news property aquisition....
MURGORSIGNS LETTER OF INTENT TO ACQUIRES UP TO 70% INTEREST IN THE GOLDENARROW GOLD MINE FROM VICTORIA GOLD MINE, TIMMINS, ONTARIO
11/4/2010 9:59 AM - Canada NewsWire
KINGSTON, ON, Nov. 4, 2010 (Canada NewsWire via COMTEX News Network) --
MurgorResources Inc. (MGR: TSX-V) announced today that it has signed aLetter of Intent with Victoria Gold Mines East Timmins Limited (aprivate Mineral Exploration Company with Mr. David Larche as President& CEO) to acquire an interest of up to 70% in the Golden Arrow GoldMine, 65 kilometres east of Timmins, Ontario.
Highlights of the property include:
-- Past Producer 279,593 tons @ 0.061 oz/t (2.09 g/t) Gold between
1981 and early 1983.
-- Existing infrastructure on site include 170 feet deep Open Pit
excavation, 450 foot shaft, 1,550 feet of lateral development,
adjacent to paved Highway 11.
-- Offsite Infrastructure includes five (5) operating gold mills
within a radius of 70 km.
-- Pre-development nearly completed with Arrow Open Pit 90%
dewatered.
-- Project is fully permitted for 100,000 tonne Bulk Sample.
-- Historic metallurgical Gold Recoveries of 91.2%
-- Historical drill hole intersections in the floor of the current
open pit ranging in lengths from 25 meters to 73 meters with
grades ranging from 1.18 g/t to 3.06 g/t gold.
-- 12 meter wide underground mineralized zone defined in 1947 over
a strike length of 45 meters and grading 5.0 g/t gold that is
open at depth.
-- Last Exploration Effort in 1997 with the deepest drill hole
testing the mineralized structure at only 160 meters vertical
depth. The zone remains open in all directions.
-- Property covering a 2 km strike length of the NE-SW-trending
mineralized structure.
-- Recent 3D model of the deposit by Victoria shows a potential
large-scale low grade gold halo surrounding the mineralized
structure. The potential of this large gold halo remains
untested.
-- Located five kilometres south-east of the past-producing Ross
Mine which produced 995,832 oz Gold between 1936 and 1989.
"Thisis a terrific property with huge potential and a great opportunity forMurgor to become a near-term gold producer." said Andr? Tessier,President and CEO of Murgor Resources. "The next step will include athorough due diligence process that will include up to 1,200 meters ofdrilling. We are confident our due diligence work will lead to adefinitive agreement with Victoria. Combined with our base metalassets in the Flin Flon Belt of Manitoba, Murgor will become a trulydiversified mineral exploration company with very advanced explorationand development projects in gold-copper and zinc."
Thefollowing is a summary of the proposed terms of acquisition, as set outin the Letter of Intent: Over a period of 2 years, Murgor will havethe exclusive right to acquire a 55% interest in the Golden Arrow Minefor a proposed aggregate purchase price of $500,000 payable by Murgorto Victoria in cash, $1,500,000 in cash or shares of Murgor and anaggregate of 15,000,000 shares of Murgor. In addition, Murgor will berequired to incur aggregate exploration expenditures totalling$4,000,000 over a period of 2 years. Murgor will then form a 55%-45%joint venture with Victoria and will have the right to earn anadditional 15% in the property by completing a positive pre-feasibilitystudy of the deposit, should Victoria elect not to participate in theexpenditures related to this pre-feasibility study.
The Letter ofIntent contemplates a due diligence period of 60 days ending January01, 2011 during which Murgor will verify all historical data andpermits relating to the property, and carry out a diamond drillingprogram of up to 1,200 meters.
The terms of the Letter of Intentprovide for the entering into a definitive agreement, subject toregulatory approval, by January 10, 2011.
The technicalinformation in this news release has been reviewed by Mr. Andre C.Tessier, P.Geo, P. Eng, President & CEO of Murgor Resources Inc. aqualified person in accordance with Canadian regulatory requirements asset out in National Instrument 43-101. Mr. Tessier performed areview of the pre-43-101 technical reports but has not verified thedata disclosed in such reports.
The transactions contemplated inthis news release are conditional upon the entering into of formalagreements with terms and conditions acceptable to both parties andconditional upon regulatory approval.
About the Golden Arrow Gold Mine:
TheGolden Arrow property consists of 17 mining patents and leases, andtwo mining claims covering 524 hectares and located 65 kilometers eastof the Town of Timmins in Ontario. From 1981 to early 1983, a total of279,593 tons of ore was mined at a grade of 0.061 oz/t (2.09 g/t) fromthe Arrow open pit. Mining ceased due to low gold prices.
