Prosper Gold Corp.
TSX VENTURE : PGX

Prosper Gold Corp.

March 01, 2016 08:55 ET

Prosper Gold Corp. Acquires Extensive Land Position Surrounding Recently Optioned High Grade Ashley Gold Mine & Young Davidson Mine Area-Ontario

QUESNEL, BRITISH COLUMBIA--(Marketwired - March 1, 2016) - Prosper Gold Corp. ("Prosper Gold" or the "Company") (TSX VENTURE:PGX) is pleased announce that it has entered into a definitive agreement (the "Option Agreement") with Alexandria Minerals Corporation (TSX VENTURE:AZX) ("Alexandria"), whereby Alexandria has granted the Company the option to acquire a 90% interest in the Wydee and Matachewan claims in central Ontario (collectively, the "Properties") which cover approximately 30 km of strike of the Cadillac fault system, extending west and east of the Young Davidson Gold Mine.

The western parcel, the Wydee Claims, surrounds the Historic Ashley Mine (see Prosper Gold's February 29, 2016 News Release) and covers 4,795 ha. The Matachewan Claims, 2235 Ha, are contiguous to the Eastern edge of the Young Davidson claims. The two optioned parcels are at the southwestern part of the Abitibi Greenstone Belt and the west part of the Cadillac-Larder Lake fault system. Historically the Abitibi belt produced 160 million ounces of gold with about one third from the Cadillac Larder Lake system. Visit www.ProsperGoldCorp.com for claims maps.

The Matachewan option has known gold showings, gold intersections in several drill holes, a large area of anomalously high gold-in-soil, and a three kilometer section of the Cadillac-Larder Lake covered under Cobalt Group Proterozoic sedimentary rocks.

The Wydee option has several syenite bodies that resemble the Young-Davidson host rocks. A number of syenite bodies have been identified with coincident magnetic lows and will be systematically tested.

Acquisition Highlights:

  • Large prospective area (7,030 hectares) at west of Cadillac-Larder Lake trend in two blocks straddling Young-Davidson mine
  • Wydee block surrounds the high grade Ashley Gold Mine with historic production recently optioned by Prosper Gold
  • Two styles of gold targets: high grade gold veins and bulk gold in syenite
  • Young-Davidson gold occurs in syenite: a number of untested syenite bodies are known on the claims
  • Aggressive exploration program, including drilling, planned for 2016

Pete Bernier, President and CEO, comments. "Prosper Gold has identified a regional gold target area, west and east of the producing Young Davidson Mine. We have greatly expanded our land position in the area surrounding the Ashley Gold Mine and look forward to exploring the bulk tonnage targets in the region."

The Option Agreement on the Properties calls for the Company to issue up to 750,000 Prosper Gold shares and for work expenditures totaling $5,000,000 over 5 years in order for the Company to earn a 75% interest in the Properties. Upon the Company acquiring a 75% interest in a Property, the Company and Alexandria will enter into a joint venture for the exploration and development of the Property. The Company may earn a further 15% interest in a Property upon completion of a National Instrument 43-101 resource calculation of 1.5M oz Au. Details of the Option Agreement will be available on the Company's SEDAR profile at www.sedar.com.

Qualified Person

The scientific and technical information in this news release has been reviewed by Dirk Tempelman-Kluit, PhD, P.Geo., a Qualified Person under National Instrument 43-101.

For a detailed overview of Prosper Gold please visit www.ProsperGoldCorp.com

ON BEHALF OF THE BOARD OF DIRECTORS

Peter Bernier, President & CEO

Information set forth in this news release may involve forward-looking statements under applicable securities laws. Forward-looking statements are statements that relate to future, not past, events. In this context, forward-looking statements often address expected future business and financial performance, and often contain words such as "anticipate", "believe", "plan", "estimate", "expect", and "intend", statements that an action or event "may", "might", "could", "should", or "will" be taken or occur, or other similar expressions. All statements, other than statements of historical fact, included herein including, without limitation; statements about the terms of the Option Agreement, exploration potential of the Properties and the planned exploration of the Properties are forward-looking statements. By their nature, forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or other future events, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, the following risks: the need for additional financing; the Company's ability to satisfy conditions precedent under the Option Agreement; operational risks associated with mineral exploration; fluctuations in commodity prices; title matters; environmental liability claims and insurance; reliance on key personnel; the potential for conflicts of interest among certain officers, directors or promoters with certain other projects; the absence of dividends; competition; dilution; the volatility of our common share price and volume and the additional risks identified the management discussion and analysis section of our interim and most recent annual financial statement or other reports and filings with the TSX Venture Exchange and applicable Canadian securities regulations. Forward-looking statements are made based on management's beliefs, estimates and opinions on the date that statements are made and the Company undertakes no obligation to update forward-looking statements if these beliefs, estimates and opinions or other circumstances should change, except as required by applicable securities laws. Investors are cautioned against attributing undue certainty to forward-looking statements.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information