C2C Gold Corporation Inc.

C2C Gold Corporation Inc.

January 11, 2005 08:30 ET

Clarifying News Release in regards to C2C Inc.: News release of December 23rd 2004




JANUARY 11, 2005 - 08:30 ET

Clarifying News Release in regards to C2C Inc.: News
release of December 23rd 2004

MONTREAL, QUEBEC--(CCNMatthews - Jan. 11, 2005) - This news release
clarifies and expands information on the Penedono property from the
December 23rd 2004 release.

The bulk work description of the Penedono property in this release is
taken from a report prepared by Rio Narcea Gold Mines, C2C Inc. Joint
Venture partner in Portugal.

Between 1998 and 2003, Rio Narcea Gold Mines has completed extensive
mapping, rock, soil and stream sediment sampling, geophysics, trenching
and limited drilling (2,262 metres in 11 holes). Gold mineralization is
concentrated in a large, crustal scale shear belt, known as the
Vigo-Regua lineament. Clusters of gold mineralization veins/shears
bearing arsenopyrite, pyrite with accessory chalcopyrite, sphalerite and
galena occur along the trace of the belt. The main gold occurrences, all
hosted by syntectonic granites are organized in vein systems of which
the most important are as the Parades-Dacotim, Ferronha, Turgueira,
Boucoes and the San Antonio zones.



This area shares many of the characteristics of a typical
ductile-brittle shear zone. Gold mineralization is associated with
deformed, anastomosing quartz-arsenopyrite veining. The shear zones are
hosted by deformed aplo-pegmatites and tourmaline-bearing muscovite

Within an area of 1 square kilometre, 8 subparallel shear corridors have
been identified following soil geochemistry, geological mapping and
trenching. Shear orientation varies from N20E to N60E and ranges from
less than 1m to 6m in thickness. Significant channel sample results
include 4,4m grading 9g/t Au over a length of 50 metres at the Dacotim
shear, 1,2m grading 9g/t Au over 81 metres strike along the outcropping
mineralized zone.

A total of 321 m in three shallow drill holes in the Dacotim area have
confirmed the depth extensions ("100 metres) of the known mineralized
ductile-brittle shear zone. The most significant intercepts include a 3
metres interval grading 3.4 g/t Au at the footwall of an old adit.
Projecting surface grades (2.4 metres at 9.4 g/t Au) into the mined out
interval of the drill hole makes a possible intercept of 3.9 metres
averaging 7.7 g/t Au.


Located SE of the town of Penedono, an area of two-mica syntectonic
granite contains a number of shallow ("15 metres), old mine workings
that focused on several ENE trending sheeted vein systems that intersect
a wider and more penetrative NE oriented set.
The mineralized structures at Ferronha are related to a major WNW-ESE
sinistral shear, with the ENE-WSW family representing the synthetic
riedel shear, the NE-SW system seems to materialize the antithetic

Increasing Au/As ratios to the northeast, based on the rock/chip
sampling results, suggest increasing potential near the intersection of
the above-mentioned structures. Channel samples define a continuous 6
metres-wide interval grading 1 g/t Au with up to 3 g/t Au over 1 metre
from NE trending sheeted vein system. Numerous high-grade assays with
values up to 152 g/t Au have been found from chip sampling of the old
workings developed along the ENE-WSW veins, the only hole drilled in
this sector was completed at a depth of 265.9 metres. The hole
intersected the vein systems across five distinct sections, accompanied
by strong phyllic and silica alteration haloes, with anomalous gold
grades up to 2.7 g/t Au over 1mere. Further drilling is planned for this


Twelve kilometres WSW of the old Penedono mine, a broad NE trending
auriferous greisen system contains a number of old tungsten-mining
works. A series of elongated pits and partially backfilled, shallow
shafts dating from the 1940's and 50's occur within a 2 kilometres soil
geochemical gold anomaly.

Mineralization consists of muscovite - quartz - tourmaline greisen zones
with disseminated arsenopyrite developed marginally to a set of grey
quartz veins bearing arsenopyrite and pyrite.

Gold occurs in cracks or at the grain boundaries of arsenopyrite.
Detailed mapping of crosscuts in the underground workings delineate
intersecting zones of alteration due to the proximity of adjacent
mineralized structures forming a continuous (720 m thick) greisen. The
systems grades to the south into quartz -arsenopyrite shear systems with
a very complex geometry. Preliminary chip sample results have shown
anomalous values from 0.8 to 13.8 g/t Au coming from quartz
-arsenopyrite in thin shear bands.

Underground sampling shows a 24 m interval grading 2 g/t Au, including
13 m grading 3 g/t Au within this latter interval, high-grade zones have
been identified, including 2,7 m grading 4.4 g/t Au and a section of 3.8
m at 6.7 g/t Au. Trench sampling has also indicated interesting gold
intervals, namely T-1, which revealed an interval of 23.7 m grading 2
g/t Au including 12.9 m at 3 g/t Au. Peak values up to 13.6 g/t Au have
been obtained in a 1 m channel.

