Bravada Gold Corporation (TSX VENTURE: BVA)(FRANKFURT: 6BG) and
Fortune River Resource Corp. (TSX VENTURE: FRX)(FRANKFURT: RG7A)
report that each has acquired an additional project. The Companies
are proposing a friendly merger via amalgamation, which is subject
to appropriate approvals of shareholders and the Supreme Court of
British Columbia, and acceptance by the TSX Venture Exchange. The
single amalgamated company will retain the name Bravada Gold
Corporation and will then control 22 Nevada properties
(approximately 17,000 hectares), located in the Battle
Mountain-Eureka, Walker Lane, Northern Nevada Rift, Austin, and
Kings River Rift gold trends.
Bravada Acquires Option on Quito Property
Bravada has signed a Letter-of-Intent with Yamana Gold
Corporation to acquire an interest in its 3,700ha Quito Carlin-type
gold property, a past-producing open-pit mine. The property is
located on the poorly defined Austin Gold Trend, which includes
Northumberland gold mine and a number of Carlin-type exploration
prospects. The Quito mine was operated by Austin Gold venture, a
joint venture between Inspiration Gold and FMC Gold companies, from
1986 to 1989 and was reported to have produced 174,460 ounces of
gold (Yamana company reports). Published reports of the original
deposit stated an initial reserve of 1,700,000 short tons at an
average grade of 6.34g/t gold. There is a small historic resource
reportedly remaining on the property; however, Bravada has not
independently confirmed either the past production or remaining
resource, and these historic figures should not be relied upon.
Post-mining exploration efforts were directed at discovering
additional shallow, open pit resources; however, historic drill
holes contain numerous intercepts of relatively high-grade gold (+3
to +10g/t) that are below likely levels of open-pit mining that may
be amenable to underground mining. Modern 3D computer modelling
programs allow easier identification of structural and
stratigraphic controls that can then be targeted for drilling. An
existing Plan of Operation will be transferred from Yamana to
Bravada, which will allow drill testing during 2011.
Bravada can earn 70% interest in the property by spending
US$2,500,000 over 5 years. Within 60 days after Bravada earn-in,
Yamana can either: 1) elect to participate at 30%, 2) elect to earn
51% should a deposit of greater than 2 million ounces be discovered
by paying Bravada three times Bravada's exploration expenditures
and funding Bravada's share of capital requirements (repaid out of
80% of Bravada's cash flow), or 3) elect to reduce to a 2% NSR
royalty and receive either 500,000 shares of Bravada stock or
$500,000 cash at Bravada's option. No other royalties exist at the
property. Bravada can elect to terminate the agreement after a firm
commitment of $500,000 within one year of signing a formal Earn-in
Agreement has been spend and certain claim fees have been paid.
Fortune River Acquires Option on Millie Property
Fortune River has acquired from a private vendor an
approximately 350 hectare, low-sulfidation gold/silver property
along the emerging Kings River Rift gold trend. The trend is
defined by a prominent regional magnetic high associated with
several low-sulfidation, high-grade gold deposits, and is parallel
to the more thoroughly prospected Northern Nevada Rift. Deposits
along the Kings River Rift include: Sleeper, Sandman, and
Goldbanks. Quartz veins crop out poorly on a low hill at Millie and
have textures, anomalous gold, and pathfinder elements that are
typical of the upper levels of such gold deposits. Fragmented land
ownership and poor geologic exposures have hindered past efforts to
explore this property; only limited historic drilling appears to
have been conducted.
The agreement provides for an initial payment of US$5000,
payment of claim-filing fees, escalating annual advanced minimum
royalty payments, and an NSR royalty of 2% with option to purchase
1% NSR for $500,000 any time prior to production. There is also a
0.5% NSR royalty to the vendor on any additional land acquired
within a defined area-of-interest.
Status of Amalgamation
It is anticipated that Special meetings of both Companies will
be convened on December 17, 2010 for resolutions of the
shareholders of each Company followed by Court application and
submissions to the TSX Venture Exchange for listing of the shares
of the amalgamated Company.
President Joe Kizis commented, "Quito is an advanced-stage
exploration property with small historic resources at very good
grades that might be expanded and upgraded to 43-101-compliant
status. More importantly, Quito provides an opportunity to discover
a very large Carlin-type gold deposit. Several excellent targets
have already been identified and permitted for drilling, and we
believe others will be identified as we integrate two pallets of
historic data into a 3D computer model for the property. Millie
represents a more speculative opportunity for potentially
high-grade gold and silver along a newly emerging trend of such
deposits; recent results from Sandman being the most exciting news
from the Kings River Rift trend. Both properties were acquired
under attractive terms. Quito could fit closely behind Wind
Mountain as our next pre-development project, if our shareholders
approve the proposed merger, providing the amalgamated company with
a well-balanced portfolio of properties ranging from the
less-speculative development stage to the more-speculative, but
company-building, discovery stage."
About Bravada Gold Corporation
Bravada Gold Corporation (TSX VENTURE: BVA) is a member of the
Manex Resource Group of companies with an exploration office in
Reno, Nevada from which it is exploring its extensive Carlin-type
gold holdings strategically located within the Battle
Mountain/Eureka "Cortez" gold trend in Nevada. Bravo Gold Corp.
(BVG.V) owns 34% of 32,519,218 Bravada common shares currently
outstanding.
About Fortune River Resource Corp.
Fortune River Resource Corp. (TSX VENTURE: FRX) is a member of
the Manex Resource Group of companies with an exploration office in
Reno, Nevada from which it is exploring for high-grade,
low-sulfidation-type gold deposits, primarily in Nevada.
Joseph Anthony Kizis, Jr. (P.Geo.) is the Qualified Person
responsible for reviewing the technical results in this
release.
On behalf of the Board of Directors of Bravada Gold Corporation
and Fortune River Resource Corp.
Joseph A. Kizis, Jr., Director, President, Bravada Gold
Corporation and Fortune River Resource Corp.
This news release may contain forward-looking statements
including but not limited to comments regarding the timing and
content of upcoming work programs, geological interpretations,
receipt of property titles, potential mineral recovery processes,
etc. Forward-looking statements address future events and
conditions and therefore involve inherent risks and uncertainties.
Actual results may differ materially from those currently
anticipated in such statements. These statements are based on a
number of assumptions, including, but not limited to, assumptions
regarding general economic conditions, interest rates, commodity
markets, regulatory and governmental approvals for the company's
projects, and the availability of financing for the company's
development projects on reasonable terms. Factors that could cause
actual results to differ materially from those in forward looking
statements include market prices, exploitation and exploration
successes, the timing and receipt of government and regulatory
approvals, and continued availability of capital and financing and
general economic, market or business conditions. Bravada Gold
Corporation and Fortune River Resource Corp do not assume any
obligation to update or revise its forward-looking statements,
whether as a result of new information, future events or otherwise,
except to the extent required by applicable law.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
Contacts: Bravada Gold Corporation / Fortune River Resource
Corp. Liana Shahinian 604-641-2773 or Toll Free: 1-888-456-1112
liana@mnxltd.com www.bravadagold.com / www.fortuneriver.ca
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