Trading Symbol: AGS - TSX VENTURE
EDMONTON, Oct. 23 /CNW/ - Agau Resources, Inc. ("Agau") announces Navoro
Mining, LLC ("Navoro"), a wholly owned subsidiary of Agau, has entered into an
option agreement with 695491 Alberta Ltd. ("695") a corporation owned equally
by Kenneth Richardson, a major shareholder of Agau, and five other members of
his family for acquisition of an interest in seven unpatented mining claims
(the "Socorro Mine Claims") in the Salome, Arizona area. Each Claim contains
twenty acres for a total of one hundred and forty acres, more or less. This
option is in addition to an option on fourteen claims (the "Socorro Claims")
previously acquired by Navoro from 695 and reported in a press release dated
August 23, 2007.
Under the option, Navoro will acquire an interest in the Socorro Mine
Claims and the Socorro Claims (together referred to as the "Socorro Mine
Property") on the following basis in place of the expenditures outlined in the
August 23, 2007 press release:
- Navoro will earn a 75% interest by spending $1,000,000 on the Socorro
Mine Property by December 31, 2011;
- an additional 15% will be earned by spending a further $300,000 by
December 31, 2012;
- 695 will retain a 10% working interest and a 2% net smelter return
("NSR") in the Socorro Mine Property; and
- Navoro will have the right to purchase one half of the NSR retained
by 695 for $1,000,000 at any time.
The acquisition and documentation is subject to approval of Agau, its
solicitors and any required regulatory authorities.
A NI 43-101 Technical Report on the Resources for the Socorro Mine
Property has been prepared by Michael R. Pawlowski, R.G., C.P.G., the
designated qualified person for Agau for this project. The report states that
"Historic data was reviewed by the author on three separate geological
mapping, sampling and drilling programs in 1974, 1984 and 1988 on the Socorro
Mine Property. Gold resources were calculated by previous geological and
exploration programs, but are not in compliance with current 43-101 standards.
Numerous geological concepts on the possible location of gold mineralization
were tested by past historic drilling programs. There exists significant
exploration potential at the Socorro Mine Property for the discovery of
disseminated and vein-type gold deposits".
The report further states that "The Socorro Reef gold anomaly is a
3,500 foot long by 250 foot wide, northeast-southeast trending area on the
southwest side of the Socorro property, (Figure 6). A "possible 35.6 million
tons of gold enriched rock in the Socorro Reef Gold Anomaly" was calculated by
Stanley B. Keith, in 1982. Geologically reasonable modeling by Keith, 1982, of
this Socorro Reef Gold Anomaly calculated a possible 35.6 million tons of
rock, containing an estimated 760,000 ounces of gold, Figure 6. Where
underground drilling was completed in three drill holes, in Blocks B, C and F
on Figure 6, a tonnage of 21.43 million tons was calculated by Stan Keith at
an average grade of .0152 ounces per ton, (Table 4). These tonnages and gold
values are an historical calculated number based on surface samples and a few
drill holes at the time and is not considered reliable for any resource
calculations. The reader should be cautioned that the potential quantity and
grades are conceptual in nature, and that there has been insufficient
exploration to define any mineral resource and that it is uncertain if further
exploration will result in the targets in the Socorro Reef Gold Anomaly on the
Socorro Mine Property being delineated as a mineral resource".
The report also reveals another area on the Socorro Mine Property has
anomalous gold values above .009 ounces per ton of gold to .426 ounces per ton
of gold from rock chip samples from cross cut, adjacent surface samples and
drilling by Can-Ex Explorations in 1989. A 2000 report calculated 6.995
million tons of mineralized material averaging .035 ounces per ton gold or
246,000 ounces of gold, with 11.818 million tons of waste rock for a 1.69/1
waste to ore strip ratio. The report cautions that the 1982 and 2000
calculated resource on the Socorro Mine Property are not in compliance with
current 43-101 standards and are only reported for historic purposes.
The report recommends a proposed Phase 1 Budget of $600,000 for the
exploration on the Socorro Mine Property. If the program is successful, a grid
drilling program would be recommended in the future. Agau is presently
considering its options for exploration of the Socorro Mine Property.
The full NI 43-101 Technical Report on Resources on the Socorro Mine
Property may be viewed on SEDAR at www.sedar.com.
THE TSX VENTURE EXCHANGE DOES NOT ACCEPT RESPONSIBILITY FOR THE ACCURACY
OR ADEQUACY OF THIS RELEASE.
For further information:
For further information: Einar N. Myrholm, President, at (780) 413-9392,
facsimile (780) 496-9307 or at firstname.lastname@example.org