WILMINGTON, Del., April 29, 2011 /PRNewswire/ -- Auric Mining Company (OTC: AUMY.PK) (the "Company") is pleased to report that the Company has signed a Letter of Intent (LOI) to acquire Homestead Tonopah Gold LLC, a Nevada Corporation located in Carson City, Nevada. The terms of the agreement will be disclosed upon closing.
Homestead Tonopah Gold owns a 50% interest, by virtue of a joint venture agreement, in a substantial gold bearing property located near Tonopah, Nevada. The property is situated in the Walker Lane domain of the Basin and Range physiographic province. It's surrounded by three well established deposits (each either abutting property or within 2 miles distance). Phelps Dodge performed some work on the property in the early 1990s and found 100,000 ounces of gold, but did not explore it further because it was considered too small by their standards at the time.
In the mid 1990s, the property was explored by various public mining companies and they spent substantial development money exploring its potential. They projected that the property held at least 200,000 ounces of gold, which would be worth approx. $280 million based on today's price of gold. Their drilling program bottomed out in gold. However, they were not able to attract additional funds to drill deeper and subsequently the price of gold declined. The property holds exceptional potential if drilled to depth. There is the possibility that the property could be merged with one of the surrounding properties to create the potential of a 500,000 + ounce ore body.
About Auric Mining Corp.:
(Auric or the Company) is doing business as an investment and management company in mining and natural resources projects. The Company continues to focus its resources on investing in attractive projects with the objective of establishing ongoing cash-flow and provide profitability for its shareholders.
Auric has researched through numerous databases of private and public natural resources companies which have substantial findings already proven. Auric will either purchase, joint venture or invest in these companies. The Company is constantly seeking acquisition opportunities with significant exploration upside in the form of entire companies or packages of assets that provide an undeniable possibility of hosting base and precious metal mineralization. With unparalleled instincts for successful mineral projects, a field-oriented management style and a flat organizational structure, the Company has an ability to concentrate its financial assets, human resources and field efforts to provide timely decisions and a continued focus on the most prospective targets.
The company is currently focused on developing its properties in the Wawa area of the Sault Ste. Marie Mining District in Ontario and its previously explored mineral property in Saskatchewan, known as the "Dolly Gold Showing." In addition to its prolific history for gold mining, Wawa has shown promising signs of concentrated kimberlite indicators, a favorable geological formation for diamond exploration. The company has a number of claims strategically located in this historic mining district. Auric has undertaken significant efforts to assure its shareholders and potential investors that the properties it explores deserve the investment of time, effort and financial commitment necessary to establish successful mineral production in the future. For more information please visit the company's website at www.auricminingcorp.com.
For more information contact:
Auric Mining Company
General Inquiries: 302-336-9736
Investor Relations: 302-269-3859
This news release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995 - forward-looking statements concerning plans, objectives, goals, strategies, future events of performance and underlying assumptions and other statements which are other than statements of historical facts. These statements are subject to uncertainties and risks including, but not limited to, product and services demand and acceptance, changes in technology and in economic, political and regulatory conditions and to all of the risks generally associated with a company at Auric Mining's stage of development. All such forward looking statements, whether written or oral, and whether made by or on behalf of the company, are expressly qualified by these cautionary statements. In addition, the Company disclaims any obligation to update any forward-looking statements to reflect events or circumstances after the date hereof.
SOURCE Auric Mining Company