First Gold Exploration Inc.

First Gold Exploration Inc.

November 08, 2007 15:04 ET

First Gold Options Cottonwood Project in Nevada

MONTREAL, QUEBEC--(Marketwire - Nov. 8, 2007) - First Gold Exploration Inc. (TSX VENTURE:EFG)("First Gold") is pleased to announce that it has concluded a joint-venture agreement with Bonaventure Enterprises Inc. (TSX VENTURE:BVT) ("Bonaventure") with the objective to acquire a 60% undivided interest in the Cottonwood Property located in the Reese River Mining District, Lander County, Nevada State.

The property is located in Central Nevada, 200 km east of Reno and is composed of 2 blocks of contiguous unpatented mining claims located on Federal public land:

1) The Northern Block of 14 claims covers an area of 113 hectares; and

2) The Southern Block of 28 claims covers an area of 227 hectares.

The two blocks are subject to a 3% net smelter return owned by MinQuest Inc. of Reno, Nevada. Bonaventure acquired the property from MinQuest in 2003.

First Gold can acquire up to 50% interest by issuing common shares, paying a total amount of $250,000 in cash and completing exploration work as follows:

Number of shares Exploration work % interest acquired
i) Signature of
Agreement(a) 2,000,000
ii) November 2008 $500,000 25%
iii) November 2009 $1,000,000 5%
iv) November 2010 $1,250,000 5%
v) November 2011 $1,500,000 5%
vi) November 2012 $1,750,000 10%
$6,000,000 50%

(a) In addition to the 2,000,000 common shares of First Gold, 2,000,000 common share purchase warrants will be issued, each warrant entitling Bonaventure to purchase one common share of First Gold at a price of $0.30 per share for a period of two years.

First Gold can acquire an additional 10% undivided in the Property (bringing its total undivided interest to 60%) by producing a bankable feasibility study.

First Gold intends to complete a $900,000 private placement in order to close the transaction. The placement will be composed of $0.20 Units with each Unit consisting of one common share and one common share purchase warrant entitling the holder to purchase one common share of the Corporation at a price yet to be determined for a period of two years.

Bonaventure optioned the Cottonwood property from MinQuest Inc. in the fall of 2003. Since that time, geologic mapping, sampling, a gravity survey, trenching and shallow drilling have been completed on the property. Mapping and sampling have confirmed high grade gold in massive arsenopyrite veins distributed intermittently throughout the western half of the southern intrusive body. This "Cotton" target is on the south wall of a steep canyon. Because of minimal outcrop Bonaventure constructed two widely spaced dozer trenches and sampled and mapped any exposed outcrops. A broad zone of north to northeast trending shears have been mapped
within quartz diorite intrusive and surrounding argillites of the Ordovician Valmy formation. The shears within the intrusive often contain quartz/sulfide veins with the primary sulfide being arsenopyrite. Sampling of these veins, which average no more than 0.15 m in width have grades of up to 57.1 g/t gold, 2.9 g/t silver, and 24 percent arsenic.

Using Trench 1 for access, two fences of two holes each were drilled approximately 90 m apart. These angle holes were drilled perpendicular to the shear direction. A fifth hole was drilled 275 m east to test beneath an historic adit.

The geochemical drilling found broad zones of anomalous gold (+0.1 g/t) in both fences of holes within which are 1.5-7.5 m wide quartz/sulfide zones averaging 0.1 to 1.0 g/t gold. Drilling shows that the shear zone is at least 150 m wide. Also, fence 2 (CR-03-04) has stronger gold values than fence 1 (CR-01-02). Fence 2 is approximately 33 m lower than fence 1 and may indicate values are improving with depth. Arsenic averages over 1,000 ppm in all 4 fence holes. High arsenic is characteristic of most Nevada gold systems but arsenic of this magnitude is found only at a few including the Getchell mine.

The Cotton target has several characteristics of the Getchell gold system. Getchell is located approximately 100 miles (160 km) north of Cottonwood. Early mining at Getchell was of gold in arsenic-rich quartz veins in intrusive rocks near the surface. Later, small near-surface gold deposits were mined in limy units within Ordovician rocks similar to those exposed at Cottonwood. Eventually, deep drilling at Getchell discovered the Turquoise Ridge deposit hosted by a thick carbonate section. Placer Dome (now Barrick) announced a 2005 reserve of 3,150,000 ounces of gold. The Getchell fault and other related structures served as the feeder fault for Turquoise Ridge.

Bonaventure has identified a major gold-bearing shear zone at Cottonwood. A program of deep drilling is planned to test the intersection of this shear zone with carbonate host rocks. Carbonate rocks are exposed in the Callaghan Window less than 16 km north of Cottonwood.

First Gold is a recently formed company with about 14.2 million shares outstanding. Its mineral properties portfolio consisted until now of four options to acquire at least a 50% interest in four different projects located in the Abitibi region in Quebec. Diamond drilling is currently underway on the Croinor project (joint-venture with X-Ore Resources) for which a 43-101 report prepared in November 2005 (see report filed on Sedar) confirmed a resource estimate of 1,429,075 tonnes of 6.31 gr/tonne or 289,890 ounces of gold in different categories (see press release dated May 1st, 2007) within 200 meters from surface. The objective is to increase the resource both laterally and at depth.

Bonaventure is an exploration company with gold assets in Nevada and large land positions in Quebec and in the Athabasca Basin where it is exploring for uranium.

Mr. Richard Kern (P.Geo), a Qualified Person under NI 43-101 has revised and approved the technical content of this release. Mr. Kern will supervise the field worked that will be executed on the Cottonwood project and currently owns 50% of MinQuest Inc.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release

Contact Information