VHGI Gold LLC Enters LOI to Purchase Burro Creek Gold Leases Near Mayer, AZ with NI 43-101 Indicated and Inferred Resource Estimated at 100,000 oz. Gold and 4.9 Million oz. Silver
FORT WORTH, Texas, Aug. 17, 2011 /PRNewswire/ -- VHGI Holdings, Inc. (OTC Bulletin Board: VHGI.QB) and VHGI Gold, LLC, its wholly-owned operating subsidiary, are extremely excited to announce the execution of a Letter of Intent with Northern Freegold Resources Ltd (TSX.V: NFR / OTCBB: NFRGF) towards the purchase of the almost 2000 acre Burro Creek Gold and Silver lease block.
The Burro Creek Property is located 1 mile off AZ State Highway 93 in Mohave County, Arizona, approximately 60 miles southeast of Kingman, Arizona, just south of the historic trading center of Mayer, AZ. The almost 2000 acre property consists of four patented mineral claims and 100 surrounding located mineral claims, 50 of which were recently staked by Northern Freegold Resources to cover strike extensions of the known vein system.
"We are very excited about the prospect of adding this lease group to our holdings," said VHGI Gold LLC - VP/COO, Mr. Eric Leonetti. Adding, "This area has a long history of exploration and with the all data collected by Northern Freegold now available to us we hope to complete our final due diligence phase in a timely manner with the goal of finalizing our purchase or these leases upon the successful conclusion to our investigations."
Burro Creek Property Highlights
- NI 43-101 resource estimate includes
- An indicated resource of 75,600 contained ounces of gold and 2,757,000 contained ounces of silver (at 0.5 g/t Au Eq cut-off) within 2.8 million tonnes grading 1.01 g/t gold and 36.77 g/t silver
- An inferred resource of 43,200 contained ounces of gold and 2,236,000 contained ounces of silver (at 0.5 g/t Au Eq cut-off) within 2.2 million tonnes grading 0.60 g/t gold and 30.95 g/t silver
Excellent infrastructure with Arizona State Highway 93 and parallel high tension power lines within 1.6 km of deposit; water rights secured on the patented mine property
The vein mineralization is open to NW and SE as well as at depth; only 300 m of vein drilled to date. The vein system outcrops 1.7 km from the drilled area.
Mineral Resource Estimate for Burro Deposit
The National Instrument 43-101 was updated in January of 2011.
The purchase price for the leases and property is estimated to be $4,000,000.00 (U.S.) with $2,000,000.00 to be paid in cash over a twelve month period follow the close on or about November 25, 2011. The remaining $2,000,000.00 will be made up in VHGI Holdings Common stock. The closing is subject to various conditions precedent, including execution of mutually agreeable definitive documentation and due diligence. There can be no assurances that the transactions contemplated by the Letter of Intent will be consummated, or if consummated, what the final terms will be.
About VHGI and VHGI Gold
VHGI is a diverse company with assets and interests focusing on opportunities within the Healthcare Technology Industry and Precious Metals Markets. VHGI Gold, a wholly owned subsidiary of VHGI has recently initiated steps to leverage the company's operating history and corporate resources within the Gold Mining Industry and intends to pursue these opportunities through Lease-Purchase opportunities, Acquisitions and Joint Ventures.
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SOURCE VHGI Holdings, Inc.