Molycor Gold Corp.

Molycor Gold Corp.

April 07, 2006 16:06 ET

Molycor Acquires Ag, Pb, Zn Claims in Eureka Area, Nevada

WHITE ROCK, BRITISH COLUMBIA--(CCNMatthews - April 7, 2006) -

Molycor Gold Corp. (TSX VENTURE:MOR)(PINK SHEETS:MLYFF)(FWB:M1Y) is pleased to announce the acquisition of 100% interest in the Silverado property located on Silverado Mountain. The Silverado property is in the Pinto Mining district and consists of 169 claims situated at the southern end of the gold-rich Battle Mountain-Eureka Trend in Nevada.

Barrick's Archimedes Mine (the Ruby Hill Mine) is located 12 miles to the northwest and the recently discovered (11.8 grams per tonne gold over 65 ft.) Staccato Gold Resources is located 8 miles to the west.

The Pinto District, historically a silver-lead producer with production dating back to 1885, is geologically similar to the nearby Eureka Mining district. Recorded production is approximately 53.6 tonnes (1.65 million oz) of gold, 1,200 million tonnes (39 million oz) of silver and 283,575 million tonnes (625 million lbs) of lead during the period 1866-1964 (Nolan and Hunt, The Eureka Mining District, Nevada: USGS Prof. Paper 406 78 p). The more recent discoveries of Carlin-type gold deposits in the district have spurred renewed interest in the potential of the area.

The Silverado project is underlain by mainly mid-Paleozoic carbonate rocks of the Nevada and Devils Gate limestone formations. Minor exposures of Joana Limestone, Pilot Shale and Chainman Shale occur on the range front and on the pediment under thin alluvial cover. Rocks in the district have been deformed by a series of thrust faults which have in turn been folded into a series of north-south trending anticlines and synclines. Later, normal faulting has added to the structural complexity of the district.

Mineralization occurs as irregularly shaped carbonate-replacement deposits. Silver values up to 23 ounces with significant lead and zinc values are reported from grab samples on old workings in the area. Additionally, potential for Carlin-type gold mineralization similar to Barrick's Archimedes deposit, 12 miles to the northwest, exists on the range front where rocks typical of Carlin-type host rocks (Pilot Shale and Chainman Shale) have been mapped by USGS geologists.

Reconnaissance mapping and detailed rock sampling will commence immediately to identify alterations and gold-indicators associated with known altered zones associated with gold on both the Silverado and the Hot Dog Ridge/TKO properties near Ely.

The 100-per-cent interest of the 169 claims (subject to a 3-per-cent net smelter return royalty) is being acquired from James Marin and Tim Neal for $20,000 (U.S.) and the issuance of 300,000 free trading common shares of Molycor Gold, subject to a four-month and one day hold period from the date of issue. This transaction is subject to regulatory approval.

This press release has been reviewed by Dick Addison, P.Eng., a Qualified Person pursuant to National Instrument 43-101.

On Behalf of Management

Edward Lee, President and Director

The TSX-Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

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