Entourage Metals Options the Northern Arm Gold Property to Canada Gold
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 01/30/13 -- Entourage
Metals Ltd. (TSX VENTURE:EMT) (the "Company" or "Entourage") is
pleased to announce that Canada Gold Corp. (TSX VENTURE:CI) has
signed a binding Letter of Intent for an option to acquire up to a
75% interest in the Northern Arm Gold Property from Entourage,
subject to the satisfaction of certain conditions including receipt
by Canada Gold of approval from the TSX Venture Exchange.
Through acquisitions and option agreements, Entourage recently
consolidated the 155 square kilometer Northern Arm Gold Property,
which was previously staked and owned by various other entities and
groups. The Property straddles a 40km long trend that has yet to be
systematically explored in the Hemlo Greenstone Belt in northwestern
Ontario. The Northern Arm Gold Property is approximately 10
kilometers north of Barrick Gold Corporation's Hemlo deposit, and is
accessible from Route 614, which bisects the Property and connects to
the Trans-Canada Highway and provides easy cost-effective access to
The Hemlo gold deposit has produced over 20.3 million ounces of gold
to date (Ministry of Northern Development and Mines report 6182 and
6246). Compared to other greenstone belts, the Hemlo belt area has
remained relatively underexplored. Gold was first discovered in the
Hemlo area in 1981, leading to a staking rush and exploration work in
the early 1980s. Current producing mines include Barrick's David
Bell, Golden Giant, and the Williams Mine defining a large 2.5 km
continuous body of gold mineralization.
Canada Gold will have a first option to earn a 65% interest in the
Northern Arm Gold Property by funding total exploration expenditures
totaling $2,500,000 in stages on or before December 31, 2016, with
$300,000 required to be funded on or before December 31, 2013. In
addition, Canada Gold must make cash and share payments to Entourage,
totaling $240,000 and 1,250,000 common shares, to exercise the first
option. Canada Gold can exercise a second option earn an additional
10% interest, allowing Canada Gold to reach a 75% interest in the
Property, by spending an additional $1,000,000 in work on the
property, completing on or before Dece
mber 31, 2017 a National
Instrument 43-101 compliant resource estimate and paying and issuing
to Entourage an additional $75,000 and 500,000 common shares.
In addition, should Canada Gold at any time file a National
Instrument 43-101 compliant resource estimate indicating 1,000,000
million ounces of gold or greater, Canada Gold will make a one-time
payment to Entourage of 1,000,000 common shares.
Entourage will be the operator of the Property during the currency of
the first and second options.
Entourage and Canada Gold are planning an aggressive systematic
exploration program for 2013. Scheduled to start as soon as possible,
the program is expected to include additional geological mapping,
ground induced polarization (IP) surveys, further rock & soil
sampling, mechanical trenching, and drilling.
A finder's fee will be payable in cash and common shares to a finder
that is at arms-length to Entourage Metals and Canada Gold, subject
to acceptance of the TSX Venture Exchange.
Mr. John C. Florek, P.Geo, Vice-President Exploration for Entourage
and a Qualified Person as defined by NI 43-101, prepared and approved
the technical information contained in this release.
ON BEHALF OF THE BOARD OF DIRECTORS
Jeff Sundar, President and Director
Certain disclosure in this release, including statements regarding
the Letter of Intent and the Northern Arm Gold Property, constitute
forward-looking information or statements (collectively,
"forward-looking statements") for the purpose of applicable
securities laws. In making the forward-looking statements, the
Company has applied certain factors and assumptions that are based on
the Company's current beliefs as well as assumptions made by and
information currently available to the Company, including that the
conditions to the Letter of Intent will be satisfied, that any
government or other regulatory approvals required to complete the
Company's planned exploration activities will be obtained, that the
Company is able to procure personnel, equipment and supplies required
for its exploration and development activities in sufficient
quantities and on a timely basis and that actual results of
exploration activities are consistent with management's expectations.
Although the Company considers these assumptions to be reasonable
based on information currently available to it, they may prove to be
incorrect, and the forward-looking statements in this release are
subject to numerous risks, uncertainties and other factors that may
cause future results to differ materially from those expressed or
implied in such forward-looking statements. Such risk factors
include, among others, that the conditions to the Letter of Intent
will not be satisfied, that the Company will be unable to obtain
required regulatory approvals on a timely basis or at all, that
actual results of the Company's exploration activities will be
different than those expected by management and that the Company will
be unable to obtain or will experience delays in obtaining any
required government approvals or be unable to procure required
equipment and supplies in sufficient quantities and on a timely
basis. Readers are cautioned not to place undue reliance on
forward-looking statements. The Company does not intend, and
expressly disclaims any intention or obligation to, update or revise
any forward-looking statements whether as a result of new
information, future events or otherwise, except as required by law.
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.
Entourage Metals Ltd.
Manager, Investor Relations
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