Testing for Mineralization along strike
Holes GP-12-50 to 12-52 were drilled to the southeast above the plunge of the defined mineralization as indicated on the longitudinal section, figure 2. Hole 51 was drilled almost 100 metres southeast of the zone and intersected 1.27 g/t Au over 19.4 metres at a depth of 125 metres below surface - see figure 2, longitudinal section. This indicates the potential for additional lenses of mineralization along strike of the known zone.
Gold Pike Property
The Gold Pike Property consists of 28 contiguous claims with 3 kilometres of strike length along the Destor Porcupine Fault Zone. Gold mineralization was outlined on the property by Noranda during the 1980's. The Noranda drilling outlined a mineralized zone over a strike length of 300m to a depth of 250m below surface. The zone remains open both along strike and down dip. Royal Oak Mines initiated production from an open pit mine in the early 1990's processing approximately 100,000 tons with a recovered grade of 3.4 g/t Au. (Source: Resident Geologist) when the gold price averaged $366 per oz. Victory Gold plans to continue exploration and to expand the gold mineralized zones along strike and to depth from the previous mining operation.
The Victory Gold drill program has confirmed and extended the mineralization outlined by Noranda and indicated that the mineralization is open at depth and down plunge to the southeast and is amenable to additional step out drilling. In addition, indications of parallel mineralization have been indicated by both Victory Gold and Noranda drilling and warrant additional follow up.
The Gold Pike Mine Property is 28 contiguous claims. Victory Gold is earning up to a 70% interest on those 8 claims that contain the former producing open pit from Matachewan Consolidated Mines, Limited ("MCM"). Sufficient expenditures have been made to earn an initial 50% interest.
Key terms of the option agreement are:
- earn 50% over three years by making $450,000 in exploration expenditures, $60,000 in cash payments, and 500,000 shares;
- earn 60% for an additional $1 million in exploration expenditures over 2 years; and
- earn 70% for an additional $2 million in exploration expenditures over 3 years.
MCM retains a 2% NSR (1% of which can be purchased for $1 million) and receives an annual advance royalty of $25,000 after Victory Gold's 50% earn in.
A joint venture is established after the 70% Victory Gold earn in. Should Victory Gold provide 100% of the mine financing, it recovers 200% of exploration expenditures as a priority on 90% of joint venture profits.
In addition, Victory Gold owns a 40% interest in 16 claims that form the eastern part of the Gold Pike Mine Property and has the option to spend $700,000 by July, 2015 to increase ownership to 60% in partnership with St Andrew Goldfields Ltd. and Plato Gold Corp.
Victory Gold also owns 100% interest in the 2 northern claims of the Gold Pike Mine Property.
To view Figures 1 and 2 please click on the following link: http://media3.marketwire.com/docs/NGM0710.pdf
Kenneth Guy, P. Geo., the Qualified Person (as such term is defined in National Instrument 43-101 Standards of Disclosure for Mineral Projects) for Victory Gold, supervised all exploration work and is responsible for the geological information presented herein. This press release has been reviewed and approved by Gary Nassif, M.Sc., P.Geo., Manager Exploration Services of Northern Gold and the Qualified Person for the Golden Bear Project.
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