Sep. 8, 2010 (TheNewswire.ca) --
King's Bay Gold Corporation (TSX.V: KBG) is pleased to announce that it has signed a Letter of Intent with Coventry Resources Ltd. (OOTC:CVYRF) (ASX-CVY) of Australia, subject to a 30 day due diligence period, on its 100 % King's Bay owned Cameron Lake property located in the Rainy River Area of Ontario. Presently, King's Bay has an existing option on 20 leased claims covering the former Nucanolan Resource property adjoining Nuinsco's Cameron Lake Deposit now owned by Coventry.
King's Bay Gold has been approached by its neighbor Coventry Resources who intend to earn an 80% interest and explore this King's Bay property. Under the terms of the agreement Coventry would have to spend a minimum of $1,000,000 towards this effort, take over the property payments that King's Bay has committed to and secure the historical workings that exist on the property. King's Bay will retain a 20% interest in the property and participate in further exploration at the prorated rate of 80/20 % until a production decision has been made.
Rainy River Area Drilling
The company is also presently waiting for assay results from five drill holes that were recently completed on its Menary property. The Menary Township property is located on the northeast corner of Richardson Township where Rainy River Resources (TSXV:RR) (TSX.V-RR) and Bayfield Ventures Corp. (TSXV:BYV) (TSX.V-BYV) have been conducting successful gold discoveries.
King's Bay is pleased to have three gold projects located in this Rainy River area and intends to continue to concentrate all its efforts in exploring this exciting area.
About King's Bay Gold
The Corporation is a very active Canadian mineral exploration company with mineral projects located in the Rainy River area, Red Lake and LaRonge, Saskatchewan. Strategic properties include - (1) The Headway, a property located in Red Lake, ON (exploring for gold with Mega Precious Metals Inc. (OOTC:MPRXF) (TSXV:MGP) ); (2) the Raleigh Lake Rare-Earths prospect near Dryden, Ontario, (3) the Fort Frances property (exploring for PGEs and diamonds); (4) the Cameron Lake gold property, next door to the former Nuinsco Cameron Lake deposit;(5) the Brooks Lake/Dash Lake gold property adjacent to the Pipestone Fault near Nestor Falls, Ont; (6) the Berven and Devil Lakes properties located in the La Ronge area of Saskatchewan adjacent to the Bingo gold deposit.
KBG Shares Outstanding: 76,146,903
King's Bay Gold Corporation
John Archibald
President & CEO
(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 (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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