Threegold Acquires New Gold Play: Barraute Project in Abitibi Region of Quebec (2010-06-10)

VAL-D'OR, QUEBEC, Jun. 10, 2010 (Marketwire) -- Threegold Resources Inc. (TSX VENTURE:THG) is pleased to announce the acquisition of the Barraute gold project some 50 kilometres northeast of Val-d'Or. The project lies along the northeast-trending Laflamme River Fault between two gold deposits: Goldstone's Bartec deposit (90.7 kt @ 11.4 g/t Au; http://grcmines.com/bartec.php) and Agnico Eagle's Swanson deposit (504 kt @ 1.93 g/t Au; http://www.agnico-eagle.com/English/Our-Business/Reserves--Resources/default.aspx). This most recent acquisition is part of a corporate objective aimed at strengthening the company's gold portfolio by acquiring and exploring projects within the Abitibi greenstone belt, Canada's most prolific gold producing region. The company will begin exploring its Barraute and South Bay projects during the summer of 2010.

Barraute Project

The Barraute project consists of six (6) claims covering 256 hectares along Range VII in Barraute Township, Quebec. Geologically, the property straddles a contact between a syenitic intrusive and volcanic rocks. The syenite is sheared and altered at the contact, containing an alteration assemblage of silica, sericite, biotite, chlorite, magnetite and, locally, epidote and hematite. The contact zone is auriferous and hosts an old gold-copper-molybdenum quartz vein showing. The property is traversed by two (2) fault systems; an E-W system and a NW-SE system. Work is presently focussed on determining, which of the two fault systems is most prospective.

Work on the property by current owners carried out between 2001 and 2006 consisted of prospecting, trenching, sampling, and diamond drilling in shallow A-sized holes. This work resulted in the discovery of several gold-bearing zones that were traced from surface to a depth of 30 metres. Mineralization occurs as finely disseminated pyrite, chalcopyrite and molybdenite in altered syenodiorite injected by fine quartz veinlets. Blasting and sampling returned anomalous gold values reaching 1.1 g/t. Drilling results established underground continuity, with a maximum gold grade of 1.3 ppm (g/t) in a 5-metre-long core interval averaging 0.82 ppm (0.82 g/t) with traces of chalcopyrite and molybdenite. Subsequent drilling confirmed the lateral extension of the mineralization along altered and sheared corridors where gold values range from 0.30 to 1.0 g/t with one maximum value of 2.1 g/t.

Under the terms of the agreement, Threegold may acquire a 100% interest in the project by issuing 360,000 common shares divided into three (3) yearly instalments, making a $15,000 cash payment on the second anniversary, and committing to $250,000 in exploration expenditures of which $100,000 must be carried out before the second anniversary. Further, a 250 000 common shares bonus will be granted to the vendors upon calculation of a 100 000 oz Au resource of the project. The vendors will retain a 2% NSR of which 1% can be bought back at any time for a cash payment of $1,000,000. This transaction is subject to regulatory approval.

Management statement

Management strongly believes in the potential of this project based on its favourable geology, its position as the mirror image of Agnico Eagle's Swanson deposit at the southern contact of the Swanson pluton on the eastern side of the Laflamme River Fault, and work performed by the prospectors. Threegold is currently planning initial work programs on its Barraute and South Bay projects during the summer of 2010. The South Bay Project was acquired in the fall of 2009 for its gold and silver potential (see press release of October 15, 2009). Past exploration produced the following results:

Table 1 - Results from past exploration on the South Bay Project

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Zone      Sampling             Width      Au        Ag
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                                (m)      (g/t)     (g/t)
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North     Drilling             0.61      21.6
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North     Drilling             0.61       4.11
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North     Drilling             0.76      31.54
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South     Trench and Channel   3.35       5.9
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South     Trench and Channel   2.44       8.4
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South     Trench and Channel   0.91      15.94
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South     Trench and Channel   0.61       9.26
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Silver    Grab                                     13,509
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Silver    Drilling             0.61                 4,252
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Antoine Fournier, P. Geo., is the qualified person responsible for the technical content of this press release.

 

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ABOUT THREEGOLD

Threegold Resources is a dynamic and active Quebec-based junior explorer with a diversified property portfolio. Threegold is pursuing exploration on three main projects in Quebec: Lemieux Dome in the Gaspe Peninsula for copper, zinc, lead, silver and gold; Mercier in the Abitibi region where the company recently made a rare earth element discovery containing base and rare metals (see press release of August 6, 2009); and Adanac, a gold property located a few kilometres from downtown Rouyn-Noranda.

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.