MURGOR SIGNS LETTER OF INTENT TO ACQUIRES UP TO 70% INTEREST IN THE GOLDEN
ARROW GOLD MINE FROM VICTORIA GOLD MINE, TIMMINS, ONTARIO
KINGSTON, ON, Nov. 4 /CNW/ - Murgor Resources Inc. (MGR: TSX-V) announced today that it has signed a Letter of Intent with Victoria Gold Mines East Timmins Limited (a private Mineral Exploration Company with Mr. David Larche as President & CEO) to acquire an interest of up to 70% in the Golden Arrow Gold Mine, 65 kilometres east of Timmins, Ontario.
Highlights of the property include:
- Past Producer 279,593 tons @ 0.061 oz/t (2.09 g/t) Gold between 1981 and early 1983.
- Existing infrastructure on site include 170 feet deep Open Pit excavation, 450 foot shaft, 1,550 feet of lateral development, adjacent to paved Highway 11.
- Offsite Infrastructure includes five (5) operating gold mills within a radius of 70 km.
- Pre-development nearly completed with Arrow Open Pit 90% dewatered.
- Project is fully permitted for 100,000 tonne Bulk Sample.
- Historic metallurgical Gold Recoveries of 91.2%
- Historical drill hole intersections in the floor of the current open pit ranging in lengths from 25 meters to 73 meters with grades ranging from 1.18 g/t to 3.06 g/t gold.
- 12 meter wide underground mineralized zone defined in 1947 over a strike length of 45 meters and grading 5.0 g/t gold that is open at depth.
- Last Exploration Effort in 1997 with the deepest drill hole testing the mineralized structure at only 160 meters vertical depth. The zone remains open in all directions.
- Property covering a 2 km strike length of the NE-SW-trending mineralized structure.
- Recent 3D model of the deposit by Victoria shows a potential large-scale low grade gold halo surrounding the mineralized structure. The potential of this large gold halo remains untested.
- Located five kilometres south-east of the past-producing Ross Mine which produced 995,832 oz Gold between 1936 and 1989.
"This is a terrific property with huge potential and a great opportunity for Murgor to become a near-term gold producer." said André Tessier, President and CEO of Murgor Resources. "The next step will include a thorough due diligence process that will include up to 1,200 meters of drilling. We are confident our due diligence work will lead to a definitive agreement with Victoria. Combined with our base metal assets in the Flin Flon Belt of Manitoba, Murgor will become a truly diversified mineral exploration company with very advanced exploration and development projects in gold-copper and zinc."
The following is a summary of the proposed terms of acquisition, as set out in the Letter of Intent: 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 Letter of Intent contemplates a due diligence period of 60 days ending January 01, 2011 during which Murgor will verify all historical data and permits relating to the property, and carry out a diamond drilling program of up to 1,200 meters.
The terms of the Letter of Intent provide for the entering into a definitive agreement, subject to regulatory approval, by January 10, 2011.
The technical information in this news release has been reviewed by Mr. Andre C. Tessier, P.Geo, P. Eng, President & CEO of Murgor Resources Inc. a qualified person in accordance with Canadian regulatory requirements as set out in National Instrument 43-101. Mr. Tessier performed a review of the pre-43-101 technical reports but has not verified the data disclosed in such reports.
The transactions contemplated in this news release are 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 and located 65 kilometers east of the Town of Timmins in Ontario. From 1981 to early 1983, 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 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 within the Syenite intrusions on 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 geological setting of the Golden Arrow gold deposit is very similar to that of the Ross Gold Mine located 5 km to the north-east, which produced nearly one million ounces of gold between 1936 and 1989. Please visit www.murgor.com in the days following the distribution of this press release, 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.
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: For further information:
PLEASE VISIT MURGOR'S WEBSITE AT WWW.MURGOR.COM OR CONTACT:
André C. Tessier, President & CEO
MURGOR RESOURCES INC.
Tel: (613) 546-7503 or 1-888-891-3330
Fax: (613) 546-7318
E-mail: [email protected] Web site: www.murgor.com
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