Osisko Mining Corporation to Option the Adanac Gold Project from Threegold Resources Inc. (2011-05-26)
Val-d’Or, Québec, Canada – May 26, 2011 –Threegold Resources Inc. (“Threegold” or the “Company”) (THG: TSX Venture exchange) is pleased to announce that it has entered into an option agreement with Osisko Mining Corp (OSK: TSX) whereby Osisko may earn a maximum 70% interest in the Adanac Gold Project located in the Abitibi region of Quebec. Under the terms of the agreement, Osisko will incur $4.5 million dollars of exploration expenditures over 4 years and pay $600,000 in cash payments to earn a 51% interest. Under the same terms, Osisko can then earn an additional 19% (up to 70%) by incurring an additional $10 million dollars of exploration or taking the project to feasibility.
Osisko has recently purchased 9.2% of the outstanding Threegold shares in the open market, which was announced on May 19th 2011.
Furthermore, Osisko has an option on Threegold’s Standard Gold Project located in the Abitibi region of Quebec, where Osisko may earn a maximum 70% interest in the Property. Under the terms of the agreement, Osisko will incur $4 million dollars of exploration expenditures over 5 years and pay $300,000 in cash payments to earn a 51% interest. Under the same terms, Osisko can then earn an additional 19% (up to 70%) by incurring an additional $6 million dollars of exploration or taking the project to feasibility.
The Adanac Project is located in the heart of the Abitibi Greenstone Belt, directly south of the Cadillac–Larder Lake Break and is on strike and immediately adjacent to Gold Bullion Development’s Granada Project. The project consists in 91 claims covering 3276 hectares and is underlain by Pontiac and Temiscaming metasedimentary rocks that have been strongly deformed and sheared. An unknown quantity of gold has historically been produced on the property mostly from the Adanac shaft that reaches a depth of 98 metres opening on 3 sublevels. Threegold began exploring the project through property-scale geochemical and geophysical surveys between 2007 and 2009 followed by a 4,474-metre, 22-hole diamond drilling program carried out in the fall of 2009 to investigate the most significant targets on the project. This program helped outline a 1.8-kilometre gold trend on the project.
Osisko Mining Corporation is a development-stage gold mining company based in Montreal, Quebec, Canada. Osisko is currently commissioning the Canadian Malartic gold mine in the Abitibi mining district. The first gold bar was poured on April 13th, 2011 and the beginning of commercial production is scheduled for the end of May 2011.
The Company's NI 43-101 compliant feasibility study (November 2008) and the subsequent updated reserve estimates outline an open pit operation that will produce an average of 575,000 ounces of gold annually over a 16-year mine life including operating costs in the lowest cost quartile among global gold producers. Canadian Malartic currently represents the single biggest permitted gold reserve in Canada, and is still growing through ongoing drilling on adjacent mineralized zones. On March 31st, 2011, Osisko increased the gold reserve by 19% to 10.71 million ounces.
Threegold has established itself as one of the premier exploration companies in Quebec. The Company consists of a highly qualified technical team with extensive Quebec-based exploration experience including previous gold discoveries and expertise in geology, financing and public company management.
Threegold’s focus is to create shareholder wealth through the discovery of new gold deposits with a 100% focus in Canadian assets mainly Quebec. As an emerging mineral exploration company, investors have the opportunity to participate in a Portfolio of high quality exploration projects and in turn the potential to take part in a major gold discovery.
With a strategic property portfolio and a solid partnership with Osisko, Threegold’s goal is to discover a low cost producing, multi-million ounce gold deposit in Quebec.
For further information, please contact:
Mr. Victor Goncalves
President and CEO
Threegold Resources Inc
Tel.: (204) 997-5517
Mr. Antoine Fournier, P. Geo.
Mr. Sylvain Laberge
S.N.D.L. Financial Communication
Tel: (514) 380-5610
You can also visit our website: www.threegold.ca
Neither the 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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