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IN THE UNITED STATES/
VANCOUVER, Jan. 18 /CNW/ - Evolving Gold Corp. (TSX-V:EVG) (OTCBB: EVOGF)
(FSE:EV7) (the "Company") is pleased to announce the signing of a definitive
option agreement with Golden Predator US Mines Inc. ("Golden Predator") and a
binding letter agreement with Bald Mountain Mining Company ("Bald Mountain")
to acquire a 100% undivided interest in the Rattlesnake Hills gold prospect.
This property is located in Natrona County, Wyoming, approximately
70 kilometers west of the city of Casper, Wyoming and covers 3,300 acres and
consists of 127 unpatented lode mining claims and approximately 682 acres of
Wyoming State lease lands.
The Rattlesnake Hills property has returned significant gold intercepts
in limited, previous drilling by Newmont Mining Corporation ("Newmont") and
others. Newmont reported intercepts such as 144 meters averaging 0.042 ounces
per ton (1.44 grams per metric ton) gold, 75 meters averaging 1.13 gpt gold
and 60 meters averaging 1.0 gpt gold, hosted in potassically-altered diatreme
breccias associated with an alkalic intrusive complex. The mineralization is
open to depth, and only a small proportion of the hydrothermal system has been
The geological setting and style of gold mineralization at Rattlesnake
Hills is very similar to the gold deposits at Cripple Creek, Colorado which
have been reported to have yielded over 20 million ounces gold over the life
of the mines.
The famous Cripple Creek gold deposit provides the geological model and
exploration criteria which will be utilized in the Company's planned
exploration drilling program, set to begin during the second quarter of 2008.
The Company has entered into a definitive option agreement with Golden
Predator for the acquisition of a 100% undivided interest in the Rattlesnake
Hills Property in Natrona County, Wyoming, as previously outlined in the
Company's news release of August 7, 2007. As consideration for this exclusive
option, the Company will issue 3,000,000 shares over a period of three years
to Golden Predator and has granted Golden Predator a 0.5% NSR. The Company
will maintain the right to repurchase 0.25% of the NSR for $375,000 at the
sole and exclusive option of Golden Predator. The Rattlesnake Hills Property
is currently subject to a 4% NSR payable to the underlying owners.
In addition, the Company has entered into a binding letter agreement with
Bald Mountain, whereby Bald Mountain will assign its entire interest in the
underlying option agreement between itself and Golden Predator Mines Inc.
dated December 11, 2007, to the Company. In consideration for this assignment,
the Company will pay Bald Mountain USD$200,000 and issue 400,000 shares.
A finder's fee will be paid in connection with this transaction in
accordance with TSX Venture policies.
The aforementioned agreements are both subject to TSX Venture approval.
Rattlesnake Hills Property
Mineralization at Rattlesnake Hills consists of low-sulphide,
disseminated gold hosted primarily by diatreme breccias which halo a complex
of alkali intrusive stocks and plugs, and is associated with widespread
potassic alteration. This style of mineralization is similar to that
associated with other, important gold deposits which define the Rocky Mountain
alkaline gold province which includes Zortman-Landusky (MT), Bald Mountain
(SD), Ortiz (NM) and the great Cripple Creek deposit (CO). Cripple Creek has
historically produced approximately 20 million ounces of gold.
Very limited drilling and surface exploration at Rattlesnake Hills was
historically carried out by American Copper and Nickel Company ("ACNC")
between 1983 and 1987, and subsequently by Newmont Exploration Ltd. ("NEL")
between 1993 and 1995. ACNC completed 32 reverse circulation shallow drill
holes targeting banded iron formations which occur peripheral to the much
younger breccias bodies. Subsequent drilling by NEL, consisting of 14 holes
(only two of which were core holes) totaling approximately 3000 meters, was
targeted on the diatreme breccias which border just one of the alkali stocks,
called the North Stock. NEL reported gold-bearing intercepts such as
148 meters averaging 1.44 gpt gold, 75 meters averaging 1.13 gpt gold and
60 meters averaging 1.0 gpt gold, with higher grade intervals over narrower
widths. The mineralization is open to depth, and only a small proportion of
the hydrothermal system has been tested.
