May 18, 2010 (TheNewswire.ca) --
May 18, 2010
King's Bay Gold Corporation (TSX.V-KBG) is pleased to announce, subject to regulatory
approval, that it has entered into an agreement with New Moon Minerals Corp. to acquire
a 50% interest in the high-grade gold Berven Lake Project, located in the La Ronge Area, Saskatchewan.
The Berven Lake Project
The Berven Lake project is located approximately 110 km northeast of La Ronge, Saskatchewan covering a portion of the La Ronge gold belt north of Dickens Lake along Highway 102. The project area comprises 4 claims (1480 hectares) covering historic high-grade gold showings discovered by SMDC (Cameco) during exploration programs between 1985 and 1990. The property is located in close proximity to the licensed Jolu Mill which is expected to commence processing gold in late 2010.
During the summer of 1986 and 1987, the Berven Lake property was evaluated by a
prospecting and sampling program which identified several gold showings which were then
subsequently trenched, sampled and diamond drilled. Of the 67 sulphide (pyrite, pyrrhotite, chalcopyrite) and magnetite bearing outcrops evaluated, eight gold showings were discovered.
The rock sampling of the known trench areas indicates a correlation with cross-cutting or
intersection areas of shear zones, especially when incorporated with mafic dykes and/or
diorite to graniodiorite intrusive rocks. The highest values were obtained from a shear with
quartz and hornblende stringers, with pyrite and chalcopyrite. The higher gold
determinations appear to be associated with fine grained, dark, mafic minerals, likely
hornblende and biotite, pyrite and chalcopyrite mineralization within sheared dacite,
andesite and graniodiorite.
Of special interest is the Joey showing which consists of pyrite and associated non-visible gold mineralization within rusty, vuggy quartz veining that is hosted within a sheared sequence of andesites to
dacites and an adjacent small granodiorite plug. The granodiorite-hosted main mineralized quartz vein, which occurs in a 040° to 045° trending shear zone, dips 14°NW. Pyrite mineralization is also hosted within a smaller scale set of dacite-hosted quartz veins which trend 120°. The 120° trending veins
are controlled by a series of conjugate faults or release structures that are related to the
040°-045° structure. A major 065° trending shear zone, which deflected around the granodiorite plug, disrupts and offsets the mineralized quartz veins.
A 1.0 metre channel sample from a high-grade gold bearing quartz vein at this Joey showing yielded 1.730 oz/ton (59.33g/t). Nine shallow holes were drilled and returned very encouraging high-grade gold results. Drill hole BR8-5 intersected 1.790 oz/ton (61.39 g/t) over 0.50 metre at a depth of 10.60 metres. Drill hole BR8-7 intersected 0.952 oz/ton (32.65 g/t) over 0.50 metre at a depth of 54.40 metres.
The seven of the shallow drill holes collared at the Joey were set to test the northeast trending shear system. Although recognised in the area, the cross-cutting north-south to
northwest trending shear systems were overlooked. With the discovery of high grade gold
mineralization within one of these north-westerly trending, sheared, mafic dykes at the nearby Bingo deposit, this style of gold mineralization has not been previously considered on the Berven Lake Property.
The areas with the better gold intersections from the drill programs indicate a possible
correlation with the cross-cutting shear structures mapped in the area. Sheared mafic dykes
related to this type of event, host high grade gold values in the area, as documented at
the nearby Bingo gold deposit near Devils Lake. Source: Government of Saskatchewan assessment files: Verified by Andrew Gracie, Ph.D., P.Geo., APEGS, APEGM, APGO and CIM.
The partners are planning a detailed exploration program which will include additional deeper drilling and the testing of these cross-cutting shear zones identified at the Joey and Road Zones.
Summary of the Terms of the Option/Joint Venture Earn-In Agreement
Upon and subject to the terms and conditions set out herein, New Moon Minerals hereby irrevocably grants to King's Bay the sole and exclusive right and option to earn a fifty percent (50%) interest in New Moon's Interest by funding Earn-In Expenditures of $50,000 in year one, $100,000 in year two and $300,000 in year three.
In addition to the earn-in expenditures outlined above, King's Bay shall issue shares the New Moon as follows:
On signing of this agreement 300,000 Common Shares
1st Anniversary of the agreement 500,000 Common Shares
2nd Anniversary of the agreement 500,000 Common Shares
3rd Anniversary of the agreement 500,000 Common Shares
Upon King's Bay earning the Earn-in Interest, New Moon Minerals and King's Bay shall be deemed to have entered into a Joint Venture Agreement in respect of the development, management and further exploration of the Property and, if deemed warranted, bringing all or a portion of the Property into production by establishing and operating a mine or mines thereon. The respective initial interests of New Moon Minerals and King's Bay in the Joint Venture will be fifty percent (50%) and fifty percent (50%). Property is subject to a 2% Net Smelter Return interest in favour of North-Sask Ventures Ltd.
About New Moon Minerals
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 (being drilled by Mega Precious Metals Inc. (OOTC:MPRXF) (TSXV:MGP) beside the Goldcorp. (NYSE:GG) High-Grade Deposit); (2) The Bobjo Mine, a past producing gold mine (exploring for gold and Rare Earths Elements); (3) The Fort Frances property In Watten/Halkirk Twps.(exploring for PGE's and diamonds); (4) the Cameron Lake Gold Property located adjacent to the Nuisco Gold deposit near Cameron Lake; (5) the Brooks Lake-Helena Lake claims located along the prolific Pipestone Lake Fault; (6) the Menary Gold Property in Menary Twp. located along strike to the recent Rainy River Res. discovery; and (7) the Raleigh Lake claims containing significant showings with Rare Earth Elements.
KBG Shares Outstanding: 76,146,903
King's Bay Gold Corporation
John Archibald
President & CEO
(204) 253-4653
info@kingsbaygold.com
www.kingsbaygold.com
About New Moon Minerals
New Moon Minerals is a private Canadian precious metal exploration company focused on exploring for gold in politically safe jurisdictions with high geological potential. New Moon owns three high-grade gold projects in Northern Saskatchewan and another in the Rainy River area of Ontario. The Company is committed to an accelerated growth strategy and remains optimistic about commodities in general and the precious metals outlook in particular. Backed by a strong management team with public company experience, New Moon Minerals is poised for rapid expansion through quick response to new opportunities and changes in the market.
New Moon Minerals Corporation
Andrew Gracie,
Ph.D., P.Geo., APEGS, APEGM, APGO and CIM.
Chairman
204-782-5395
newmoonminerals@yahoo.ca
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 lookingstatements
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
Copyright (c) 2010 Thenewswire.ca - All rights reserved.
