Hy Lake Gold Options Additional Property from RubiHy Lake Gold Options Additional Property from Rubicon
11/29/2010 9:00 AM - FSC
Toronto, ON November 29, 2010
FSC / Press Release
Hy Lake Gold Options Additional Property from Rubicon
Toronto, Ontario CANADA, November 29, 2010 /FSC/ - Hy Lake Gold Inc. (HYL - CNSX, HYK - FWB),is pleased to announce that the Company has entered into a Purchase Option Agreement with Rubicon Minerals Corporation of Vancouver, B.C. Canada. This property adds to the four-claim South Jamie property currently under purchase option from Rubicon (see news release dated March 3, 2008).
The option covers two contiguous unpatented mining claims (KRL3017000 and KRL3017001) totalling approximately 90 hectares in Todd Township, District of Kenora, Ontario Canada. The claims are located within the Rowan Lake property, in which the Company has a Joint Venture interest with Goldcorp's Red Lake Gold Mines (see Figure 1). The acquisition of these claims adds an important piece to the regional exploration model under development by Hy Lake Gold.
Under the terms of the option, Hy Lake Gold will earn a 100% ownership interest in the property by making total payments of $125,000 and 100,000 Company shares over four years. Rubicon will retain a 2% NSR, 50% of which can be purchased by the Company for $1,000,000.
Hy Lake Gold Vice President, Exploration Vadim Galkin commented: "The acquisition of this property is very important for Hy Lake from an exploration standpoint. To the south it borders the untested area between the West Red Lake Zone and Rowan Main Zone and has potential for vein type gold mineralization extension to the north. Historical geophysical data also looks very encouraging. A magnetometer and horizontal loop survey conducted by Pipestone Bay Resources (1983) outlined several geophysical anomalies on the property that were attributed to conductive and magnetic iron formation. Immediately to the west of these claims, a number of east-southeast trending conductive zones were mapped by Induced Polarization survey of Placer Dome (1995) with apparent extension to the east along strike. The existence and location of these anomalies fits well into our structural concept and Hy Lake Gold plans to test for further gold mineralization and continuity as part of our previously announced 2011 exploration plans."
About Hy Lake Gold Inc.