NSGold concludes agreement for the Silver Hill property located on
the Getchell Trend, Nevada
BEDFORD, NS,
Jan. 10, 2013 /CNW/ - NSGold
Corporation (TSXV: NSX) is pleased to announce that it has
signed a Mining Lease and Option to Purchase Agreement
("Agreement") with Cerro Rico Ventures LLC in respect of the Silver
Hill property located in Humboldt County,
Nevada.
The Silver Hill property is located on the
Getchell Trend, a major Nevada
linear structure that has provided structural preparation for the
introduction of gold and silver mineralization related to
Cretaceous intrusive rocks that are found along the trend.
Granodiorite intrusive rocks and skarns developed around the
intrusive rocks are located near the Getchell (Barrick Gold) and Pinson (Atna Resources)
deposits to the north of the property and at the Adelaide deposit (Wolfpack Gold Corp) to the
south of the property. The Getchell deposit (approximately 25 miles
to the NNE) and Pinson deposit (approximately 20 miles to the NNE)
are both multi-million ounce gold deposits with Getchell exceeding
10 million ounces. The Adelaide
deposit located approximately 3.5 miles to the SSW has reported
historic gold and silver production.
The Silver Hill property is comprised of 36
unpatented claims encompassing a 2,500 to 3,000 foot long shear
zone that transects the western flank of Edna Mountain. The presence of silver, copper,
arsenic and tungsten in the mineralized shear zone, which is
thought to be part of the Golconda Thrust, suggests potential for
sediment-hosted and/or skarn-related gold mineralization, similar
to the Adelaide and McCoy deposits
to the southeast, or possibly related to adjacent intrusive
activity and gold-silver mineralization found near skarns at the
Chimney Creek, Getchell, Pinson and Preble mines to the north.
Under the terms of the Agreement, NSGold,
through its wholly owned subsidiary, NSGold Nevada Inc., may, at
any time during the ten-year term of the Agreement, purchase a 100%
interest in the Silver Hill property by making a cash payment of
US$1,250,000. The Agreement
also provides that NSGold is required to make a payment of
US$40,000 upon signing, and to make
advance minimum royalty payments as follows: US$25,000 on or before the first anniversary of
the signing of the Agreement, US$35,000 on or before the second anniversary of
signing, and $50,000 on or before the
third and subsequent anniversaries. The advance minimum royalty
payments will be credited against a 3% production royalty based on
net smelter returns from production or sale of minerals. NSGold
will have the right to purchase 2% of the production royalty for
US$1,500,000 prior to the
commencement of production. The Agreement further provides for
certain bonus payments by NSGold in the event that it exercises the
purchase option and certain resource thresholds are achieved.
A bonus payment of US$1,000,000 will
be payable to the optionor if NSGold delineates or publishes a
measured or indicated resource on the Silver Hill property
compliant with National Instrument 43-101 which includes a
contained gold or gold equivalent content in excess of
1 million ounces. An additional bonus payment of
US$2,000,000 will be payable by
NSGold to the optionor if the contained gold or gold equivalent
content is in excess of 2 million ounces.
Qualified Person
Perry MacKinnon P.
Geo., Chief Geologist, for NSGold, a qualified person as
defined by National Instrument 43-101 has reviewed the information
provided in this news release.
About NSGold
NSGold Corporation is a mineral exploration
company actively exploring for gold in Nova Scotia, Canada. NSGold's principal
property is the Mooseland Gold Property. NSGold's shares are listed
on the TSX Venture Exchange under the symbol NSX.
Forward-Looking Statements
This news release contains statements that
may constitute "forward-looking information" or "forward-looking
statements" within the meaning of applicable Canadian securities
legislation. Forward-looking information and
statements may include, among others, statements regarding the
future plans, costs, objectives or performance of NSGold
Corporation ("NSGold"), or the assumptions underlying any of the
foregoing. In this news release, words such as "may",
"would", "could", "will", "likely", "believe", "expect",
"anticipate", "intend", "plan", "estimate" and similar words and
the negative form thereof are used to identify forward-looking
statements. Forward-looking statements should not be read as
guarantees of future performance or results, and will not
necessarily be accurate indications of whether, or the times at or
by which, such future performance will be achieved. No
assurance can be given that any events anticipated by the
forward-looking information will transpire or occur, or if any of
them do so, what benefits that NSGold or its shareholders will
derive. Forward-looking statements and information are based
on information available at the time and/or management's good-faith
belief with respect to future events and are subject to known or
unknown risks, uncertainties, assumptions and other unpredictable
factors, many of which are beyond NSGold's control. These
risks, uncertainties and assumptions include, but are not limited
to, those described under "Risks and Uncertainties" in NSGold's
Management Discussion and Analysis for the Year ended December 31, 2011, which is available on
SEDAR at www.sedar.com, and could cause actual events or results to
differ materially from those projected in any forward-looking
statements. NSGold does not intend, nor does NSGold undertake
any obligation, to update or revise any forward-looking information
or statements contained in this news release to reflect subsequent
information, events or circumstances or otherwise, except if
required by applicable laws.
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.
SOURCE NSGOLD CORPORATION