Trench T-2 shows an interval of 50 m grading 1.1 g/t Au including 23 m
at 1.9 g/t Au. These include a high-grade section at 6.2 g/t Au over 5.2

The obvious tonnage potential of the Turgueira area made it an
attractive target for Rio Narcea's first exploration drilling program on
the project. Four (4) holes totalling 782 m commenced an evaluation of
the central zone of outcropping mineralization. Intersecting part of the
vein system, the holes defined a series of low angle structures believed
to represent late stage thrusting which seem to truncate and control the
bulk geometry of the mineralization. Several small zones grading more
than 1 g/t Au were intersected with a maximum of 30.3 m averaging 1g/t
Au including 2.1 m at 4.2 g/t Au.


This mineralized structure is located approximately 1.5 kilometres west
of the Turgueira zone. It consists of a NNW-SSE oriented shear zone with
alteration envelope approximately 25 to 50 metres thick. It is hosted
within mica granite. Five (5) surface trenches were sampled revealing
the following significant values from north to south over a distance of
approximately 350 metres: 7.8 g/t Au over 0.7 m; 10.83 g/t Au over 0.90
m; 19.7 g/t Au over 0.68 m; 28.10 g/t Au over 0.35 m; 7.33 g/t Au over
1.0 m; 2.33 g/t Au over 1.0 m; 2.62 g/t Au over 2.0 m; 5.03 g/t Au over
1.0 m; 4.4 g/t Au over 1.0 m; 5.5 g/t Au over 1.40 m and 5.20 g/t Au
over 1.0 m.

San Antonio - Penedono (old mine)

Approximately 3km NW of the town of Penedono, a small underground gold
operation, the San Antonio mine, produced and processed up to 500 t/day
with a reported grade of 10 g/t Au before closing in 1957. The mine area
is dominated by syntectonic Hercynian granite and pegmatite which host a
series of more than 13 en-echelon high-grade quartz sulphide veins. The
veins vary in thickness from 0,5m to more than 3 metres and may attain
individually more than 800 m in strike length. The vein system displays
typical characteristics of brittle deformation superimposed on
preexisting more ductile type.

The polyphase deformation is thought to have played a key role on gold
concentration in the deposit.

Underground channel and surface trench sampling by Rio Narcea confirmed
our interest in this area as a potentially economic high-grade vein
system. Significant results obtained from accessible adits include: 48 m
grading 6.2 g/t Au over a width of 1.5 m in vein 1; 132 m grading 8 g/t
Au over a width of 0.8 m in vein 2 and 93 m grading 21 g/t Au over a
width of 1.8 m in vein 3. Trench sampling has indicated similar grades
in veins 4, 5, 6 and 7 which have not been sampled due to backfill of
their near surface excavations.

Old mining records and present exploration data clearly indicate the
Penedono oreshoots continue at depth. This combined with the
concentration of the vein system within a restricted area (1,2 km X 0,8
km) points to an attractive high-grade underground target.

A total of two (2) drill holes on this target area confirmed the depth
continuation of the mineralized structures. Hole No. 2 intersected a
wide mineralized section, which seems to result from the convergence at
depth of two individual vein structures mapped at surface. The zone
comprised of vein concentrations accompanied by strong silica-sericite
alteration of the host two-mica granites. Significant intercepts include
a 3.4 m wide interval grading 4.0 g/t Au or 1.6 m at 7.8 g/t Au.


The Penedono concession comprises a series of significant vein systems,
thought to be related to a similar genetic process. A large hydrothermal
system with the capacity to form significant gold deposits is present on
the Penedono property.

The main exploration/conceptual targets envisaged can be summarized as

1. High-grade, underground vein-type deposits, individually small,
though integrating clusters and thus forming an attractive target.
The Penedono and Paredes (Dacotim) would fall into this category.

2. Medium to low-grade, bulk mineable disseminated deposit-type,
Greisen stockworks or disseminations associated with granite
emplacement at depth or laterally, controlled by reactivated
thrusts by the "pushing aside" effect observed in diapiric
intrusions. The latter structures may equally work as a conduit
for fluid flow and from shallow dipping deposits.

3. Medium to high-grade, potential large size deposits located at the
contacts with metasediments windows (roof pendants or tectonic
klippes) with the underlying granitoids. This model would apply
directly both to the northern and southern extensions of the
Turgueira and the Paredes vein systems, respectively.

Recognized and potential styles of Au targets are:

a) Shear hosted plunging ore shoots;
b) Disseminated or structurally hosted below thermal barrier;
c) Sheeted or stockwork, intrusive hosted;
d) Structurally controlled quartz veins, and
e) Shallow dipping, pegmatite/quartz veins.

C2C Inc. is an innovative exploration company focussed on base and
precious metals exploration. The Company has entered into option joint
ventures in Quebec with South-Malartic Exploration Inc. (MSU-TSX V) and
with Rio Narcea Gold Mines Ltd. (RNG-TSX; RNO-Amex) in Portugal.

Alain-Jean Beauregard, P. Geol., FGAC, OGQ and Jose Mário Branco,
Exploration Manager Portugal for Rio Narcea Gold Mines are qualified
persons (QP) as required and described in the NI 43-101 and appendices.


Contact Information

    C2C Inc.
    Alain Paquet
    (514) 336-9211
    C2C Inc.
    Marc-Andre Larouche
    Financial Vice-president
    (819) 824-2072
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    responsibility for the adequacy or accuracy of this press release.