San Gold and StrikePoint enter Strike Point Property Letter Agreement
StrikePoint Gold Inc.: SKP TSX-V San Gold Corporation: SGR TSX-V
The Letter Agreement provides that San Gold shall pay StrikePoint Gold a refundable advance deposit (the "Advance Deposit") of
StrikePoint Gold will be the operator of the project subject to a standard joint venture operating committee structure. StrikePoint Gold shall have the right to accelerate exploration by spending its own funds and an amount equal to such expenses shall be added to San Gold's work requirement for the year in which they are expended. When San Gold has earned its 50% interest, both parties shall become working parties, each responsible for 50% of expenditures, subject to standard dilution provisions. San Gold and StrikePoint Gold shall each have 90 days to remedy any shortfall to prevent dilution. Each Party to the Option Agreement shall have a first right of refusal to purchase the other Party's interest. San Gold and StrikePoint Gold will agree that no Party shall purchase any common shares of the other Party without the approval of both boards of directors, during the existence of the Option Agreement or for a period of two years following the termination of the Option Agreement or ensuing joint venture agreement. The proposed Option Agreement between San Gold and StrikePoint Gold is a Reviewable Transaction as defined in TSX Venture Exchange Policy 5.3 since Richard A. Boulay and
The Strike Point property consists of twenty six claims covering 3595 hectares adjacent to the northwestern boundary of San Gold's Rice Lake gold mine and mill property at Bissett, Manitoba, located a 3 hour drive from
During 2008 and early 2009, a new exploration strategy was developed to explore various properties in the central part of the Rice Lake Gold belt as well as properties at the distal ends of the belt to the east and west. The new strategy is based on the fact that San Gold's newly discovered high-grade Hinge and Cohiba zones located in the thick hanging wall volcanic sequence consists of pure gold and very sparse associated sulphides lodged in thick, pure quartz veins that intrude highly siliceous volcanic rocks. Consequently, with no geological contrast, the gold bearing veins are not identifiable using standard magnetic, electromagnetic or resistivity methods. During 2008, it was established that San Gold's high grade Hinge Zone mineralization was structurally controlled. Consequently, StrikePoint Gold and San Gold flew a 580 square kilometre very high resolution LiDAR Survey in
StrikePoint Gold currently has one of its geological teams dedicated to the Strike Point property. San Gold and StrikePoint Gold will immediately convene a technical committee to establish a systematic exploration protocol for the Strike Point property.
Sample LiDAR images can be viewed on the graphical version of this press release at www.sangoldcorp.com or www.strikepointgold.com.
This press release has been reviewed by D. Ginn, P.Geo., San Gold's Qualified Person for this project under National Instrument 43-101 and by Daniel A. Beauchamp, B.Sc., P.Geol., StrikePoint Gold's Qualified Person under National Instrument 43-101.
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. This news release may contain assumptions, estimates, and other forward-looking statements regarding future events. Such forward-looking statements involve inherent risks and uncertainties and are subject to factors, many of which are beyond the Company's control, which may cause actual results, performance or circumstances to differ materially from those currently anticipated in such statements.
For further information: For further information: Dale Ginn, CEO of San Gold Corporation, at (204) 794-5818; Richard Boulay, CEO of StrikePoint Gold Inc, at (403) 243-9500; or investor information at 1-800-321-8564
Share this article