Trelawney Mining and Exploration Inc. (the "Company" or "Trelawney") (TSX VENTURE:TRR)(FRANKFURT:RTW) is pleased to announce that it has entered into a mining option agreement (the "Option Agreement") dated February 16, 2012 with Falcon Gold Corp. ("Falcon Gold"), pursuant to which Trelawney has been granted the exclusive right to acquire up to a 75% interest in certain mining claims located in Esther Township, approximately 38 km west of the Cote Lake Deposit and approximately 8 km west of the Jerome Mine (the "Burton Property"). The Burton Property's northern, southern and eastern boundaries border the Trelawney Augen Acquisition Corp. properties.
Pursuant to the terms of the Option Agreement:
-- Trelawney may earn a 51% interest by paying the sum of $150,000 to
Falcon Gold and incurring $600,000 in exploration expenditures on the
Burton Property on or before February 16, 2013 (the "First Option");
-- Trelawney may earn an additional 24% interest by incurring a further
$600,000 in exploration expenditures on the Burton Property on or before
February 16, 2014 (the "Second Option"); and
-- Upon exercise of the First Option, Trelawney and Falcon Gold shall form
a joint venture on the Burton Property and will negotiate, execute and
deliver a mutually acceptable joint venture agreement. Should Trelawney
not exercise the Second Option, the Company will retain its 51% interest
in the Burton Property and the joint venture will be formed.
Mr. David Beilhartz, Vice-President, Exploration of the Company is also a director of Falcon Gold. Completion of the transaction is subject to approval of the TSX Venture Exchange.
The Burton Property
The Burton Property consists of 6 patented and 16 unpatented mining claims encompassing 22 claim units (356 hectares) and is located in the Swayze Greenstone Belt, Northeastern Ontario, approximately 150 km south of Timmins and 180 km north of Sudbury. The Swayze Greenstone Belt is interpreted as being correlative with the Abitibi Greenstone belt which hosts the world class Kirkland Lake and Timmins gold mining camps. The Swayze Greenstone belt is an active exploration centre including the exploration and evaluation work being completed by Trelawney.
Historical diamond drill intercepts at the Burton Property include 9.34 grams per ton ("g/t") over an intersection length of 7.75 metres ("m") at the Shaft Zone and 12.47 g/t over an intersection length of 3.13 m at the East Zone. Diamond drilling completed by Falcon Gold during 2011 included 3.74 g/t Au over an intersection length of 9.96 m (including 10.98 g/t Au over 2.17 m) and 3.25 g/t Au over an intersection length of 10.35 m (including 5.65 g/t Au over 2.85 m) at the Shaft Zone (as set out in Falcon Gold press releases dated July 27, 2011 and September 12, 2011.)