Apr 15 2013
Lateral Gold Corp. ("Lateral" or the "Company") is pleased to announce it has received TSX Venture Exchange (the "Exchange") approval to acquire an option to purchase up to 100% of the Oakley Gold Property (see news release dated January 11, 2013).
Lateral anticipates making the initial $35,000 payment and issuing the initial 200,000 common shares of Lateral within the next few days as prescribed in the already executed definitive option agreement (the "Agreement") with Otis Gold Corp. The shares are subject to a hold period expiring August 12, 2013.
Just north of the borders of Nevada and Utah in Cassia County, Idaho, the Oakley Gold Property consists of approximately 2,100 acres of federal lode mining claims and State mineral leases, all of which are 100% controlled by the Company and cover a newly developing gold district. As presently known, the district is five miles-long by one mile-wide and includes a historical inferred mineral resource at Blue Hill Creek of 235,000 gold ounces (14.4MM tons @ 0.016 opt Au) at a 0.5 ft opt Au grade x thickness cutoff as estimated in a technical report prepared for Otis Gold Corp dated April 7, 2008. A qualified person has not done sufficient work to classify this historical estimate as a current mineral resource and Lateral Gold is not treating the Blue Hill Creek historical resource as a current mineral resource.
Blue Hill Creek is one of several exploration targets present on the Property. The district is relatively new; it lay undiscovered and completely unknown until 1985; and it is very much underexplored. Potential is considered excellent to discover and define one or more new deposits containing 1.0MM+ ounces of gold. The Company has filed a Technical Report on the Property on SEDAR, which it encourages shareholders and other interested parties to read.
Patrick Abraham, president & CEO states, "After many months of rigorously searching for a property to fit our exact criteria, through a disciplined filtration process I can now proudly announce our results. Oakley is a gold-dominant, highly prospective, drill-ready property located within a safe, politically stable and historically friendly-to-mining jurisdiction. The Property enjoys improved road access with good infrastructure. I've had the opportunity to view/visit many potential and actual flagship projects throughout my career and can accurately state Oakley is as good as they come. I encourage readers to visit our website at www.lateralgold.com for more information, including a newly created corporate presentation with maps, cross sections, historical drill hole data and our exploration plans, which include a minimum of 3,000' of drilling. You should also click through to review our recently filed technical report on Oakley."
"With its exploration potential, a clear path toward 100% ownership, and our capital structure we are anxious to begin work at Oakley and then, most importantly, report those results to the investment community in a persistent manner."
The Blue Hill Creek mineralized zone is open-ended and currently measures 3,350-feet long and up to 1,000-feet wide; historical drilling includes:
- 400 feet @ 0.017 opt Au (121.9 meters at 0.58 gpt Au)
- 260 feet @ 0.024 opt Au (79.2 meters at 0.82 gpt Au)
- 290 feet @ 0.017 opt Au (88.4 meters at 0.58 gpt Au)
The partially tested Cold Creek mineralized zone located four miles north of Blue Hill Creek is at least 5,000-feet long and up to 1,000-feet wide; historical drilling includes:
- 260 feet @ 0.014 opt Au (79.2 meters at 0.48 gpt Au)
- 150 feet @ 0.020 opt Au (45.7 meters at 0.69 gpt Au)
- 40 feet @ 0.048 opt Au (12.2 meters at 1.65 gpt Au)
Casey Danielson, QP & director states, "The Oakley Gold Property presents an exciting opportunity for the Company to expand upon a modern-era gold discovery made when the price of gold was less than $400 per ounce and was last explored when gold was under $300 per ounce. Hot springs-type low sulphidation gold-silver deposits such as Sleeper, NV and De Lamar, ID are highly-sought after by gold producing companies because of their simple metallurgy, generally straight forward permitting and potential for large resource volumes and/or bonanza grades."
Work by previous operators, including a 16,000 meter CSAMT survey conducted by Otis Gold Corp, has defined targets for 15,200 feet of drilling in 18 drill holes. The Company has planned a two-phase exploration program. The initial 12 month phase calls for a budget of $300,000 and includes drilling. Contingent upon first-phase results, a second phase calls for an expenditure of $2MM over the ensuing 24 months.
About the Oakley Gold Property
Lateral Gold's 100% controlled Oakley Gold Property covers 2,100 acres located in Southeastern Idaho, 45 miles from Twin Falls. The property is an underexplored gold district south of the Yellowstone hotspot, a chain of calderas associated with multimillion ounce bonanza grade gold mines and deposits. The Oakley Gold property includes an open ended historical inferred mineral resource at Blue Hill Creek of 235,000 gold ounces (14.4MM tons @ 0.016 opt Au) as estimated in a technical report prepared for Otis Gold Corp dated April 7, 2008. Lateral Gold is not treating the Blue Hill Creek historical resource as a current mineral resource because a qualified person has not done sufficient work to classify the historical estimate as a current mineral resource. Lateral's exploration is sharply focused toward discovery of one or more, million ounce or larger gold deposits.
Casey Danielson, a qualified person as defined by National Instrument 43-101 and a Director of the Company, has reviewed and approved the scientific and technical information in this release.
Source: http://www.lateralgold.com