Orestone Mining Corp.
TSX VENTURE : ORS

Orestone Mining Corp.

December 01, 2009 14:19 ET

Orestone Mining Corp. Announces Letter of Agreement

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 1, 2009) - Orestone Mining Corp. (TSX VENTURE:ORS) ("Orestone" or the "Company") announces that it has entered into an arm's length letter agreement (the "LOI") dated November 26, 2009 to acquire all of the issued shares of Intuitive Exploration Inc. ("Intuitive"), a private British Columbia company incorporated under the laws of British Columbia (the "Acquisition"). Intuitive has acquired and holds a 51% undivided interest in a mineral exploration property in the Skeena Mining Division, Stewart Gold Camp, in northwestern British Columbia and known as the Todd Property. In addition, Intuitive holds an option to acquire a 51% interest in the Funk Property a mineral exploration property, also in the Stewart Gold Camp. A description of these properties and Intuitive's interests therein are contained in the Company's October 9, 2009 news release (the "October 9 Release"). There was an error in the October 9 Release in that it incorrectly described Intuitive's interest in the Funk Property as being an option to acquire up to a 100% interest in such property. In fact, the Funk Property had previously been included as a property under the option agreement underlying the Todd Property and, as a result, a 49% interest in the option agreement underlying the Funk Property is held by Intuitive's partners in the Todd Property joint venture.

The LOI replaces and supersedes the previous agreement entered into with Intuitive which was the subject matter of the October 9 Release. Under the terms of the LOI, the Company proposes to acquire all of the issued and outstanding common shares of Intuitive on a one for one basis. The final structure of the Acquisition will be determined on the basis of tax, security and corporate law advice in order to insure the most efficient structure of each of the parties and their respective shareholders. Details of the final structure will be announced when available.

Pursuant to the LOI, the Company has loaned Intuitive the sum of $200,000. The loan proceeds were used by Intuitive to satisfy its remaining obligations to earn its interests in the Todd Property and the Funk Property. The principal amount of the loan, together with interest at the rate of 10% per annum, is repayable to the Company on demand in the event the LOI is terminated for any reason whatsoever. The Acquisition remains subject to the completion of due diligence by the Company and acceptance by the TSX Venture Exchange.

The Company is also continuing its efforts to complete the non-brokered private placement to raise up to $900,000 pursuant to the sale of units at a price of $0.10 per unit. Details of the private placement are contained in the October 9 Release.

Orestone also announces that diamond drilling commenced on November 23, 2009 on the Connor Creek Property, which is under option from Kootenay Gold Inc. as described in the Company's news release dated November 12, 2009. The property hosts a wide variety of gold and copper mineralization, including gold-bearing shear zones, massive sulphide veins (similar to the historic gold-copper veins at Rossland 40 km southwest), polymetallic veins, and skarn. Current drilling is focused on evaluating extent and grade of the CC Gold Zone that is situated at the north end of a 550 metre long gold soil anomaly. Approximately 1000 m of drilling in about seven holes is planned to test the target.

Previous drilling in this area includes the following drill intercepts:

Hole #916.2 g/t Au over 0.80 m
Hole #104.75 g/t Au over 3.0 m
 3.29 g/t Au over 1.76 m and
 1.09 g/t Au over 4.0 m

Drilling is expected to be completed in early December with assays to follow in January.

About Orestone

Orestone is presently exploring three large claim blocks in northern B.C and one claim block in southern B.C., all within the Quesnel Terrane, which extends from the US border to northern B.C. The Quesnel Terrane hosts numerous mines and many developing bulk tonnage Cu-Au prospects, such as those on the Mt. Milligan and Kwanika properties in north-central B.C. It is also host to sediment-hosted gold mineralization on the Spanish Mountain and Frasergold properties in south-central B.C., as well as gold vein deposits throughout B.C.

ON BEHALF OF THE BOARD OF DIRECTORS
OF ORESTONE MINING CORP.

"Gordon Richards"______________
 
Gordon Richards, President

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accept responsibility for the adequacy or accuracy of this News Release. This news release has been prepared by management and no regulatory authority has approved or disapproved the information contained herein.

Contact Information

  • Orestone Mining Corp.
    Gordon Richards
    President
    (604) 940-6466
    or
    Orestone Mining Corp.
    Jim Mitchell
    Director
    (604) 796-9418