OSK Acquires 9.2% of ThreegoldOsisko Mining Corporation Acquires 9.2 Percent Stake In Threegold Resources Inc
Val-d'Or, Québec, Canada – May 19th, 2011 – Threegold Resources Inc. ("Threegold" or the "Company") (THG: TSX Venture exchange)is pleased to announce that Osisko Mining Corporation (Osisko) haspurchased 8.6 million common shares of the company on the open market.As of May 15th 2011, this purchase gives Osisko a 9.2 percent stake inThreegold along with the Option agreement that was announced February 14
th , 2011 to earn up to 70% interest on the Standard Gold Property.
Standard Gold Property Option with Osisko
Threegold Resources Inc. entered into an option agreement with Osisko on February 14
th,2011,where Osisko may earn a maximum 70% interest in the StandardGoldProperty located in the Abitibi region of Quebec. Under the terms ofthe agreement, Osisko will incur $4 million dollars of explorationexpenditures over 5 years and pay $300,000 in cash payments to earn a51% interest. Under the same terms, Osisko can then earn an additional19% (up to 70%) by incurring an additional $6 million dollars ofexploration or taking the project to feasibility.
The StandardGold Property includes the past-producing Standard Gold Mine. TheStandard Gold Mine operated intermittently between 1935 and 1953,producing an unknown quantity of gold. The mineralization is containedwithin a diorite sill trending southeast with a width ranging between150 metres to 200 metres. The sill has been traced through itsgeophysical signature over a distance of three kilometers and will be ahigh priority exploration target. The historical resource of theStandard Gold Mine is estimated at 132,750 tonnes grading 5.43 grams pertonne gold.
President and CEO of Threegold Victor Goncalves remarked:
"Ithas been tremendous year of growth for Threegold and its shareholders,and now having attracted Osisko both as a partner on the Standard GoldProperty and as an equity stake holder sets the stage for protractedcorporate growth and increased shareholder value."
Mr. Sean Roosen, President and CEO of Osisko, stated:
"Weare very pleased to have established this partnership with Threegold.They have an attractive precious metal property package and Osisko islooking forward to participating in Threegold's ongoing explorationprograms."
This press release was reviewed by AntoineFournier, P. Geo. and Vice-president Exploration for Threegold ResourcesInc. and a Qualified Person as defined by NI43-101.
About Osisko
OsiskoMining Corporation is a development-stage gold mining company based inMontreal, Quebec, Canada. Osisko is currently commissioning the CanadianMalartic gold mine in the Abitibi mining district. The first gold barwas poured on April 13th, 2011 and the beginning of commercialproduction is scheduled for May 2011.
The Company's NI 43-101compliant feasibility study (November 2008) and the subsequent updatedreserve estimates outline an open pit operation that will produce anaverage of 575,000 ounces of gold annually over a 16-year mine lifeincluding operating costs in the lowest cost quartile among global goldproducers. Canadian Malartic currently represents the single biggestpermitted gold reserve in Canada, and is still growing through ongoingdrilling on adjacent mineralized zones. On March 31st, 2011, Osiskoincreased the gold reserve by 19% to 10.71 million ounces.
About Threegold
Threegoldhas established itself as one of the premier exploration companies inQuebec. The Company consists of a highly qualified technical team withextensive Quebec-based exploration experience including previous golddiscoveries and expertise in geology, financing and public companymanagement.
Threegold's focus is to create shareholder wealththrough the discovery of new gold deposits with a 100% focus in Canadianassets mainly Quebec. As an emerging mineral exploration company,investors have the opportunity to participate in a Portfolio of highquality exploration projects and in turn the potential to take part in amajor gold discovery.
With a strategic property portfolio and asolid partnership with Osisko, Threegold's goal is to discover a lowcost producing, multi-million ounce gold deposit in Quebec.
Cautionary Note concening Historical Resources
Threegoldhas not verified the classification of the Standard Gold Propertyresource under National Instrument 43-101 and therefore the above-quotedfigures are reported as an unclassified historical resource estimate.Resource estimates prepared under reporting codes other than NationalInstrument 43-101 should not be relied upon to conform to currentstandards and definitions. Furthermore, readers are cautioned thatmineral resources are not economic mineral reserves and that theeconomic viability of resources has not been demonstrated. Historicalunclassified resources are considered too geologically speculative tohave any economic considerations applied to them. It cannot be assumedthat all or any part of a historical mineral resource will ever beupgraded to a higher NI43-101 category.
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