Corex Gold Corporation

Corex Gold Corporation
Virgin Metals Inc.

Virgin Metals Inc.

July 22, 2009 18:19 ET

Corex Gold Corp. Options 100% Interest in Contiguous Mexican Property From Virgin Metals Inc.

TORONTO, ONTARIO and VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 22, 2009) - Corex Gold Corp. (TSX VENTURE:CGE) ("Corex") and Virgin Metals Inc. (TSX:VGM) ("Virgin") are pleased to announce they have signed an option agreement under which Corex's Mexican subsidiary is granted an option to acquire from Virgin's Mexican subsidiary a 100% interest in 3 concessions (the "Hilda Concessions") covering 722 ha. that are contiguous to the northern boundary of Corex's Santana property. To acquire the Hilda Concessions Corex must pay Virgin a total of $340,000, issue Virgin 500,000 common shares and incur $450,000 in exploration expenditures on the Hilda Concessions over a three year period.

The Hilda Concessions, located North-east of Corex's Santana concessions, contain the extensions of the two square kilometers of the extensive quartz-sericite-pyrite illite alteration and hematite staining/oxidation, outlined on Corex's Santana property. Gold and Silver mineralization is controlled by both lithologic and structural features. The extensions encompass large portions of the Hilda Concessions. In its recent drill program, Corex reported assay results in holes 1, 2, 3, and 5 which were drilled from locations close to the border with the Hilda Concessions(see Corex's news release of January 28, 2009). Virgin Metals recently has identified significant gold mineralization in samples taken at Cerro La Cobriza and on the northern extension of La Turena. La Turena is localized along the northeast projection of a structural corridor containing at least three distinct quartz-tourmaline plugs and breccias, which can be extended more than five kilometers across Hilda Fracc 2.

Under the option agreement, Corex paid Virgin $25,000 upon execution and must issue Virgin 50,000 shares upon TSX Venture Exchange acceptance of the agreement. In order to exercise the option, Corex must make the payments and incur the exploration expenditures as follows:

By July 22, 2010 pay $35,000, issue 100,000 shares,
incur $100,000 in expenditures
By July 22, 2011 pay $50,000, issue 150,000 shares,
incur $150,000 in expenditures
By July 22, 2012 pay $230,000, issue 200,000 shares,
incur $200,000 in expenditures
(Cumulative pay $315,000, issue 450,000 shares,
incur $450,000 in expenditures)

Upon exercise of the option Virgin will retain a 2% NSR royalty on the Hilda Concessions, which can be acquired by Corex at any time for US$1,500,000. Under the option agreement Virgin has rights to back-in and acquire any mineralized zones on the Hilda Fracc 2 concession that contain copper and molybdenum mineralization assaying not less than 0.05% Mo, provided the zone does not also contain gold mineralization assaying greater than 0.2 g/t Au, by paying Corex 3 times Corex's exploration expenditures on the ground acquired by Virgin.

Corex's obligations under the option agreement are subject to approval of the TSX Venture Exchange.

About Corex Gold Corp.

Corex Gold Corp. is a Canadian resource company focused on the acquisition, exploration, and development of precious metal deposits in Mexico. Corex is currently developing our flagship property, the Santana Project, which is a new gold discovery in Sonora, Mexico. In addition, Goldcorp Inc. (TSX:G)(NYSE:GG) has implemented an on-going exploration program on Corex's 100% owned Zuloaga property in Zacatecas, Mexico.


Craig D. Schneider, President & CEO


Chris Davie, President & CEO

Cautionary Statement:

The foregoing information may contain forward-looking statements relating to the future performance of Corex Gold Corp. Forward-looking statements, specifically those concerned with future performance are subject to certain risks and uncertainties, and actual results may differ materially. These risks and uncertainties are detailed from time to time in Corex Gold Corp.'s filings with the appropriate securities commissions.

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

Contact Information

  • Corex Gold Corp.
    Craig Schneider
    President & CEO
    (604) 683-2505
    Virgin Metals Inc.
    Chris Davie
    President & CEO
    (416) 364-9988