Viking Gold to acquire gold projects in Uruguay

TORONTO, Nov. 28, 2012 /CNW/ - Viking Gold Exploration (TSX-V:VGC), the 
"Company" or "Viking Gold", is pleased to announce that it has entered into a 
non-binding letter of intent to acquire Trilogy Mining Corporation 
("Trilogy"), a Canadian mining exploration company active in Uruguay. 
Trilogy, through its wholly owned subsidiaries, owns the "Ecovent Projects", a 
property totaling over 30,000 hectares in the Florida Greenstone Belt in 
southwestern Uruguay. Trilogy also holds a 51% interest in an adjacent 
property with the right to increase its ownership to 80% by investing $350,000 
on the property prior to September 30, 2015. This property is identified by 
Trilogy as the "Chamizo Project" and covers an area of approximately 7,000 
hectares. Two other permits, Rincon and El Cuervo, are to be granted by the 
authorities and added to the portfolio of the company. 
The most advanced property of the Ecovent Projects is "Carreta Quemada", a 
large gold mineralized system inferred from stream sediment and soil 
geochemical surveys. Visible gold particles are plentiful in the drainage 
system and the area shows a good structural preparation potential for volume 
deposits. This potential has been confirmed by a single trench over the best 
soil anomaly that showed a stockworking style of mineralization where leached 
surface rock samples returned as high as 1.3 g/t Au. More than 700 soils 
samples were collected and analyzed and other large soil anomalies are ready 
for testing. 
The Chamizo property contains many targets, of which two, Zones 13 and 14 
exhibit potential ore grade gold occurrences demonstrated by limited reverse 
circulation and diamond drilling carried out by previous operators. In 
addition, a new high-grade gold bearing vein set has been discovered at 
At Zone 13, gold mineralization has been identified by RC drilling over a 
strike length of 300 metres with the easternmost hole returning 2.78g/t Au 
over 8 metres starting at surface in a sericite schist with pyrite. The Zone 
14 was drilled for high-grade quartz veins with the best intersection 
returning 9 meters at 4.5 g/t Au. None of this earlier drilling is NI 43-101 
compliant. Esperanza is characterized by three occurrences of a 3 to 4 
metre wide quartz vein recognized over 1,200 metres along an East-West 
magnetic lineament. Chip samples of the three occurrences have returned 25.9 
g/t Au (Esperanza West), 8.7 g/t Au (Esperanza Center) and 33.2g/t Au 
(Esperanza East). 
Initial exploration will focus on expanding the known gold bearing zones 13 
and 14 and to explore Esperanza. Geophysical surveys, MAG and IP, will be 
carried out over the prospective areas and soil geochemical surveys will be 
extended to cover all the drainage anomalies. At this time there are no 
defined resources or proven reserves on these properties 
As part of this acquisition, Viking Gold acquires a team of seasoned 
professionals on the ground in Uruguay led by Chris Clark, a successful 
Geologist that has had many prospecting successes and put mines into 
production. The Company is pleased to announce that Chris Clark will be 
joining its Advisory Board on closing of this transaction. Mr. 
Clark will continue to run the Uruguay operations on behalf of Viking Gold 
after the closing. He spent 15 years with Rio Tinto Group and then worked as a 
consulting geologist for numerous companies until becoming the founder, 
President and CEO of Uruguay Goldfields, (subsequently Uruguay Mineral 
Exploration and now Orosur). 
Viking Gold has agreed to a share-for-share exchange with the shareholders of 
Trilogy and has agreed to issue 15,000,000 shares of Viking Gold in exchange 
for 100% of the shares of Trilogy. The Viking Gold shares will be placed in 
escrow and released in three tranches. The first tranche of 5,000,000 shares 
to be released on closing, the second tranche of 5,000,000 shares to be 
released two months after closing, and the final tranche of 5,000,000 shares 
within ten days of the Trilogy subsidiary receiving a "prospecting permit" for 
the Ecovent Projects. In addition, the Company has agreed to complete a 
private placement of $500,000 within 120 days of closing this transaction. The 
Company has also agreed to replace an existing Cash Guarantee Environmental 
Bond amounting to $50,000 within 12 months from closing. 
The Parties will execute a Definitive Agreement after the completion of the 
necessary due diligence, as outlined in the Agreement. The agreements and 
transactions contemplated herein are subject to the approval of the TSX 
Venture Exchange, and the Company's Board of Directors'. The transaction is 
scheduled to close on January 31, 2013 assuming all conditions in the 
agreement have been satisfied. 
Joe Sandberg, P.Geo., an independent "Qualified Person" as that term is 
defined in NI 43-101, has reviewed and approved the technical disclosures in 
this news release. 
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 press release. 
This press release contains forward-looking statements. All statements, other 
than of historical fact, that address activities, events or developments that 
the Company believes, expects or anticipates will or may occur in the future 
(including, without limitation, statements regarding the estimation of mineral 
resources, exploration results, potential mineralization, potential mineral 
resources and mineral reserves) are forward-looking statements. 
Forward-looking statements are often identifiable by the use of words such as 
"anticipate", "believe", "plan", may", "could", "would", "might" or "will", 
"estimates", "expect", "intend", "budget", "scheduled", "forecasts" and 
similar expressions or variations (including negative variations) of such 
words and phrases. Forward-looking statements are subject to a number of risks 
and uncertainties and other factors that may cause the actual results, 
performance or achievements of the Company to be materially different from any 
future results, performance or achievements expressed or implied by the 
forward-looking statements. Factors that could cause actual results or events 
to differ materially from current expectations include, among other things, 
without limitation, failure to establish estimated mineral resources, the 
possibility that future exploration results will not be consistent with the 
Company's expectations, the price of commodities and other risks identified in 
the Company's documents filed with the Canadian securities regulatory 
authorities on Any forward-looking statement speaks only as of the 
date on which it is made and, except as may be required by applicable 
securities laws, the Company disclaims any intent or obligation to update any 
forward-looking statement. 
please contact Mark Edwards, CEO at (905) 752-2008 or visit the  Company's 
SOURCE: Viking Gold Exploration Inc. 
To view this news release in HTML formatting, please use the following URL: 
CO: Viking Gold Exploration Inc.
ST: Ontario
-0- Nov/28/2012 13:30 GMT
Press spacebar to pause and continue. Press esc to stop.