Definitive Option Agreement for the Development of the Bellechase – Timmins Gold Deposit Signed and Its Filling was Accept...
April 15 2014 - 9:33AM
Access Wire
MONTREAL, QUEBEC / ACCESSWIRE / April 15, 2014 Uragold Bay
Resources Inc. ("Uragold") (TSX Venture: UBR), is pleased to
announce that it has signed a definitive option agreement with
Golden Hope Mines ("GNH") concerning the advancement of the
Bellechasse-Timmins (BT) Gold Deposit into a producing mine.
The signature of this agreement combined with the TSX Venture
Exchange approval of the filling of the definitive 50% option and
joint-venture agreement for GNH's BT property now render the
transaction binding upon the parties, as previously stated in our
February 24 press release.
In August 2012, GNH published an uncapped resource estimate of
an indicated resource of 313,900 ounces gold (2.9 million tonnes
grading 3.36 g/t Au) and an inferred resource of 102,000 ounces
gold (2.17 million tonnes grading 1.46 g/t Au) using a cut-off
grade of 0.60 g/t. Furthermore, GNH's many bulk-sampling campaigns
revealed extensive areas of surface mineralization averaging
approximately 3 g/t Au. Notable were sampled areas averaging up to
10 g/t Au (Trench 09A).
The Beauce Placer property and the Golden Hope Mines'
Bellechasse-Timmins (BT) Gold Deposit (which are both 'nuggety'
type deposits) are located within Magog Group sediments. It should
be noted that the Beauce gold project has a thick till in contrast
to the Bellechasse-Timmins (BT) Gold Deposit where most of the till
has been eroded away and exposed the outcrops. This suggests that
both the Beauce and the Bellechasse/ Timmins deposits are
genetically related - the Beauce being a placer deposit derived
from an unknown Bellechasse/ Timmins type deposit.
With its Beauce Placer project, Uragold intends to develop a
small-scale (600 MT/day) surface gold mining operation on the B-T
property. Developing in parallel the B-T property and the Beauce
Placer property will benefit both companies by providing greater
geological and operational synergies such as cost savings.
Under the terms of the Option Agreement, Uragold will be
responsible for obtaining all required permits, approvals, and
documentation associated with going into production, in return for
a 30% interest in the property. Uragold will then have 120 days to
obtain project financing, which, if successful, will earn it a
further 20% interest, giving Uragold a 50% interest in the B-T
deposit. The companies will then form a Joint Venture (JV) for the
operation of the mine, with Uragold serving as operator. GNH will
have a carried interest into production, and will receive a 50% Net
Proceeds Royalty ("NPR") on the gold produced. (A feasibility study
has not been completed and there is no certainty the proposed
operation will be economically viable.)
Please refer to our February 24 press release for all the
salient point of the agreement.
Mr. Vivian Stuart-Williams, SACNASPS, working under Special
Authorization #290 of the Quebec Order of Geologist, is a Qualified
Person as defined by National Instrument 43-101 that supervised the
preparation of the information in this news release.
Patrick Levasseur Uragold President and COO remarks: "We are
extremely pleased that this millstones is now completed and we are
eager to start our work on the project. One of our first tasks will
be assembling the technical team and start the work required to
enhance the project gold reserves and work towards developing,
along with the Beauce Placer project, of two gold mines in the
Beauce region of Quebec."
Frank Candido, CEO and President of GNH, remarked, "We are very
pleased with the signature of the Definitive Option Agreement and
its approval by the TSX Venture. This milestone reached by two
companies with an equally vested interest in gold exploration in
Southeastern Quebec will allow a move towards production for our BT
project. We believe that the nature of the gold deposit, the
location of the property, the support from the municipality of
Saint-Magloire, Quebec and the local infrastructure all make for an
excellent opportunity to bring profitable gold production back to
Southeastern Quebec. Our excellent relationship with the UBR
Management has always been cordial and we have always looked to
work together to advance our common interests.
About Uragold Bay Resources Inc.
Uragold Bay Resources is a junior exploration company trading on
the TSX Venture under the symbol UBR. Uragold holds gold properties
in Southern Quebec's Appalachian belt. Uragold's business model is
focused on the development of small-scale gold exploration projects
into mines in order to generate free cash flow to internally
finance growth and blues sky exploration.
Uragold aims to become one of the rare cash flow generating
mining S.M.E.'s in the next 12 - 18 months by developing Quebec's
first placer mine in 50 years, the Beauce Placer Project and by
developing, in partnership with Golden Hope Mines, the
Bellechasse-Timmins Gold Deposit.
Neither the 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.
For further information contact
Bernard J. Tourillon, Chairman and CEO
Patrick Levasseur, President and COO
Tel: (514) 846-3271
www.uragold.com
SOURCE: Uragold Bay Resources Inc.