Metallic Ventures Gold Inc.

Metallic Ventures Gold Inc.

July 19, 2005 08:30 ET

Metallic Ventures Gold Inc. Signs Agreement with Geologix (U.S.) Inc. to Explore Scraper Springs Project in Nevada; Scraper Springs Project, Elko County, Nevada

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - July 19, 2005) - Metallic Ventures Gold Inc. (TSX:MVG) is pleased to announce that its wholly owned subsidiary Metallic Ventures (U.S.), Inc. has signed an Exploration and Option Agreement with Geologix (U.S.) Inc., a wholly owned subsidiary of Geologix Explorations Inc. (TSX VENTURE:GIX), to explore the Scraper Springs Project in Elko County, Nevada.

The agreement gives Geologix the exclusive option to acquire a 60% interest in the Scraper Springs Project by spending (US)$1,500,000 in exploration expenditures by December 31, 2010.

Geologix will spend (US)$375,000 (firm) by December 31, 2006 and a minimum of (US)$300,000 per year thereafter in order to maintain the agreement. Geologix may also acquire an additional 10% interest in the project by spending an additional (US)$1,000,000 in exploration expenditures by December 31, 2012.

Geologix may terminate the Agreement at any time after spending the initial (US)$375,000 by providing 30 days written notice to Metallic.

When Geologix has exercised its option to acquire either a 60% or 70% interest in the project, Metallic and Geologix will establish a joint venture in respect of the project, of which Geologix will be the operator.

Commenting on the Agreement, Jeffrey Ward, CEO said, "We are very pleased to have the experienced Geologix team involved in the Scraper Springs Project and believe they will determine and test the full potential of the project. This Agreement will also allow the Metallic geologic and operations staff to continue its focus on the advancement of our Converse and Goldfield Projects."

Project Background

The Scraper Springs Project is located approximately 60 miles northwest of Elko, Nevada and seven miles northeast of Newmont's Ken Snyder Mine. Metallic owns or controls approximately 7,800 acres (12.2 square miles) of land in the Scraper Springs Project area. The land package consists of a combination of wholly owned unpatented mining claims, leased mining claims, and leased fee lands. The project is situated on a regional gravity high and the northwest projection of the Carlin Gold Trend.

Geologists have identified a granodiorite intrusive that has been dated at 38.9 Ma which is similar in age and composition to intrusives important to the core of the Carlin Trend where over 100 million ounces of gold from past and future mining by various companies have been identified. Geologic mapping centered on the intrusive has identified a window of Ordovician Vinini Formation and Pennsylvanian-Permian Overlap Sequence, that have been hydrothermally altered by the intrusive event. Surrounding this window are altered volcanic flows dated at 39-40 Ma which are contemporaneous with the intrusive event. Detailed geologic mapping, ground magnetics, and soil and rock sampling have identified numerous surface gold anomalies that are accompanied by a trace element suite typical of Carlin-type deposits. Silicification has been mapped over a wide area in potential sedimentary and volcanic host rocks associated with the intrusive and fault zones.

During 1993 an unrelated company drilled 10 holes to the east of the intrusive testing associated gold anomalies while not recognizing the intrusive itself. One of these holes SS-1, penetrated 75 feet averaging 0.023 opt Au at a depth from 325 to 400 feet (results are not 43-101 compliant). This hole was in silicified Vinini siltstones near the intrusive contact. A 12 hole reverse circulation drilling program was completed in 2004 and 6 of the holes encountered weakly anomalous gold mineralization.

The results of geologic mapping, geochemistry, geophysics, and RC drilling completed in the project area to date demonstrate the potential for the discovery of sediment-hosted gold mineralization typical of Carlin-type gold deposits throughout northern Nevada.

About The Company

Metallic Ventures Gold Inc. is an Ontario incorporated gold company with its common shares listed and posted for trading on the Toronto Stock Exchange under the trading symbol MVG. The Company is focused on major past-producing mining districts in Nevada and controls two advanced projects with considerable near-term production potential: Converse and Goldfield. The Converse Project is currently one of the largest undeveloped gold resources in Nevada and is located in Humboldt County on the northern end of the Battle Mountain trend near Newmont's Lone Tree Mine and Glamis' Marigold Mine. The Goldfield property is located approximately 270 miles southeast of Reno. The Company also has other exploration projects in the western U.S. and Nevada that are currently being offered for joint venture to qualified companies. The Company concentrates on deposits that can be exploited at low cost throughout the gold price cycle.

The Company continues to have no debt and has cash of approximately US$20,000,000 and is well funded to advance the Goldfield Project and Converse Projects while developing its other projects through joint ventures.

Qualified Person

These results have been prepared under the guidance of Jeffrey Ward, a mining engineer and the Chief Executive Officer of the Company, who is a "qualified person" as such term is defined in NI 43-101 with the ability and authority to verify the authenticity and validity of this data.

Cautionary Note To U.S. Investors

The United States Securities and Exchange Commission (the "SEC") permits U.S. mining companies, in their filings with the SEC, to disclose only those mineral deposits that a company can economically and legally extract or produce. We use certain terms on our website and in our press releases, such as "measured", "indicated", and "inferred" "resources", that are recognized and required by Canadian regulations, however, the SEC guidelines strictly prohibit U.S. companies from including these terms in their filings with the SEC. We advise U.S. investors that while these terms are recognized and required by Canadian regulations, the U.S. Securities and Exchange Commission does not recognize them. U.S. investors are cautioned not to assume that any part or all of the mineral deposits in these categories will ever be converted into reserves or will be economically or legally minable.

Certain statements included herein constitute "forward looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995. Such forward looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of Metallic Ventures Gold or of the gold mining industry to be materially different from future results, performance or achievements expressed or implied by those forward looking statements. These risks, uncertainties and other factors include, but are not limited to, changes in the worldwide price of gold or certain other commodities and currencies and the risks involved in the exploration, development and mining business. These factors are discussed in greater detail in Metallic Ventures Gold's most recent Annual Information Form and Management's Discussion and Analysis of Financial and Operating Results" on file with the Canadian provincial securities regulatory authorities.

Contact Information

  • Metallic Ventures Gold Inc.
    Jeffrey Ward
    Chief Executive Officer
    (775) 826-7567
    Metallic Ventures Gold Inc.
    Edward Devenyns
    VP Corporate Development
    (775) 826-7567