VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan 30, 2013) - Entourage Metals Ltd. (TSX VENTURE:EMT) (the "Company" or "Entourage") is pleased to announce that Canada Gold Corp. (TSX VENTURE:CI) has signed a binding Letter of Intent for an option to acquire up to a 75% interest in the Northern Arm Gold Property from Entourage, subject to the satisfaction of certain conditions including receipt by Canada Gold of approval from the TSX Venture Exchange.
Through acquisitions and option agreements, Entourage recently consolidated the 155 square kilometer Northern Arm Gold Property, which was previously staked and owned by various other entities and groups. The Property straddles a 40km long trend that has yet to be systematically explored in the Hemlo Greenstone Belt in northwestern Ontario. The Northern Arm Gold Property is approximately 10 kilometers north of Barrick Gold Corporation''s Hemlo deposit, and is accessible from Route 614, which bisects the Property and connects to the Trans-Canada Highway and provides easy cost-effective access to the Property.
The Hemlo gold deposit has produced over 20.3 million ounces of gold to date (Ministry of Northern Development and Mines report 6182 and 6246). Compared to other greenstone belts, the Hemlo belt area has remained relatively underexplored. Gold was first discovered in the Hemlo area in 1981, leading to a staking rush and exploration work in the early 1980s. Current producing mines include Barrick''s David Bell, Golden Giant, and the Williams Mine defining a large 2.5 km continuous body of gold mineralization.
Canada Gold will have a first option to earn a 65% interest in the Northern Arm Gold Property by funding total exploration expenditures totaling $2,500,000 in stages on or before December 31, 2016, with $300,000 required to be funded on or before December 31, 2013. In addition, Canada Gold must make cash and share payments to Entourage, totaling $240,000 and 1,250,000 common shares, to exercise the first option. Canada Gold can exercise a second option earn an additional 10% interest, allowing Canada Gold to reach a 75% interest in the Property, by spending an additional $1,000,000 in work on the property, completing on or before December 31, 2017 a National Instrument 43-101 compliant resource estimate and paying and issuing to Entourage an additional $75,000 and 500,000 common shares.
In addition, should Canada Gold at any time file a National Instrument 43-101 compliant resource estimate indicating 1,000,000 million ounces of gold or greater, Canada Gold will make a one-time payment to Entourage of 1,000,000 common shares.
Entourage will be the operator of the Property during the currency of the first and second options.
Entourage and Canada Gold are planning an aggressive systematic exploration program for 2013. Scheduled to start as soon as possible, the program is expected to include additional geological mapping, ground induced polarization (IP) surveys, further rock & soil sampling, mechanical trenching, and drilling.
A finder''s fee will be payable in cash and common shares to a finder that is at arms-length to Entourage Metals and Canada Gold, subject to acceptance of the TSX Venture Exchange.
Mr. John C. Florek, P.Geo, Vice-President Exploration for Entourage and a Qualified Person as defined by NI 43-101, prepared and approved the technical information contained in this release.
ON BEHALF OF THE BOARD OF DIRECTORS
Jeff Sundar, President and Director
Certain disclosure in this release, including statements regarding the Letter of Intent and the Northern Arm Gold Property, constitute forward-looking information or statements (collectively, "forward-looking statements") for the purpose of applicable securities laws. In making the forward-looking statements, the Company has applied certain factors and assumptions that are based on the Company''s current beliefs as well as assumptions made by and information currently available to the Company, including that the conditions to the Letter of Intent will be satisfied, that any government or other regulatory approvals required to complete the Company''s planned exploration activities will be obtained, that the Company is able to procure personnel, equipment and supplies required for its exploration and development activities in sufficient quantities and on a timely basis and that actual results of exploration activities are consistent with management''s expectations. Although the Company considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect, and the forward-looking statements in this release are subject to numerous risks, uncertainties and other factors that may cause future results to differ materially from those expressed or implied in such forward-looking statements. Such risk factors include, among others, that the conditions to the Letter of Intent will not be satisfied, that the Company will be unable to obtain required regulatory approvals on a timely basis or at all, that actual results of the Company''s exploration activities will be different than those expected by management and that the Company will be unable to obtain or will experience delays in obtaining any required government approvals or be unable to procure required equipment and supplies in sufficient quantities and on a timely basis. Readers are cautioned not to place undue reliance on forward-looking statements. The Company does not intend, and expressly disclaims any intention or obligation to, update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by law.
- Investment & Company Information
- Letter of Intent
- Barrick Gold Corporation