/NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO U.S.
TORONTO, Nov. 28, 2012 /CNW/ - Viking Gold Exploration (TSX-V:VGC), the
"Company" or "Viking Gold", is pleased to announce that it has entered
into a non-binding letter of intent to acquire Trilogy Mining
Corporation ("Trilogy"), a Canadian mining exploration company active
Trilogy, through its wholly owned subsidiaries, owns the "Ecovent
Projects", a property totaling over 30,000 hectares in the Florida
Greenstone Belt in southwestern Uruguay. Trilogy also holds a 51%
interest in an adjacent property with the right to increase its
ownership to 80% by investing $350,000 on the property prior to
September 30, 2015. This property is identified by Trilogy as the
"Chamizo Project" and covers an area of approximately 7,000 hectares.
Two other permits, Rincon and El Cuervo, are to be granted by the
authorities and added to the portfolio of the company.
The most advanced property of the Ecovent Projects is "Carreta Quemada",
a large gold mineralized system inferred from stream sediment and soil
geochemical surveys. Visible gold particles are plentiful in the
drainage system and the area shows a good structural preparation
potential for volume deposits. This potential has been confirmed by a
single trench over the best soil anomaly that showed a stockworking
style of mineralization where leached surface rock samples returned as
high as 1.3 g/t Au. More than 700 soils samples were collected and
analyzed and other large soil anomalies are ready for testing.
The Chamizo property contains many targets, of which two, Zones 13 and
14 exhibit potential ore grade gold occurrences demonstrated by limited
reverse circulation and diamond drilling carried out by previous
operators. In addition, a new high-grade gold bearing vein set has
been discovered at Esperanza.
At Zone 13, gold mineralization has been identified by RC drilling over
a strike length of 300 metres with the easternmost hole returning
2.78g/t Au over 8 metres starting at surface in a sericite schist with
pyrite. The Zone 14 was drilled for high-grade quartz veins with the
best intersection returning 9 meters at 4.5 g/t Au. None of this
earlier drilling is NI 43-101 compliant. Esperanza is characterized
by three occurrences of a 3 to 4 metre wide quartz vein recognized over
1,200 metres along an East-West magnetic lineament. Chip samples of the
three occurrences have returned 25.9 g/t Au (Esperanza West), 8.7 g/t
Au (Esperanza Center) and 33.2g/t Au (Esperanza East).
Initial exploration will focus on expanding the known gold bearing zones
13 and 14 and to explore Esperanza. Geophysical surveys, MAG and IP,
will be carried out over the prospective areas and soil geochemical
surveys will be extended to cover all the drainage anomalies. At this
time there are no defined resources or proven reserves on these
As part of this acquisition, Viking Gold acquires a team of seasoned
professionals on the ground in Uruguay led by Chris Clark, a successful
Geologist that has had many prospecting successes and put mines into
production. The Company is pleased to announce that Chris Clark will be
joining its Advisory Board on closing of this transaction. Mr.
Clark will continue to run the Uruguay operations on behalf of Viking
Gold after the closing. He spent 15 years with Rio Tinto Group and then
worked as a consulting geologist for numerous companies until becoming
the founder, President and CEO of Uruguay Goldfields, (subsequently
Uruguay Mineral Exploration and now Orosur).
Viking Gold has agreed to a share-for-share exchange with the
shareholders of Trilogy and has agreed to issue 15,000,000 shares of
Viking Gold in exchange for 100% of the shares of Trilogy. The Viking
Gold shares will be placed in escrow and released in three tranches.
The first tranche of 5,000,000 shares to be released on closing, the
second tranche of 5,000,000 shares to be released two months after
closing, and the final tranche of 5,000,000 shares within ten days of
the Trilogy subsidiary receiving a "prospecting permit" for the Ecovent
Projects. In addition, the Company has agreed to complete a private
placement of $500,000 within 120 days of closing this transaction. The
Company has also agreed to replace an existing Cash Guarantee
Environmental Bond amounting to $50,000 within 12 months from closing.
The Parties will execute a Definitive Agreement after the completion of
the necessary due diligence, as outlined in the Agreement. The
agreements and transactions contemplated herein are subject to the
approval of the TSX Venture Exchange, and the Company's Board of
Directors'. The transaction is scheduled to close on January 31, 2013
assuming all conditions in the agreement have been satisfied.
Joe Sandberg, P.Geo., an independent "Qualified Person" as that term is
defined in NI 43-101, has reviewed and approved the technical
disclosures in this news release.
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 press
This press release contains forward-looking statements. All statements,
other than of historical fact, that address activities, events or
developments that the Company believes, expects or anticipates will or
may occur in the future (including, without limitation, statements
regarding the estimation of mineral resources, exploration results,
potential mineralization, potential mineral resources and mineral
reserves) are forward-looking statements. Forward-looking statements
are often identifiable by the use of words such as "anticipate",
"believe", "plan", may", "could", "would", "might" or "will",
"estimates", "expect", "intend", "budget", "scheduled", "forecasts" and
similar expressions or variations (including negative variations) of
such words and phrases. Forward-looking statements are subject to a
number of risks and uncertainties and other factors that may cause the
actual results, performance or achievements of the Company to be
materially different from any future results, performance or
achievements expressed or implied by the forward-looking statements.
Factors that could cause actual results or events to differ materially
from current expectations include, among other things, without
limitation, failure to establish estimated mineral resources, the
possibility that future exploration results will not be consistent with
the Company's expectations, the price of commodities and other risks
identified in the Company's documents filed with the Canadian
securities regulatory authorities on SEDAR.com. Any forward-looking statement speaks only as of the date on which it
is made and, except as may be required by applicable securities laws,
the Company disclaims any intent or obligation to update any
SOURCE: Viking Gold Exploration Inc.
For further information:
please contact Mark Edwards, CEO at (905) 752-2008 or visit the Company's website at: www.vikinggold.ca.