FOCUS GOLD CORPORATION (FGLD) SIGNS LOI WITH MINJAY HOLDINGS TO PURCHASE THE WATER-SUNSET GOLD MINE, NEAR WICKENBURG AZ, ON THE EDGE OF THE SANTA MARIA RIVER.
PHOENIX, Aug. 5, 2013 /PRNewswire/ -- FOCUS GOLD CORPORATION (OTCQB: FGLD) IS PROUD TO ANNOUNCE THE PENDING ACQUISITION OF THE WATER-SUNSET GOLD MINE NEAR WICKENBURG AZ WHICH HAS BEEN HOME TO MANY FORTUITOUS GOLD PRODUCERS SINCE THE 1880'S WITH THE FOUNDING OF THE VULTURE MINE BY HENRY WICKENBURG, WHICH BY 1901 WAS THE WORLD'S LARGEST GOLD PRODUCER. ALMOST 100 FORMER AND CURRENT PRODUCERS HAVE "GOLD STRIKES" IN OR NEAR WICKENBURG AZ, THE ONE TIME, GOLD CAPITOL OF AMERICA!
THE WATER SUNSET MINE FOUNDED IN THE 1890'S INVOLVES 46 ACRES OF PATENTED LODE PROPERTY AND APPROXIMATELY 15 NEW LODE MIMING CLAIMS ( IN PROCESS OF FILING) ALONG W/ AMPLE WATER RIGHTS WITH A WELL ON THE "GRANDFATHERED" MINE SITE. THIS MINE HAS BEEN A SMALL PRODUCER OF GOLD SINCE ITS ORIGINAL OPENING IN 1896! IT HAS BEEN IN LIMITED PRODUCTION SEVERAL TIMES SINCE, AS RECENTLY AS 1999! 15 LODE CLAIMS HAVE BEEN STAKED AND ARE SOON TO BE FILED BEHIND THE PATENTED CLAIMS FOLLOWING THE PRINCIPAL VEIN STRUCTURES WHICH WHEN DRILLED IN THE 1980'S ALONG THE STRIKE INDICATED AS MANY AS 24 OZ'S AU BY FIRE ASSAY /TON ON THE VEIN WITH AN OVERALL AVERAGE OF ALMOST 0.25 OZ AU/TON, DETAILED IN A REPORT BY SAWYER CONSULTANTS INC AND OTHERS IN THE 198O'S, IN WHICH THE DRILLED CORE SAMPLES AVERAGED AN INDICATED VALUE, FROM THE 57 CUSTODY SAMPLES, AND FIRE ASSAYED BY BONDAR-CLEGG OF VANCOUVER CANADA, WHICH AVERAGED 0.246 AU. OZ/TON, DRILLED TO A DEPTH OF ONLY 500 FT.
THIS REPORT STRONGLY RECOMMENDED FURTHER DRILLING ALONG THE MULTIPLE UNDERGROUND VEIN STRUCTURES INCLUDING THE CONSTRUCTION OF A PILOT PLANT TO TEST ACTUAL GOLD PRODUCED ON SITE, WHICH CONFIRMED BONDAR-CLEGG'S NUMBERS, RECOVERING OVER 94% OF THEIR ASSAYED AVERAGE!
OVER $3,000,000 DOLLARS WERE SPENT ON THE ENGINEERING AND PILOT PROCESS WHICH YIELDED OVER SEVERAL HUNDRED OZ'S AU. AND WAS READY FOR A SIGNIFICANT CAPITAL INVESTMENT OR A JV WITH A MAJOR MINING CONCERN LIKE "PHELPS-DODGE" WHO OFFERED A CONTRACT MINING PROPOSAL IN 1995. HOWEVER, DUE TO FALLING GOLD PRICES OF UNDER $300/OZ., AND WITH AN ESTIMATED COST PER TON OF $60, IT WAS DECIDED THAT THE ECONOMICS WERE NOT FEASIBLE AT THE TIME!
TODAY, HOWEVER, THIS MINE, ASSUMING A COST OF $100/TON, WOULD BE EXTREMELY PROFITABLE EVEN IF GOLD PRICES TEMPORARILY DROPPED CLOSER TO THE $1000/OZ RANGE. EXTENSIVE RESEARCH AND DEVELOPMENT ON THIS PROPERTY HAS ESTIMATED THAT THE PROPERTY CONTAINS SEVERAL HUNDRED THOUSAND OZ'S AS PER SAWYER'S AND SEVERAL OTHER MINING CONSULTANTS. THIS CONCLUSION IS FURTHER SUPPORTED BY RECENT ON SITE WORK, CONTAINED IN RUDD'S INDEPENDENT 43-101, COMPLETED IN EARLY 2011.
THE TERMS OF THE PURCHASE AGREEMENT CALL FOR A CLOSING PAYMENT OF $75,000 USD, THE ISSUANCE OF 60,000,000 COMMON SHARES, AND THE FURTHER ISSUANCE OF $600,000 OF PREFERRED SHARES TO THE VENDORS. WE ARE PLANNING TO CLOSE THE TRANSACTION, INCLUDING FILING OF THE 15 ADDITIONAL LODE CLAIMS THAT TRACE THE UNDERGROUND VEIN STRUCTURES, TO THE BEST OF OUR KNOWLEDGE AND BELIEF BY AUGUST 31, 2013. THE BOARD OF FGLD IS EXPECTED TO EXPAND BY ADDING VARIOUS MINING PROFESSIONALS IN AZ TO ASSIST FGLD IN ACCOMPLISHING A FEASIBLE UNDERGROUND GOLD MINE BASED ON THE NUMEROUS REPORTS REFERENCED ABOVE.
THE COMPANY PLANS TO COMMENCE NEW DRILLING TO CONFIRM THE VEIN STRUCTURE, ALONG WITH THE RE OPENING OF THE OLD MINE SHAFT IN SEPT THRU DEC, 2013, SUBSEQUENT TO THE AUGUST 30TH CLOSING, AND THEN THE DEVELOPMENT OF A COMPLETE FEASIBILITY STUDY & MVA REPORT, WITH THE GOAL OF ATTRACTING A MAJOR GOLD PRODUCER OR INVESTMENT CO TO JV THIS EXCEPTIONAL GOLD PROPERTY GIVEN TODAYS EXTREMELY FEASIBLE GOLD PRICES.
THANK YOU
GORDON F LEE CEO.
Safe Harbor Statement: Certain statements in this press release that are not historical facts are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements may be identified by the use words such as "anticipate," "believe," "expect," "future," "may," "will," "would," "should," "plan," "projected," "intend," and similar expressions. Such forward-looking statements, involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements to be materially different from those expressed or implied by such forward-looking statements. The Company's future operating results are dependent upon many factors, including but not limited to the Company's ability to: (i) obtain sufficient capital or a strategic business arrangement to fund its expansion plans; (ii) build the management and human resources and infrastructure necessary to support the growth of its business; (iii) competitive factors and developments beyond the Company's control; and (iv) other risk factors discussed in the Company's periodic filings with the Securities and Exchange Commission, which are available for review at www.sec.gov under "Searchfor Company Filings."
CONTACT:
Gordon F. Lee, [email protected]
PO BOX 20238 Wickenburg, Arizona 85358
928-684-2737
SOURCE Focus Gold Corporation
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