Adventure Gold Announces Option Agreement With Mazorro Resources for its Dalquier Property in Abitibi, Qc
MONTREAL, QUEBEC -- (Marketwire) -- 06/23/11 -- Adventure Gold Inc. (TSX VENTURE: AGE) (the 'Company' or 'AGE') and Mazorro Resources Inc. (TSX VENTURE: MZO)(FRANKFURT: JAM) ('Mazorro' or 'MZO') are pleased to announce that they have entered into an option agreement relating to the Dalquier property (the 'Property'). The Property is located in the south-central segment of the prolific Archean Abitibi Greenstone Belt less than 4 kilometres north of the town of Amos in the township of Dalquier, Quebec. The Property comprises a total of 85 claims covering an area of 3,500 hectares. Mazorro's initial work plan on the Property will include a high definition magnetic airborne survey to commence as soon as possible. Results of this survey will be reported when available this summer.
Under the terms of the agreement, Mazorro may acquire up to 100% of the Company's right, title and interest in the Dalquier Property (the 'Option Agreement'). Mazorro is required to provide total cash payments of $300,000, a total of 2,000,000 common shares and has committed to conduct exploration of $2,000,000 over a period of five years from the date of the option agreement.
The Dalquier Property
The geology of the Property appears very favorable for the identification of a new polymetallic (Cu-Zn-Au-Ag) deposit. Past exploration work identified Megatem geophysical anomalies along the extensions of the Jay Copper polymetallic (Cu-Zn-Au-Ag) deposit (historical resources, non-compliant with NI 43-101, in the Main West Cu Zone of 1,950,000 short tons at 1.0% Cu and 0.7 g/t Ag and in the Lower Ag-Zn-Cu Zone of 815,000 short tons at 1.3% Cu, 3.2 % Zn, 122.8 g/t Ag; sources: SIGEOM MNRF) located south of the Property (see Figure 1 at www.adventure-gold.com). The Property also encompasses the southeastern extension of the Raymor gold-zinc deposit (historical resources, non-compliant with NI 43-101, of 500,000 tonnes at 5.5 g/t Au in Zone A; source: SIGEOM MNRF). Historically, very little drilling has been completed along the extensions of those deposits on the Property. Historical drilling intersections, in core length, on the Property returned 2.7 % Zn over 7.6 metres and 5.2% Zn over 1.2 metre. At the regional scale, Osisko Mining, Aurizon Mines and Bowmore Exploration are active with exploration to the north east of the Property.
'Mazorro is very pleased to initiate a second partnership with Adventure Gold to explore and develop this polymetallic property. Addition of the Dalquier Property expands our focus on exciting Abitibi based projects. We look forward to all the benefits of working in this established Quebec mining area', stated Mr. Andre Audet, President and CEO of Mazorro.
Details of the Option Agreement
In order to earn a 100% interest in the Property, Mazorro must provide total consideration as follows:
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Cumulative
Work
Cash Payment Common Shares Expenditures
Date ($) (#) ($)
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Initial consideration 25,000(1,4) 500,000(2,4) 100,000(3,4)
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On or before June 30, 2012 25,000(4) 500,000(4) 250,000(4)
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On or before June 30, 2016 250,000 1,000,000 2,000,000
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Total 300,000 2,000,000 2,000,000
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(1)Initial cash payment due upon signing of the Option Agreement.
(2)Initial shares to be issued within 5 business days from receipt of TSX
Venture Exchange acceptance.
(3)To be incurred by July 31, 2011.
(4)Firm commitments.
Following the exercise of the Option, Mazorro will grant the Company a royalty (the 'Royalty') equal to two and one-half percent (2.5%) in aggregate of the net smelter returns on all mineral claims of the Property. Mazorro retains the right, at any time to purchase 1 of the 2.5 percentage points of the Royalty by paying the Company the sum of $1,500,000.
This transaction is subject to the receipt of any required regulatory approvals including acceptance of the TSX Venture Exchange. A director of the Company, Mr. Marc L'Heureux, is also a director of Mazorro.
Jules Riopel, P.Geo., Vice-President Exploration and Acquisitions, acts as the Company's 'Qualified Person' as defined by NI 43-101, and has reviewed this press release. Historical resource estimates presented in this press release relating to adjacent properties were not reviewed by the Company or by MZO's technical team.
Profile
Adventure Gold Inc. is a mineral exploration company focused on discovering high-quality gold deposits in the Abitibi Greenstone Belt located in northwestern Quebec and northeastern 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 Limited and Lake Shore Gold Corp. to explore its advanced-stage gold properties.
The foregoing 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:
Marco Gagnon
President & CEO
450.743.5527
marco@adventure-gold.com
Jules Riopel
Vice-President Exploration and Acquisitions
819.797.9770
jules@adventure-gold.com
www.adventure-gold.com