FSE : VGN
OTCQX : NVXXF
VANCOUVER, March 2 /PRNewswire/ - Novus Gold Corp. (TSXV: NOV, "Novus") is pleased to announce that it has entered into a letter of intent with Australian-listed EnviroGold Limited (ASX:EVG, "EnviroGold") pursuant to which EnviroGold will have the option to invest up to US$10 million to acquire up to a 50% interest in Novus's Dominican Republic subsidiary (the "Dominican Corporation") that holds its La Paciencia and La Yugua Properties. The transaction is subject to entering into of a formal joint venture shareholders' agreement between the parties, as well as regulatory approval. The funds will be invested directly into the Dominican Corporation and used for the exploration of the Properties over the next three years under the operatorship of Novus. If EnviroGold exercises its full option and acquires a 50% interest in the Dominican Corporation, it will have the right to purchase an additional 10% interest in the Dominican Corporation from Novus for US$5 million for a one year period. If EnviroGold does not exercise this option, Novus will have a similar option back.
EnviroGold operates the Las Lagunas Gold Tailings Project adjacent to the Pueblo Viejo mine site in the Dominican Republic, and has the right to reprocess historic tailings from the mine under a profit sharing agreement with the Government. It is constructing an Albion/CIL Plant for this purpose and has reported that it will reprocess 5.137 Mt of refractory tailings from the Pueblo Viejo mine grading 3.8 g/t gold and 38.6 g/t silver (JORC Resource of 621,000 oz of gold and 6,400,000 oz of silver) with an estimated production cost of US$313/oz gold. Envirogold has arranged equity and debt financing in the amount of US$81,000,000 for the project. The estimated Project life is seven years from the start of production late this year. The Letter of Intent contains provisions pursuant to which the Dominican Corporation will have the right to buy the Plant and related facilities, after completion of the Project, for a value to be negotiated.
The La Paciencia property (8,600 hectares) is located 10 kilometres west of the Pueblo Viejo gold deposit and is underlain by the same geology. The La Yagua property (9,900 hectares) is located 20 kilometres southwest of La Paciencia. Both concessions are approximately one hour northwest of the Dominican Republic's capital city, Santo Domingo.
The La Paciencia Property
The La Paciencia property is underlain by the same geology as the Pueblo Viejo gold deposit and its topographic expression is a large hill, the same as Pueblo Viejo. It is speculated that a higher silicic content in the local rocks is responsible for both hills. Work to date has discovered elevated gold values in soils along structural lineaments on the property.
The La Yagua Property
The La Yagua property adjoins the GlobeStar Mining Corp. property hosting the Cerro de Maimon copper-gold-silver mine. Perilya Ltd. has acquired GlobeStar for $184-million.
Exploration work to date has outlined five new high-priority gold-copper targets on the property. The most significant target is defined by high gold values in stream sediment samples along the Osama River. This target is six kilometres long and is open for expansion. The Osama River is the surface expression of a major lineament.
Work carried out in 2009 on La Yagua property (as reported in Stockwatch press releases dated Aug. 12, 2009, and Oct. 8, 2009) outlined a north-south-trending, one-kilometre-long structure represented by gossans containing copper-gold-silver mineralization. Grab sample values, from oxidized material, ranged as high as 21.33 per cent copper, 13 grams per tonne gold and 173 g/t silver. More than 50 per cent of the samples collected graded more than 1 per cent copper. Two similar parallel mineralized structures were partially exposed. Grab samples from these structures returned values of up to 2.95 per cent copper, 8.4 g/t gold and 17 g/t silver.
Mining in the Dominican Republic
The Dominican Republic is a stable Caribbean country that occupies the eastern two-thirds of the island of Hispaniola, with Haiti occupying the remaining one-third. The largest mining development in the country is the Pueblo Viejo deposit, which is being put into production by Barrick and Goldcorp (60 and 40 per cent, respectively). The project hosts a reserve of 23.7 million ounces of gold, 130 million ounces of silver and 500 million pounds of copper to be mined over a 25-year mine life. The mine is expected to produce one million ounces of gold per year for the first five years.
Mike Magrum, PEng, a qualified person under National Instrument 43-101, has approved the technical content of this news release.
On behalf of the board of directors of
NOVUS GOLD CORP.
Mike Magrum, President
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This News Release contains forward-looking statements. Forward-looking statements are statements which relate to future events. In some cases, you can identify forward-looking statements by terminology such as "may", "should", "expects", "plans", "anticipates", "believes", "estimates", "predicts", "potential" or "continue" or the negative of these terms or other comparable terminology. These statements are only predictions and involve known and unknown risks, uncertainties and other factors that may cause our or our industry's actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements.
While these forward-looking statements, and any assumptions upon which they are based, are made in good faith and reflect our current judgment regarding the direction of our business, actual results will almost always vary, sometimes materially, from any estimates, predictions, projections, assumptions or other future performance suggested herein. Except as required by applicable law, the Company does not intend to update any of the forward-looking statements to conform these statements to actual results.
visit the company's website at www.novusgold.com or contact Ryan Johnson, Investor Relations, at 1-604-688-0335.
SOURCE Novus Gold Corp.