Manitou Acquires Patents with Historical Gold showing
September 28, 2011
Sudbury, ON – Manitou Gold Inc. (TSX-V: MTU) (“Manitou”) reports that it has signed an agreement to acquire 3 patented mining claims (the “Merrill Patents”) hosting an underexplored historic gold showing, situated within the Company’s existing West Limb group of claims.
Merrill Patent Exploration Potential
Also known historically as the Swede Boy prospect, the Merrill Patents gold showing was discovered in 1895 and initially operated as a placer gold operation. The gold recovered was believed to originate from a number of proximal gold bearing quartz veins. Several periods of prospecting between 1932 and 1939 led to the discovery of two parallel shear structures (West Shear Zone and East Shear Zone). The West Shear Zone contains four parallel quartz veins contained within a 25 m wide shear, which was traced for 80 m of strike extent. Government geologists who conducted property visits in 1934 obtained assays of 0.16 ounce per ton Au across 3 feet and 4.64 ounces per ton Au from a grab sample. Grab samples collected by the Ontario Geological Survey in 1990 returned assay results ranging from nil to 4.4 g/t Au. (Delisle, P.C. 1990. Property visits by the Dryden Area Mineral Commodity Geologist; Ontario Geological Survey, Open File Report 5731, 155p.) Little information is known regarding East Shear Zone except that it was identified with a number of trenches for a strike length of 335 m. The claims were brought to patent in 1934 and have remained in the Merrill family since that time.
The Company anticipates to be drilling on the Merrill Patents this fall, as part of a broader drill program planned for the contiguous West Limb group of claims. As limited modern exploration has been undertaken on the Merrill Patents over the past few decades, the Company considers the property to be underexplored and to be an excellent target for a modern early stage gold exploration program.
The Company also views this property acquisition as a strategic acquisition, consistent with its stated strategy of acquiring properties located along the Manitou Straights Deformation Zone. The Manitou Straights Deformation Zone is a 30 km long regional structure that consists of a series of parallel geological structures and encompasses the historic Gold Rock Mining Camp. The Company considers the Manitou Straights Deformation zone to be a highly prospective area for gold exploration, as it displays characteristics comparable to major gold camps of the Abitibi subprovince, which indicate the potential to host multiple gold deposits.
The Company can acquire a 100% interest in the Merrill Patents, in exchange for the payment of $125,000 in cash, the issuance of 200,000 common shares of the Company, and the completion of a $250,000 work commitment, all over a three year period.
Upon Manitou Gold earning its 100% interest in the Merrill Patents, 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 in connection with the acquisition of the Merrill Patents 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.
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.
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.