Evolving Gold Corp Signs Agreement
with Newmont Mining Corporation to Enter Into Exploration Lease and Sublease
December 5, 2007, Vancouver, British Columbia: Evolving Gold Corporation (TSX-V:EVG) (OTCBB: EVOGF)
(FSE:EV7) (the “Company”) is pleased to announce that it has signed
an exploration lease and sublease agreement with Newmont Mining Corporation
(“Newmont”) on certain properties owned or leased by Newmont in
Elko, Eureka and Lander Counties in Nevada (the “Lease and Sublease”).
The Company’s President, Lawrence Dick, Ph.D., P.Geo.,
explains: “Our alliance with Newmont on their Carlin trend properties
provides both parties with a ‘win-win’ situation and adds
credibility to Evolving’s exploration efforts in Nevada. We have a first-rate
geological team and are very excited to initialize drilling on the Newmont
ground.”
Under the terms of the Lease and Sublease, Newmont has leased to
Evolving its interest in certain unpatented mining claims and owned fee
interests and has subleased to Evolving its interest in certain leased lands
and leased unpatented claims, subject to a back-in right. The Lease and
Sublease covers five separate “Project Areas”, identified as
Carlin, Cottonwood Creek, Susie Creek, Boulder
Valley and Sheep Creeks.
In addition, under the Lease and Sublease Evolving is required to
make exploration expenditures within each Project Area in the aggregate amount
of $US 3,500,000 over a period of five years, with 70% of such expenditures in
direct drilling costs and an initial $200,000 expenditure in each Project Area,
with the exception of the Susie Creek Project Area.
Beginning on the sixth anniversary of the Lease and Sublease,
Evolving is required to spend at least $750,000 in exploration expenditures in
each Project Area or pay Newmont a rental of $10 per acre for such Project
Area, escalating at 5% per year.
The Lease and Sublease contains provisions for a 3% to 5% sliding
scale net smelter returns royalty, less any underlying royalties with a minimum
of 2%.
With respect to each Project Area, Newmont has retained an option
to enter into one or more joint ventures with Evolving and earn a 51% interest
in the property by expending 200% of the exploration expenditures made by
Evolving, and an additional 19% interest (for a total undivided interest
of 70%) by expending an additional 150% of the exploration expenditures made by
Evolving.
A brief summary of the exploration lands involved in the
Evolving-Newmont agreement are as follows:
Boulder Valley
The Boulder
Valley project area comprises
approximately 10,700 acres of Newmont held surface and mineral rights and 1,600
acres of Newmont held lode claims on Bureau of Land Management lands covering a
series of low, rolling hills approximately 2 miles west of the Genesis-Blue
Star and Post-Betze mines of the northern Carlin Trend.
Carlin
The Carlin project area comprises approximately 5,300 acres of
Newmont held surface and minerals and 2,200 acres of Newmont held lode claims
on Bureau of Land Management lands lying between the Gold Quarry and Rain mines
of the Carlin Trend.
Cottonwood Creek
The Cottonwood Creek project area comprises 1,800 acres of Newmont
held lode claims on Bureau of Land Management lands lying approximately 3 miles
northeast of the Gold Quarry mine. The property lies on the northeast flank of
the Tuscarora Arch, a north-northwest-trending geologic anticline, directly
opposite the Gold Quarry deposit which is situated on the southwest flank.
Evolving plans to drill several 300-500m holes, testing for a potential “mirror”
of the Gold Quarry deposit.
Sheep Creeks
Approximately 10,500 acres of Newmont held surface and minerals
will be combined with Evolving Gold’s 38,000 acres of staked claims (Battle Mountain
property) to form the Sheep Creeks project area. These lands lie approximately
25 miles north of the town of Battle
Mountain, NV. All of the project area is covered by alluvium and volcanic
rocks, but gravity data suggest basement rocks lie at reasonably shallow depth
under several blocks. Evolving geologists believe these gravity anomalies
may represent “pieces” of the Carlin Trend rocks that have become
disarticulated during Miocene extensional tectonism. If so, they could
represent a large area of un-tested ground. Evolving plans to drill a series of
vertical, 300-500m deep holes in several strategic areas to test this concept.
About Evolving Gold Corp
Evolving Gold Corp is an emerging exploration and development
company focused on building value through the acquisition and exploration of
prospective gold properties, primarily in the southwestern United states, and
in particular, Nevada, New Mexico, and Wyoming. Prior to the Newmont Agreement,
Evolving had acquired, by staking and option from third parties, approximately
70,000 acres of prospective gold exploration lands. Our
objective is to leverage the track record of our experienced and
successful team of geosciences and financial professionals towards the goal of
discovering new precious metals deposits within the gold-rich districts of the
SWUnited States. For more information on Evolving Gold’s exploration
projects and approach please visit www.evolvinggold.com.
In compliance with National Instrument 43-101 (“NI
43-101”), Lawrence A. Dick, Ph.D., P.Geo., is the Qualified Person
responsible for the accuracy of this news release.
On Behalf of the Board of Directors
EVOLVING GOLD CORPORATION
“Lawrence
A. Dick”
Lawrence A. Dick, Ph.D., P.Geo
President and Director
FOR MORE INFORMATION, PLEASE CONTACT:
Evolving Gold Corp.
Robert Bick, CEO
robert@evolvinggold.com
Direct (604) 639-0430
Toll free 1-866-604-3864
www.evolvinggold.com
OR
Renmark Financial Communications Inc
Christopher Wells: cwells@renmarkfinancial.com
James Buchanan: jbuchanan@renmarkfinancial.com
Tel.: (514) 939-3989
Fax: (514) 939-3717
www.renmarkfinancial.com
OR
Excelsior Communications Inc.
Miranda Bradley, Managing Partner
miranda@excelsiorcommunications.com
Direct: (416) 860-2509
www.excelsiorcommunications.com
FORWARD LOOKING STATEMENTS: This document includes forward-looking statements as
well as historical information. Forward-looking statements include, but are not
limited to, the settlement and execution of formal documentation with respect
to the proposed exploration lease and sublease agreement with Newmont, the
continued advancement of Evolving’s general business development,
research development and/or Evolving’s development of mineral exploration
projects. When used in this document, the words “anticipate”,
“believe”, “estimate”, “expect”,
“intent”, “may”, “project”,
“plan”, “should” and similar expressions are intended
to be among the statements that identify forward-looking statements. Although
Evolving Gold Corp. believes that their expectations reflected in these forward
looking statements are reasonable, such statements involve risks and
uncertainties and no assurance can be given that actual results will be
consistent with these forward-looking statement. Important factors that could
cause actual results to differ from these forward-looking statements include
the potential that Evolving’s mineral deposit(s), fluctuations in the
marketplace for the sale of minerals, the inability to implement corporate
strategies, the ability to obtain financing and other risks disclosed in our
annual report on Form 20F filed with the U.S. Securities and Exchange
Commission and filings made with the British Columbia Securities Commission.
The TSX Venture
Exchange does not accept responsibility for the adequacy or accuracy of this
release.
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