Sanu Resources Ltd.
TSX VENTURE : SNU

Sanu Resources Ltd.

June 06, 2005 08:45 ET

Sanu Resources Ltd.: Option Agreement on Moule Gold Prospect, Burkina Faso

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - June 6, 2005) - Sanu Resources Ltd. (TSX VENTURE:SNU) (the "Company" or "Sanu") is pleased to announce that the Company has entered into an option agreement (the "Agreement") giving the Company the right to purchase 100% of the Moule gold exploration permit in Burkina Faso. The Moule permit covers an area 250 square kilometers and is controlled by a private party who is at arm's length to the Company. The Moule permit was granted in May 2005 and has a three year term with the right to renew for an additional three years.

Under the terms of the Agreement the Company is required to pay US$25,000 upon signing and make further cash payments totaling US$175,000 over a three year period. In addition, the Company will also issue an aggregate of 175,000 share purchase warrants (the "warrants"). Such warrants will be exercisable for a two-year period at market price from the date of issue on or before the first, second and third anniversaries of the Agreement. A one-time cash payment will be made one year after commercial operations have been established and is based on the proven and probable reserves defined in excess of 500,000 ounces and will be calculated at US$1.00 per ounce for any ounces between 500,000 and 1,999,999, and US$2.00 per ounce for all ounces over two million ounces. Completion of the proposed transaction is subject to the approval of the TSX Venture Exchange.

The Moule permit is situated in the Perkoa-Poura greenstone belt south of the Poura gold mine which has produced in excess of 600,000 ounces of gold. The permit has never been explored, in spite of the fact that it contains an active artisanal mining site which at its peak hosted over 3000 miners. The Moule permit is underlain by felsic to intermediate metavolcanics with major through-going pyritic shear zones.

In early September the Company will initiate a soil geochemical and regolith mapping program. This will take approximately two months to complete and based on the results additional work including trenching and drilling will be considered.

Sanu is a mineral exploration company focused on the acquisition, exploration and discovery of world-class gold and base metal deposits in Africa and is currently exploring in Eritrea and evaluating exploration opportunities in West Africa and Morocco. The Company has approximately 17.5 million shares outstanding and trades on the TSX Venture Exchange under the symbol SNU. For additional information on the Company and its exploration projects please visit our website at http://www.sanuresources.com.

The TSX Venture does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Sanu Resources Ltd.
    Michael Winn
    President
    (949) 494-6431
    or
    Sanu Resources Ltd.
    Kim Casswell
    Corporate Secretary
    (604) 688-2199
    http://www.sanuresources.com