VANCOUVER, BRITISH COLUMBIA -- NV Gold Corporation (TSX VENTURE: NVX) (the "Company") announced today that it has entered into an agreement to acquire an exploration permit for gold and precious metals (the "Medel Permit") covering a total area of approximately 136 square kilometers in the Commune of Medel/Lucmagn in the Canton of Graubunden in southeastern Switzerland. The property is located in the Alps in a sparsely populated area. The community in which the property is located has been very supportive of the Company's initiative and welcomes the potential economic benefits that could be realized if the Company's exploration efforts are successful.
The Medel Permit encompasses a large portion of the Gotthard Massif, made up of pre-Variscan basement rocks of the Central Swiss Alps. Dr. Quinton Hennigh, a director of the Company, stated: "Gold mineralization is associated with a unit of quartz-sericite-pyrite schist occurring along an east-west-trending belt over six kilometers long. Thicknesses of this schist horizon ranges from a few meters to approximately 200 meters thick."
The area has been explored by previous owners. Records of drilling undertaken by International Micham Resources Inc. in 1991 include intercepts of 75 meters averaging 1.13 grams per tonne gold and 94 meters averaging 0.96 grams per tonne gold in two holes drilled from the same pad. Recent spot outcrop and float samples of this gold-bearing unit taken by the Company returned grades ranging from 0.15-1.57 grams per tonne gold. The Company has plans to conduct much more extensive sampling of this gold-bearing horizon over the next two months to further evaluate its grade and continuity. Gold assays for the sample results were completed by ALS Scandinavia AB in Pitea, Sweden using a 30 gram charge, fire assay, with an ICP finish. The drilling results have not been verified at this time since the Company has not had access to the drill core and QA/QC procedures are unknown. Accordingly, the Company cautions that they may not be reliable. The Company expects to be able to access the drill core and it will undertake verification procedures after it secures access.
The Company has agreed to acquire the Medel Property for 250,000 units (the "Units") of the Company. Each Unit will consist of one common share of the Company and one-half of one common share purchase warrant. Each whole warrant will entitle the holder to purchase one additional common share of the Company at $1.00 for a period of three years. The expiry of the warrants will be subject to acceleration such that, should the volume weighted average price of the common shares in the capital of NV Gold exceed CDN $2.00 for twenty consecutive trading days, NV Gold may notify the holder that the Warrants will expire 30 trading days from receipt of such notice unless exercised before such date.
The Company has also agreed to appoint Mr. Paul N. Zyla, the vendor of the Medel Permit, to its Board of Directors on completion of the acquisition of the Medel Permit. Mr. Zyla, B.Sc., University of Toronto, serves as President, Chief Executive Officer and Director of Xtra-Gold Resources Corp. (Symbol XTG-T) Mr. Zyla has more than 25 years' experience as CEO and/or President of resource-based public companies.
Completion of the acquisition of the Medel Permit is subject to approval of the transfer of the Medel Permit to the Company, confirmation of an extension of the expiry date of the Medel Permit and the grant of rights to renew the permit at the end of its term for two additional five year periods by the relevant authority in the Commune of Medel/Lucmagn. Completion of the acquisition of the property is also subject to approval of the TSX Venture Exchange.
The Company has agreed to pay a finder's fee of 35,000 common shares in respect of the acquisition of the Medel Permit and to acquire information and data in respect of the area of the Medel Permit for SFR 40,000 (40,000 Swiss Francs) and 265,000 common shares of the Company.
The exploration information in this news release was prepared by Dr. Quinton Hennigh, P. Geo., a director of the Company and a Qualified Person under National Instrument 43-101.
On behalf of the Board of Directors,
John E. Watson, President and CEO
For further information, visit the Company's website at www.nvgoldcorp.com.
Forward Looking Statements
This news release includes certain forward-looking statements or information. All statements other than statements of historical fact included in this release, including, without limitation, statements regarding the acquisition of the permits, the geological potential of the properties and other future plans and objectives of the Company are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's plans or expectations include regulatory issues, market prices, availability of capital and financing, general economic, market or business conditions, timeliness of government or regulatory approvals and other risks detailed herein and from time to time in the filings made by the Company with securities regulators. The Company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise except as otherwise required by applicable securities legislation.
Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
NV Gold Corporation
John E. Watson
Visit NV Gold Corporation Website: www.nvgoldcorp.com
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