The Company believes that the Rattlesnake Hills prospect has been
shallowly eroded, and that the limited previous drilling has possibly
identified the upper part of a gold-mineralized system preserved at depth.
Intersections of narrow, higher-grade (up to 10 gpt gold) intersections in the
deeper parts of historic drill holes, along with textures and mineralogy of
the veins, support this model.
An exploration budget of approximately $1.0 million is planned for 2008,
primarily for an initial phase of core drilling to total approximately
5,000 meters. The objectives of the drilling are: 1) to expand zones of
near-surface, low-grade gold mineralization discovered by historic
exploration; 2) drill-test other, known alkali intrusions and associated
diatreme breccias which carry anomalous gold values at surface but have never
been drilled, and; 3) test for the presence of higher-grade "feeders", deeper
in the system, along the margins of the various diatreme bodies.
Drilling is planned to begin during the second quarter of 2008.
About Evolving Gold Corp.
Evolving Gold Corp. is an emerging gold exploration and development
company focused on building value through the acquisition and exploration of
world class prospective gold prospects in the southwestern United States. The
Company is actively exploring 9 separate gold properties, primarily in known,
producing gold trends in the state of Nevada. The Company has recently
completed first rounds of drilling at the Malone (NM) and Fisher Canyon (NV)
gold prospects (assays pending) and is currently drilling at their large Sheep
Creeks (Carlin District) and Siesta (Sleeper District) gold prospects which
Evolving has acquired by staking in north-central Nevada.
Evolving has entered into an agreement with Newmont Mining Corporation
concerning an exploration partnership on four prospective gold properties
located within the prolific Carlin Gold Trend (see press release dated
October 2, 2007). In total, Evolving holds over 90,000 acres of exploration
lands in Nevada, Wyoming and New Mexico.
In compliance with National Instrument 43-101 ("NI 43-101") Lawrence A.
Dick, Ph.D., P.Geo. is the Qualified Person responsible for the accuracy of
this news release.
For more information visit www.evolvinggold.com.
On Behalf of the Board of Directors
EVOLVING GOLD CORP.
Lawrence A. Dick, Ph.D., P.Geo.
President and Director
FORWARD LOOKING STATEMENTS: This document includes forward-looking
statements as well as historical information. Forward-looking statements
include, but are not limited to the continued advancement of Evolving's
general business development, research development and/or Evolving's
development of mineral exploration projects. When used in this document, the
words "anticipate", "believe", "estimate", "expect", "intent", "may",
"project", "plan", "should" and similar expressions are intended to be among
the statements that identify forward-looking statements. Although Evolving
Gold Corp. believes that their expectations reflected in these forward looking
statements are reasonable, such statements involve risks and uncertainties and
no assurance can be given that actual results will be consistent with these
forward-looking statement. Important factors that could cause actual results
to differ from these forward-looking statements include the potential that
Evolving's mineral deposit(s), fluctuations in the marketplace for the sale of
minerals, the inability to implement corporate strategies, the ability to
obtain financing and other risks disclosed in our annual report on Form 20F
filed with the U.S. Securities and Exchange Commission and filings made with
the British Columbia Securities Commission.
The TSX Venture Exchange does not accept responsibility for the adequacy
or accuracy of this release.
For further information:
For further information: Evolving Gold Corp.: Robert Bick, CEO,
email@example.com, Direct (604) 639-0430, Toll Free 1-866-604-3864,
www.evolvinggold.com; OR Renmark Financial Communications Inc: Christopher
Wells: firstname.lastname@example.org, James Buchanan:
email@example.com, Tel.: (514) 939-3989, Fax: (514) 939-3717,
www.renmarkfinancial.com; OR Excelsior Communications Inc.: Miranda Bradley,
Managing Partner, firstname.lastname@example.org, Direct (416) 860-2509,