Reservoir Capital Corp.

Reservoir Capital Corp.

October 21, 2010 07:30 ET

Reservoir Capital Corp.: Agreement Completed with Orogen to Advance Deli Jovan Gold Project in Serbia

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 21, 2010) - Reservoir Capital Corp. (TSX VENTURE:REO)(FRANKFURT:ROC)(BERLIN:ROC) ("Reservoir" or the "Company") is pleased to report that it has completed a Letter Agreement ("the Agreement") whereby Dublin-based Orogen Gold Limited ("Orogen") can earn up to a 75% interest in the Company's Deli Jovan Gold Project ("the Project") by investing $3.5 million in exploration expenditures within 42 months.

The 69 square kilometre Deli Jovan permit, located in northeast Serbia, covers an 8 kilometre trend of historic surface and underground gold workings that date back as far as Roman times. High-grade gold mineralization at Deli Jovan is hosted by mesothermal quartz veins (the "lodes") in sheared gabbros, probably of Palaeozoic age. The Company has identified three old underground workings: Rusman, Gindusa and Seliste, where mining was conducted down to the water table in the early part of the 20th Century. The Company has undertaken preliminary surface work over much of the mineralized trend and reopened, mapped and sampled the old exploration adits at Rusman and Gindusa. Chip sampling across the vein system in the Gindusa adits yielded an average 10.95 grams per tonne gold ("g/t Au") from 11 samples in the H5/6 stope area, as well as individual values as high as 209 g/t Au (see Reservoir news releases of October 9th, 2007 and April 8th, 2008 for details).

Orogen plans to commence exploration work in the coming weeks with the initial objective of exposing the lodes on surface by trenching and, after dewatering and securing access, on underground levels in the old Rusman and Gindusa mines. The mineralised lodes will then be sampled systematically throughout the accessible extent of the workings. A subsequent program to estimate Mineral Resources by exploration drilling, supported by additional underground development, will be based on the results of the sampling program, as well as detailed geological mapping and structural analysis.

Quality Control:

Dr. Duncan Large, Chartered Engineer (UK) and Eur. Geol., a Qualified Person as defined by National Instrument 43-101 and consultant to the Company, is responsible for the preparation of the technical information in this release.

About Reservoir

Reservoir is a renewable energy company, engaged in development of a 58.4MW hydroelectric project at Brodarevo in southwest Serbia. Reservoir holds four geothermal exploration licenses in Serbia and has applied for three more hydroelectric licenses on the Cehotina River in Bosnia (17.75MW) and one to develop a 32MW project from an existing dam at Vrutci in Serbia. The Company holds a portfolio of 8 precious and base metal exploration properties in Serbia, with Freeport McMoRan Exploration Corp farming into two of them. Reservoir's common shares trade on the TSX Venture Exchange (symbol "REO") and on the Frankfurt and Berlin Exchanges (symbol "ROC").

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

Contact Information

  • Reservoir Capital Corp.
    Miles Thompson
    +1 604 662-8448
    Reservoir Capital Corp.
    Chris MacIntyre
    VP Corporate Development
    +1 416 346-7660
    Reservoir Capital Corp.
    Julia Maxwell
    Investor Relations
    +1 604 662-8448
    +1 604 688-1157 (FAX)