VANCOUVER, British Columbia,
Aug. 31, 2011 /PRNewswire/ --
Lori McClenahan, President and Chief
Executive Officer, St. Elias Mines Ltd. (SLI - TSX:V) and IntiGold
Mines Ltd. (IGD – TSX:V), announces today that St. Elias has
entered into an option agreement with IntiGold Mines Ltd.
("IntiGold") whereby IntiGold can earn a 60% interest in the Chance
E mineral concession (the "Chance E Claim") which adjoins St.
Elias' wholly-owned Tesoro Gold Project located in southwestern
Peru.
Chance E Claim
The Chance E Claim is a strategic claim that adjoins the
southern end of the Tesoro Gold Project where St. Elias is
currently drilling to delineate gold resources. The Tesoro
Gold Project has demonstrated the potential for a "world class"
gold discovery. Geological information, together with Titan
24 geophysical data and satellite imagery, confirms that structural
lineaments which are coincident with gold mineralization on Tesoro
Project extend onto the Chance E Claim.
The initial exploration program on the Chance E Claim will
consist of, but is not limited to, the interpretation of satellite
imagery acquired to exact specifications and geological mapping and
sampling. The program is scheduled to commence
immediately.
Option Agreement
Under the terms of the option agreement, IntiGold can acquire a
60% interest in the Chance E Claim (subject to a 1.5% NSR) in
consideration of making cash payments of $500,000 to St. Elias, issuing 1,000,000 common
shares in the capital of IntiGold to St. Elias and incurring
$1,000,000 in exploration
expenditures on the property over a three-year period.
IntiGold's first year commitment under the option agreement is
to pay $25,000 to St. Elias and incur
$200,000 in exploration expenditures
on the property.
"St. Elias continues to negotiate a variety of property deals
that we are confident will create additional value for
shareholders. The optioning of the Chance E Claim not only
allows another company to fund initial exploration but will also
provide valuable geological information regarding the Tesoro Gold
Project area," states Lori
McClenahan, President and Chief Executive Officer.
"The aggressive drill programs at Tesoro for 2011 are aimed
at revealing the discovery premiums that we feel are hidden in our
substantial portfolio of quality gold properties."
For additional information on St. Elias and IntiGold, please
visit us at www.steliasmines.com and www.intigold.com
or call 1-888-895-5522 (toll free US and Canada).
European
Consultant
|
U.S. Investor Relations
Consultant
|
|
Michael Kott
|
Herbert Haft
|
|
CM-Equity AG & Co. KG
Financial Service
|
The Haft Group, Inc.
|
|
Tel: 011 4989 1890 474
0
|
Tel: (212)
759-8865
|
|
Email:
kott@cm-equity.de
|
Email: herbhaft@haftgroupinc.com
|
|
|
herbhaft@aol.com
|
|
|
|
ST. ELIAS MINES LTD.
(signed "Lori
McClenahan")
Lori McClenahan,
President
The TSX Venture Exchange has not reviewed and does not
accept responsibility for the adequacy or the accuracy of the
contents of this document.
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,
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
statement.
SOURCE St. Elias Mines Ltd.