NEWS! Should be good day!APRIL 13, 2006 - 08:30 ET
NFX Gold Inc. Acquires Additional Strategic Property and Appoints Alexander Horvath as Director
TORONTO, ONTARIO--(CCNMatthews - April 13, 2006) -
Not for dissemination in the United States.
NFX GOLD INC. (TSX VENTURE:NFX) ("NFX" or the "Company") is pleased to announce that it has entered into an agreement (the "Agreement") pursuant to which NFX has agreed to acquire (the "Acquisition") from an arm's length party (the "Vendor"), 16 mining claims (collectively the "Property") located along the Larder Lake Break in northeastern Ontario. The Property consists of 16 mining claims in McGarry, Hearst and McFadden Townships, which are located to the east of NFX's 100% owned Larder Lake Properties.
Pursuant to the Agreement, NFX has agreed to acquire a 100% interest in the Property by: i) paying the sum of $25,000 to the Vendor, ii) the issuance of 20,000 common shares of NFX (the "Common Shares") to the Vendor, iii) incurring sufficient exploration expenditures to maintain the Property in good standing, and iv) through three yearly issuances of 10,000 Common Shares to the Vendor beginning on the first anniversary of the Agreement, up to a maximum total of 30,000 Common Shares. The Agreement stipulates that the Vendor will retain a 1% Net Smelter Return royalty on the Property, of which NFX will have the option to purchase 0.5% for $500,000. The completion of the Acquisition is subject to receipt of all necessary regulatory approval including that of the TSX Venture Exchange Inc.
The acquisition of the Property, historically referred to as the Kirkland-Wright claim group, expands the NFX property holdings in the Larder Lake area and provides additional exploration potential for the discovery of high grade gold deposits. The geological model for the Larder-Lake area indicates a series of major north-easterly trending faults and associated secondary fault structures that intersect or splay from the prolific Larder Lake-Cadillac Break. The Archean mafic volcanic, carbonated ultramafic and sedimentary rocks cut by and proximal to these fault structures are known to host large gold deposits such as the Kerr Addison mine (approximately 11 million ounces of gold produced at a grade of 0.29 oz Au) and other smaller deposits such as, the Fernland, Cheminis, Armistice and Barber-Larder deposits.
At least two major north-east trending fault structures including, the Milky Creek Fault and a second fault structure beneath Larder Lake are indicated to cross the Kirkland-Wright property and intersect or splay from the Larder-Lake Cadillac Break. Historic exploration drilling has focused at the north and west portions of the property where favorable Archean volcano-sedimentary host rocks occur beneath approximately 300 meters of Huronian sedimentary cover rocks. Although only sporadic low gold grades have been intersected in the historic drill holes, the current geological model suggests that grades, widths and continuity of gold zones improves at depths of 500 to 1000+ m and typically down-plunge of these smaller, lower grade and less continuous occurrences of mineralization. The Kirkland-Wright property is believed to provide significant exploration potential for the discovery of high grade gold deposits beneath the extents of historic drilling at depths more typical of the larger high grade gold deposits of the area.
NFX is also pleased to announce that Mr. Alexander Horvath, P. Eng., has been appointed as a director of the Company. Mr. Horvath has 24 years of wide ranging domestic and international experience in base and precious metals exploration and mining including 20 years with Asarco Incorporated and its associated international subsidiaries. With Asarco, Mr. Horvath held successively increasing positions of responsibility commencing with 13 years at Asarco Exploration Co. of Canada Ltd. as exploration and underground geologist during development of the Aquarius gold deposit in the Porcupine district of the Abitibi. In 1995, Asarco closed operations in Canada and Mr. Horvath was promoted to the head office of Asarco Incorporated from his position as senior staff geologist to assume responsibilities as assistant to the vice-president exploration. As Exploration Manager responsible for exploration and project management on several international gold and base metals projects in Portugal, Morocco, and French Guiana, Mr. Horvath provided project management and lead technical teams responsible for the discovery, delineation and prefeasibility study of the Camp Caiman gold project in French Guiana. Subsequent to Asarco's merger with Grupo Mexico in 1999, Mr. Horvath assumed responsibilities for up-grading resource/reserve model estimation procedures, introducing and completing first time ore reserve audits and implementing quality control sampling and assaying programs for exploration and production sampling at three of the companies large open pit copper operations in Arizona (Ray, Mission and Silver Bell mines). Since his departure from Asarco in 2002, Mr. Horvath has provided assorted quality control and geological consulting services to various clients in the exploration/mining industry and have included projects such as; McWatters Mining Sigma-Lamaque open pit Au mine, Agnico-Eagle's Goldex Au project, Asarco's Mission open pit Cu-Mo mine and Bear Creek Mining's Corani Ag-Pb project in Peru.
"On behalf of the board of directors and management team at NFX, I would like to welcome Mr. Horvath to the Company, knowing that he brings a proven track record in mineral exploration and strategic planning which will be put to good use, particularly as NFX's Larder Lake exploration program advances," stated Thomas Larsen, President and CEO of NFX.
This release contains certain "forward-looking statements". All statements, other than statements of historical fact, that address activities, events or developments that the Company believes, expects or anticipates will or may occur in the future, are forward-looking statements. Forward-looking statements reflect the current internal projections, expectations or beliefs of the Company based on information currently available to the Company. Forward-looking statements are subject to a number of risks and uncertainties, including those detailed from time to time in filings made by the Company with securities regulatory authorities, that may cause the actual results of the Company to differ materially from those discussed in the forward-looking statements, and even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on, the Company.
The TSX Venture Exchange Inc. has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.