Osisko Mining Corporation Acquires 9.2 Percent Stake in Threegold Resources Inc. (2011-05-19)
VAL-D'OR, QUEBEC, CANADA -- Threegold Resources Inc. ("Threegold" or the "Company") (TSX VENTURE:THG) is pleased to announce that Osisko Mining Corporation (Osisko) has purchased 8.6 million common shares of the company on the open market. As of May 15th 2011, this purchase gives Osisko a 9.2 percent stake in Threegold along with the Option agreement that was announced February 14th, 2011 to earn up to 70% interest on the Standard Gold Property.
Standard Gold Property Option with Osisko
Threegold Resources Inc. entered into an option agreement with Osisko on February 14th, 2011,where Osisko may earn a maximum 70% interest in the Standard Gold Property 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.
The Standard Gold 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 kilometers and will be a high priority exploration target. The historical resource of the Standard Gold Mine is estimated at 132,750 tonnes grading 5.43 grams per tonne gold.
President and CEO of Threegold Victor Goncalves remarked: "It has been tremendous year of growth for Threegold and its shareholders, and now having attracted Osisko both as a partner on the Standard Gold Property and as an equity stake holder sets the stage for protracted corporate growth and increased shareholder value."
Mr. Sean Roosen, President and CEO of Osisko, stated: "We are very pleased to have established this partnership with Threegold. They have an attractive precious metal property package and Osisko is looking forward to participating in Threegold's ongoing exploration programs."
This press release was reviewed by Antoine Fournier, P. Geo. and Vice-president Exploration for Threegold Resources Inc. and a Qualified Person as defined by NI43-101.
Osisko Mining Corporation is a development-stage gold mining company based in Montreal, Quebec, Canada. Osisko is currently commissioning the Canadian Malartic gold mine in the Abitibi mining district. The first gold bar was poured on April 13th, 2011 and the beginning of commercial production is scheduled for May 2011.
The Company's NI 43-101 compliant feasibility study (November 2008) and the subsequent updated reserve estimates outline an open pit operation that will produce an average of 575,000 ounces of gold annually over a 16-year mine life including operating costs in the lowest cost quartile among global gold producers. Canadian Malartic currently represents the single biggest permitted gold reserve in Canada, and is still growing through ongoing drilling on adjacent mineralized zones. On March 31st, 2011, Osisko increased the gold reserve by 19% to 10.71 million ounces.
Threegold has established itself as one of the premier exploration companies in Quebec. The Company consists of a highly qualified technical team with extensive Quebec-based exploration experience including previous gold discoveries and expertise in geology, financing and public company management.
Threegold's focus is to create shareholder wealth through the discovery of new gold deposits with a 100% focus in Canadian assets mainly Quebec. As an emerging mineral exploration company, investors have the opportunity to participate in a Portfolio of high quality exploration projects and in turn the potential to take part in a major gold discovery.
With a strategic property portfolio and a solid partnership with Osisko, Threegold's goal is to discover a low cost producing, multi-million ounce gold deposit in Quebec.
Cautionary Note concerning Historical Resources
Threegold has not verified the classification of the Standard Gold Property 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.
For Additional information, please contact:
Mr. Victor Goncalves
Mr. Sylvain Laberge
Mr. Antoine Fournier, P. Geo.
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.
Join our email list
Sign up for our newsletters now!