Crown Gold Corporation

Crown Gold Corporation

September 19, 2011 08:55 ET

Crown Gold Revises Letter of Intent with Argentium

TORONTO, ONTARIO--(Marketwire - Sept. 19, 2011) - Crown Gold Corporation ("Crown" or the "Company") (TSX VENTURE:CWM) wishes to announce that it has revised its letter of intent ("LOI") with Argentium Resources Inc. ("Argentium"), an arm's length Canadian company recently listed on the Canadian National Stock Exchange. Crown has agreed to grant an option for 80% of Crown's Monte Cristo property in Nevada to Argentium for $6,100,000 in cash and securities over five years. This LOI supersedes and replaces the previous LOI signed on March 28, 2011.

Argentium paid a deposit of $100,000 and will issue 2,000,000 shares with a deemed value of $0.50 each on closing and issue a further $1,000,000 worth of Argentium shares each annual anniversary for 5 years for a total deemed acquisition price of $6,100,000. As well, Argentium will commit to spend at least US$12,000,000 on exploration and development of Monte Cristo over the next five years. The transaction is subject to a number of conditions, including approval by each company's board of directors, completion of formal documentation, and any necessary shareholder and regulatory approvals.

Crown's President and Chief Executive Officer, Stephen Dunn stated, "this transaction will allow our Monte Cristo property to be rapidly advanced by a company that is well financed and able to source the necessary funding required to put Monte Cristo into production. It not only recognizes the hidden value of this Nevada gold project, but it also allows Crown shareholders to continue to participate in its ongoing development through Crown's shareholdings in Argentium."

About Crown

Crown Gold, formed last year by the 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 resource at Monte Cristo of 3,158,347 tonnes at a grade of 3.02 g/t gold at a 0.5 g/t gold cut-off, a total of 306,000 ounces. At Sugarloaf Peak, the Tip Top Mine has a 43-101 compliant indicated resource of 353,100 tonnes at a grade of 3.27 g/t gold at a 1.0 g/t gold cut-off, a total of 37,000 ounces. In addition, an inferred resource amounts to 293,500 tonnes at a grade of 2.47 g/t gold, also at a 1.0 g/t cut-off, a total of 23,000 ounces.

Crown's three other Nevada properties, Blue Sphinx, Gold Springs and Black Warrior, all contain well-defined and essentially, undrilled, targets. Gold Springs, has silver values in surface rock samples that range between 575 g/t (16.8 opt) and 350 g/t (10.2 opt) silver along a 4 km prominent vein outcrop. A second, poorly exposed, sub parallel vein to the east assayed 33 g/t gold over a 1.3m true width channel sample. Recent work at Black Warrior confirmed silver values as high as 14.4 ounces per ton (496 grams/tonne) with 0.07 opt (2.4 g/t) gold over 0.6 meter in channel chip sampling (see news release of June 7, 2011). The work was undertaken to confirm the previous reports of grades of 20 opt (685 g/t) silver in hand-sorted ore sent to the old Sunshine mill at Silver Peak in 1983. (The 1983 reports are not compliant with the requirements of NI 43-101 and, accordingly, cannot be relied upon.)

In Ontario, surface work is now proposed at Crown's McKenzie Island property at Red Lake to evaluate the gold bearing, east-west striking, McAndrews trend where sheeted quartz carbonate veining is described in old workings. Drilling along the north west striking Bishops Break trend earlier this year yielded promising results, including 75 g/t (2.2 opt) gold over 0.91m (3 feet). In northeastern Ontario, Crown holds three other strategic land positions including one adjacent to Trelawney's Cote Lake discovery near Gogama.

Larry Kornze, Senior Consultant to Crown Gold and a registered Professional Engineer/Geologist, is designated as the Qualified Person under National Instrument 43-101 and has reviewed and approved the contents of this news release.

For more information please see the Crown website at

This press release contains forward-looking statements within the meaning of applicable Canadian and U.S. securities regulation, including statements regarding the future activities of the Company. Forward-looking statements reflect the current beliefs and expectations of management and are identified by the use of words including "will", "anticipates", "expected to", "plans", "planned" and other similar words. Actual results may differ significantly. The achievement of the results expressed in forward-looking statements is subject to a number of risks, including those described in the Company's management discussion and analysis as filed with the Canadian securities regulatory authorities which are available at Investors are cautioned not to place undue reliance upon forward-looking statements.

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.

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