Expedition Mining Inc.
TSX VENTURE : EXU

Expedition Mining Inc.

March 05, 2012 09:15 ET

Expedition Mining Acquires Three Nevada Gold Properties

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 5, 2012) - Expedition Mining Inc. (TSX VENTURE:EXU) (the "Company") is pleased to announce it has entered into two option agreements with Nevada prospector, Larry McIntosh, to acquire a 100% interest in three gold exploration properties located within the Walker Lane Mineral Belt. The properties are the Slate Mountain in Churchill County; and Jenny Hill and Black Hills in, Mineral County, Nevada.

President and chief executive officer, Ron Atlas, states, "These highly prospective properties are located in the State of Nevada which is consistently rated as one of the top ten jurisdictions worldwide for encouraging mining investment. Nevada hosts many world class gold deposits being exploited by major mining companies. The recent acquisition of Fronteer Gold Inc by Newmont for $2.3 billion demonstrates that junior companies conducting sophisticated and diligent exploration in Nevada can still make significant discoveries. We hope to emulate Fronteer."

SLATE MOUNTAIN PROPERTY

This property consists of 23 unpatented lode claims covering approximately 473 acres (190 hectares) and is 90 miles (145 kms) southeast of Reno, Nevada. The claim block is approximately 15 miles (24 kms) north of the Rawhide mine, a former open pit gold producer.

Rocks underlying the Slate Mountain claim block are part of an extensive north-south-trending, east-dipping metamorphic complex exposed over a distance of two miles (3.2 kms) along the eastern edge of the Slate Mountain range. Numerous anomalous gold values to 8.3 grams per tonne accompanied by up to 17% Cu have been collected from rock chips from the property. Several other elements are also highly anomalous with one outcrop sample reporting values of 5.4 grams per tonne gold, 246 ounces per tonne silver, 54 per cent lead, 830 parts per million (ppm) zinc, 1 per cent bismuth and 0.7 per cent copper.

A small circular granodiorite stock that crops out north of the claims is host to a set of narrow east-west-striking quartz-carbonate veins and veinlets containing chalcopyrite and molybdenite. Additionally, there is a past tungsten producer located approximately 1,000 feet (300 metres) north of the claim block.

The Slate Mountain claim block has never been drilled prior to Expedition's acquisition and the company plans on conducting exploration on the property in the winter months as weather permits.

JENNY HILL PROPERTY

This property consists of 25 unpatented lode claims covering approximately 515 acres (208 hectares) and is located 100 miles (161 kms) southeast of Reno, Nevada.

The Jenny Hill property is a sediment-hosted target and contains numerous gold values ranging up to 2.7 grams per tonne accompanied by a strong trace element geochemical signature indicating Carlin-style mineralization. Anomalous arsenic, antimony and mercury values are present in in 259 rock chip samples with mercury as high as 35 parts per million (ppm), arsenic up to 5,000 ppm and antimony values up to 355 ppm. Alteration types include strong silicification and well-developed hematite staining, decalcification and argillization along the west and northwest base of the hill where higher gold values are concentrated and where the sediments were originally more calcareous.

Host rocks include Triassic age thin-bedded calcareous to siliceous siltstone, conglomerate and narrow impure limestone beds intruded by a swarm of feldspar porphyry dikes and sills. Jenny Hill is bordered on the east by an extensive area of Tertiary age ash-flow tuff and a rhyolite dome complex.

There exists a strong magnetic high underlying the covered pediment west and northwest of the hill. Of the 174 samples collected from the western portion of Jenny Hill, the maximum gold value was 2,710 ppb with 2.5 ppb the minimum and a mean value of 260 ppb. The elevated gold numbers and low Ag/Au ratio, coupled with the mineralogy and alteration style, indicate that Jenny Hill is highly prospective for a sediment-hosted gold occurrence. Limited exposures of the gold-bearing material suggest the mineralization continues beneath covered areas which have not been tested to date.

BLACK HILLS PROPERTY

This property consists of 43 unpatented lode claims covering approximately 886 acres (358 hectares) and is approximately 100 miles (161 kilometres) southeast of Reno, Nevada. The property is located about two miles south of the Black Hills property. The property is situated on a major strand of the Walker Lane Fault and is midway between the past-producing Rawhide and Paradise Peak open pit gold mines in northeastern Mineral County.

