Sonora Gold Corp.
TSX VENTURE : SGG
PINK SHEETS : SGGFF
FRANKFURT : T9N

Sonora Gold Corp.

May 15, 2006 00:15 ET

Sonora Gold Corp. Approves Resolutions, Commences Red Tusk Share Exchange Procedures, and is Called to Trade on the Frankfurt Exchange 'Symbol T9N'

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - May 15, 2006) - Sonora Gold Corp ("Sonora Gold") (TSX VENTURE:SGG)(OTCBB:SGGFF)(FWB:T9N)announces that all proposed resolutions were approved by shareholders at the Annual and Special meeting held May 11, 2006. This includes approval on the proposed sale of the Mexican subsidiaries (First Silver and Recursos) to Sonora Copper LLC, (which includes the past producing Santa Gertrudis Gold property) and the re-election of Sonora Gold's Board of Directors. The subsidiary sale does not include the San Enrique Option Lands where Teck Cominco Ltd. is currently engaged in a joint venture copper/molybdenum/gold exploration project with Sonora Gold.

With regards to the Red Tusk Resources Inc. acquisition negotiations, Sonora Gold has now made a formal offer to take over the company. Sonora Gold has received an exemption order from the British Columbia Securities Commission exempting Sonora Gold from the formal takeover bid requirements of the British Columbia Securities Act. Red Tusk Resources management is unanimous in their support of the proposal and is currently circulating share exchange documents to the existing Red Tusk shareholders. Sonora Gold requires the acceptance of 75% of Red Tusk's 4,725,000 outstanding common shares to proceed with the proposed one for one share exchange. The exchange of shares is expected to close May 30, 2006.

Both the sale of the Mexican subsidiaries and the acquisition of Red Tusk Resources Inc. are subject to final TSX Venture Exchange approval.

In addition, Sonora Gold Corp. ("Sonora Gold") announces that the Company is now listed on the Frankfurt Stock Exchange under the trading symbol T9N. This will provide the European investment community greater access to purchasing and selling Sonora Gold Corp. shares. The Frankfurt Stock Exchange is one of the world's largest trading centers for securities, and is also the largest of the eight German stock exchanges. Sonora Gold has also initiated discussions for a European based Investor relations firm to represent the Company abroad.

Sonora Gold would also like to remind shareholders that the Company is listed on the OTC-BB trading under the symbol SGGFF.

MORE ABOUT SONORA GOLD CORP.

The Company is currently focused on three business areas; the Teck Cominco Copper/Molybdenum/Gold Joint Venture Project, the Santa Gertrudis sale; and the Red Tusk Resources Inc. acquisition.

1 - TECK COMINCO - SONORA GOLD JV COPPER/MOLYBDENUM/GOLD PROJECT

In the fall of 2005 and in January 2006, Teck Cominco Minera and Sonora Gold Corp. signed joint venture agreements on the San Enrique Option Lands, a Copper/Molybdenum/Gold prospect in Sonora State, Mexico. Teck Cominco has the right to earn up to a 70% interest in this 8,500 hectare prospect by spending up to US $7 million on the property under various terms and conditions. Sonora Gold currently owns a 100% interest in the San Enrique Option Lands. All costs associated with the property are covered by Teck Cominco, the project operator. To date 3200 meters of exploration drilling has been completed on the property, 2000 meters previously undertaken by Sonora Gold and approximately 1200 meters undertaken by Teck Cominco since December 2005. Teck Cominco is currently working on surveying, sampling, and geophysical analysis of the entire 8500 hectare area, with the objective of outlining a comprehensive exploratory drill program slated to commence early this summer. Continuing preparatory work on these San Enrique Option Lands has identified a minimum of 5 anomalous areas of interest (see website) which are currently being assessed for drill targets. Highlights of these lands include:

- Excellent potential for hosting deeper, high-grade Carlin-style mineralization.

