TORONTO, Oct. 7 /CNW/ - VenCan Gold ("Vencan" or the "Company")
(TSX-V:VCG) is pleased to announce it has entered into a Letter of Agreement
with a group of land vendors ("Vendors") pursuant to which Vencan has agreed
to acquire a 100% undivided right, title and interest in a new land position
one (1) kilometre east of Lake Shore Gold's "Timmins West" (Holmer) Gold
Deposit in the Porcupine Mining Division of Northern Ontario.
The new property, "Costello" consists of approximately 9 claim units
totalling approximately 160 hectares in the Bristol Township of the Porcupine
Mining Division of Northern Ontario, located approximately 18 kilometres due
west of Timmins Ontario.
Kirk McKinnon, President and CEO of VenCan Gold stated, "We are very
pleased to have concluded a Letter of Agreement outlining the principle terms
of an agreement between VenCan and this seasoned and very knowledgeable group
of local prospectors and geologists. They are very familiar with the Property
and possess an in-depth understanding of the area. The current market
conditions have allowed us to capitalize on this opportunity, and acquire a
land position in immediate proximity to Lake Shore's Timmins West gold
deposit, which is slated to open for production in 2009. This arrangement
reflects VenCan's ongoing dedication to making a gold discovery in this high
producing gold area."
Costello Property Situated in a Gold Mineralized Environment
The Costello Property occurs immediately to the east of Lake Shore Gold's
new Timmins West (Holmer) gold deposit that is currently under active
development (shaft sinking).
Hadyn Butler, P.Geo., commented, "Gold mineralization in a quartz vein is
found on a single outcrop with sulphide and tourmaline mineralization similar
to the discovery outcrop at Timmins West surrounded completely by swampy flat
land - the clay belt remains of a late Ice Age lake bed. This former lakebed
hides a number of major gold deposits in the Porcupine Gold Camp (e.g., those
in Hoyle Township). Like Timmins West, the Costello Property's land position
has been neglected historically and is probably similar to the mineralized
system that hosts the Timmins West deposit along and beside the Bristol fault
- a structure that is parallel to the Porcupine-Destor Deformation Zone - the
largest of a series of parallel deformation zones that are structurally
associated with gold mineralization in the Porcupine Gold Camp."
In order to acquire its interest in the Property from the Vendors, VenCan
is required to:
i) issue to the Vendors an aggregate of 2,000,000 common shares on
receiving TSX Venture Exchange and Board of Directors approval of
the Option Agreement;
ii) make a cash payments to the Vendors in the amount of $50,000; and
iii) issue to the Vendors an aggregate of 1,000,000 share purchase
warrants, each entitling the holder thereof to acquire one common
share of Vencan at an exercise price of $0.15 per share for a
period of two years from closing.
Fall Exploration Program Planned
Exploration work consisting of outcrop cleaning, geological examination
(structure) and sampling, as well as a detailed ground magnetics, IP and
magnetometer surveys will be conducted across the Property in early fourth
quarter 2008 to define the mineralization style and drill targets. A drill
program will follow immediately thereafter.
Randall Salo, P.Geo. is the Exploration Manager and is overseeing the
overall exploration program on behalf of VenCan, and is the designated
qualified person for the technical information contained in this press
WARNING: The statements made in this news release may contain
forward-looking statements that may involve a number of risks and
uncertainties. Actual events or results could differ materially from
expectations and projections set out herein.
For further information:
For further information: Brent Nykoliation, Vice President of Business
Development, (416) 364-7024, (416) 364-2753 (FAX), email@example.com,
www.vencan.com or J. A. Kirk McKinnon, President and Chief Executive Officer;
Richard Schler, Chief Operating Officer & CFO