Adventure Gold and Mazorro Resources Begin Phase I Drill Program on Lapaska Property, Val d'Or East Area, Quebec
MONTREAL, QUEBEC -- (Marketwire) -- 04/18/11 -- Adventure Gold (TSX VENTURE: AGE) ('AGE' , the 'Company') and Mazorro Resources Inc. (TSX VENTURE: MZO)(FRANKFURT: JAM) ('MZO') are pleased to announce the start of a first phase surface diamond drilling program on the Lapaska Gold Property (the 'Property') located in the prolific Abitibi Greenstone Belt, 20 km east of Val d'Or, Quebec. The Property, totalling 352 hectares, is wholly-owned by AGE and under option to MZO. The first phase drill program, totalling approximately 3,000 metres in six (6) holes, is designed to test the extensions of the Lapaska Central Zone ('LC Zone') laterally and at depth. A surface map (Figure 1) of the proposed drilling can be found on AGE's website at www.adventure-gold.com. Additional drilling is already budgeted in order to test the best gold zones identified by the phase I drill program. A longitudinal section (Figure 2) shows the location of the current resources and the potential to extend these resources by exploration. The LC Zone plunging to the south-east is still open laterally and at depth. Additional sub parallel ore shoots and veins that could be repeated in the south-western extension at depth and laterally (east and west) near the surface are still not tested by drilling. Three (3) holes totalling approximately 1,500 m will test the continuity of the gold envelope (proposed drill holes A, B and C). Three (3) other drill holes (D, E and F) will explore the LC Zone at depth.
The Lapaska Property
The Property is favourably located between the past producing gold deposit Sigma II to the east (161,300 ounces at 2.7 g/t Au: MRNF - SIGEOM Database) which was operated by open pit method and the Simkar gold deposit to the west (NI 43-101 inferred resource of 105,000 oz at 5.3 g/t Au: Megastar - MDV: TSX-V, September 2008). The Property contains three significant gold-bearing zones: the Lapaska Central, West and Lourmet zones and is also strategically located along the prolific Cadillac Larder Lake Gold Break, a regionally extensive structure that is spatially related to numerous gold mines.
An NI 43-101 compliant resource estimate has been completed by Innovexplo, (February 9, 2010) on the Lapaska Central Zone. The table below shows the variations with respect to metric tonnes, ounces and grades for various cut-off grades with respect to the Inferred Resources of the Lapaska deposit (Central Zone).
Table 1: Inferred Mineral Resource of Lapaska Central Zone
Cut-off Grade Avg. Grade
g/t Au Tonnes g/t Au Ounces of Gold
0.5 2,143,702 1.15 79,324
1.0 864,563 1.81 50,396
2.0 219,590 3.14 22,197
Note: Mineral Resources which are not Mineral Reserves do not have
demonstrated economic viability.
Option Agreement
MZO and AGE are in the first year of an option agreement for which the definitive agreement was executed January 31, 2011 and received final TSX Venture Exchange (the 'Exchange') approval on April 1, 2011. MZO has an exclusive option to earn up to a 70% interest in the Property by spending a total of $7.7M in exploration expenditures, issuing 3,000,000 shares of MZO, paying $250,000 in a cash payment and by paying $2,000,000 (in cash and shares) to AGE over the next 6 years. AGE will be the operator until MZO earns the 70% interest.
Under the terms of the option agreement, in order to acquire an initial 50% undivided interest in the Property (the 'First Option'), MZO is required to provide total cash payments of $250,000, a total of 3,000,000 common shares and has committed to conduct exploration on the property of $1,700,000 over a period of three years. Consideration payable and exploration expenditures required under the First Option are summarized as follows:
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Cash Common Work
Payment shares Expenditures
Date ($) (#) ($)
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Following final TSX Venture
Exchange acceptance 25,000 1,000,000 -
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By no later than December 31, 2011 25,000 500,000 500,000 (1)
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By no later than December 31, 2012 50,000 500,000 500,000
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By no later than December 31, 2013 150,000 1,000,000 700,000
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Total 250,000 3,000,000 1,700,000
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(1) Firm commitment from MZO.
Following the exercise of the First Option, MZO shall have the option to acquire an additional 20% undivided interest in the Lapaska property (the 'Second Option'), thereby acquiring a total undivided interest of 70%, by making additional payments of $2,000,000 and by conducting additional exploration of $6,000,000 over another three year period. MZO shall have the option of paying up to 75% of the required cash payments for the Second Option in common shares at a price equal to the market price of the Company's shares on the Exchange on the date such payment is payable less the maximum applicable discount allowed by the policies of the Exchange, subject to the required regulatory and corporate approvals, including disinterested shareholder approval, as applicable. After the Second Option period and MZO fulfilling its contractual obligations under the agreement, MZO shall be entitled to become the operator of the Property.
Mr. Jules Riopel, Vice-President Exploration and Acquisitions of Adventure Gold, is acting as qualified person (as defined by NI 43-101) and has reviewed and approved the scientific and technical information in this press release.
Profile:
Adventure Gold Inc. is a mining exploration company focused on discovering high quality gold deposits in the Abitibi greenstone belt located in north-west Quebec and north-east Ontario - one of the richest gold deposit areas in the world. Adventure Gold holds quality assets in the Val d'Or, Rouyn-Noranda and Timmins areas and is led by determined management and technical teams with extensive exploration and mine production experience. Adventure Gold is proud to count on highly regarded partners such as Agnico-Eagle Mines and Lake Shore Gold to explore advanced stage gold properties. The Company holds more than $3.5M in cash and securities and will continue to aggressively seek new properties in compliance with its corporate strategy. For more information, please contact:
The forgoing information may contain forward-looking statements and events relating to the future performance of the Company. Forward looking statements, specifically those concerning future performance, are subject to certain risks and uncertainties, and actual results may differ materially. These risks and uncertainties are detailed from time to time in the Company's filings with the appropriate regulatory authorities. We seek safe harbour.
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:
Adventure Gold Inc.
Marco Gagnon
President & CEO
450-743-5527
marco@adventure-gold.com
Adventure Gold Inc.
Jules Riopel
Vice-President Exploration and Acquisitions
819-797-9770
jules@adventure-gold.com
www.adventure-gold.com