Golden Oasis Exploration Corp.

Golden Oasis Exploration Corp.

March 27, 2007 10:30 ET

Golden Oasis Exploration Corp.: Empress Project Near Goldfield, Nevada Optioned

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - March 27, 2007) - Golden Oasis Exploration Corp. (TSX VENTURE:GOT) (the "Company" or "Golden Oasis") is pleased to announce that it has optioned the Empress Project located in Esmeralda County, Nevada approximately 26 miles south of Goldfield in the Tokop mining district.

Under its Option Agreement with Minquest Inc. of Reno, Nevada, the Company must reimburse Minquest acquisition costs of US$6,000 in option payments made by Minquest to the owner of the property and US$2,000 in mapping and sampling costs. Minquest will retain a 3% net smelter royalty. The Company can earn a 100% interest in the Property (subject to the 3% NSR) by making property payments in the aggregate amount of US$546,000 to the underlying owner of the property over a period of four years. The Company has the right to purchase up to one half of the royalty in the property on the basis of $2 million per each 1% of royalty.

The Empress Property lies within the southern portion of the Walker Lane mineral belt. Significant mines within this portion of the Walker Lane include Tonopah, Goldfield and Silver Peak. Goldfield, the closest to the Empress Property, produced over 4 million ounces of high-grade gold (+0.3 oz/ton).

Covered by 54 unpatented mining claims totaling approximately 1,080 acres or 1.7 square miles, the project contains two historic mines, the Empress and the Wonder. Discovered in the 1860's, below the seven adits that make up the Empress Mine, are the remnants of a mill and several stone foundations. Little recorded production is reported for the district, although the Gold Point district, immediately to the north, produced approximately $1,000,000 in gold and silver (the dollar value at the time of sale in the 1900's). The Wonder Mine, located 2,000 feet southwest of Empress, was worked in the 1930's as judged by artifacts.

Mineralization in the project area occurs in quartz veins hosted by granitic rocks of the Sylvania pluton. At least three separate east-west trending, steeply dipping quartz veins are exposed on the property. Golden Oasis has completed an initial mapping and sampling program of the workings. With a few exceptions, the adits of the Empress Mine are caved allowing only partial inspection. The Wonder Mine, however, has excellent access and was extensively mapped and sampled. In the Wonder adit, the vein is a typical pinch and swell quartz vein with widths from under 6 inches to 10 feet within a steeply south dipping fault zone. Although difficult to sample because the wider portions of the vein were mined out above the level, several samples were taken along the 500 feet of exposed vein. The results are encouraging in that most assayed above 0.3 oz/ton gold. Two of 11 samples taken assayed +1 oz/ton with the high being 1.848 oz/ton over 2.0 feet. The highest silver value in the Wonder sampling is 3.18 oz/ton. Additional results are pending.

Enough sampling has been done to indicate at least two high-grade gold/silver vein targets at the Empress project. Follow-up mapping and sampling of the Wonder and Empress workings will be completed shortly and drill targets selected. Initial core drilling of the Wonder vein is planned within three months. Drilling of the various ore shoots is planned throughout the year to establish the grade and size potential of the veins.

Richard Kern, the President of the Company, also holds a 50% interest in Minquest, and accordingly the transaction is deemed to be a related party transaction under OSC Policy 61-501 (the "OSC Policy"). Mr. Kern's shareholdings in the Company will not change as a result of this transaction. The option agreement was reviewed and approved by the board of directors, with Mr. Kern abstaining from voting on the resolution. The Company did not obtain a formal valuation. The board of directors of the Company determined that the fair market value of the option agreement and the fair market value of the consideration to be received by Mr. Kern for the option agreement is less than $2.5 million, and is relying on the exemption from the requirements to obtain a formal valuation and to obtain minority shareholder approval set out in sections 5.5(2) and 5.7(2), respectively, of the OSC Policy. The option agreement is subject only to the approval of the TSX Venture Exchange, which is expected to be received within 21 days. The board of directors is of the view that the terms of the option agreement are favorable to the Company, present limited risk to the Company, and it is reasonable to proceed with the option agreement upon receipt of TSX Venture Exchange approval.

Richard Kern (P.Geo), President of Golden Oasis, is the Company's qualified person on the project as required under NI 43-101, and has prepared the technical information contained in this press release.

Golden Oasis is dedicated to the principles of environmentally sound mining practices and believes that environmental stewardship and mining can co-exist. For details on the Company and its properties, see the prospectus of the Company dated February 9, 2006, available on SEDAR at


Robert Eadie, Chief Executive Officer and Director

The TSX Venture Exchange has not reviewed nor does it accept responsibility for the adequacy or accuracy of this press release.

Contact Information

  • Golden Oasis Exploration Corp.
    Robert Eadie
    Chief Executive Officer and Director
    (604) 602-4935 or Toll Free: 1-866-602-4935
    (604) 602-4936 (FAX)