Threegold Resources JV’s Duverny Project with Osisko Mining Corp. (2011-02-14)
Val-d’Or, Québec, Canada – February 14, 2011 –Threegold Resources Inc. (THG: TSX Venture exchange) is pleased to announce that it has entered into an option agreement with Osisko Mining Corp (OSK: TSX) where Osisko may earn a maximum 70% interest in the recently acquired Duverny gold project located in the Abitibi region of Quebec. Under the terms of the agreement, Osisko will incur $4 million dollars of exploration expenditures over 5 years and pay $300,000 in cash payments to earn a 51% interest. Under the same terms, Osisko can then earn an additional 19% (up to 70%) by incurring an additional $6 million dollars of exploration or taking the project to feasibility.
Threegold is very pleased to be working with Osisko Mining on this project as Osisko is an aggressive emerging gold producer in the region and has targeted this area as having high potential for low grade, bulk tonnage mineralization. This agreement will allow Threegold to focus on the Adanac project, located immediately adjacent to and on strike to Gold Bullion Development’s gold discovery located south of the Cadillac-Larder Lake fault.
Threegold did not enter into the option agreement with Agnico-Eagle Mines referred to in the February 2, 2011 news release since the agreement had not been signed by the expiry date of the non-binding letter of intent. The payments to Big Bang Resources will remain in effect.
The Duverny property includes the past-producing Standard Gold Mine. The Standard gold mine operated intermittently between 1935 and 1953, producing an unknown quantity of gold. The mineralization is contained within a diorite sill trending southeast with a width ranging between 150 metres to 200 metres. The sill has been traced through its geophysical signature over a distance of three kilometres and will be a high priority exploration target. The current historical resource of the Standard Gold Mine is estimated at 132,750 tonnes grading 5.43 grams per tonne gold. Threegold has not verified the classification of this resource under National Instrument 43-101 and therefore the above-quoted figures are reported as an unclassified historical resource estimate. Resource estimates prepared under reporting codes other than National Instrument 43-101 should not be relied upon to conform to current standards and definitions. Furthermore, readers are cautioned that mineral resources are not economic mineral reserves and that the economic viability of resources has not been demonstrated. Historical unclassified resources are considered too geologically speculative to have any economic considerations applied to them. It cannot be assumed that all or any part of a historical mineral resource will ever be upgraded to a higher NI43-101 category.
Threegold Resources is actively pursuing gold discoveries in three projects located in prolific mining and exploration camps in Ontario and Québec. The 100% owned Adanac project is immediately adjacent to Gold Bullion's Granada discovery and west of Osisko's 12M ounce Canadian Malartic gold project. The South Bay Project has yielded a significant surface discovery near Val-d'Or and the Company has recently acquired land in the Shining Tree Camp on the western extension of the Cadillac–Larder Lake Fault Zone. Management is evaluating opportunities to create shareholder value with its recent Rare Earth Element discovery and its Base Metal project in the Gaspé Peninsula.
For further information, please contact:
Mr. Victor Goncalves
President and CEO
Threegold Resources Inc
Tel.: (204) 997 5517
Mr. Antoine Fournier, P. Geo.
Threegold Resources Inc
Tel.: (819) 825 3883
Mr. Sylvain Laberge
S.N.D.L. Financial Communication
Tel: (514) 380 5610
You can also visit our website: threegold.ca
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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