King's Bay Gold Corp. receives the Second Anniversary Earn-In Option Agreement payment for the Headway Project in Red Lake, Ontario
Oct 5th, 2011 (via Thenewswire.ca) - King's Bay Gold Corporation (TSX.V: KBG) is pleased to report that it has received the second anniversary earn-in option agreement payments from Mega Precious Metals Inc. (TSX.V: MGP) (“Mega“). The second anniversary payments consisted of $40,000 in cash and 67,500 common shares of Mega. King's Bay Gold Corporation now holds an aggregate total of 315,000 common shares of Mega from the initial, 1st anniversary and 2nd anniversary earn-in distributions.The Headway Group of Patented Claims Property is comprised of 7 claims units for approximately 320 acres and is located in Dome and Balmer Townships near the Town of Red Lake, Ontario. The property lies approximately 8 kilometres from the Town of Red Lake, and approximately 1.5 kilometres south of the Town of Balmertown, Ontario where Goldcorp's Red Lake Mines are located. The claim units are transected by the highway that runs between Red Lake and Balmertown.
Mega Precious Metals Inc. has an option to acquire a 100% interest in the Headway Project in Red Lake, Ontario subject to a staged three year cash payment, share issuance and exploration expenditures obligation that began in October 2009. Mega is the Operator for this project and is providing regular updates as to the progress being made with their diamond drilling program on the home page of their website at www.megapmi.com . Detailed geological information on the Headway project, along with maps, diagrams and pictures can be found at:
http://www.megapmi.com/headway_property .
All holes to date are located in strategic areas of the property. When Hole #2 (MH1002) was abandoned in February 2011, due to technical problems, Mega immediately commenced the diamond drilling of a third deep hole. Holes #1 (MH0901) and #3 (MH1103) are slated to extend to a minimum of 3,000 metres and act as “mother“ holes from which a series of wedged holes, called “daughter holes“, will be drilled once the intended target is reached and identified. As of the date of this news release, Hole # 1 is at 2,593 metres in depth and Hole # 3 is at 2,301 metres in depth.
Hole # 1 is continuing to progress with grinding and cementing through a fault zone. Given that Hole # 3 is presently idle pending the availability of a larger drill capable of drilling to 3,000 metres, crews are now working 24 hours per day and 7 days per week until Hole # 1 is completed.
James Rogers, President and CEO of Mega recently stated: “Results to date confirm a strong correlation with Mega's geological model. In addition to the biotite, quartz, carbonate and arsenopyrite alteration near the fault, the location of the major (genetic) fault is positive evidence of potential economic gold mineralization. I realize that progress has been slow, but Mega is focused on the end game and doing everything to ensure that operational risk is minimized and the holes are completed as planned. I remain optimistic.“
James Rogers P.Geo., CIM, Mega's President and CEO and King's Bay Gold's Chairman of the Board of Directors, is the Qualified Person for the Headway Project as defined by National Instrument 43-101.
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A new “Join Our President's List“ feature was recently added to the Company's website at http://www.kingsbaygold.com/home/# whereby shareholders and other interested individuals can add themselves to a list to receive recently disseminated news releases from the Company via e-mail.
Subscribers may remove themselves from this list at any time by sending an e-mail to the Company at info@kingsbaygold.com or by calling the company at 1-(204)-253-4653. The list will be for the exclusive use of the Company and shall not be sold, traded, bartered, leased or provided to any third parties. The list shall be treated as confidential and the Company shall adhere to the provisions of the Personal Information Protection and Electronic Documents Act (Canada).
About King's Bay Gold
King's Bay Gold Corporation is an active Canadian mineral exploration and development company with mineral exploration projects located in two of Canada's main gold camps - Red Lake, ON and Rainy River, ON.
KBG Shares Outstanding: 90,381,913
King's Bay Gold Corporation
Kyle Picard
President & CEO and Corporate Secretary
(204) 253-4653
info@kingsbaygold.com
This news release includes certain forward-looking statements concerning the future performance of King's Bay Gold Corporation's business, its operations and its financial performance and condition, as well as management's objectives, strategies, beliefs and intentions. The Company does not intend, and does not assume any obligation, to update these forward-looking statements. Forward-looking statements are frequently identified by such words as “may“, “plan“, “expect“, “anticipate“, “estimate“, “intend“ and similar words referring to future events and results. These forward-looking statements represent management's best judgment based on current facts and assumptions that management considers reasonable. The Company makes no representation that reasonable business people in possession of the same information would reach the same conclusions. All forward-looking information is inherently uncertain and subject to a variety of assumptions, risks and uncertainties, including the speculative nature of mineral exploration and development, fluctuating commodity prices, competitive risks and the availability of financing and as described in more detail in the Company's recent securities filings available at www.sedar.com. Actual events or results may differ materially from those projected in the forward looking-statements and readers are cautioned against placing undue reliance thereon.
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.
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