Ryan Gold Corp.
TSX VENTURE : RYG

Ryan Gold Corp.

January 26, 2010 09:00 ET

Valdez Gold to Option the Flume Property in Yukon Territory From Valley High Ventures

TORONTO, ONTARIO--(Marketwire - Jan. 26, 2010) - Valdez Gold Inc. (TSX VENTURE:VAZ)("Valdez") is pleased to announce that it has signed an option agreement with Valley High Ventures Ltd. (VHV.V-TSXV, or "Valley High") to earn a potential 75% interest in Valley High's Flume Property in the White Gold District of Yukon Territory, Canada. Under the terms of the agreement Valley High would grant Valdez the right to earn a 51% interest in the Flume property by incurring $1.5 million in qualified expenditures over a four year period (with a minimum of $200,000 of qualified expenditures by June 24th, 2011) with cash payments to Valley High of $25,000 on signing, $25,000 after the first six months, $50,000 on June 24th, 2011, $75,000 on June 24th, 2012 and $325,000 on June 24th, 2013. If the earn-in is achieved, Valdez may elect to increase its share to 65% by spending an additional $5 million and making further staged cash payments totaling $500,000 by the end of year seven. Valdez may elect to further increase its share to 75% by the end of year nine by completing a feasibility study and making a cash payment of $1 million. Valdez is able to opt out of the option at any time once it has made $200,000 in qualified exploration expenditures.

The Flume Property is located 60 km southwest of Dawson City, Yukon and 30 km northwest of Underworld Resources Ltd.'s White Gold discovery and comprises 191 mineral claims totaling approximately 3900 hectares. The claims cover the headwaters of Ten Mile Creek, a well known placer mining location, as well as the headwaters of Sestak Creek. On June 25, 2009, Valley High announced it had entered into an option agreement with Phelps Dodge Corporation of Canada, Limited ("PDC"), a wholly owned subsidiary of Freeport-McMoRan Copper & Gold Inc. to acquire a 100% interest in the Flume Property. PDC retains a 2% NSR of which one half can be repurchased by Valley High for $1 million.

The Flume Property was staked by PDC in 1998 to cover drainages with anomalous gold and arsenic in government stream sediment samples. PDC subsequently completed property wide soil sampling, geological mapping, prospecting and limited trenching that defined two main target areas primarily characterized by elevated gold and arsenic soil anomalies with minor anomalous antimony and molybdenum. The most recent exploration done on the property was a small mechanical augur program completed in 2007.

Completion of the transaction contemplated in the release is subject to certain conditions including, without limitation, receipt of all necessary regulatory and third party approvals.

Michael Skead, MAusIMM, President & CEO 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 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
    416-482-9038