Metallic Ventures Gold Inc.

Metallic Ventures Gold Inc.

July 19, 2005 08:30 ET

Metallic Ventures Gold Inc. Signs Agreement with Royal Standard Minerals Inc. to Explore Mustang Canyon Project in Nevada; Mustang Canyon Project, Esmeralda 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 Nevada Inc. has signed an Exploration and Option Agreement with Royal Standard Minerals Inc. to explore the Mustang Canyon Project in Esmeralda County, Nevada.

The Agreement gives Royal Standard the exclusive option to acquire a 50% interest in the Mustang Canyon Project by spending $20,000 per year in exploration expenditures with the objective to identify a measured resource by June 30, 2010. Upon identification of a measured resource and completion of a 43-101 report, Royal Standard will earn a 50% interest in the project.

Royal Standard may terminate the Agreement at any time after spending the initial $20,000 by providing 30 days written notice to Metallic. When Royal Standard has exercised its option to acquire a 50% interest in the project, Metallic and Royal Standard will establish a Joint Venture in respect of the project on a 50/50 basis. Further expenditures on the Mustang Canyon Project will then be made by the Joint Venture. Royal Standard will be the operator of the Joint Venture as long as it has at least a 50% interest in the Joint Venture.

Project Background

The Mustang Canyon project is located along the northeast flank of the White Mountains in southwestern Esmeralda County. The project consists of 27 unpatented claims that are leased. The target is a volcanic-hosted, low sulfidation, quartz-adularia-type bonanza vein deposit. Data compilation, fieldwork (mapping and sampling), and geologic modeling have defined two priority drill targets (Stallion and Filly), as well as several other prospective areas. Of the 245 rock samples collected, most contain moderately to strongly anomalous concentrations of precious metals. The geology, geochemistry and modeling support the interpretation that Mustang Canyon may represent the upper levels of a largely untested bonanza vein system hosted in a volcanic flow-dome complex.

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