Pen Gold Project:
The combination of Pen Gold North and Pen Gold South properties comprise 16,448 hectares (approximately 160 sq km) located on the western extension of the Porcupine-Destor Deformation (Fault) Zone, one of the most productive gold structures in the world that has produced over 70 million ounces. Refer to Appendix 1 for the map of the Pen Gold Project.
"We are delighted to conclude the Pen North Gold Project acquisition and to enter into the strategic relationship with AuRico to explore this very large and under-explored land position," stated Roger Walsh, Rapier's President and CEO.
Rapier's initial exploration work will be comprised of three stages to be conducted between March and August 2013:
Commencement of an initial drill program, totaling approx. 5,500 m, focused in four areas of the Pen North Gold Project:
-- Porphyry Hill Area. A new target area located approx. 4 km west of drilling completed by Rio Tinto, which discovered gold in the vicinity of the Talc Mine. In November 2012, Rapier completed overburden stripping, mapping and channel sampling on 14 areas and identified two drill targets.-- Talc Mine Area. Approximately 8 holes will be drilled in this area to expand the historical drilling results achieved by Rio Tinto plc.-- Westgate Area. An area approx. 2 km north of the Talc Mine, where historical grab samples ran up to 4.8 g/t.-- Midway Area. The Midway area is located between the Talc Mine and Westgate and is under a swamp so drilling will occur if frozen conditions remain at site.
2. Target Definition
Approximately six high priority target areas have been identified and once snow clears, Rapier will conduct preliminary reconnaissance to determine which warrant clearing, trenching and channel sampling.
3. Reconnaissance Program:
In the summer Rapier will commence a broad reconnaissance program over the combined land position to identify further areas for additional work.
On March 8, 2013 Rapier issued 50,000 shares to the vendors of the Pen Gold East property ("Jubilee Claims"), which form the eastern border of Rapier's claims. These shares are subject to a four month hold period expiring July 9, 2013, under applicable securities laws. Consideration for the Pen Gold East property consists of $260,000 and 250,000 shares payable over four years. There is a 2% net smelter royalty, one-half of which (1%) may be purchased for $2,000,000.
For the purposes of regulatory disclosure, AuRico's address is 110 Yonge Street, Suite 1601, Toronto, Ontario M5C 1T4.
ON BEHALF OF THE BOARD OF DIRECTORS
Roger Walsh, President & CEO
Cautionary Note Regarding Forward-Looking Statements: Certain disclosure in this release constitutes forward-looking statements. In making the forward-looking statements in this release, the Company has applied certain factors and assumptions that are based on the Company's current beliefs as well as assumptions made by and information currently available to the Company, including that the Company is able to obtain any government or other regulatory approvals required to complete the Company's planned exploration activities, that the Company is able to procure personnel, equipment and supplies required for its exploration activities in sufficient quantities and on a timely basis and that actual results of exploration activities are consistent with management's expectations. Although the Company considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect, and the forward-looking statements in this release are subject to numerous risks, uncertainties and other factors that may cause future results to differ materially from those expressed or implied in such forward-looking statements. Such risk factors include, among others, that actual results of the Company's exploration activities will be different than those expected by management and that the Company will be unable to obtain or will experience delays in obtaining any required government approvals or be unable to procure required equipment and supplies in sufficient quantities and on a timely basis. Readers are cautioned not to place undue reliance on forward-looking statements. The Company does not intend, and expressly disclaims any intention or obligation to, update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by law.
To view Appendix 1, click on the following link: http://media3.marketwire.com/docs/r311m.pdf
Neither the 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 news release.
Rapier Gold Inc.