HY LAKE GOLD AND GOLDCORP’S RED LAKE GOLD MINES SIGN OPTION
AGREEMENT ON THE ROWAN PROPERTY IN RED LAKE, ONTARIO
FOR IMMEDIATE RELEASE, December 13, 2007 – Toronto, Ontario.
Hy Lake Gold Inc. (CNQ: HYLK; FRANKFURT: HYK) (“Hy Lake Gold” and “the Company”) is
pleased to announce that further to its news release of October 3, 2007 it has signed an option agreement with Red Lake Gold Mines, a general partnership of Goldcorp Inc. (TSX: G; NYSE: GG) and Goldcorp Canada Ltd. on the Red Lake Gold Mines’ Rowan Property in Todd Township, Red Lake, Ontario.
Red Lake Gold Mines currently holds a 100% stake in the 117–claim, 2,187 hectare Rowan Lake property which is contiguous with Hy Lake Gold’s Mount Jamie and Golden Tree properties to the west.
Under the terms of the option agreement, Hy Lake Gold can earn a 60% interest in the property, as operator, through exploration expenditures of CAD $2,500,000 over 3 years with a minimum CAD $500,000 commitment in the first year. Red Lake Gold Mines shall have an option back-in right to purchase a 20% interest in the property from Hy Lake Gold for CAD $5,000,000 within 90 days of the exercise of the option by HyLake Gold. If Red Lake Gold Mines exercises the option back-in right, it will thereafter have a 60% joint venture interest and Hy Lake Gold will have a 40% joint venture interest in the Rowan Property. If RedLake Gold Mines does not exercise the option back-in right, Hy Lake Gold will issue and deliver to Goldcorp 1,000,000 common shares of Hy Lake Gold. Furthermore, subsequent to the formation of the joint venture, Goldcorp shall have a joint venture back-in right to purchase an 11% interest in the property
from Hy Lake Gold, within 90 days of the venture expending CAD $5,000,000 on operations, for CAD $7,000,000. If Red Lake Gold Mines exercises the joint venture back-in right, it will thereafter have a 51% joint venture interest and Hy Lake Gold will have a 49% joint venture interest in the Rowan Property.
Hy Lake Gold is also pleased to announce that it has commenced its exploration program on the Rowan Property, including 4,200 metres of diamond drilling. The Company mobilized a drill to the property in early November under the terms of the binding letter of intent as released on October 3, 2007. Drilling is
proceeding well and is testing known gold mineralized zones at depths of up to 550m below surface, substantially deeper than any historic drilling on the property.
The Rowan Property lies on the Pipestone Bay-St. Paul’s Bay Deformation zone hosts the past producing Rowan Lake Gold Mine, adjoins the past producing Mount Jamie Mine (Hy Lake Gold) to the east and surrounds the past producing Red Crest Mine (Claude Resources). The property, which has been explored
only to very shallow depths, is underlain by the same geology and structure as these three past producers and has been subjected to limited underground exploration from a shaft and adit on the property. The property is host to numerous gold occurrences which have seen limited drill testing returning results such
as:
• Hole RWU53370 - 40.79 grams Au per tonne over 3.39 metres
• Hole RW8457 - 14.57 grams Au per tonne over 4.42 metres
• Hole RW8459 - 26.51 grams Au per tonne over 2.51 metres
• Hole RW8460 - 11.02 grams Au per tonne over 4.22 metres
• Hole RW8577 - 39.26 grams Au per tonne over 1.47 metres
Potential exists to expand upon these gold mineralized zones both along strike and at depth.
The Red Lake greenstone belt is host to some of the richest gold deposits in the world. The Red Lake Camp has produced over 23 million ounces of gold, including approximately 18 million ounces from the Goldcorp’s Red Lake Gold Mines deposit (source: MNDM website).
Hy Lake Gold is a junior exploration company focused on the gold exploration and development business in the prolific Red Lake mining district of northwestern Ontario, Canada. Hy Lake Gold has assembled four significant property packages on the west Red Lake Trend totalling approximately 3,000 hectares and intends to explore these properties both along strike and at depth. Hy Lake Gold is committed to
providing growth and shareholder value through gold exploration, development and strategic acquisitions in the Red Lake mining district in northwestern Ontario, Canada. To find out more about Hy Lake Gold Inc. (CNQ: HYLK; FRANKFURT: HYK) visit our website at www.hylake.com.
The content of this release has been carried out under the supervision of Mr. Kenneth Guy, P. Geo., designated Qualified Person for Hy Lake Gold, who has reviewed the press release.
There are 16,685,781 shares of the Company outstanding.
On behalf of the board:
Mr. Robert B. Seitz, President
office @ hylake.com -----------
"Heute geht es uns schlechter als gestern, aber besser als morgen!"
"In Zeiten der universellen Täuschung wird das Aussprechen der Wahrheit zur revolutionären Tat!" (George Orwell) |
Thread abonnieren
