FORT FRANCES, ONTARIO--(CCNMatthews - Feb. 20, 2007) - Q-Gold
Resources Ltd. (TSX VENTURE:QAU)(FRANKFURT:QX9) announced today that it
has received all requisite approvals for the purchase of the assets of
Nipigon Gold Resources Ltd. ("Nipigon"). Details of this transaction were
included in a press release dated January 5, 2007.
In completing
this purchase, Q-Gold acquired six Crown Leases totaling 240 acres (the
"Leases"), which are surrounded on 3 sides by Q-Gold's existing
gold-bearing holdings at Mine Centre, Ontario. The Leases contain two
important known gold occurrences, the McKenzie Gray and Jolly Roger Veins,
as well as 1,500 m of intensively sheared zones up to 100 m wide that are
associated with the large cross-cutting Finger Lake Fault. Q-Gold now
controls over 11 km of this huge fault, which is believed to be the
primary conduit for hydrothermal fluids which have resulted in 100+
gold-bearing veins in the Mine Centre area. The purchase also included a
small mill, tailings ponds and geological data from extensive past
exploration efforts by Nipigon and others on the Leases.
President
and CEO Bruce Carruthers said, "We are delighted to have at last acquired
the Nipigon Leases, which we have been attempting to purchase for several
years. They represent, in our view, the best geologic (gold) target in
Mine Centre that we didn't already own. Along with our adjoining holdings,
this is a high priority area in our upcoming diamond drilling program
expected to begin on March 1st."
2007 EXPLORATION PROGRAM
UPDATE
Ground geophysics Areas indicated as
potential high priority targets from Q-Gold's 2006 1,516 line km Fugro
DIGHEM/MAG airborne survey are currently undergoing additional ground
geophysical surveys for further delineation prior to drilling. An Induced
Polarization (IP) crew is presently working on the recently acquired
Nipigon Leases and Q-Gold's contiguous holdings, using the
state-of-the-art "Phase Domain" IP process. IP provides exceptional
sensitivity to potential gold/sulfide mineralization, which often emits a
weak conductive response. The crew will be attempting to delineate the
gold-bearing Jolly Roger vein and associated structures along the Finger
Lake Fault. It will then move northward along the Fault to the shores of
Bad Vermilion Lake where several major cross-cutting faults intersect the
Finger Lake Fault/ Shear Zone on tracts which are owned 100% by Q-Gold..
The crew will then move to the Foley Mine Gold/Vein Complex to further
delineate targets that were indicated by the airborne
survey.
5,000 Metre Diamond Drill Program An "HP
56" rig with deep drilling (1,500+ m) capability is scheduled to arrive at
Mine Centre on or about March 1st to initiate our 5,000 metre program. Its
first assignment will be a deep "structural hole" drilled through the
entire Foley Mine gold/quartz vein system with the object of encountering
as many of the known gold veins as possible at depth. This will also be
part of the current program to reactivate the historic Foley Gold Mine,
which produced over 5,000 ounces of gold, primarily in the 1890's, and
evaluate its future development potential as a gold producer. Upon
completing the deep Foley hole, the rig will be moved southwest to the
Nipigon/Finger Lake Fault area for the drilling of a series of
well-defined conductive targets recently revealed by the IP
survey.
Mr. Carruthers continued, "If, with a deep hole, we can
establish the presence of the principal gold-bearing veins in the Foley
Complex, which are presently 'open' at depths ranging from 400 to 850
feet, we can greatly increase the gold production potential of the Foley
Mine."
Q-Gold has begun the permitting process to de-water and
re-open the Foley Mine to underground exploration during 2007 to confirm
historical reports of existing gold resources/reserves and to establish
new ones.
As reported by the Ontario Geological Survey on page 33
of "Open File Report 6146" (2005), by P.Hinz, C. Ravnaas and A. Raoul, the
Foley Mine, according to "historical reports", is estimated to contain
"proven/probable reserves" of 40,000 tons of ore at a grade of 0.5
ounces/ton, and "speculative reserves" of 400,000 tons, also at 0.5
ounces/ton. None of the above reserve figures are compliant with the
definitions for resources/reserves required by NI 43-101 and remain to be
confirmed by additional diamond drilling, sampling and
assaying.
Q-Gold holds over 27,000 acres (100% owned) of gold and
base metals claims in the Mine Centre area. In addition to the Foley Mine,
the Corporation's holdings also include the past producing Golden Star
Mine (10,758 oz. of gold), and the Manhattan, Decca and Ferguson Gold
Mines. None of these latter three ever reached the production stage, but
will be the object of future exploration efforts by Q-Gold.
Mine
Centre, one of Ontario's first historic Gold Camps (1893-1900), however
remains one of the last Archean Greenstone Belt Gold Camps to be explored
by modern methods. By virtue of its large land position and well-funded
program, Q-Gold is thus instituting the first comprehensive, modern
exploration effort in over 100 years at Mine Centre, with the objective of
reactivating the area as an Ontario gold producer.
Richard C.
Beard, P.Eng., Consulting Geologist, a Qualified Person as defined by NI
43-101, has reviewed and approved the technical disclosure contained in
this press release.
This release may contain forward looking
statements implying an assessment that the resources described can be
produced profitably in the future. These statements are based on current
expectations that involve a number of risks and uncertainties, which could
cause actual results to differ from those anticipated.
The TSX
Venture Exchange does not accept responsibility for the adequacy or
accuracy of this release. |