SOURCE: Lateegra Gold Corp.

April 21, 2008 03:05 ET

Lateegra Announces Phosphate Acquisition

VANCOUVER, BC--(Marketwire - April 21, 2008) - Lateegra Gold Corp. (the "Company") (TSX-V: LRG) (FRANKFURT: LTG) is pleased to announce the acquisition of a 100% interest in the "Fernie" claims, consisting of 117 claims encompassing 56,000 hectares in the Fernie Formation Phosphate Belt, located near Fernie, British Columbia. The Fernie claims encompass two important potential deposit areas known as the Line Creek and Barnes Lake areas.

It is important to note that these reports, being historic in nature, cannot be verified by the Company, do not comply with modern reporting standards (NI 43-101), and therefore should not be relied upon.

The Fernie property is underlain by the Fernie Formation Phosphate Belt, characterized in numerous Bulletins published by the B.C. Ministry of Mines and Petroleum.

From a previous report 1987-16 Phosphate in South Eastern BC issued by the same author and published by the BC Ministry of Mines and Petroleum comes the following summary of the Fernie Formation. It is important to note that the summary figures contained in this excerpt apply to a large area, a portion of which is covered by the Fernie claims.

"Phosphate was deposited as a single bed or as two beds separated by phosphatic shale. This phosphatic unit extends throughout the basin and is consistently at least 1 to 2 metres thick and reaching thicknesses of 2 to 3 metres locally. As much as 8.4 billion tonnes of phosphate rock may have been deposited, but less than 5 per cent of this can be considered a potential resource. Resource potential is estimated to be 400 million tonnes with a grade between 11 and 29 per cent P2O5 averaging approximately 20% phosphate. A down-dip extension of 300 metres has been used as a practical mining depth in this calculation."

The following excerpt is taken from Bulletin 98 "PHOSPHATE DEPOSITS IN BRITISH COLUMBIA" By S. Butrenchuk, P.Geo, published by the British Columbia Ministry of Employment and Investment, Energy and Minerals Division, Geological Survey Branch:

"In the west Line Creek area the basal phosphate can be traced for a strike length of 15 kilometres, in strata that dip 40 to 75 degrees easterly. It varies in thickness from less than 1 metre south of Line Creek, to more than 3 metres at Mount Lyne. Phosphate content ranges from a low of 3.7% P205 in a diamond-drill hole, to a high of 23.7% P2O5 across 1.6 metres in a backhoe trench (Hannah, 1980). At Mount Lyne the phosphorite averages 22.9% P205 across 2 metres or 19.8% P205 across 3 metres.

Crows Nest Resources Ltd. calculated a reserve of 972 800 tonnes to a depth of 30 metres in the west Line Creek area, based on a strike length of 5,850 metres and an average thickness of 2 metres (Hannah, 1980). The resource potential of the Line Creek area is estimated to be in excess of 25 million tonnes with a grade of approximately 20% P2O5, assuming a strike length of 15 kms, an average thickness of 2 metres and a depth of 300 metres. The estimated grade is based on surface samples and therefore could be lower depending on how much weathering of the phosphate has taken place.

In the Barnes Lake area phosphorite is exposed along the limbs of a sequence of folds. The phosphate resource potential for the Fernie Formation in this area is estimated to be 7 million tonnes to a depth of 100 metres, based on a 25.5-kilometre strike length and an average thickness of 1 metre. An additional 4.2 million tonnes may be available to the east of the Corbin logging road."

The newly acquired Fernie property encompasses the above noted areas.

Terms of the acquisition are the following:

$50,000 on signing of the agreement (paid);

$350,000 cash, 1,000,000 common shares of the Company and a share purchase warrant to purchase an additional 1,000,000 common shares of the Company at a price of $0.35 per share with an expiry date of April 18, 2010 upon TSX Venture Exchange approval of the acquisition;

$400,000 within 30 days of the Company successfully completing a financing (terms of which will be announced on or about the date of TSX Venture Exchange approval);

$400,000 within 120 days of the Company successfully completing a financing (terms of which will be announced on or about the date of TSX Venture Exchange approval);

$400,000 within 240 days of the Company successfully completing a financing (terms of which will be announced on or about the date of TSX Venture Exchange approval);

1,000,000 common shares of the Company 360 days following TSX Venture Exchange approval of the transaction;

(any shares or share purchase warrants issued will be subject to TSX Venture Exchange hold periods).

The Vendor retains a 2% Net Smelter Royalty.

A finders fee will be payable on this transaction in accordance with TSX Venture Exchange policy.

The Company intends to commence a work program as soon as possible in order to verify sample data, prepare for a winter/spring drill program, and to complete a NI 43-101 compliant report.

ON BEHALF OF THE BOARD OF DIRECTORS
"Chris Verrico," CEO and Director

THE TSX VENTURE EXCHANGE HAS NOT YET REVIEWED AND DOES NOT TAKE RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THE CONTENT OF THIS NEWS RELEASE

Cautionary note: This report contains forward looking statements, particularly those regarding cash flow, capital expenditures and investment plans. Resource estimates, unless specifically noted, are considered speculative. The company has not filed a National Instrument 43-101 report on any property, but will do so as soon as the information is available. Any and all other resource or reserve estimates are historical in nature, and should not be relied upon. By their nature, forward looking statements involve risk and uncertainties because they relate to events and depend on factors that will or may occur in the future. Actual results may vary depending upon exploration activities, industry production, commodity demand and pricing, currency exchange rates, and, but not limited to, general economic factors. Cautionary Note to US investors: The U.S. Securities and Exchange Commission specifically prohibits the use of certain terms, such as "reserves" unless such figures are based upon actual production or formation tests and can be shown to be economically and legally producible under existing economic and operating conditions.

Contact Information

  • Contact information:
    Chris Verrico
    CEO
    604-669-9330