
Under the terms of the JVA, Northcliff was required to fund the lesser of (i) $17,000,000 in Sisson JV expenditures (less $580,000 in minority interest acquisition costs and $1 million in common shares subscribed for in Geodex), or (ii) the actual amount of expenditures incurred to produce a feasibility study report and to commence mine construction on the basis contemplated in the feasibility study report. Northcliff has now completed the requirement and secured the 70% interest.
“This is yet another major milestone for Northcliff in advancing the Sisson Project in New Brunswick and achieving our goal to be the next major tungsten producer in Canada,” said Christopher Zahovskis, President and CEO of Northcliff. “In just over 19 months, Northcliff has spent $15.4 million on the Sisson Project in direct project development costs. This investment by Northcliff accounts for roughly 55% of the total $28.1 million spent on the Sisson Project since Geodex first acquired the property in 2004.
“Importantly, a significant portion of our expenditures have been incurred within the Province of New Brunswick, and this will continue.”
Zahovskis added, “Our engineering teams are progressing with the feasibility program and we look forward to announcing the study results for a bulk tonnage, open pit mine by the end of Q3 of this year. With a measured and indicated resource of 383 million tonnes (see Northcliff’s announcement on May 17, 2012), the Sisson Project has the potential to be a long life mining operation spanning over 30 years and producing significant amounts of tungsten and molybdenum.”
“We are very pleased with Sisson’s potential to contribute significantly to non-Chinese sourced tungsten supply in the near term,” stated Robert Dickinson, Chairman of Northcliff, “particularly during this period of resilient tungsten prices and demand growth.”
The Company also finalized the Terms of Reference for the Environmental Impact Assessment (EIA) with federal and provincial government agencies in April. The EIA Report drafting is underway and remains targeted for submission by the end of Q3 2012. The federal project approval process is harmonized with the Province of New Brunswick process. In the meantime, Northcliff will begin preparing permit applications in the upcoming months.
On May 10, 2012, Northcliff announced that it signed a definitive purchase agreement with Geodex to acquire the remaining 30% interest in the Sisson project. The acquisition remains subject to approval by special resolution of Geodex shareholders at Geodex's special shareholders' meeting scheduled for June 18, 2012, and final TSX and TSX Venture Exchange approval…