TheGolden Arrow property is underlain by Mafic Flows and SyeniteIntrusions with younger post mineral Diabase. Gold is associated withpyrite-quartz veining and hematitic/potassic alteration within theSyenite intrusions on a NE-SW structure associated with thePorcupine-Destor Fault Zone. The property covers a two kilometrestrike extent of this NE-SW structure. The geological setting of theGolden Arrow gold deposit is very similar to that of the Ross Gold Minelocated 5 km to the north-east, which produced nearly one millionounces of gold between 1936 and 1989. Please visit www.murgor.com inthe days following the distribution of this press release, foradditional information about the Golden Arrow Gold Mine.
About Murgor Resources
MurgorResources Inc. is a mineral exploration and development companyfocused on gold, copper, and zinc deposits in Canada. The company ownsa 100% interest in two deposits, adjacent to the Snow Lake and FlinFlon mining districts of Manitoba, from HudBay Minerals Inc. (TSX:HBM).Murgor is also exploring an exceptional portfolio of gold propertiesin proven mining districts of Canada, owns a 1% NSR royalty in theBarry Gold Mine and an interest in the advanced Windfall Gold Projectin Quebec. The proposed acquisition of the Golden Arrow Gold Mine inOntario marks a shift of focus to gold for the Corporation
The table below shows the total 43-101 compliant resource for Murgor's Hudvam and Wim deposits.
_________________________________________________________________________________________
| | | Tonnage | Grade* | Metal Content |
| |Project|_________|____________________|________________________________________|
| | | Metric |Cu %|Zn% | Au | Ag | Cu (lb) | Zn (lb) |Au (oz)| Ag (oz) |
| | | Tonnes | | |g/t | g/t | | | | |
|INDICATED|_______|_________|____|____|____|_____|___________|__________|_______|_________|
| RESOURCE|Hudvam | 854,076|1.22|1.78|3.82|13.84| 23,007,640|33,541,359|104,930| 379,928|
| |_______|_________|____|____|____|_____|___________|__________|_______|_________|
| |Wim |2,776,787|1.94|0.3 |1.88|7.53 |118,762,524|18,365,339|167,838| 672,246|
| |_______|_________|____|____|____|_____|___________|__________|_______|_________|
| | TOTAL |3,630,863| | | | |141,770,164|51,906,698|272,768|1,052,174|
|_________|_______|_________|____|____|____|_____|___________|__________|_______|_________|
| | | Tonnage | Grade* | Metal Content |
| |Project|_________|____________________|________________________________________|
| | | Metric |Cu %|Zn% | Au | Ag | Cu (lb) | Zn (lb) |Au (oz)| Ag (oz) |
| | | Tonnes | | |g/t | g/t | | | | |
|INFERRED |_______|_________|____|____|____|_____|___________|__________|_______|_________|
|RESOURCE |Hudvam | 502,901|0.79|1.33|3.25|6.96 | 8,758,802|14,745,831| 52,548| 112,534|
| |_______|_________|____|____|____|_____|___________|__________|_______|_________|
| |Wim | 445,999|1.12|0.43|2.11|5.06 | 11,012,528| 4,228,024| 30,256| 72,556|
| |_______|_________|____|____|____|_____|___________|__________|_______|_________|
| | TOTAL | 948,900| | | | | 19,771,330|18,973,856| 82,804| 185,090|
|_________|_______|_________|____|____|____|_____|___________|__________|_______|_________|
* Based on a 2.0% copper equivalent cut-off grade
For statement of resources, see Murgor Press Releases: Aug. 28, 2008 for Hudvam and Sept. 09, 2008 for Wim.
Thisnews release includes certain "forward-looking statements". Allstatements other than statements of historical fact, included in thisrelease, including, without limitation, statements regarding potentialmineralization, resources and reserves, exploration results, and futureplans and objectives of Murgor, are forward-looking statements thatinvolve various risks and uncertainties. There can be no assurance thatsuch statements will prove to be accurate and actual results and futureevents could differ materially from those anticipated in suchstatements. Important factors that could cause actual results to differmaterially from Murgor's expectations are exploration risks detailedherein and from time to time in the filings made by Murgor withsecurities regulators.
Neither TSX Venture Exchange nor itsRegulation Services Provider (as that term is defined in the policiesof the TSX Venture Exchange) accepts responsibility for the adequacy oraccuracy of this release.
SOURCE: Murgor Resources Inc.
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