Masuparia Gold Corporation

Masuparia Gold Corporation

April 02, 2012 09:30 ET

Masuparia Announces Expansion of LRG JV with Golden Band Resources

VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 2, 2012) - Masuparia Gold Corporation (TSX VENTURE:MAS) ("the Company") and Golden Band Resources (TSX VENTURE:GBN)(OTCQX:GBRIF) are pleased to announce the expansion of their joint venture in the La Ronge Gold Belt of Saskatchewan. Using their existing Greywacke Joint Venture Agreement as basis for the expanded La Ronge Gold Joint Venture (LRG JV), a Memorandum of Understanding (MoU) was signed effective March 15, 2012 that will lead to the inclusion of the Preview Lake and North Lake properties, with participating interests being 50:50 in all three properties.

Ronald K. Netolitzky, who is both Golden Band's Chairman and Masuparia's President and CEO, stated, "I am delighted that the independent directors of these two companies, working with the respective management teams, have arrived at an agreement that will fulfill the objectives of both companies. Having the long-term strategic focus I have held for the La Ronge Gold Belt throughout the creation of Golden Band and that I am now applying with Masuparia, there are excellent synergies between them to balance both the near- and long-term exploration and development needs of these projects. Future success in the Belt will clearly result from on-going exploration - coupled with the ability to monetize the exploration results. Sharing the early-stage exploration and the development work between these two companies makes very good sense. This expanded joint venture is especially important given the recent assays received by Golden Band from Komis, and from other recent news in the Belt, that demonstrate bulk tonnage targets are now recognized as having very good exploration potential. One concern expressed by some regarding the La Ronge Belt is that there are no big deposits - this bulk-tonnage potential may well be a game changer for exploration in the Belt."

With the recent changes in Masuparia's corporate structure, it has the ability now to be not only an active partner in the JV, but to also serve as a well-experienced player in the exploration of the LRG JV properties. Ron Netolitzky, with his background not only as a geologist with experience that started in the 1960s in the La Ronge camp, but also with his notable successes elsewhere such as Eskay Creek, Snip, Gualcamayo, and, most recently, Hammond Reef, has assembled several key geologists within his Masuparia team to lead the LRG JV during the exploration-stage as Operator. These include John Zbeetnoff, P.Geo., and Jim Sparling, P.Geo.

Mr. Zbeetnoff has been involved with many successful advanced-stage exploration projects, most-recently with Brett Resources where he served as Chief Geologist and was instrumental in the discovery of the South Zone at Hammond Reef. Mr. Sparling started his career with HudBay Minerals where he was involved in the discovery of four orebodies, all of which became mines. For the past ten years, he has been involved with junior gold exploration companies. His experience includes high-grade gold vein systems as well as low-grade bulk tonnage projects.

Immediate plans for exploration of the La Ronge Gold JV will see the review and compilation of the considerable historical data on all three properties, followed by ground truthing plus mapping and prospecting this summer followed by drilling in the winter of 2012-13, as warranted. The Greywacke deposit has been described in Masuparia Gold news releases, particularly those of 2008, and during the coming year will have an aggressive exploration program which will focus on expanding the NI43-101 compliant resources previously defined and will attempt to better define the bulk tonnage potential of the Greywacke horizon. The objectives for exploration in the LRG JV are to fast-track key projects so that they are advanced quickly to the development stage, at which point, Golden Band will become the Operator. The deposit types to be focused on are both the high-grade, vein-type gold that has been the objective of all historical work in the La Ronge camp, and the newly recognized bulk tonnage potential that has been clearly demonstrated to be a viable exploration target. The wealth of historical exploration data, including drillcore, will provide immediate information for both exploration models and will be used to begin the JV's work. Information about the North Lake Project and on the Preview Lake Project was contained in news releases by Golden Band Resources on June 21, 2011 and August 23, 2011, respectively.

The MoU states that the LRG JV is to be an umbrella joint venture with different projects in it held on a 50:50 basis by Golden Band and Masuparia. Key terms of the proposed JV are: Masuparia is to be the operator of the joint venture during the exploration phase and Golden Band to be the operator of a particular project once a decision is made by the LRG JV to take that project to development; the area of interest will consist of the existing area of interest set forth in the existing Joint Venture Agreement and any property south of the Churchill River; in consideration for 50% of Golden Band's interest in the Preview Lake properties, Masuparia will pay to Golden Band the sum of $275,000 and issue 75,000 common shares to Golden Band in the capital stock of Masuparia; Masuparia will pay 100% of the exploration costs in the first year's exploration program, with a minimum expenditure of $300,000; thereafter each party will pay its pro rata share of all expenditures relating to such property. Regarding the North Lake properties, Masuparia will earn a 50% participating interest in these properties by paying Golden Band $150,000 and 25,000 common shares in the capital stock of Masuparia, and will also pay the first $100,000 in exploration costs; Masuparia will assume its 50% share of any future exploration costs and expenses relating to these properties as well as Golden Band's earn-in costs from the optionor.

In recognition of the strategic role that Golden Band plays in this exploration opportunity for Masuparia, it has been granted for a period of three years, and subject to Exchange and board approval, an option to acquire 2.5 million common shares of Masuparia at a price of $0.35 per share.

The MoU is subject to approval of the final amended Joint Venture agreement, and the approvals of the respective boards of directors and the TSX Venture Exchange. The definitive joint venture agreement is expected to be concluded by April 30, 2012.

About Masuparia

Masuparia is a Canadian mineral exploration company focused on grassroots exploration projects with world class potential. Masuparia currently has an exploration project in Saskatchewan, the Greywacke Lake gold project which is believed to have bulk mineable potential, is in a JV with Golden Band Resources and is at an advanced stage with several known high-grade gold-bearing zones. The Resource estimate on the Greywacke North Zone is 184,000 tonnes at 8.4 g/t Au (NI 43-101, Wardrop 2008).

On Behalf of the Board of Directors

Masuparia Gold Corp.

Ron Netolitzky, President & CEO

Neither TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Masuparia Gold Corporation
    Tony Perri
    Investor Relations
    604-669-2543 (FAX)

    Wani Capital
    Raju Wani