VenCan Gold Acquires High-Grade Atikokan Area Gold Property; Diamond Drilling Planned for Spring 2008
28 November 2007 - 1:12AM
Marketwired
TORONTO, ONTARIO is pleased to announce it has entered into an
option/joint venture agreement with Fern Elizabeth Gold Exploration
Ltd. and Robert C. Moffatt for the Fern Elizabeth and associated
property located in the Atikokan area of Northern Ontario.
This historic gold property contains very high-grade samples of
visible gold (to see these visuals, please visit the Company's
website at www.vencan.com).
The property is located 9 kilometers northwest of the town of
Atikokan, which is
approximately 200 kilometers west of Thunder Bay. The area has a
rich mining and exploration heritage and was a major iron mining
center in Northern Ontario through the mid 1970's
The Fern Elizabeth Property is approximately 11 square
kilometers in size, containing 22 claims and leases with excellent
infrastructure, with both boat and all-weather road access. The
Property also benefits from a very close proximity to The Valerie
Falls Power Generating Plant.
History
The Atikokan area is one of Ontario's earliest gold camps and
was known in the late 1800's as the Upper Seine District, when
prospectors traveling the Seine River found promising gold
showings. Gold was initially found on the Fern Elizabeth Property
in 1900 and two shafts were sunk in 1903. Mining operations
continued until 1914. Various parties have worked the Property
since that time but nothing of major significance was defined.
Initial Exploration of Fern Elizabeth Property Outlines
Perspective Resource and Grade
In 1978, Fern Elizabeth Gold Mining Company optioned the
property. Prospecting in the vicinity of the old shafts uncovered a
pocket of spectacular quartz-vein hosted gold mineralization, which
attracted significant interest in the Property from a number of
major companies. A significant amount of ground work, including
extensive diamond drilling, has taken place through the 1980's
which included a non-compliant resource estimate of 244,000 tonnes
grading 4.81 g/t Au. In the 1990's, the Property once again had
gone through a dormant period with little work of significance
being reported.
The Ontario Geological Survey has recently targeted the Atikokan
area in the same fashion that they did the Abitibi Area a few years
ago. The objective of their work is to promote mineral exploration
in the area. Government work in the immediate vicinity of the Fern
Elizabeth Property has included detailed geological mapping and
extensive soil sampling. It is understood that state-of-the-art
airborne geophysical surveys are also planned for the area.
The Company will be the direct beneficiary of this data, as it
will serve to augment the historical data on the Property with the
current phase of VenCan Gold's exploration program.
Property Potential
Bill Nielsen, P. Geo., Director, a long time associate of Robert
Moffatt, introduced the Property to Vencan Gold, who after further
examination of its potential began initial discussions with Robert
Moffatt to negotiate an agreement to acquire the property.
Commenting on the Property, Bill Nielsen stated, "not only does
the former mine area on the Property hold promise to uncover
significant gold mineralization, but also areas defined by the
Ontario Government's work will provide new and exciting exploration
targets that deserve to be followed up with additional work".
Since the commencement of initial negotiations during the late
summer, VenCan Gold has added several geologically significant
claims to the Property, which brings the total land package to
11.07 km2. Exploration of the Property in the form of extensive
data compilation, prospecting and extensive soil sampling has begun
under the direction of Taiga Consultants Ltd., while prospecting
has been initiated by Karl Bjorkman.
Kirk McKinnon, President and CEO stated, "This property has
historically exhibited great potential for high-grade gold and with
a fresh viewpoint and a focused exploration commitment from VenCan
Gold, it will provide a very significant exploration opportunity
for the Company. This property together with the recently acquired
Abitibi West Property from Don McKinnon of Baltic Resources (see
June 26, 2007 VenCan Gold Press Release for details) gives VenCan
Gold two very promising exploration opportunities.
2008 Exploration Plan
Taiga Consultants are completing the process of quantifying
specific drill targets and a diamond drill program is planned for
the first half of 2008.
Terms of Option/Joint Venture Agreement
Robert Moffatt ("Optionor") will grant VenCan Gold Corp.
("Optionee") the sole and exclusive right to acquire a 75% interest
in the Property in return for a cash payment of $60,665, the
issuance of 3,900,000 shares and 1,950,000 warrants, which enables
the Optionor to purchase common shares of the Company for 24 months
from date of issuance at an exercise price of $0.25 per share. The
joint venture between the parties takes effect immediately upon the
Optionor's receipt of the above payments with VenCan Gold and the
Optionor holding a 75% and 25% participating interest respectively.
The Optionor's 25% interest is a free-carried interest until the
delivery by Vencan Gold of a pre-feasibility study.
All securities issued with respect to this transaction are
subject to a 4-month hold period from date of issuance and the
agreement is also subject to regulatory approval.
Administration
The Board of Directors is pleased to announce the appointment of
Brent Nykoliation as Director of the Company effective November 19,
2007.
Brent brings significant skills and experience to the Company.
With a career that has spanned 15 years in various senior
management roles in Marketing and Business Development (Nestle),
Retail Sales and Merchandising (Home Depot) and Merchandising
Operations (Whirlpool), Brent is well positioned to market the
VenCan Gold and its exploration initiatives.
Bill Nielsen, P.Geo., Director, is the designated qualified
person for the technical information contained in this press
release.
WARNING: The statements made in this news release may contain
forward-looking statements that may involve a number of risks and
uncertainties. Actual events or results could differ materially
from expectations and projections set out herein.
Contacts: VenCan Gold Corporation J. A. Kirk McKinnon President
and Chief Executive Officer (416) 364-7024 (416) 364-2753 (FAX)
VenCan Gold Corporation Richard Schler Vice President & CFO
(416) 364-7024 (416) 364-2753 (FAX) Email: vencan@vencan.com
Website: www.vencan.com
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