Jan 31 2013
Entourage Metals Ltd. is pleased to announce that Canada Gold Corp. has signed a binding Letter of Intent for an option to acquire up to a 75% interest in the Northern Arm Gold Property from Entourage, subject to the satisfaction of certain conditions including receipt by Canada Gold of approval from the TSX Venture Exchange.
Through acquisitions and option agreements, Entourage recently consolidated the 155 square kilometer Northern Arm Gold Property, which was previously staked and owned by various other entities and groups. The Property straddles a 40km long trend that has yet to be systematically explored in the Hemlo Greenstone Belt in northwestern Ontario. The Northern Arm Gold Property is approximately 10 kilometers north of Barrick Gold Corporation's Hemlo deposit, and is accessible from Route 614, which bisects the Property and connects to the Trans-Canada Highway and provides easy cost-effective access to the Property.
The Hemlo gold deposit has produced over 20.3 million ounces of gold to date (Ministry of Northern Development and Mines report 6182 and 6246). Compared to other greenstone belts, the Hemlo belt area has remained relatively underexplored. Gold was first discovered in the Hemlo area in 1981, leading to a staking rush and exploration work in the early 1980s. Current producing mines include Barrick's David Bell, Golden Giant, and the Williams Mine defining a large 2.5 km continuous body of gold mineralization.
Canada Gold will have a first option to earn a 65% interest in the Northern Arm Gold Property by funding total exploration expenditures totaling $2,500,000 in stages on or before December 31, 2016, with $300,000 required to be funded on or before December 31, 2013. In addition, Canada Gold must make cash and share payments to Entourage, totaling $240,000 and 1,250,000 common shares, to exercise the first option. Canada Gold can exercise a second option earn an additional 10% interest, allowing Canada Gold to reach a 75% interest in the Property, by spending an additional $1,000,000 in work on the property, completing on or before December 31, 2017 a National Instrument 43-101 compliant resource estimate and paying and issuing to Entourage an additional $75,000 and 500,000 common shares.
In addition, should Canada Gold at any time file a National Instrument 43-101 compliant resource estimate indicating 1,000,000 million ounces of gold or greater, Canada Gold will make a one-time payment to Entourage of 1,000,000 common shares.
Entourage will be the operator of the Property during the currency of the first and second options.
Entourage and Canada Gold are planning an aggressive systematic exploration program for 2013. Scheduled to start as soon as possible, the program is expected to include additional geological mapping, ground induced polarization (IP) surveys, further rock & soil sampling, mechanical trenching, and drilling.
A finder's fee will be payable in cash and common shares to a finder that is at arms-length to Entourage Metals and Canada Gold, subject to acceptance of the TSX Venture Exchange.
Mr. John C. Florek, P.Geo, Vice-President Exploration for Entourage and a Qualified Person as defined by NI 43-101, prepared and approved the technical information contained in this release.
Source: http://www.entouragemetals.com/