KINGSTON, ON, Jan. 14 /CNW/ - Murgor Resources Inc. (MGR: TSX-V) wishes to inform its shareholders and the market at large that it is currently working with Victoria Gold Mines East Timmins Limited to finalize the formal agreement previously announced on November 4th, 2010. This agreement will grant Murgor the exclusive right to earn an interest of up to 70% in the Golden Arrow Gold Mine, located 65 kilometers east of Timmins, Ontario.  Both parties have agreed to extend the original signing deadline of January 10, 2011 to finalize details of the formal agreement. Management at Murgor and Victoria are confident the formal option agreement will be signed very shortly.

"Murgor completed its due diligence and is now working with Victoria to finalize the formal option agreement at Golden Arrow." said Andre Tessier, President and CEO of Murgor Resources.  "We're very happy with the results so far and are looking forward to fast-track our exploration, resource definition and development program."

The following is a summary of the proposed terms of the acquisition, as set out in the Letter of Intent, dated November 2nd, 2010:  Over a period of 2 years, Murgor will have the exclusive right to acquire a 55% interest in the Golden Arrow Mine for a proposed aggregate purchase price of $500,000 payable by Murgor to Victoria in cash, $1,500,000 in cash or shares of Murgor and an aggregate of 15,000,000 shares of Murgor.  In addition, Murgor will be required to incur aggregate exploration expenditures totalling $4,000,000 over a period of 2 years.  Murgor will then form a 55%-45% joint venture with Victoria and will have the right to earn an additional 15% in the property by completing a positive pre-feasibility study of the deposit, should Victoria elect not to participate in the expenditures related to this pre-feasibility study.

The transaction contemplated in this news release is conditional upon the entering into of formal agreements with terms and conditions acceptable to both parties and conditional upon regulatory approval.

About the Golden Arrow Gold Mine:

The Golden Arrow property consists of 17 mining patents and leases, and two mining claims covering 524 hectares in Hislop Township and located 65 kilometers east of the Town of Timmins in Ontario.  In 1981 and 1982, a total of 279,593 tons of ore was mined at a grade of 0.061 oz/t (2.09 g/t) from the Arrow open pit.  Mining ceased due to low gold prices.

The property was originally explored underground in the 1940s to by the Golden Arrow Mining Company Ltd. who sank a shaft to a depth of 435ft (130m) below surface and undertook about 700m of horizontal development on the 250ft (76m) and 400ft (122m) levels.

The Golden Arrow property is underlain by Mafic Flows and Syenite Intrusions with younger post mineral Diabase. Gold is associated with pyrite-quartz veining and hematitic/potassic alteration associated with a quartz vein stockwork within a syenite intrusion and related to a NE-SW structure associated with the Porcupine-Destor Fault Zone.  The property covers a two kilometre strike extent of this NE-SW structure.  The Golden Arrow gold deposit is located 5 km SW of the past-producing Ross Gold Mine which produced nearly one million ounces of gold between 1936 and 1989.  Also located in Hislop Twp are the presently producing Hislop Mine of St. Andrew Goldfields Ltd. and the Black Fox Mine of Brigus Gold Corp.  Please visit for additional information about the Golden Arrow Gold Mine.

About Murgor Resources

Murgor Resources Inc. is a mineral exploration and development company focused on gold, copper, and zinc deposits in Canada.  The company owns a 100% interest in two deposits, adjacent to the Snow Lake and Flin Flon mining districts of Manitoba, from HudBay Minerals Inc. (TSX:HBM).  Murgor is also exploring an exceptional portfolio of gold properties in proven mining districts of Canada, owns a 1% NSR royalty in the Barry Gold Mine and an interest in the advanced Windfall Gold Project in Quebec.  The proposed acquisition of the Golden Arrow Gold Mine in Ontario marks a shift of focus to gold for the Corporation

The table below shows the total 43-101 compliant resource for Murgor's Hudvam and Wim deposits.

INDICATED RESOURCE Project Tonnage Grade* Metal Content
Metric Tonnes Cu % Zn% Au g/t Ag g/t Cu (lb) Zn (lb) Au (oz) Ag (oz)
Hudvam 854,076 1.22 1.78 3.82 13.84 23,007,640 33,541,359 104,930 379,928
Wim 2,776,787 1.94 0.3 1.88 7.53 118,762,524 18,365,339 167,838 672,246
TOTAL 3,630,863         141,770,164 51,906,698 272,768 1,052,174
INFERRED RESOURCE Project Tonnage Grade* Metal Content
Metric Tonnes Cu % Zn% Au g/t Ag g/t Cu (lb) Zn (lb) Au (oz) Ag (oz)
Hudvam 502,901 0.79 1.33 3.25 6.96 8,758,802 14,745,831 52,548 112,534
Wim 445,999 1.12 0.43 2.11 5.06 11,012,528 4,228,024 30,256 72,556
TOTAL 948,900         19,771,330 18,973,856 82,804 185,090

* Based on a 2.0% copper equivalent cut-off grade 
For statement of resources, see Murgor Press Releases:  Aug. 28, 2008 for Hudvam and Sept. 09, 2008 for Wim.       

The technical information in this news release has been reviewed by Mr. John Reddick, P.Geo, a qualified person in accordance with Canadian regulatory requirements as set out in National Instrument 43-101, responsible for the supervision of the project.

This news release includes certain "forward-looking statements". All statements other than statements of historical fact, included in this release, including, without limitation, statements regarding potential mineralization, resources and reserves, exploration results, and future plans and objectives of Murgor, are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from Murgor's expectations are exploration risks detailed herein and from time to time in the filings made by Murgor with securities regulators.

Neither 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.

For further information:


André C. Tessier, President & CEO
Tel: (613) 546-7503 or 1-888-891-3330
Fax:  (613) 546-7318
E-mail:      Web site:

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Murgor Resources Inc.

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