ROSCAN MINERALS CORPORATION
TSX VENTURE : ROS

March 24, 2011 16:32 ET

Roscan Announces Amendment of Option on the Golden Mile Property

TORONTO, ONTARIO--(Marketwire - March 24, 2011) -

THIS PRESS RELEASE IS NOT FOR DISTRIBUTION TO ANY U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES OF AMERICA.

Roscan Minerals Corporation ("Roscan") (TSX VENTURE:ROS) announces, further to its press release of July 15, 2010, that it has signed an assignment and novation agreement (the "Agreement") with Portage Minerals Inc. ("Portage") and Columbus Gold (US) Corp. ("Columbus Gold") with respect to an option to earn a 70% interest in 5 patented and 19 unpatented mineral leases in Mineral County, Nevada (the "Golden Mile Property"). Roscan has agreed to issue 100,000 common shares to Columbus in connection with the Agreement.

Pursuant to the Agreement, Columbus Gold has agreed to the assignment of the option from Portage to Roscan, provided that Roscan initiates a diamond drill program on the Golden Mile Property on or before March 31, 2011.

The Golden Mile Property consists of 24 mineral claims which are, in part, subject to underlying annual lease payments and net smelter return royalties. The claims cover approximately 154 hectares (380 acres), along the Walker Lane Gold Trend in Southwest Nevada. During the 1930's the property produced approximately ten thousand tonnes of ore grading 12 g/t (0.42 oz/t) gold. Geophysical surveys and drilling carried out in the 1970's, 1980's and by Columbus Gold in 2006, defined skarn, breccia and disseminated gold mineralization. The drilling includes several high grade gold intercepts, including one intercept of 16 g/t (0.56 oz/t) gold along 29.5 m (96.8 ft), which occur within a broad area of lower grade gold mineralization. The historic data was compiled pre National Instrument 43-101 reporting.

In order for Roscan to acquire the option, it must: (i) issue 100,000 common shares of Roscan to Portage; (ii) make $300,000 of exploration expenditures on the Golden Mile Property by August 31, 2011; and (iii) pay all fees or costs associated with the Golden Mile Property that become due after August 31, 2010. Portage has agreed to forego a US$20,000 payment in consideration of Roscan making US$59,843 of underlying lease payments with respect to the Golden Mile Property. In conjunction with acquiring the option, Roscan must incur a total of US$2,500,000 in exploration expenditures on the Golden Mile Property before December 31, 2013 and issue a further 300,000 common shares of Roscan to Columbus Gold, in order to earn its initial 60% interest in the Golden Mile Property. Roscan may earn an additional 10% interest (for a total of 70%) by completing a positive feasibility study on the Golden Mile Property.

The entering into of the agreement and the issuance of the 400,000 common shares of Roscan in connection therewith was approved by the TSX Venture Exchange (the "TSXV") on November 9, 2010, however the issuance of 100,000 common shares to Columbus Gold in connection with the Agreement is subject to TSXV approval.

This news release may contain assumptions, estimates, and other forward-looking statements regarding future events. Such forward-looking statements involve inherent risks and uncertainties and are subject to factors, many of which are beyond the Company's control that may cause actual results or performance to differ materially from those currently anticipated in such statements. Such forward-looking statements include comments regarding acquisitions, mineral resource statements and exploration program performance.

Shares Outstanding: 26,699,575

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

Contact Information

  • Roscan Minerals Corporation
    Don Whalen
    Director
    (416) 293-8437
    (416) 293-3957 (FAX)
    or
    Roscan Minerals Corporation
    Mark McMurdie
    CFO
    (416) 293-8437
    (416) 293-3957 (FAX)
    info@roscan.ca