TSX-V: MDL
VANCOUVER, Dec. 6 /CNW/ - Medallion (TSX.V: MDL) announces that it has signed a Letter Agreement that grants the Company a mineral lease over, and an option to acquire 100% of the Lodi Hills ("LH") gold-exploration property, 1.6 kilometres southeast of Quartz Mountain, Nye County Nevada. The property comprises 39 federal mineral claims covering 780 acres (over three square kilometers). The Letter Agreement anticipates that the Company and the Vendor will prepare and execute a definitive mineral lease and option agreement as soon as possible. The definitive mineral lease and option agreement will be subject to the acceptance of the TSX Venture Exchange.
The LH gold-exploration target is located in Nevada's highly productive Fallon-Manhattan mineral trend, which hosts the major Manhattan, Round Mountain, and Rawhide gold mines. The target is in an area of hydrothermal alteration, prospect pits and dumps and placer gold showings. A reconnaissance rock-chip sampling program has outlined a zone of approximately 900 metres by 750 metres with anomalously high geochemical values of gold and silver. The mainly carbonate and andesite host rocks are laced with vein structures and intrusive rhyolite. These geological features support the potential for a deep mineralized rhyolite-dome gold target.
The Letter Agreement provides for Medallion to obtain a mineral lease on the LH property and an Option to acquire 100% of the property, subject to a 2% net-smelter-return royalty in favour of the Vendor. At execution of the Letter Agreement, Medallion paid the Vendor US$5,000 and reimbursed it for claim-filing fees of US$7,603.50. At the acceptance by the TSX Venture Exchange of a definitive mineral lease and option agreement, Medallion will pay to the Vendor 50,000 common shares of Medallion. To exercise the option to acquire 100% of the property, Medallion must pay to the Vendor advance-minimum-royalty payments as follows: US$20,000 on or before April 30, 2008, an amount equal to the sum of the last property payment plus US$5,000 on or before April 30 of each succeeding year after April 30, 2008 until Medallion has paid an aggregate of US$500,000 in advance-minimum-royalty payments. Medallion will be the operator of exploration programs on the property.
The Ocelot and Amazing Grace Gold property mineral rights and interests are also held by Medallion. At Ocelot, northwest of Austin, Nevada, exploration targets potentially deep, high-grade gold mineralization of the epithermal quartz-adularia gold-exploration model. At Amazing Grace, southeast of Castlegar, British Columbia, the exploration target is an extensive surface exposure of gold-bearing veins and altered wall rock that holds the potential for a bulk-tonnage open-pit gold operation. Medallion's strategy is to create a portfolio of high-impact gold-exploration projects in North America. The Company is currently evaluating and negotiating for additional projects in Nevada and British Columbia; however, it will require additional financing to carry out its acquisition and exploration plans.
ON BEHALF OF THE BOARD OF DIRECTORS
"William H Bird", PhD, PGeo,
President & CEO
William H. Bird, PhD, PGeo, serves the Board of Directors of the Company as an internal, technically Qualified Person. Technical information in this news release has been reviewed by Dr Bird and prepared in accordance with Canadian regulatory requirements as set out in National Instrument 43-101. This news release was prepared by Company management, who take full responsibility for content. The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.