Ryan Gold Corp.

Ryan Gold Corp.

April 30, 2010 09:09 ET

Valdez Gold and Millrock Resources Sign Definitive Agreement to Form A Joint Venture on Bluff Project in Alaska

TORONTO, ONTARIO--(Marketwire - April 30, 2010) - Valdez Gold Inc. (TSX VENTURE:VAZ) ("Valdez" or the "Company") is pleased to announce that it has signed a definitive agreement (the "Agreement") to form a joint venture ("JV") on Millrock Resources Inc.'s Bluff project on the Seward Peninsula in Alaska, USA. Under the terms of the Agreement Millrock Resources Inc. ("Millrock") grants Valdez the right to earn a 55-per-cent interest in the Bluff project by incurring $3-million in qualified expenditures over a three-year period (with a minimum of $500,000 of qualified expenditures by December 31, 2010) with a cash payment to Millrock of $50,000 and 300,000 common shares of Valdez with the signing of the Agreement, $100,000 and 300,000 common shares of Valdez on December 31, 2010, and $150,000 and 300,000 common shares of Valdez on December 31, 2011. If the earn-in is achieved, Valdez would further have the option to increase its share to 75 per cent by spending an additional $3-million of qualified expenditures over three years and making further staged cash payments totaling $600,000 and issuing 1.1 million common shares of Valdez by the end of the fifth year. Upon earning a 75-per-cent interest, Millrock would have the one-time opportunity to elect to earn back a 25-per-cent interest (to hold a 50-per-cent interest), by expending on exploration and development, two times the amount that Valdez had expended on the project. Valdez is able to opt out of the Agreement at any time once it has made $500,000 in qualified exploration expenditures. All amounts are in US dollars.

Bluff is located on the Seward Peninsula in Alaska, 24 kilometres east of the Big Hurrah deposit, which NovaGold Resources Inc. is considering for production and processing at the Rock Creek mine. Millrock has an option agreement with the underlying property owner, Golden Glacier Inc., a subsidiary of Bering Straits Native Corp. ("BSNC"). The option allows Millrock to earn a 100-per-cent leasehold interest.

At Bluff, structurally controlled gold mineralization occurs within an anticline. The prospective arcuate structure is mineralized over a distance of 6.4 kilometres. During the period from 1986 to 1990, BHP discovered three zones of lode gold mineralization -- Daniels Creek, Saddle and Koyana. The gold mineralization was discovered by drilling strong surface gold -- arsenic geochemical anomalies. These zones contain several significant intersections including 5.48 g/t Au over 10.9 m., 4.19 g/t Au over 4.5 m., and 1.93 g/t Au over 16.3 m. In the 1980s, BHP carried out a series of exploration programs at Bluff, but terminated its efforts in 1990. The property sat idle for two decades until Millrock secured it and carried out exploration in 2008. Geological mapping and soil sampling identified new zones of mineralization. Drilling and re-sampling of BHP core confirmed the presence of gold mineralization. Significant drilling is required at all zones to establish and delineate gold resources. There are numerous drill targets adjacent and down-dip from known gold zones and untested surface geochemical anomalies. For further information, please see a complete report documenting prior exploration work prepared for Millrock by independent geologist Donald Stevens of Anchorage, Alaska, that has been filed on SEDAR (www.sedar.com): Bluff Gold Prospect, National Instrument 43-101 "Technical Report," June 5, 2009, prepared by Donald L. Stevens, PhD. 

Completion of the transaction contemplated in the release is subject to certain conditions, including receipt of all necessary regulatory and third party approvals.

Michael Skead, MAusIMM, President and Chief Executive Officer for Valdez, and a qualified person as defined by NI 43-101, reviewed the technical content of this press release on behalf of Valdez prior to distribution.

This press release contains forward-looking statements within the meaning of applicable securities legislation. Such statements include, without limitation, statements regarding the future results of operations, performance and achievements of the Company, including potential property acquisitions, the timing, content, cost and results of proposed work programs, the discovery and delineation of mineral deposits/resources/reserves, geological interpretations, proposed production rates, potential mineral recovery processes and rates, business and financing plans and business trends. Although the Company believes that such statements are reasonable, it can give no assurances that such expectations will prove to be correct. Forward-looking statements are typically identified by words such as: believe, expect, anticipate, intend, estimate, postulate and similar expressions, or are those, which, by their nature, refer to future events. The Company cautions investors that forward-looking statements by the Company are not guarantees of future results or performance, and that actual results may differ materially from those in forward-looking statements as a result of various factors, including, but not limited to, variations in the nature, quality and quantity of any mineral deposits that may be located, significant downward variations in the market price of any mineral that may be produced, the Company's inability to obtain any necessary permits, consents or authorizations required for its activities, to produce minerals from its properties successfully or profitability, to continue its projected growth, to raise the necessary capital or to be fully able to implement its business strategies. All of the Company's public disclosure filings may be accessed via www.sedar.com and readers are urged to review these materials, including any technical reports filed with respect to the Company's mineral properties. This press release is not, and is not to be construed in any way as, an offer to buy or sell securities in the United States.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Valdez Gold Inc.
    Michael Skead
    President & CEO