(TSX.V: TLG)
RICHMOND, BC, Dec. 5 /CNW Telbec/ - Tagish Lake Gold Corp. (TSX.V - TLG) announces that the Company has initiated the next phase in moving toward its objective of production at Skukum Creek by awarding a contract for underground work to P. J. Whelan Mining Contractors. The Contractor will begin mobilizing equipment and material immediately.
The first phase of the underground work, to include some 300 metres of drift and 200 metres of raise, will be undertaken on the Rainbow Two and the newly discovered Bergvinson zones on the 1300m level. These new workings will provide valuable information in demonstrating continuity in the values indicated by the diamond drilling.
In addition, three cross-cuts, for a total length of 200 metres, will be driven to the north from the Ridge Access Drift to provide a platform for additional drilling on the Rainbow Two and Berg zones. This drilling will test the upward as well as the downward extensions of these zones.
During the second phase of this work, the new 1100m adit will be driven to provide access to the downward extension of the known zones two hundred (200) metres below the existing 1300m adit at Skukum Creek.
The Company also announces that it has granted incentive stock options to directors and senior officers to purchase an aggregate of 1,000,000 common shares at an exercise price of $0.20 per share, representing the closing price of the Company's common shares on December 4, 2006 as reported on the TSX Venture Exchange, less an allowable discount. The options are for a term of five years and expire on December 4, 2011. The grants were made pursuant to the Company's 2006 Stock Option Incentive Plan and is subject to the terms and conditions set out in the Plan and the policies of the TSX Venture Exchange. The Company has no other equity compensation plan for its directors.
About Tagish Lake Gold Corp.:
Tagish Lake Gold Corp. explores for and develops high grade gold-silver mineral deposits in the Yukon Territory of Canada. The Company is currently focused on its wholly owned, 178 km2 Skukum Mineral District located 80 km by road south of Whitehorse. The Skukum Mineral District hosts the Skukum Creek gold-silver deposit and the Goddell Gully gold deposit, with a currently defined measured plus indicated resource of 1,120,000 tonnes grading 8.0 g/t Au and 153.1 g/t Ag (MineTech June 2003, available on Sedar); and the past-producer Mt. Skukum gold deposit.
THE TSX VENTURE EXCHANGE DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY
OR ACCURACY OF THIS NEWS RELEASE.
This news release includes certain forward looking statements in respect to various issues including upcoming events. These forward looking statements are based upon current expectations which involve risks and uncertainties that could cause actual outcomes and results to differ materially. Mineral exploration is subject to a high degree of risk, which even a combination of experience, knowledge, and careful evaluation may fail to overcome. Exploration activities are also expensive. The Company will therefore require additional financing to carry on its business, and such financing may not be available when it is needed. The Company disclaims any obligation to revise any forward looking statements as a result of information received.