in response toby
posted on Nov 27, 2007 12:16PM
Acquisition and exploration of gold projects in Northern Ontario
VenCan Gold (TSX VENTURE:VCG) is pleased to announce it has entered into an option/joint venture agreement with Fern Elizabeth Gold Exploration Ltd. and Robert C. Moffatt for the Fern Elizabeth and associated property located in the Atikokan area of Northern Ontario.
This historic gold property contains very high-grade samples of visible gold (to see these visuals, please visit the Company's website at www.vencan.com).
The property is located 9 kilometers northwest of the town of Atikokan, which is approximately 200 kilometers west of Thunder Bay. The area has a rich mining and exploration heritage and was a major iron mining center in Northern Ontario through the mid 1970's
The Fern Elizabeth Property is approximately 11 square kilometers in size, containing 22 claims and leases with excellent infrastructure, with both boat and all-weather road access. The Property also benefits from a very close proximity to The Valerie Falls Power Generating Plant.
The Atikokan area is one of Ontario's earliest gold camps and was known in the late 1800's as the Upper Seine District, when prospectors traveling the Seine River found promising gold showings. Gold was initially found on the Fern Elizabeth Property in 1900 and two shafts were sunk in 1903. Mining operations continued until 1914. Various parties have worked the Property since that time but nothing of major significance was defined.
Initial Exploration of Fern Elizabeth Property Outlines Perspective Resource and Grade
In 1978, Fern Elizabeth Gold Mining Company optioned the property. Prospecting in the vicinity of the old shafts uncovered a pocket of spectacular quartz-vein hosted gold mineralization, which attracted significant interest in the Property from a number of major companies. A significant amount of ground work, including extensive diamond drilling, has taken place through the 1980's which included a non-compliant resource estimate of 244,000 tonnes grading 4.81 g/t Au. In the 1990's, the Property once again had gone through a dormant period with little work of significance being reported.
The Ontario Geological Survey has recently targeted the Atikokan area in the same fashion that they did the Abitibi Area a few years ago. The objective of their work is to promote mineral exploration in the area. Government work in the immediate vicinity of the Fern Elizabeth Property has included detailed geological mapping and extensive soil sampling. It is understood that state-of-the-art airborne geophysical surveys are also planned for the area.
The Company will be the direct beneficiary of this data, as it will serve to augment the historical data on the Property with the current phase of VenCan Gold's exploration program.
Bill Nielsen, P. Geo., Director, a long time associate of Robert Moffatt, introduced the Property to Vencan Gold, who after further examination of its potential began initial discussions with Robert Moffatt to negotiate an agreement to acquire the property.
Commenting on the Property, Bill Nielsen stated, "not only does the former mine area on the Property hold promise to uncover significant gold mineralization, but also areas defined by the Ontario Government's work will provide new and exciting exploration targets that deserve to be followed up with additional work".
Since the commencement of initial negotiations during the late summer, VenCan Gold has added several geologically significant claims to the Property, which brings the total land package to 11.07 km2. Exploration of the Property in the form of extensive data compilation, prospecting and extensive soil sampling has begun under the direction of Taiga Consultants Ltd., while prospecting has been initiated by Karl Bjorkman.
Kirk McKinnon, President and CEO stated, "This property has historically exhibited great potential for high-grade gold and with a fresh viewpoint and a focused exploration commitment from VenCan Gold, it will provide a very significant exploration opportunity for the Company. This property together with the recently acquired Abitibi West Property from Don McKinnon of Baltic Resources (see June 26, 2007 VenCan Gold Press Release for details) gives VenCan Gold two very promising exploration opportunities.
2008 Exploration Plan
Taiga Consultants are completing the process of quantifying specific drill targets and a diamond drill program is planned for the first half of 2008.
Terms of Option/Joint Venture Agreement
Robert Moffatt ("Optionor") will grant VenCan Gold Corp. ("Optionee") the sole and exclusive right to acquire a 75% interest in the Property in return for a cash payment of $60,665, the issuance of 3,900,000 shares and 1,950,000 warrants, which enables the Optionor to purchase common shares of the Company for 24 months from date of issuance at an exercise price of $0.25 per share. The joint venture between the parties takes effect immediately upon the Optionor's receipt of the above payments with VenCan Gold and the Optionor holding a 75% and 25% participating interest respectively. The Optionor's 25% interest is a free-carried interest until the delivery by Vencan Gold of a pre-feasibility study.
All securities issued with respect to this transaction are subject to a 4-month hold period from date of issuance and the agreement is also subject to regulatory approval.
The Board of Directors is pleased to announce the appointment of Brent Nykoliation as Director of the Company effective November 19, 2007.
Brent brings significant skills and experience to the Company. With a career that has spanned 15 years in various senior management roles in Marketing and Business Development (Nestle), Retail Sales and Merchandising (Home Depot) and Merchandising Operations (Whirlpool), Brent is well positioned to market the VenCan Gold and its exploration initiatives.
Bill Nielsen, P.Geo., Director, is the designated qualified person for the technical information contained in this press release.
WARNING: The statements made in this news release may contain forward-looking statements that may involve a number of risks and uncertainties. Actual events or results could differ materially from expectations and projections set out herein.
SOURCE: VenCan Gold Corporation
VenCan Gold CorporationCopyright (C) 2007 Marketwire. All rights reserved.
J. A. Kirk McKinnon
President and Chief Executive Officer
(416) 364-2753 (FAX)
VenCan Gold Corporation
Vice President & CFO
(416) 364-2753 (FAX)
Email: [email protected]