Manicouagan Minerals Inc.

Manicouagan Minerals Inc.

April 16, 2009 08:30 ET

Manicouagan Minerals Acquires Option to Earn Up to 70 Percent in Three Gold Exploration Properties in the Pickle Lake Area, Ontario

TORONTO, ONTARIO--(Marketwire - April 16, 2009) - Manicouagan Minerals Inc. (TSX VENTURE:MAM) announced today that that it has entered into an agreement with Trillium North Minerals Ltd. ("Trillium North") pursuant to which it can earn up to a seventy percent interest in three gold exploration properties in the Pickle Lake Area, Ontario.

The Pickle Lake Properties consist of three non contiguous claim groups known as the Pickle Lake East Property, the Kasagiminnis Property, and the Dorothy-Dobie Lake Property. Collectively the properties cover an area of approximately 7741 hectares or 77.41 square kilometres. The properties are located in the Pickle Lake Greenstone Belt, which is part of the prolific Uchi Geological Subprovince having historically produced over 30 million ounces of gold. The Pickle Lake area includes four past producing mines: Golden Patricia (0.45Moz at 19.9 gpt Au), Dona Lake (0.21Moz at 8.6gpt), Central Patricia (0.65Moz at 12.0gpt) and Pickle Crow (1.45Moz at 16.1gpt). A sketch showing the location of the properties is attached and is also available at

The Pickle Lake East Property adjoins the past producing Pickle Crow Property that is currently being evaluated by PC Gold Inc. The claims were acquired by Trillium North to cover what is believed to be an area hosting the possible extension of the gold bearing trend that includes the Central Patricia and Pickle Crow Mines.

The Dorothy-Dobie Lake Property covers the northwest extension of the gold bearing structure that hosts the past producing, high grade, Golden Patricia Mine and includes several gold prospects which contain non NI 43-101 compliant gold resources. Drilling in late 2007 by Trillium North to test for the extension of the Golden Patricia Vein returned values including 153.5 grams per tonne gold (4.48 ounces per ton) over a drilled width of 0.43 metres (see Trillium North Minerals Ltd. Press Release dated December 19, 2007).

Previous work on the Kasagiminnis Property has outlined a gold bearing iron formation with a strike length of over 500 metres. Historical drill results included:

19.9 grams per tonne gold over 1.4 metres and 48.0 grams per tonne gold over 1.3 metres from hole KAS-87-6. These results are based on public records and have yet to be verified by a Qualified Person on behalf of Manicouagan.

Manicouagan can earn a 51 percent interest in the Pickle Lake Properties by spending $1,000,000 on the properties over the next three years of which a minimum of $250,000 must be spent in year 1 of the agreement.

After earning its 51 percent interest in the properties, Manicouagan can increase its interest from 51 percent to 70 percent by funding the next $1,500,000 on the properties.

Once Manicouagan has completed earning its interest in the properties a joint venture will be formed. Dilution is provided for if a party fails to fund its pro-rata share of joint venture expenditures. If either party is diluted to a 10 percent interest or less, its interest in the properties and the joint venture will convert to a 2 percent Net Smelter Return royalty ("NSR"). The remaining party will have the option of acquiring one half of the NSR by paying the sum of $1,000,000.

Manicouagan and Trillium North have also agreed to a one kilometre area of interest from the outer boundaries of the current Pickle Lake East and Dorothy-Dobie Lake properties and 1.6 kilometres from the current outer boundary of the Kasagiminnis Property.

The Kasagiminnis and portions of the Dorothy-Dobie Lake properties are subject to underlying option agreements with a single Vendor. To maintain the underlying option agreements in good standing Manicouagan has paid $45,000 to the Vendor. To maintain both the underlying agreements and the agreement with Trillium North in good standing Manicouagan will have to make an additional payment of $45,000 to the Vendor on or before April 15, 2010.

The underlying option agreements also provide the Vendor with a 2 percent NSR of which one half can be acquired by payment of the sum of $1,000,000 payable to the Vendor. The Dorothy-Dobie Lake properties are each the subject of advance royalty payments of $50,000 per year for three years commencing April 30, 2012.

Manicouagan has also agreed, subject to regulatory approval, to issue 250,000 common share purchase warrants to Trillium North concurrent with its next equity financing. When issued the warrants will have an exercise price equivalent to those warrants issued in connection with the next equity financing completed by Manicouagan and will have a term of two years.

Mr. Bruce Mackie, P.Geo., of Bruce Mackie Geological Consulting Services has reviewed and verified the technical content of this press release on behalf of Manicouagan Minerals and is a "Qualified Person" as defined in National Instrument 43-101.

The agreement entered into with Trillium North is a result of Manicouagan's previously announced program of actively identifying and reviewing Canadian gold properties to add to its diversified portfolio of Canadian base and precious metal assets including the Brabant Lake Zinc deposit in Saskatchewan, the Mouchalagane Nickel/Copper/PGE project in Quebec and the HPM/Forgues Nickel/Copper/Cobalt project in Quebec (see MAM Press Release dated March 2, 2009).

Additional information about Manicouagan Minerals and its exploration projects can be found at

All statements other than statements of historical fact, included in this release, including, without limitation, statements regarding potential mineralization and reserves, exploration results, and future plans and objectives of the Company, are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's expectations are exploration risks detailed herein and from time to time in the filings made by the Company with securities regulators.

To view the map associated with this release, please visit the following link:

The TSXV has not reviewed this news release and does not accept responsibility for the adequacy or accuracy of this news release. The TSXV has neither approved nor disapproved the contents of this news release.

Contact Information