Crown Gold LOI With Argentium Lapses
TORONTO, ONTARIO -- (Marketwire) -- 10/26/11 -- Crown Gold Corporation ('Crown' or the 'Company') (TSX VENTURE: CWM) reports that its letter of intent with Argentium Resources Inc. ('Argentium') dated September 16, 2011 has lapsed. (See Crown's news release dated September 19, 2011).
Stephen Dunn, CEO of Crown, said, 'We are disappointed that we were not able to complete this transaction. However, the management team at Crown is now working on identifying other strategic partners and other sources of financing to take the Monte Cristo property forward. Discussions with Argentium are also continuing.'
About Crown
Crown Gold, formed last year by the amalgamation of Crown Minerals and Gold Summit, is exploring for high grade gold and silver deposits in Nevada and Ontario.
In Nevada, Crown has NI 43-101 compliant inferred resource at Monte Cristo of 3,158,347 tonnes at a grade of 3.02 g/t gold at a 0.5 g/t gold cut-off, a total of 306,000 ounces. At Sugarloaf Peak, the Tip Top Mine has a 43-101 compliant indicated resource of 353,100 tonnes at a grade of 3.27 g/t gold at a 1.0 g/t gold cut-off, a total of 37,000 ounces. In addition, an inferred resource amounts to 293,500 tonnes at a grade of 2.47 g/t gold, also at a 1.0 g/t cut-off, a total of 23,000 ounces.
Crown's three other Nevada properties, Blue Sphinx, Gold Springs and Black Warrior, all contain well-defined and essentially, undrilled, targets. Gold Springs, has silver values in surface rock samples that range between 575 g/t (16.8 opt) and 350 g/t (10.2 opt) silver along a 4 km prominent vein outcrop. A second, poorly exposed, sub parallel vein to the east assayed 33 g/t gold over a 1.3m true width channel sample. Recent work at Black Warrior confirmed silver values as high as 14.4 ounces per ton (496 grams/tonne) with 0.07 opt (2.4 g/t) gold over 0.6 meter in channel chip sampling (see news release of June 7, 2011). The work was undertaken to confirm the previous reports of grades of 20 opt (685 g/t) silver in hand-sorted ore sent to the old Sunshine mill at Silver Peak in 1983. (The 1983 reports are not compliant with the requirements of NI 43-101 and, accordingly, cannot be relied upon.)
In Ontario, surface work is now proposed at Crown's McKenzie Island property at Red Lake to evaluate the gold bearing, east-west striking, McAndrews trend where sheeted quartz carbonate veining is described in old workings. Drilling along the north west striking Bishops Break trend earlier this year yielded promising results, including 75 g/t (2.2 opt) gold over 0.91m (3 feet). In northeastern Ontario, Crown holds three other strategic land positions including one adjacent to Trelawney's Cote Lake discovery near Gogama.
Larry Kornze, Senior Consultant to Crown Gold and a registered Professional Engineer/Geologist, is designated as the Qualified Person under National Instrument 43-101 and has reviewed and approved the technical contents of this news release.
This press release contains forward-looking statements within the meaning of applicable Canadian and U.S. securities regulation, including statements regarding the future activities of the Company. Forward-looking statements reflect the current beliefs and expectations of management and are identified by the use of words including 'will', 'anticipates', 'expected to', 'plans', 'planned' and other similar words. Actual results may differ significantly. The achievement of the results expressed in forward-looking statements is subject to a number of risks, including those described in the Company's management discussion and analysis as filed with the Canadian securities regulatory authorities which are available at www.sedar.com. Investors are cautioned not to place undue reliance upon forward-looking statements.
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:
Crown Gold Corporation
Mr. Stephen Dunn
President and CEO
(416) 361-2827
Crown Gold Corporation
Dr. Anthony Taylor
Executive Chairman
(775) 284-7200
info@crowngoldcorp.com
www.crowngoldcorp.com
