Cangold Terminates Los Venados Option
16.07.2010 | Marketwire
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 07/16/10 -- Cangold Limited (TSX VENTURE: CLD) (the 'Company') announces that it has terminated its option on the Los Venados property. In July 2007 the Company announced that it had, through its Mexican subsidiary, signed an Option Agreement to acquire a 100% interest in the 3,200-hectare Los Venados property in the Sierra Madre gold belt of Sonora, Northern Mexico.The property had been subjected to very little historical work and initial grab sampling by Cangold yielded gold values ranging from 0.01 to 1.84 g/t. During the second quarter of fiscal 2008, the Company announced that a gold bearing zone had been discovered. Initial chip and grab sampling of silica vein material on the Duraznito Zone resulted in 20 of 35 samples returning gold values greater than 0.1 g/t, 9 of the 20 assaying greater than 1.0 g/t and one sample assaying 50.9 g/t. No field work has been conducted on the Los Venados property since the first quarter of fiscal 2009.
The Company has spent $575,000 to date in option and exploration costs, and additional expenditures are required to adequately test the property's full potential. However, given the relatively low grades observed so far, management believes that the additional imminent payments required to keep the option current, as well as further exploration costs, are not justified in view of the current climate of market uncertainty.
Management's approach is to seek properties which are, have been, or are close to being, in production. Accordingly, the Company has decided to terminate its option on the Los Venados property and instead will continue to evaluate potential acquisitions or projects that could result in near term production.
ON BEHALF OF THE BOARD
Robert A. Archer, President & CEO
CANGOLD LIMITED
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.
Contacts:
Cangold Limited
Don Mosher
604 685 6465
604 899 4303 (FAX
info@cangold.ca
www.cangold.ca