Bear Lake Gold Ltd.

Bear Lake Gold Ltd.

October 25, 2010 08:30 ET

Bear Lake Gold Announces Option on the Swansea Property

LONGUEUIL, QUEBEC--(Marketwire - Oct. 25, 2010) - Bear Lake Gold Ltd. (TSX VENTURE:BLG) ("Bear Lake" or the "Company") is pleased to announce that the Company, Newstrike Resources Ltd. (TSXV: NR) ("Newstrike") and Odyssey Resources Limited (TSXV: ODX) ("Odyssey") have entered into an option agreement dated October 22, 2010 (the "Option") under which Odyssey may acquire a 25% interest in the Swansea property in Northeastern Ontario (the "Property") by spending $1.1 million on the Property.

Bear Lake and Newstrike respectively own an interest of 75% and 25% in the Property. Pursuant to the Option, Odyssey is entitled, subject to the terms and conditions of the Option, to acquire 18.75% from Bear Lake and 6.25% from Newstrike for a total of 25%. Bear Lake will be the operator of the exploration program on the Property and a drilling program should start in early November.

The Property consists of 28 leased claims located in McVittie Township in Northeastern Ontario and covers a total of 417 hectares. The Property is located 1.5 km north of the town of Larder Lake. The Swansea claims straddle the Larder-Cadillac break for some 3.6 km along strike. The break was the host of numerous gold deposits including the historic Kerr Addison mine located 11 km to the east. The Larder-Cadillac break is a wide corridor (up to 5 km) of steeply dipping and highly deformed Temiskaming sediments intercalated with ultramafic volcanic horizons. The deformation is strongest in the volcanic where strong silicification and carbonate alteration is present locally. Gold mineralization is generally associated with the strongly altered volcanic horizons.

The exercise of the Option and acquisition of the 25% interest in the Property by Odyssey is subject to Odyssey having expended aggregate expenditures of $1.1 million on the Property by March 31, 2010. Approval of the TSX Venture Exchange will be required before Odyssey can exercise the Option as a result of David Fennell and Alain Krushnisky being respectively Executive Chairman and Chief Financial Officer of Odyssey and Bear Lake.

François Viens is the Qualified Person under NI 43-101 who has reviewed the technical disclosure with respect to the Swansea Property contained in this press release. François Viens is President and CEO of Bear Lake.

Forward Looking Information

This press release contains forward-looking information. In particular, this press release contains statements concerning the commencement of an exploration program on the Swansea Property. Although the Company believes in light of the experience of its officers and directors, current conditions and expected future developments and other factors that have been considered appropriate that the expectations reflected in this forward-looking information are reasonable, undue reliance should not be placed on them because the Company can give no assurance that they will prove to be correct. Forward-looking information is subject to known and unknown risks and uncertainties, and depends on assumptions and other factors, all of which may cause actual results or events to differ materially from those anticipated in such forward-looking information. The forward-looking statements contained in this press release are made as of the date hereof and the Company undertakes no obligations to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

"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

  • Bear Lake Gold Ltd.
    Francois Viens
    President and CEO
    450-677-2601 (FAX)