FLAGSTAFF, AZ, May 5 /CNW/ - Q-Gold Resources Ltd. (TSXV: QGR)
("Q-Gold") (http://www.qgoldresources.com) announced today that it has entered a Mining Option Agreement with
Cavan Ventures Inc. (TSXV: CVN) ("Cavan") (http://www.cavanventures.com) whereby Cavan has obtained a 18-month option to earn a 65%
participating interest in a prospective Arizona silver joint venture
with Q-Gold. The joint venture will contain Q-Gold's holdings of 3
patented historic silver mines and 22 adjoining U.S. Bureau of Land
Management ("BLM") mining claims in the Peck Mining District of Yavapai
County, Arizona, totalling 484 acres. The Peck District is famous for
its historic high-grade silver production, having produced an
"official" 1,374,000 ounces from 1875 to 1910.
By meeting its obligations in U.S. Dollars during the 18-month Option
Period, including cash payments to Q-Gold of $275,000, work
expenditures of $1,000,000 and issuance of Cavan shares to Q-Gold worth
$300,000, Cavan will earn a 65% participating interest in the Joint
Venture. During the Option Period, Q-Gold will be Operator for the
As noted above, the joint venture area contains 3 high-grade historic
silver mines and a number of BLM claims highly prospective for silver,
yet it has never experienced modern mining exploration techniques.
Therefore, the venture will initially launch a helicopter-based VTEM /
Magnetic airborne geophysical survey which will attempt to delineate
anomalies which will indicate potential remaining ore bodies and
possible drilling sites within the complex.
Q-Gold CEO John Campbell remarked "With silver prices at recent record
highs, I look forward to initiating modern joint exploration activities
this summer with Cavan at Crown King, in the historic silver-producing
Peck Mining District of Arizona."
The historical references contained in this release have been examined
by a qualified person under NI 43-101 but have not been verified and
therefore cannot be relied on for any purpose. Brian A. Beck, PG a
qualified person under NI 43-101 has reviewed and approved the
technical content of this release.
The mining Option Agreement is subject to the approval of the
About Q-Gold Resources Ltd.
Q-Gold is a Canadian-based mineral exploration company currently
exploring for precious and base metals on its Ontario holdings in the
historic Gold Camp at Mine Centre, including 5 historic gold mines. In
addition, the Corporation holds options on historic gold and silver
mines in the historic Arizona gold camp of Crown King, and copper
prospects in eastern and western Arizona.
The statements made in this Press Release may contain forward-looking
statements that may involve a number of risks and uncertainties. Actual
events or results could differ materially from the Company's
expectations and projections. 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
SOURCE Q-Gold Resources Ltd.
For further information:
Q-Gold Resources Ltd.
John Campbell, CEO and Director