October 19, 2011
Metalcorp Signs Option Agreement With Sage Gold To Acquire 70% Stake In Solomon's Pillars Gold Property, Beardmore, Ontario
THUNDER BAY, ONTARIO, CANADA (October 19, 2011) - MetalCorp Limited (“MetalCorp”) (TSXV – MTC) and Sage Gold Inc. (TSXV- SGX) are pleased to announce that they have signed an option agreement giving MetalCorp the right and option to acquire a 70% interest in the Solomon’s Pillars property near Beardmore, Ontario.
Under the terms of the agreement, MetalCorp can acquire 70% of the property over the next 3 years by paying $145,000 in cash, $145,000 worth of stock and incurring exploration expenditures totaling $1,750,000. Parts of the property are subject to existing royalties – 1% on 4 leases and 3% for precious metals on 18 leases (which can be reduced to 2% on payment of $1,500,000) requiring advance royalties of $25,000 per year.
The Solomon’s Pillars property is comprised of 22 leased claims and 4 staked claims located within the central metasedimentary package of the Beardmore - Geraldton Greenstone Belt. Over 4 million ounces of gold were produced from this sedimentary package which hosted the Leitch Mine near Beardmore (one of the richest gold producers in Canada having produced 861,982 ounces of gold at an average grade of 0.92 ounces per ton), and the MacLeod-Cockshutt mine (1,457,728 oz gold at 0.14 ounces per ton).
Historical work on the property has yielded gold grades from channel samples up to 351.58 g/t over 1.28 meters, and from drill core up to 25 g/t over 1 meter, with wide intercepts of up to 8.5 g/t over 6.92 meters. Work to date indicates an overall trend length of 560 meters, and the trend is open in all directions. As part of the work done on the property, a shaft was sunk to 300 feet (91.4 m) and more than 200 drill holes have been completed to date.
Based upon results of their drilling campaign of 1974/75, the Canadian Nickel Company estimated a resource of 100,000 tons at 0.25 oz/ton gold (90,718 tonnes at 8.6 grams/tonne gold) in the area of the shaft. (As a qualified person (as that term is defined in National Instrument 43-101) has not done sufficient work to classify the historical estimate as current mineral resources, MetalCorp is not treating the historical estimate as current mineral resources and the historical estimate should not be relied upon.)
"Based on the recent success of companies active in the Beardmore-Geraldton camp, it is clear that this is an area of considerable merit that deserves greater exploration attention. We believe that this is Ontario's most underdeveloped gold belt and look forward to being part of the developing story and to moving this project forward as soon as possible," says Chris Dougherty, President of MetalCorp.
Nigel Lees, President and CEO of Sage Gold Inc. stated- "We are pleased to option the Solomon Pillars properties. While Sage's primary focus is the Clavos Property in Timmins where the Company' is completing a new 43-101 and economic study in preparation for a production decision, Sage has an extensive portfolio of properties in the Beardmore-Geraldton mining camp including Lynx, a high grade polymetallic deposit with compliant resources and several other highly prospective previous metal properties"
MetalCorp will be establishing an information tab on the Solomon Pillars project at its website at www.metalcorp.ca., where maps of the area, significant results of historical drilling and surface sampling, and pictures from a recent site visit will be presented.
Sage is a mineral exploration and development company which has primary interests in near –term production and exploration properties in Ontario. Its main properties are the Clavos Gold mine in Timmins and the Lynx deposit and other exploration properties in the Beardmore-Geraldton Gold Camp. Technical reports and information relating to the properties can be obtained from the System for Electronic Document Analysis and Retrieval (SEDAR) website at www.sedar.com and www.sagegoldinc.com.
For further information, please contact:
Chris Dougherty, P.Eng., President
Phone: (807) 683-1731
Sage Gold Inc.
Nigel Lees, President and C.E.O., or
Mike O'Brien, Communications Manager/Investor Relations
Phone: 416-204-3170 Fax: 416-260-2243
Except for statements of historical fact contained herein, information in this press release may constitute "forward-looking information" within the meaning of Canadian securities laws. Other than statements of historical fact, all statements that involve various known and unknown risks, uncertainties and other factors are "forward-looking statements". There can be no assurance that such statements will prove accurate. Results and future events could differ materially from those anticipated in such statements. Readers of this news release are cautioned not to place undue reliance on these "forward-looking statements". Except as otherwise required by applicable securities statutes or regulation, the Company expressly disclaims any intention or obligation to update publicly any forward-looking information, whether as a result of new information, future events or otherwise. Historical data mentioned in this press release have not been verified. A qualified person has not done sufficient work on the historical resource estimates to classify them as current resources; MetalCorp is not treating the historical resource estimates as current resources and the historical estimate should not be relied upon.
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, accuracy or contents of this news release.
© 2017 MetalCorp Inc.