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Message: Grandview Gold earns 60% of Sanshaw-Bonanza - 2008-09-11

Grandview Gold earns 60% of Sanshaw-Bonanza - 2008-09-11

posted on Feb 01, 2009 05:39PM

Grandview Gold earns 60% of Sanshaw-Bonanza

2008-09-11 08:08 ET - News Release

Mr. Paul Sarjeant reports


Grandview Gold Inc. has incurred the expenditures required to successfully fulfill the terms of its option agreement with Emco Corp. SA to earn a 60-per-cent undivided interest in the Sanshaw-Bonanza property in Ontario's prolific Red Lake gold district. As a result of this earn-in and Grandview's other holdings in the area, Grandview intends to focus exploration funds and geological expertise in the Red Lake gold district this winter.

Grandview president Paul Sarjeant submitted details of the earn-in to Emco which, under an extension agreement dated July 31, 2007, required the company to incur $500,000 in resource exploration and development expenditures on or before Aug. 31, 2008, to Emco. The company had also previously issued to Emco a total of 215,000 shares and 200,000 purchase warrants all as required under the terms of the option agreement with Emco.

Sanshaw-Bonanza is located approximately five kilometres southwest of Goldcorp's 11-million-ounce Red Lake mine, on the western strike extension of the Goldcorp/Premier Rahill-Bonanza property, and four kilometres southeast of Gold Eagle Mines' Bruce Channel discovery that is currently the subject of a $1.5-billion takeover offer from Goldcorp. Grandview's Sanshaw-Bonanza exploration program will focus on diamond drilling the southwest extension of the Goldcorp/Premier CP zones (Follansbee zones) the surface boundaries of which are contiguous with the property.

"The recent consolidation of the Red Lake gold district by companies like Goldcorp, Agnico-Eagle and Gold Eagle, in addition to Premier Gold's recently announced impressive resource and grade numbers, have validated the focus we as a company have placed on our Red Lake gold properties and the development of our geological team these past 18 months," says Mr. Sarjeant.

"The gold assays from diamond drilling and surface work done on our Red Lake properties, plus their locations on the Red Lake mine trend and proximity to producing and consolidating mine properties, makes Red Lake a priority for the company and we believe this to be in the best interest of our shareholders."

Grandview geologists have been refining a Canadian exploration plan for winter 2008 and summer 2009 for the strategically located Sanshaw-Bonanza, Loisan and Dixie Lake properties. To see the map please go to the company's website.

  • The Loisan property is situated on the southern border of the Goldcorp/Premier Gold Rahill-Bonanza property. Interpretation of geophysics and air photo lineaments suggest a strong structural intersection underlies the property. Preliminary exploration plans include surface sampling and mapping of priority areas in and around historic gold showings.
  • The Dixie Lake property is located south of Goldcorp's Red Lake mine and has a non-compliant resource of 378,296 tonnes grading 4.4 grams per tonne (g/t) Au established by Teck Exploration Ltd. (1989-1990). Diamond drilling done by Grandview in 2007 and 2008 resulted in the discovery of new high-grade gold zones (NS zone), and the continuation of existing zones. Within the NS zone numerous high-grade gold intervals containing visible gold characteristic of a Red Lake vein type deposit, and assays as high as 163.75 g/t Au. Exploration programs include a return to the Dixie Lake property to continue to trace mineralization in the high-grade NS zone and further evaluate other areas of mineralization. Grandview has not completed the work required to verify the historical estimate established by Teck and is not treating this historical estimate as being compliant with current standards under 43-101 and as such this historical estimate should not be relied upon.

Canadian exploration plans also include continued surface sampling and mapping at the company's highly prospective grassroots properties in the Rice Lake gold district. Grandview geologists are currently reviewing surface assay results and news of the 2008 exploration season is pending.

About the property

Grandview has an option to earn 60-per-cent interest in the 10-claim Sanshaw-Bonanza property located on the Red Lake mine trend in the Red Lake mining district, approximately five kilometres southwest of Goldcorp's Red Lake mine. The Red Lake mine is one of the richest, lowest cost production gold mines in the world with annual production of 600,000 ounces gold and over 11 million ounces produced to date worth almost $9-billion (U.S.) at today's prices. The Red Lake mining district has produced over 30 million ounces of gold worth $24-billion (U.S.).


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