Gateway Gold Corp.
TSX : GTQ

Gateway Gold Corp.

January 08, 2008 10:26 ET

Gateway Farms Out Island Mountain Gold Property

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 8, 2008) - Gateway Gold Corp. (the "Company" or "Gateway") (TSX:GTQ) is pleased to announce that it has entered into an Option Agreement (the "Option") on the Company's Island Mountain property in Elko County, northeastern Nevada. The Company has agreed to grant Arnevut Resources, Inc., a private Colorado company ("Arnevut") an option to acquire an initial 51% interest in the Island Mountain property (the "Property") with further options to increase its interest to a 75% interest in the property.

In order to maintain the Option in good standing and earn a 51% interest in the Property, Arnevut must incur aggregate expenditures of USD$2,500,000 before November 16, 2011, make payments to Gateway totaling USD$100,000 and issue to Gateway 1,000,000 shares of Arnevut to be listed on the TSX Venture Exchange. Upon earning a 51% interest, Arnevut has the option to earn an additional 14% interest in the Property by spending an additional USD$2,500,000 before November 16, 2013, paying Gateway a further USD$75,000 and issuing a further 600,000 shares to Gateway. Upon earning a 65% interest, Arnevut has the option to earn a further 10% interest in the Property by completing a feasibility study on the Property before November 16, 2014. At such time, Arnevut shall hold a 75% participating interest and Gateway shall hold a 25% participating interest in the Property, subject to normal dilution clauses upon further expenditures. If either party is diluted to a 10% interest, its interest shall be converted to a 2% net smelter royalty.

The Island Mountain property comprises 53 claims and is located approximately ten miles north of Gateway's Big Springs property. Geochemical rock and soil surveys have established a number of large gold anomalies where drilling by Gateway and previous operators has intercepted gold mineralization. Significant areas within the anomalous zones are untested by drilling and provide excellent opportunities for the discovery of further mineralization.

Gateway Gold Corp. is a mineral exploration company with an experienced management team and a solid track record of exploration success. The Company is focused on the discovery and development of gold deposits in Nevada and currently has six active exploration projects. The Company's most advanced project, the Big Springs property, has a NI 43-101 compliant resource estimate of 1.2 million ounces gold with an average grade of 0.078 opt at 0.025 opt cut-off.

For further information about the Company and its activities, please refer to the Company's website at www.gatewaygold.com and under the Company's profile at www.sedar.com.

ON BEHALF OF THE BOARD

Michael D. McInnis, P.Eng., President and CEO

Dr. Giles Peatfield, P. Eng. is an Independent Qualified Person for GTQ and has reviewed and approved the contents of this release.

Certain of the statements made and information contained herein is "forward- looking information" within the meaning of the Ontario Securities Act. and the Alberta Securities Act or "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934 of the United States Forward-looking statements and forward looking information are subject to a variety of risks and uncertainties which could cause actual events or results to differ from those reflected in the forward-looking statements and forward looking information, including, without limitation, risks and uncertainties relating to the interpretation of drill results and the estimation of mineral resources, the geology, grade and continuity of mineral deposits, the possibility that future exploration results will not be consistent with the Company's expectations, accidents, equipment breakdowns, title matters and surface access, labour disputes or other unanticipated difficulties with or interruptions in production, the potential for delays in exploration activities and the potential for unexpected costs and expenses, commodity price fluctuations, currency fluctuations, failure to obtain adequate financing on a timely basis and other risks and uncertainties, including those described under Risk Factors Relating to the Company's Business in the Company's Annual Information Form and in each management discussion and analysis. Forward-looking information and forward looking statements are in addition based on various assumptions including, without limitation, the expectations and beliefs of management, the assumed long term price of gold, that the Company will receive required permits and access to surface rights, that the Company can access financing, appropriate equipment and sufficient labour and that the political environment within Nevada will continue to support the development of environmentally safe mining projects. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking statements. Accordingly, readers are advised not to place undue reliance on forward-looking statement.

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

Contact Information

  • Gateway Gold Corp.
    Michael D. McInnis
    President
    (604) 801-6040
    (604) 801-6075 (FAX)
    or
    Gateway Gold Corp.
    Raju Wani
    Investor Relations
    (403) 240-0555
    or
    Gateway Gold Corp.
    Ron Cooper
    Investor Relations
    (604) 986-0112
    Website: www.gatewaygold.com