(via Thenewswire.ca)
May 7th, 2012 - Winnipeg, MB - King's Bay Gold Corporation (TSX.V: KBG) (the "Corporation" or "King's Bay Gold") is pleased to announce the acquisition of the Galbraith B gold occurrence via an option agreement. The two new claim blocks of 16 units each cover approximately 1,280 acres (or approximately 518 hectares) and sit to the southeast of, and are contiguous to, the existing Menary Gold Project claim group as located in the Townships of Menary, Claxton, McClarty and Senn in the Kenora Mining Division of north-western Ontario. The overall project now consists of 18 claims for approximately 5,900 acres (or approximately 1,728 hectares) in a single contiguous land package. The claim units are located approximately 20 kilometres southeast of the Town of Nestor Falls, Ontario and can be accessed along Road 404, east of Highway 71 which runs between Kenora and Fort Frances, Ontario. The project is located roughly 15 kilometers northeast of the Richardson Township Project owned by Rainy River Resources Limited (TSX.V: RR) and within 12 kilometres of the recent discovery by Bayfield Ventures Corp. (TSX.V: BYV). The property is adjacent to and along strike to the Rainy River Resources Limited drilling that has been conducted on their Off Lake Gold Project. The Corporation expended a total of $518,639 in 2010 and a total of $587,319 in 2011 on the exploration and development of this project.
Galbraith B gold occurrence is located within the westernmost of the two newly optioned claims and is approximately 200 metres to the east from the claim line of the original group. The narrow vein / stringer in the greenstone unit within which native gold was observed at Galbraith B assayed 97.5 g/t (2.859 opt) and 63.70 g/t (1.868 oz./ton) gold from grab samples obtained in 1991 by Western Troy Capital Resources Inc. (Wagg and Holmstead, 1991). Another grab sample collected in 1991 from a 1 metre wide, weakly sheared zone hosting several narrow quartz stringers (sample number 17829) located about 350 metres south-southeast of the Galbraith B, assayed 1.146 g/t (0.033 oz/ton) gold. Many other relatively small veins and pods occur within a few hundred metres of the Galbraith B showing, some of which returned gold values ranging from 0.10 g/t (0.0003 opt) to 3.52 g/t (0.103 opt). As both this zone and the Galbraith B vein strike about east-west, further work in the area by King's Bay Gold will pay particular attention to all of those structures on the project that crosscut the northeasterly trend of the metavolcanics in the Rainy River Greenstone Belt.
Under the terms of the option agreement between King's Bay Gold and the optionor (the "Agreement"), King's Bay Gold can earn a 100% interest in the claims by completing payments to the optionor totaling $ 69,000 over 4 years and the issuance of 500,000 common shares as follows:
On or before July 6, 2012$ 6,000
1st Anniversary of the Agreement$ 10,000
2nd Anniversary of the Agreement$ 12,000
3rd Anniversary of the Agreement$ 16,000
4th and Final Anniversary of the Agreement $ 25,000
Within 10 days of receipt of regulatory approval of the Agreement250,000 common shares
1st Anniversary of the Agreement250,000 common shares
The issued shares shall be subject to hold periods as required by the applicable policies of the TSX Venture Exchange and applicable securities laws.
The optionor will retain a 2.0 % Net Smelter Return (the "NSR") interest in the property. King's Bay Gold can buy back one half or 1% of the NSR at any time by paying the optionor Cdn$1,000,000.
Kyle Picard, King's Bay Gold's President & CEO, stated "We believe that the various surface gold occurrences that have been found to date at the Menary Gold Project are all evidence of a much larger underlying and intrusive geological system. Securing these claims that include Galbraith B high grade gold occurrence will prove to be paramount in substantiating this theory."
Qualified Person's Statement
All of the drilling and field work on this project has been supervised by the Company's on-site geologist, Mr. Russell Crosby, M.Sc., P.Geo., acting as the Qualified Person (QP) in compliance with National Instrument 43-101. Mr. Crosby has reviewed the technical disclosure in this news release.
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About King's Bay Gold
King's Bay Gold Corporation is an active Canadian mineral exploration and development company with mineral exploration projects located in two of Canada's main gold camps - Red Lake, ON and Rainy River, ON.
KBG Shares Outstanding: 97,126,913
King's Bay Gold Corporation
Kyle Picard
President & CEO and Corporate Secretary
(204) 253-4653
info@kingsbaygold.com
www.kingsbaygold.com
This news release includes certain forward-looking statements concerning the future performance of King's Bay Gold Corporation's business, its operations and its financial performance and condition, as well as management's objectives, strategies, beliefs and intentions. The Company does not intend, and does not assume any obligation, to update these forward-looking statements. Forward-looking statements are frequently identified by such words as "may", "plan", "expect", "anticipate", "estimate", "intend" and similar words referring to future events and results. These forward-looking statements represent management's best judgment based on current facts and assumptions that management considers reasonable. The Company makes no representation that reasonable business people in possession of the same information would reach the same conclusions. All forward-looking information is inherently uncertain and subject to a variety of assumptions, risks and uncertainties, including the speculative nature of mineral exploration and development, fluctuating commodity prices, competitive risks and the availability of financing and as described in more detail in the Company's recent securities filings available at www.sedar.com. Actual events or results may differ materially from those projected in the forward looking-statements and readers are cautioned against placing undue reliance thereon.
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