Mar. 3, 2010 (TheNewswire.ca) --
King's Bay Gold Corporation (TSX.V: KBG) is pleased to announce that it has acquired via an option agreement with Lasir Gold Inc. (the "Vendor") a 20-claim Mining Lease (# 104050 - CLM # 289) for approximately 800 acres located adjacent and east of Nuinsco's Cameron Lake Deposit. The Nuinsco property hosts a measured, indicated and inferred resource (National Instrument 43-101 compliant) of 2,567,000 tons grading 5.42 g/ton in gold (for 447,421 oz.) and that has been recently optioned to Coventry Resources Ltd. (OOTC:CVYRF) , a junior resource company from Australia. The King's Bay Gold property hosts several known mineralized gold occurrences (the Meston and the Sullivan occurrences) with values reportedly up to 0.245 oz./ton across 1.2 metres and numerous lower grade intercepts over 1.5 to 19.0 metres with gold values as high as 0.320 oz./ton in a quartz-carbonate breccia as reported in the assaying. The last time that work was carried out over the property was in 1986 under Nucanolon Resources Ltd.
This property ties in well with King's Bay Gold's other land acquisitions in the area such as the recently acquired Menary Township Group from Western Troy Capital Resources (OOTC:WTCRF) Ltd. and William McNerney, and the company's Dash / Helena Lake claim group further north along the Pipestone Fault system. All these properties have similar geological characteristics to the recent Rainy River Resources (TSXV:RR) high-grade gold discovery along strike and to the southwest of the Cameron Lake area located in Richardson Township.
Under the terms of the Agreement, King's Bay Gold can earn a 100% interest by completing payments to the Vendor as follows:
On signing of this Agreement $15,000.00
1st Anniversary of the Agreement $20,000.00
2nd Anniversary of the Agreement $30,000.00
3rd Anniversary of the Agreement $30,000.00
4th and Final Anniversary of the Agreement $30,000.00
In addition to the cash payment schedule outlined above, King's Bay Gold shall issue to the Vendor, common shares in the company as follows:
On signing of this Agreement 50,000 Common shares
1st Anniversary of the Agreement 50,000 Common Shares
2nd Anniversary of the Agreement 50,000 Common Shares
3rd Anniversary of the Agreement 50,000 Common Shares
4th and Final Anniversary of the Agreement 50,000 Common Shares
The Vendor understands that the issued shares shall be subject to hold periods as required by the applicable policies of the TSX Venture Exchange Inc. and securities laws and as such are subject to regulatory approval.
The Vendor will retain a 3.0 % Net Smelter Return (the "NSR") interest in the Property. King's Bay Gold shall have the right to buy back from the Vendor one-half of the NSR (1.5%) for $1,500,000.00.
About Kings Bay Gold
King's Bay Gold is unique in the industry in that it owns most of the equipment required to carry out the various phases of exploration. The Corporation is a very active Canadian mineral exploration company with mineral projects located in Canada's main gold camp - Red Lake, ON. Strategic properties include - (1) The Headway, a property located in Red Lake, ON (exploring for gold); (2) The Bobjo Mine, a past producing gold mine (exploring for gold and rare earths elements); (3) the Pipestone Fault property (which includes the Helena / Dash Lake Gold Occurrence), (4) The Fort Frances property (exploring for PGEs and diamonds), (5) the Menary Claim group located N.E. in the same volcanic belt hosting the Rainy River Resources high-grade gold discovery, and (6) the Raleigh Lake property near Ignace, Ontario (exploring for rare earth and metal elements - Li, Nb, Ta, Rb) portions formerly owned by Avalon Ventures Ltd.
KBG Shares Outstanding: 67,256,903
King's Bay Gold Corporation
John Archibald
President & CEO
(204) 261-9899
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 (TSXV:KBG) 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.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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