Manitou Gold Adds Further Exploration Properties
February 8, 2012
Sudbury, ON – Manitou Gold Inc. (TSX-V: MTU) (“Manitou”) reports that it has signed an agreement to acquire 20 mining claims (the “Sunshine Lake Claims”) located within the Kenora Mining Division of North Western Ontario. The Sunshine Lake Claims are positioned south of the Company’s Canamerica and Kenwest Projects, along the Manitou Straights Deformation Zone. In addition, the Company has also signed an agreement to purchase a 100% interest in two non-contiguous claims (the “Aaronson Creek Claims”) that are located within the outer property boundary of the Company’s Gaffney Extension claims.
Sunshine Lake Exploration Potential
The Sunshine Lake Property partially surrounds the Company’s existing Mosher Bay Property. Both projects are situated along splay structure emanating from the Manitou Straits Deformation zone. The property covers a number of prospective geophysical anomalies which trend onto the Company’s adjacent Mosher Bay Property. Prior mechanical trenching and prospecting conducted by the Company on the Mosher Bay Property identified highly altered porphyry bodies with grab and channel samples assay values ranging from nil to 26.2 g/t Au (see press release dated June 20, 2011). The altered porphyry represents an attractive exploration target that has received minimal exploration activities.
Sunshine Lake Agreement Details
The Company can acquire a 100% interest in the Sunshine Lake Claims, in exchange for the payment of $105,000 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 Sunshine Lake Claims, 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.
Aaronson Creek Claims
The Aaronson Creek claims represent a strategic acquisition to the Company, as their acquisition eliminated two gaps in ownership within the outer property boundary on the Gaffney Extension Property.
Under the terms of the Aaronson Creek Agreement, Manitou Gold will acquire the outright 100% interest in the Aaronson Creek Claims in exchange for the payment of $10,000 in cash and the issuance of 25,000 common shares of the Company, both due on closing. The vendors of the Aaronson Greek claims will be entitled to an NSR of 2% on production generated on the claims. 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. The acquisition of the Aaronson Creek claims is expected to close within two business days of the receipt of conditional approval of the TSX Venture Exchange.
Completion of both the Aaronson Creek Claims and Sunshine Lake Claims acquisitions are subject to approval of the TSX Venture Exchange and any securities issued in connection either acquisition are subject to a four month hold period from the date of issuance.
West Limb Results
The Company also reports having recently received assay results from the fall/winter 2011 drill program at the West Limb project. Diamond drilling on the West Limb project consisted of 8 holes totaling 1009 metres and was designed to evaluate a number of historical showings and mine structures. Significant gold values were not identified during this program. West Limb drilling was limited to historical showings and did not focus on the shear structures along strike to the Merrill patents.
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 supervised the preparation of, and 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. Potential quantity and grades are conceptual in nature. There has been insufficient exploration to define a mineral resource on any of the Company’s properties to date and it is uncertain if further exploration will result in any targets being delineated as a resource.
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.