Manitou Gold Adds Exploration Properties; Provides Exploration Update
June 2, 2011
Sudbury, ON – Manitou Gold Inc. (TSX-V: MTU) (“Manitou”) reports the acquisition of two new exploration properties in the Upper and Lower Manitou Lakes Area of northwestern Ontario. The two properties total 200 claim units (3,200 hectares) that cover 12 km of strike extent along the Manitou Straits Deformation Zone. With these acquisitions, the Company has further increased its dominant land position within the historical Goldrock Mining camp.
The West Limb Property consists of 12 optioned claims (127 claim units). Pursuant to the West Limb Option Agreement, the Company can acquire a 100% interest in the property, in exchange for the payment of $190,000 in cash and the issuance of 400,000 common shares of the Company over a three year period.
Upon Manitou Gold earning its 100% interest in the West Limb Property, the optionor will be entitled to a net smelter royalty (“NSR”) of 2% on production generated on the project. Manitou Gold may at any time purchase 1% of the NSR from the optionor (resulting in the optionor holding a 1% NSR) by making a cash payment of $1,000,000.
The Harper Lake Property consists of 7 claims (73 claim units) in which the Company is acquiring an immediate 100% interest. Under the terms of the Harper Lake Acquisition Agreement, Manitou Gold will acquire the outright 100% interest in the Harper Lake Project in exchange for the payment of $25,000 in cash and the issuance of 50,000 common shares of the Company, both due on closing. The acquisition of the Harper Lake Property is expected to close within two business days of the receipt of conditional approval of the TSX Venture Exchange.
Securities issued pursuant to both the West Limb Option Agreement and the Harper Lake Acquisition Agreement are subject to a four month hold period from the date of issuance. Completion of both transactions is subject to approval of the TSX Venture Exchange.
Exploration History of the New Projects
West Limb Property
The West Limb Property consists of several historical mines, occurrences and gold showings located on the west limb of the Manitou Anticline, within the Lower Manitou Lake Area.
The Gold Rock Mine (1896 and 1920) was sunk to a depth of 51 metres, and produced 35 ounces of gold from 300 tones of ore. A number of parallel trending quartz veins and shear zones were identified at the time of the mining operation. Only minor exploration programs have been sporadically completed on the historical Gold Rock Mine, with grab samples results returning nil to 22.9 g/t Au.
The Dryden Red Lake Occurrence (1934) consists of a number of exploration pits along a carbonatized shear zone approximately 5 m wide. The Ontario Geological Survey sampled the showings with grab samples returning assay values ranging from nil to 22.5 g/t Au from quartz veins and 1.8 g/t Au from the surrounding schist (Delisle, P.C. 1990 OGS Report 5731). Limited prospecting returned nil to 55.7 g/t Au.
The Reliance Mine consists of three shafts (1899), with the #3 shaft sunk down to 25 metres and the #2 shaft sunk the deepest to a depth of 32 metres. The shafts and a series of pits followed a shear zone for over 240 metres. A small prospecting program over this area in 2006 returned grab samples ranging from nil to 35 g/t Au. Very little modern exploration work has been completed on the old shaft areas.
Harper Lake Claims
The Harper Lake Property consists of a number of historical gold showings located along the Manitou Straits Deformation Zone. One gold showing returned 13.0 g/t Au over 0.5m. Geological descriptions indicate widespread carbonate alteration and silicification, typical of the large scale structures within the Manitou Lakes Area.
In acquiring the Harper Lake Claims, the Company has secured a substantial land package with a large number of quality gold showings along a large underexplored regional scale structure.
Regional Exploration Update
Diamond drilling on the Higbee Project has been completed, with seven holes totaling 798 m completed on a series of gold bearing structures. The S500 showing and the Barton showing are located 2.5 km apart along a structural trend. Grab samples ranging from to nil to 266 g/t Au were returned from the initial prospecting program complete by the Company in 2009. All seven holes intersected variable widths of shearing, quartz veining with traces of sulphide mineralization. The sampled drill core has been split and delivered to the lab for analysis, with results expected in 3-4 weeks.
Drilling has now commenced on the Kenwest project. The program will focus on previously identified areas of high grade gold mineralization to determine the geometry of discrete shoots of gold mineralization. Drill hole spacing is intended to provide broad definition and down plunge continuity of these shoots. In addition, a contractor has been engaged to complete a detailed ground geophysical survey over the high grade gold intersection of 53.7 kg/t Au (see press release Feb 28, 2011). The survey may provide significant insight into the continuity and orientation of the conductive nature of the gold mineralization intersected in hole KW-11-26.
Preparations for the drilling program on the Gaffney Extension Project are underway. Barges for the drill program have been contracted, with modifications to the barge equipment expected to be competed early next week. A driller with extensive barge drilling experience has been contracted for the program. The drilling program is planned to commence within the next two weeks
Line cutting is currently underway on the Sherridon project as part of an overall expansion of the exploration area. Multiple visible gold intersections in the past two phases of diamond drilling suggest the potential of a proximal larger gold bearing system. The extension of the line cutting, with plans for follow-up ground geophysical surveys, will produce additional targets for future exploration and diamond drilling.
For further information on Manitou Gold Inc. contact:
Manitou Gold Inc.
Director, Corporate Communications
Manitou Gold Inc.
The Qualified Person responsible for the technical content of this news release is Todd Keast, P. Geo., President of Manitou Gold Inc. Mr. Keast has verified all of the technical data contained in this release.
The Company has implemented a quality control program to ensure best practice in sampling and analysis. Assayed samples are transported in security sealed bags for preparation and analysis at ALS Chemex facilities. ALS Chemex is an ISO 9001-2000 and ISO 17025 registered laboratory. Ccre samples were analyzed for gold by 30-gm fire assay with AA finish and by gravimetric methods. Samples with visible gold are assayed by screened total metallics Statements in this release that are forward-looking statements are subject to various risks and uncertainties, certain of which are beyond the control of the Company including, but not limited to, the impact of general economic conditions, industry conditions, volatility of commodity prices, risks associated with the uncertainty of exploration results and estimates and that the resource potential will be achieved on exploration projects, currency fluctuations, dependence upon regulatory approvals, the uncertainty of obtaining additional financing and exploration risk. Readers should also refer to the specific factors disclosed under the heading "Risk Factors" in the Company's filings with Canadian securities regulators. Such information contained herein represents management's best judgment as of the date hereof based on information currently available. The Company does not assume any obligation to update any forward-looking statements, save and except as may be required by applicable securities laws.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.