TSX-V: MDL
VANCOUVER, Nov. 1 /CNW/ - Medallion (TSX.V: MDL) announces that it has signed a Letter Agreement to option the Amazing Grace gold-exploration property, located 15 kilometres southeast of Castlegar, British Columbia. The property comprises 17 Crown mineral claims covering approximately 4867 hectares (48.67 square kilometres). Forestry roads provide good access from a nearby paved highway.
Bulk-Tonnage Open-Pit Target - Medallion believes that the Amazing Grace surface exposure of gold-bearing veins and altered wall rock holds the potential for a significant, easily accessible bulk-tonnage open-pit gold target. Free gold occurs with minor sulfide minerals in multiple vein sequences, which are spatially related to a regional, north-trending fault along the west side of the property. Over four kilometres of this favourable structure occur on the property. Numerous prospect pits expose at least two parallel sequences of gold-bearing veins that lie along an easily accessible ridge top and vein dip slope, which is of significant size. One such sequence ranges up to 75 metres in width with an open-ended strike-length of 150 metres.
Letter Agreement and Option - The Letter Agreement requires that Medallion initially pay the vendor $2,500, for which the Company is granted a 60-day due-diligence period. During the due-diligence period, the Company and the vendor will complete a definitive Option-to-Purchase Agreement, which, at execution, will require the Company to pay to the vendor $7,500 in cash and issue to him 50,000 common shares of Medallion at a deemed price of $0.50 per share. In order to exercise the Option and acquire a 100% interest in the Property, subject to a 2% Net Smelter Return royalty (NSR), Medallion must pay to the vendor, over a period of five years, an aggregate of $140,000 and issue to the vendor an aggregate of 150,000 common shares of Medallion. Of the 2% NSR royalty in favour of the vendor, 1% can be purchased by Medallion for $1 million. Medallion must also perform $70,000 in work on the property during the first year of the Option Agreement. The Option Agreement will be subject to the acceptance of the TSX Venture Exchange.
Medallion will pay a finder's fee of $5,000 on the date that the TSX Venture Exchange accepts the Option Agreement and Finder's fee and $5,000 at a date three months from the first Finder's fee payment. If Medallion maintains the Option Agreement over a period of three years, it will pay the finder, in stages, an additional $70,000 and issue to the Finder 80,000 common shares of Medallion. If Medallion exercises the Option, it will grant to the finder a 0.5% Net Smelter Return royalty, of which one-half (0.25%) can be purchased by Medallion for $250,000.
Ocelot Gold Property - Medallion also holds the Ocelot gold property, which is located 40 kilometres northwest of Austin, Nevada. Exploration targets potentially deep, high-grade gold mineralization of the epithermal quartz-adularia gold-exploration model. 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.
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.