Galahad Metals
4 projects in Ontario, Quebec and Nevada (Gold, Silver,Copper,REE)
Message: Red Ore Gold Inc. Signs LOI on Pogonip Ridge, Nevada Gold-Silver Property
| May 24, 2011 |
| Red Ore Gold Inc. Signs LOI on Pogonip Ridge, Nevada Gold-Silver Property |
| OTTAWA, ONTARIO--(Marketwire - May 24, 2011) - Red Ore Gold Inc. (RXX), wholly owned subsidiary of Galahad Metals Inc. (TSX VENTURE:GAX) announced today that RXX as signed a Letter of Intent (LOI) with Gold Range Company LLC., to explore and develop their Pogonip gold-silver property in White Pine County, Nevada. Robin Dow, CEO, reports: "The Pogonip Property is the second potential acquisition by Red Ore Gold Inc. in Nevada, both of which have important historic production at shallow depths. Along with Bottle Creek, Red Ore has now reached critical mass in possessing three, large gold/silver claim groups, which should produce significant exploration results over the next six months." The Pogonip Property (which includes the historic Tonopah-Belmont and Mary Ellen Mines and portions of the Rocco-Homestake Mine) offers excellent potential for the discovery of a multi-million ounce sediment hosted gold-silver and/or silver-gold bearing polymetallic carbonate replacement (manto) deposits. The property lies along Nevada's prolific Battle Mountain-Eureka Trend within the central part of the lead-silver zone of the White Pine Mining District. The famed White Pine Mining District has recorded past production exceeding two million ounces of gold and 30 million ounces of silver with known significant resources of molybdenum, copper and tungsten. The potential for Pogonip is deemed to be very prospective as little to no modern mineral exploration has occurred in this silver District since the discovery of the Carlin-type gold deposits in the mid 1960s. The Pogonip Ridge property highly prospective Paleozoic platform carbonate sediments are known to host significant gold and silver resources along both the Battle Mountain and nearby Carlin trends, but have not experienced the level of exploration seen elsewhere along the Battle Mountain-Eureka Trend. Numerous unexplored structural environments occur or can be projected into the favourable stratigraphic horizons. This stratigraphic setting is similar to that of other rich silver deposits in the White Pine District. Historical mine maps of the Mary Ellen Mine indicate the presence of gold up to 8.4 g/t. The Pogonip property has 58 unpatented lode claims, 16 patented lode claims and one patented mill site, comprised of approximately 725 hectares covering a 3 km strike length of highly favourable prospective geology. The terms of the LOI calls for RXX to enter into a definitive Option Lease Agreement within 40 days to acquire 100% of the mineral exploration and development rights on the property subject to a net smelter royalty (NSR). There are no work commitments in the deal. The terms of the advance production royalty payments start with $5,000 on signing the LOI plus $15,000 on signing the Lease Agreement, $20,000 at the end of year one, $30,000 at the end of year two, $50,000 at the end of year three, $100,000 at the end of year four and $200,000 at the end of year five and thereafter. The owner retains a 4% NSR which shall be subject to a buy-down clause in favor to 1.5% NSR for US $1,000,000 per percentage point. The advance production royalty payments shall be deductible from future production royalties. The final contract for this transaction is subject to approval by the TSX-V. Garry K. Smith, P. Geo., VP Exploration, Red Ore Gold Inc., is the Qualified Person as defined by National Instrument 43-101 for the Pogonip Ridge Project, and has approved the technical contents of this release. For further information, please go to www.redoregold.com or www.galahadmetals.com. "The statements in this Press Release may contain forward looking statements that involve a number of risks and uncertainties. Actual events or results could differ materially from the Company's expectations and projections. Neither the TSX Venture Exchange, nor its Regulation Service 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. |
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