Intigold, St. Elias Mines to begin Chance E exploration

2012-04-16 23:50 ET - News Release

Also News Release (C-SLI) St Elias Mines Ltd

Ms. Lori McClenahan of Intigold and St. Elias Mines reports

INTIGOLD MINES LIMITED: CHANCE E MINERAL CLAIM, PERU; PHASE 1 EXPLORATION PROGRAM TO COMMENCE

Intigold Mines Ltd. and St. Elias Mines Ltd. will commence exploration on the Chance E mineral concession, which adjoins St. Elias's wholly owned Tesoro gold project, located in southwestern Peru, in the coming weeks.

Exploration work, consisting of geological mapping and sampling and satellite imagery, as well as control grid emplacement, will be commencing in the coming weeks.

Chance E claim

The Chance E claim is a claim that adjoins the southern end of the Tesoro gold project, where St. Elias is currently drilling to delineate gold resources. Geological information, together with Titan 24 geophysical data and satellite imagery, confirms that structural lineaments which are coincident with gold mineralization on the Tesoro project extend onto the Chance E claim.

The initial exploration program on the Chance E claim will consist of, but is not limited to, the interpretation of satellite imagery acquired to exact specifications and geological mapping and sampling. The program is scheduled to commence immediately.

IntiGold can acquire a 60-per-cent interest in the Chance E claim (subject to a 1.5-per-cent net smelter royalty) in consideration of making cash payments of $500,000 to St. Elias, issuing one million common shares in the capital of IntiGold to St. Elias and incurring $1-million in exploration expenditures on the property over a three-year period.

IntiGold's first-year commitment under the option agreement is to pay $25,000 to St. Elias and incur $200,000 in exploration expenditures on the property.

"The board of directors of Intigold and St. Elias are excited to be initiating the exploration of the Chance E claim, which is on strike to the numerous gold-bearing veins occurring on the adjoining Tesoro property," stated Lori McClenahan, president and chief executive officer.

We seek Safe Harbor.