Osisko Mining Corporation Begins Exploration on Threegold’s Adanac Project (2011-06-28)
Val-d’Or, Québec, Canada – June 28, 2011 –Threegold Resources Inc. (“Threegold” or the “Company”) (THG: TSX Venture exchange) is pleased to announce that Osisko Mining Corporation (“Osisko”) has begun exploration on the Adanac Gold Project. Preliminary work on Adanac includes some data validation and integration of previous data into a comprehensive database, relogging of some key holes, characterization of the known alteration and mineralization and extensive surface sampling. Diamond drilling is scheduled to commence thereafter. Osisko is currently planning on spending approximately $750,000 on Adanac for the first year of exploration. The target is a low grade, bulk tonnage gold deposit. Geology and alteration mineralogy at Adanac are similar to what has been observed at Canadian Malartic.
Osisko has also commenced compiling and analyzing exploration data on Threegold’s Standard Gold property, located in Duverny Township, Abitibi. Osisko is currently planning on spending approximately $500,000 on the Standard Gold Property for the first year of exploration.
About the Adanac Property
The Adanac Project is located on a southern splay of the famous Cadillac Larder Lake Break that is host to an impressive number of historical and current mines that collectively produced almost 100 million onces of gold. The area has been gaining significant attention with the recent exploration success of Gold Bullion Development Corp on their flagship Granada project, which lies immediately adjacent to the Adanac property along the western claim boundary. The Adanac property consists in 91 claims covering 3276 hectares and is underlain by Pontiac and Temiscaming metasedimentary rocks that have been strongly deformed and sheared. An unknown quantity of gold has historically been produced on the property mostly from the Adanac shaft that reaches a depth of 98 metres opening on 3 sublevels. Threegold began exploring the project through property-scale geochemical and geophysical surveys between 2007 and 2009 followed by a 4,474-metre, 22-hole diamond drilling program carried out in the fall of 2009 to investigate the most significant targets on the project. This program helped outline a 1.8-kilometre gold trend on the project.
About the Standard Gold Property
The Standard Gold (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 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.
Victor Goncalves, President and CEO reports: “We are pleased to have developed this unique relationship with Osisko. It will allow us to continue searching for key projects knowing that we have all the expertise and know-how to bring the projects to fruition.”
Threegold is now finalizing the details of exploration programs on its other projects and will report accordingly.
This press release was prepared by Antoine Fournier, P. Geo, 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 the end of May 2011.
According to the term of the agreements, Osisko must spend $4.5 million in exploration and make $600,000 over 4 years in payments to acquire a 51% in the Adanac project; thereafter the company may earn an additional 19% by spending an additional $10 million dollars of exploration or taking the project to feasibility. On Standard Gold, Osisko may earn a 51% interest by spending $4.0 million in exploration and making cash payments of $300,000 over 5 years. An additional 19% interest may be earned by further incurring $6 million dollars of exploration or taking the project to feasibility.
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.
For further information, please contact:
Mr. Victor Goncalves
Mr. Antoine Fournier, P. Geo.
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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