Manitou Gold Acquires New Exploration Target
June 20, 2011
Sudbury, ON – Manitou Gold Inc. (TSX-V: MTU) (“Manitou”) reports that it has signed an agreement to acquire 12 mining claims (the "Mosher Bay Property") in the Boyer Lake Area of northwestern Ontario, adding to the Company's strong portfolio of gold exploration properties in the historical Gold Rock Mining Camp.
The newly acquired Mosher Bay Property is situated along a splay structure related to the Manitou Straits deformation zone. The Company has recognized a number of features within this area that compare favorably with known gold camps in the Abitibi sub-province. Geological features, such as the length of the deformation zone, extensive carbonate alteration, historical gold production, large scale fold structures, as well as the density of historical gold showings, make the Manitou Straits Deformation Zone and related splay structures promising exploration targets.
The Company can acquire a 100% interest in the Mosher Bay Property, in exchange for the payment of $155,000 in cash and the issuance of 200,000 common shares of the Company over a four year period.
Upon Manitou Gold earning its 100% interest in the Mosher Bay Property, the optionors will be entitled to a net smelter royalty (“NSR”) of 2% on production generated on the project. Manitou Gold may purchase 1% of the NSR (resulting in the optionors holding a 1% NSR) by making a cash payment of $1,000,000.
Securities issued pursuant to the Mosher Bay Option Agreement are subject to a four month hold period from the date of issuance and completion of the transaction is subject to approval of the TSX Venture Exchange.
The Mosher Bay Property hosts two historical shafts with limited documented gold production. Modern exploration on the property by previous operators included ground geophysical surveys and limited diamond drilling, which was focused on the shaft areas and associated shear structures. Recent prospecting work identified an altered porphyry intrusion, which has not been previously explored. The Company conducted a site visit and collected several grab samples from the property. Grab samples of altered porphyry returned assay values ranging from nil to 26.2 g/t Au. The altered porphyry represents an attractive exploration target that has received minimal exploration activities.
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. Core 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 the 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.