VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 05/14/13 -- Northern Lion Gold Corp. (TSX VENTURE: NL)(FRANKFURT: N3E) (the "Company") announces that its previously announced (reported April 4, 2013) definitive option agreement (the "Agreement") with Centerra Gold (KB) Inc., a subsidiary of Centerra Gold Inc. ("Centerra") has become fully effective as the conditions precedent to such effectiveness, which included receipt of TSX Venture Exchange approval and confirmation that certain licenses applied by the Company have been granted, have now been satisfied.
Pursuant to the Agreement, Centerra can earn up to a 70% interest in a number of the Company's exploration permits (the "Option Properties") located in the Larnaca and Paphos Districts of the Republic of Cyprus. To earn an initial 51% interest, Centerra must, in addition to the US$100,000 previously paid, make exploration and development expenditures of US$3 million over three years (the "Initial Option Period"), of which US$500,000 is a firm commitment by Centerra that must be incurred on or before the first anniversary of the effective date of the Agreement.
Once a 51% interest is earned by Centerra, either a 51/49 joint venture will be formed (and further funding would be done on a pro rata basis), or Centerra may elect to earn an additional 19% interest to bring its total property interest to 70% by funding an additional US$3 million in exploration and development expenditures within a two year period following its election to increase its interest.
The Company will be the operator during the first year of the Initial Option Period, following which Centerra may elect to assume operatorship.
The Company's 2013 exploration program commenced in April on its permits in the Paphos District of western Cyprus (subject to the Agreement with Centerra), installing grids for a ground geophysical survey that is planned to begin shortly. The surveys will measure Audio Magnetotellurics ("AMT") as a primary method and use Transient Electromagnetics ("TEM") to further test anomalous areas.
The geophysical crew is in place conducting orientation test lines over known massive sulfide mineralization, in order to provide a reference to assist in the interpretation of survey results. The orientation AMT survey successfully identified known mineralization and results from the orientation TEM survey are currently being processed. These test lines are being conducted on grounds not associated with this Agreement.
The first area of the geophysical survey will be in the Paphos District, where a 2011 Versatile Time-Domain Electromagnetic Survey conducted by Geotech Airborne Malta, Ltd. (reported February 7, 2012), discovered a number of geophysical targets in this area. Five of these targets have been selected by Centerra for this follow-up ground survey.
Centerra and the Company have also selected the Pano Lefkara permit for the second phase of the AMT survey. Pano Lefkara was previously drilled by the Company in 2012. Auriferous massive sulfides were encountered in three drill holes and assays of up to 3 metres of 4.98 grams per tonne ("g/t") gold, 29.60 g/t silver, 3.75% copper, and 2.47% zinc were returned (reported July 17, 2012).
Most Popular Stories
- Bipartisan Budget Deal Gets Key Support in House
- Bitcoin Clones Lurch Onto Financial Scene
- Clinton to Keynote Annual Simmons Leadership Conference
- TFA Recruiting DACA Recipients
- Scotch Whisky Sales Raise Distillers' Spirits
- Holiday Shopping Off to a Slow Start This Season
- Fake Deaf Interpreter Was Hallucinating, Has Schizophrenia
- Tea Party Glum in Face of Bipartisan Budget Deal
- Budget Deal Will Cut 220,000 Californians Out of Jobless Benefits
- Health Coverage Disparities Emerge Among States