2009-09-17 08:43 ET - News Release
SAN GOLD CORPORATION / STRIKEPOINT GOLD INC. SAN GOLD AND STRIKEPOINT ENTER STRIKE POINT PROPERTY LETTER AGREEMENT SEPTEMBER 17, 2009
San Gold Corp. and StrikePoint Gold Inc. have entered into a letter agreement setting forth the terms and conditions of a transaction whereby San Gold can earn a 50-per-cent undivided interest in the Strike Point property that lies adjacent and to the north and northwest of San Gold's mining lease that contains the Rice Lake mine, the Cartwright deposit and the high-grade-gold Hinge mine and Cohiba zones. Pursuant to the letter agreement, the parties have agreed to negotiate a subsequent definitive option agreement.
The letter agreement provides that San Gold shall pay StrikePoint Gold a refundable advance deposit of $150,000 cash upon execution of the letter agreement. In addition, San Gold shall pay StikePoint Gold $50,000 cash on the first anniversary of the execution of the letter agreement and shall conduct $1.5-million in exploration work on the property over three years at a minimum rates of $400,000, $500,000 and $600,000 per year, respectively, to earn a 50-per-cent undivided interest in the Strike Point property. The advance deposit shall be refunded by StrikePoint to San Gold in the event that the option agreement is not executed by Dec. 31, 2009, or such other date that is agreeable to both parties.
StrikePoint Gold will be the operator of the project subject to a standard joint venture operating committee structure. StrikePoint Gold shall have the right to accelerate exploration by spending its own funds and an amount equal to such expenses shall be added to San Gold's work requirement for the year in which they are expended. ----.
The Strike Point property consists of 26 claims covering 3,595 hectares adjacent to the northwestern boundary of San Gold's Rice Lake gold mine and mill property at Bissett, Man., located a three-hour drive from Winnipeg. ----. Significantly, the Strike Point property contains the western five kilometres of a 10-kilometre-long faulted fold axis that extends eastward from Horseshoe Lake to the San Gold No. 1 mine. This important 10-kilometre-long structure is considered to be a possible mineralization conduit for the multiple parallel hinge structures on the San Gold mining lease. ----.
Dale Ginn, San Gold's chief executive officer, stated: "As a result of this joint venture, all of the hangingwall volcanics that host the high-grade Hinge deposits, together with their important structural elements are now accessible to San Gold, at surface as well as possible important western and northern extensions." Richard Boulay, chief executive officer of StrikePoint Gold, noted: "This agreement consolidates the Central Rice Lake belt structural domain that has hosted over 95 per cent of the Rice Lake Belt's recent and historic gold production. San Gold's recent high-grade gold discoveries have greatly expanded the volumetric potential of the Rice Lake sequence stratigraphically upward to incorporate the volcanic rocks of the Strike Point property."
StrikePoint Gold currently has one of its geological teams dedicated to the Strike Point property. San Gold and StrikePoint Gold will immediately convene a technical committee to establish a systematic exploration protocol for the Strike Point property. Sample LiDAR images can be viewed on the graphical version of this press release. This press release has been reviewed by Mr. Ginn, PGeo, San Gold's qualified person for this project under National Instrument 43-101, and by Daniel A. Beauchamp, BSc, PGeol, StrikePoint Gold's qualified person under National Instrument 43-101.