The Black Hills property is considered to be an intrusion-related Cu-Au exploration target with widespread metallization and hydrothermal alteration indicative of an Iron Oxide Copper Gold (IOCG) system. Copper values to 6.8 per cent and gold values to >100g/t occur in a variety of settings including skarn, mineralized dikes, stockwork veining and a set of multiple flat veins offset by a later generation of high-angle veins. Host rocks on the property include Triassic-age siliceous siltstone, calcareous siltstone and massive limestone overlain by a flat-lying diorite sill and intruded by an array of dikes, sills and stocks.

The Black Hills property contains several large zones identified by soil and rock chip sampling that report highly anomalous copper and gold mineralization. This property is located in a region of Nevada where exploration work may be completed on a year-around basis.

Expedition's disclosure of a technical or scientific nature in this press release has been reviewed and approved by James Chapman P.Geo, who serves as a qualified person under the definition of National Instrument 43-101.

The Slate Project Agreement

The Slate Project agreement (the "Slate Agreement") with Larry L. McIntosh and Susan K. McIntosh (the "Owners") calls for lease payments to be made as follows:

Date Payment Amount
March 1, 2012 $10,000.00
September 1, 2013 15,000.00
September 1, 2014 20,000.00
September 1, 2015 25,000.00
September 1, 2016 30,000.00
September 1, 2017 35,000.00

and $35,000 on September 1 of each subsequent year, until the expiry of the lease on August 31, 2022.

Under the Slate Agreement, Expedition has the option to acquire 100% ownership of the mining claims, subject to a 2% NSR reserved for the Owners. In order to exercise its option under the option agreement and acquire the claims, the Company must make a payment of $250,000 at any time before August 31, 2022.

The Jenny Hill and Black Hills Agreement

The Jenny Hill and Back Hills agreement (the "JH & BH Agreement") with Larry L. McIntosh and Susan K. McIntosh (the "Owners") calls for lease payments to be made as follows:

Date Payment Amount
March 1, 2012 $20,000.00
September 1, 2013 20,000.00
September 1, 2014 25,000.00
September 1, 2015 30,000.00
September 1, 2016 35,000.00
September 1, 2017 40,000.00

and $40,000 on September 1 of each subsequent year, until the expiry of the lease on August 31, 2022.

Under the JH and BH Agreement, Expedition is granted the option to acquire 100% ownership of the two groups of mining claims which comprise the property, namely the Black Hill claim group and the Jenny Hill claim group, subject to the 2% NSR reserved for the Owners. In order to exercise its option under the option agreement and acquire the claims, the Company must make a payment of $250,000 for either the Black Hills claim group or the Jenny Hill claim group, OR a payment of $400,000 for both groups of claims at any time before August 31, 2022.

Shares

In consideration of the Mining Lease and Option Agreement, Expedition shall issue and deliver to the Owners 50,000 common shares on signing and 50,000 common shares on or before September 1, 2013.

NSR

The Slate property is subject to a 2% NSR. Expedition has the option to purchase one-half (1/2) of the Royalty representing one percent (1%) of the Net Smelter Return for a purchase price of One Million Dollars ($1,000,000.00).

The Jenny Hill and Black Hills properties are subject to a 2% NSR. Expedition has the option to purchase one-half (1/2) of the Royalty representing one percent (1%) of the Net Smelter Return for a purchase price of One Million Dollars ($1,000,000.00).

The transactions are subject to regulatory approval.

Expedition Mining Inc. (TSX VENTURE:EXU) is a publicly held Canadian exploration company focused on acquiring, exploring and developing gold properties located in favourable geo-political climates. The company is led by a highly skilled, experienced board and management team with significant successes in managing early stage mineral exploration companies. For additional information concerning Expedition Mining Inc. or its various exploration projects please visit Expedition's website at www.expeditionmining.com.

CAUTION REGARDING FORWARD LOOKING STATEMENTS:

This news release contains "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities legislation. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "can", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Expedition Mining to be materially different from those expressed or implied by such forward-looking statements, including but not limited to: risks related to the exploration and potential development of the Brew property, the actual results of current exploration activities, conclusions of economic evaluations, changes in project parameters as plans continue to be refined, future prices of gold. Although Expedition Mining has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Expedition Mining does not undertake to update any forward-looking statements that are incorporated by reference herein, except in accordance with applicable securities laws.

ON BEHALF OF THE BOARD:

Ronald Atlas, President & Chairman of the Board

Expedition Mining Inc.

Standard & Poor's Listed

Issued Share Capital: 56,710,318

Neither the 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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