Crown Gold Corporation

February 08, 2011 16:40 ET

Crown Gold Announces Amendment of Surprise Lake Option Agreement

TORONTO, ONTARIO--(Marketwire - Feb. 8, 2011) - Crown Gold Corporation ("Crown") (TSX VENTURE:CWM) announces that it has entered into a letter agreement to amend the payment terms of the option agreement dated October 29, 2008 regarding the Surprise Lake property (the "Surprise Lake Option Agreement"), whereby Crown was granted an option to acquire a 100% interest in two claims (the "Claims") consisting of 32 units held by the optionor (the "Optionor") by making certain cash payments and by issuing a certain number of shares.

Pursuant to the letter agreement amending the Surprise Lake Option Agreement, Crown has agreed to: (i) issue 220,000 common shares to the Optionor as soon as all necessary corporate and regulatory approvals have been obtained; (ii) pay $30,000 to the Optionor in cash or shares (at the option of Crown) on June 30, 2011; and (iii) pay $50,000 to the Optionor in cash or shares (at the option of the Optionor) on June 29, 2012. After making the aforementioned cash or share payments, Crown would own a 100% undivided interest in the Claims comprising the Surprise Lake property subject to a 2% NSR royalty in favour of the Optionor.

Crown, formed by the recent amalgamation of Crown Minerals and Gold Summit, is exploring for high grade gold and silver deposits in Nevada and Ontario. In Nevada, Crown has NI 43-101 compliant inferred resources totaling approximately 337,000 ounces of gold at its Monte Cristo and Sugarloaf properties. These are the most advanced of five, high-grade, epithermal vein systems controlled by Crown. The existing resources at Monte Cristo and Sugarloaf remain open along strike and at depth. Planning for further exploration and underground or open-pit development is underway. The three other Nevada properties, Blue Sphinx, Gold Springs and Black Warrior, all contain well-defined, essentially undrilled targets.

In Ontario, Crown has reported encouraging assay results from drilling on its McKenzie Island property at Red Lake. Crown is planning a new drill program on the McKenzie Island project to begin in the next few days. Other northwest Ontario properties are Tabour Lake near Kenora and Surprise Lake in the Uchi Belt, east of Red Lake. In northeastern Ontario, Crown holds strategic land positions adjacent to Trelawney's Chester discovery near Gogama, at the old Stairs Mine near Matachewan and in the Timmins camp.

Information in this news release, including but not limited to Crown obtaining a 100% interest in the Surprise Lake property, constitutes forward-looking information. Statements containing forward-looking information express, as at the date of this news release, Crown's plans, estimates, forecasts, projections, expectations, or beliefs as to future events or results and are believed to be reasonable based on information currently available to Crown. There can be no assurance that forward-looking statements will prove to be accurate. Actual results and future events could differ materially from those anticipated in such statements. Readers should not place undue reliance on forward-looking information.

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

Contact Information

  • Crown Gold Corporation
    Mr. Stephen Dunn
    President and CEO
    (416) 822-3343
    Crown Gold Corporation
    Dr Anthony Taylor
    Executive Chairman
    (775) 284-7200