Plato Gold Corp.

Plato Gold Corp.

May 25, 2006 09:30 ET

Plato Gold Corp. Acquires Quebec Gold Deposits

TORONTO, ONTARIO--(CCNMatthews - May 25, 2006) - Plato Gold Corp (TSX VENTURE:PGC) ("Plato") is pleased to announce that it has signed a binding letter of intent with Globex Mining Enterprises Inc. (TSX:GMX) ("Globex") to acquire a 100 percent interest in the Nordeau East and Nordeau West gold deposits and adjoining claims in Vauquelin Township, Quebec.

In order to earn their interest in the project Plato must issue Globex 1,000,000 Plato shares, pay $500,000 by December 31, 2007, spend $6,000,000 on the project by December 31, 2008 and complete a bankable feasibility study by December 31, 2009. Globex will retain a 2 percent Net Metal Royalty on all mineral production as well as a 10 percent Net Profit Interest after recoup by Plato of $5,000,000 in direct capital costs.

The historical resource estimates for Nordeau which are not NI 43-101 compliant and was prepared by Vauquelin Mines Ltd. in 1990 are as follows:

Metric Gold Gold
Nordeau West Tonnes Grade (g/t) Ounces
------------- -------- ------------ --------
Indicated Resource 126,800 6.16 25,115
Inferred Resource 242,600 6.35 49,534

Nordeau East
Indicated Resource 162,200 6.70 34,943
Inferred Resource 183,700 6.01 35,500

The historical resource estimate has not been verified by the company's Qualified Person and should not be relied upon. M. Bourgoin P.Geo. is the Qualified Person for the project for Plato.

"We are very pleased to have acquired these deposits" stated Mr. Anthony J. Cohen, President and CEO of Plato. "This deal adds tangible value with Plato taking control of two significant deposits in the heart of one of Canada's most prolific mining camps" he added.

Plato is planning to carry out an aggressive drilling program and conduct a 43-101 compliant resource estimate for the deposits.

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

Contact Information

  • Plato Gold Corp.
    Mr. Anthony Cohen
    President and Chief Executive Officer
    (416) 968-3337
    (416) 968-3339 (FAX)
    Plato Gold Corp.
    Suite 300, 1300 Bay Street
    Toronto, ON M5R 3K8