- Ore grade Copper, Molybdenum and Silver intercepts encountered in Sonora Gold's previously reported 2000 meter core drilling program at San Enrique. Hole # 05-15 returned 27.6 meters grading 0.148% Mo, 0.308% Cu and 6.7gpt Silver. Within this interval 5.3 meters graded 0.454% Mo, 0.92% Cu and 21.3gpt Silver.

2 - THE SONORA GOLD MEXICAN SUBSIDIARY SALE

In the spring of 2006, Sonora Gold entered into a letter agreement with Sonora Copper LLC, to sell its two Mexican Subsidiaries, which includes a 100% interest in the past producing Santa Gertrudis gold property. The sale equates to US $3,050,000 paid to Sonora Gold in three cash payments within 6 months of closing, which is expected in the near future. The proposed transaction also includes 2 year warrants totaling the lesser of 1,000,000 warrants or 5% of the total issued common shares, and will be issued on the date Sonora Copper LLC is listed to trade on any exchange in any manner under various terms and conditions.

3 - RED TUSK RESOURCES INC. ACQUISITION

Sonora Gold Corp has also formalized the takeover of Red Tusk Resources Inc., Red Tusk's two British Columbia mineral properties, namely the 100% owned RHG Copper/Gold project and the 100% optioned Tantalus Mountain Massive Sulphide prospect. Sonora Gold is planning extensive summer exploration work on these properties once the acquisition is closed.

THE RHG PROJECT

The RHG project is a 10,964 hectare northcentral British Columbia porphyry/skarn Copper/Gold prospect located in the prolific Copper belt hosting the Galore Creek/Copper Canyon deposits. Work by previous companies identified porphyry style mineralization grading greater than 1% Copper in intrusive rocks, 1.5% Copper from fractured silicified volcanics, and 30% Copper and 0.40 ounces Gold/ton from skarn. A national instrument 43-101 report on the property outlined the 2005 rock sampling program on the RHG prospect which assayed samples as high as 0.78% Copper. An induced polarization (I.P.) survey resulted in large chargeability anomalies in the area of mineralized occurrences. Copper geochemical anomalies are coincident with the I.P. anomalies. Three dimensional modeling of government airborne magnetic data suggests the RHG prospect is underlain by a buried intrusive which possibly provided the source of the abundant copper mineralization. The property is currently 'drill ready,' and Sonora Gold intends to commence a significant diamond drill program on the property early this summer.

THE TANTALUS MOUNTAIN PROJECT

The Tantalus project is underlain by the Gambier Group rocks forming a roof pendant. Studies have indicated the Gambier rocks are age and chemically equivalent to the Britannia roof pendant which hosted the historic Britannia massive sulphide deposit. Production from the Britannia mine totaled approximately 48 million tonnes at an average grade of 1.1% Copper, 7% Zinc, and 1% Lead with Gold and Silver credits. Airborne geophysical surveys resulted in five high priority electro-magnetic anomalies worthy of detailed follow-up. An additional ground exploration program is being contemplated for the summer, including surveying, sampling, and I.P. surveys in these high priority areas. Follow-up work to the program will include drilling, if warranted.

For further information on Red Tusk Resources Inc., please visit www.redtusk.ca.

On Behalf of the Board

Dave McMillan, President & C.E.O

This communication to shareholders and the public contains certain forward-looking statements. Actual results may differ materially from those indicated by such statements. All statements, other than statements of historical fact, included herein, including, without limitations statements regarding future production, are forward looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements.


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

Contact Information

  • Sonora Gold Corp.
    Tom Brady
    (604) 685-5851 or Toll Free: 1-888-685-5851
    or
    Sonora Gold Corp.
    Chad McMillan
    (604) 685-5851 or Toll Free: 1-888-685-5851
    (604) 685-7349 (FAX)
    or
    Sonora Gold Corp.
    Arthur Ferjo
    (705) 743-5042
    ir@urg.ca
    www.sonoragold.ca/