Threegold Resources Inc.
TSX VENTURE : THG

Threegold Resources Inc.

February 02, 2011 07:30 ET

Threegold Acquires the Former Standard Gold Mine

VAL-D'OR, QUEBEC--(Marketwire - Feb. 2, 2011) - Threegold Resources Inc. ("Threegold") (TSX VENTURE:THG) is pleased to announce that it has acquired a 100% interest in the former Standard Gold Mine from Big Bang Resources Inc. ("Big Bang Resources").

The former Standard Gold Mine is located in Duverny Township some 19km northeast of the town of Amos, Québec. It lies along the projected extension of the Destor – Porcupine Fault, a major regional structure responsible for numerous gold deposits in Ontario and Quebec within the Abitibi Greenstone Belt. The Standard Gold mine operated between 1935 and 1953 producing an unreported quantity of gold. The current in-situ resource as determined in a resource evaluation by Genivar is estimated at 136,498t at a grade of 4.25g/t1. The mineralization is contained within a diorite sill trending 100-115 degrees with a width ranging between 150 to 200m. The sill has been traced through its geophysical signature over a distance of 3.0km. 

Historically, the exploration and mining activities have delineated the potential of the shear structures parallel to the dyke. The dyke also contains an important network of quartz fractures oriented perpendicular to the main veins that show potential for a large tonnage deposit. This particular context is known to occur in a variety of geological environments in the Abitibi and account for a number of significant developments made in recent years, namely at Agnico-Eagle's Goldex operation, at Gold Bullion Development's Granada project and at Clifton Star's Beattie project, also located on the Destor – Porcupine Fault.

Threegold is pleased with this new acquisition since it contributes to the plan set forth in 2010 aimed at strengthening the gold portfolio. Victor Goncalves, President and CEO quotes : "This recent acquisition is a prime example of the kind of projects that Threegold intends in developing, a highly prospective target combined with a new exploration model".

According to the terms of the agreement, Threegold has acquired a 100% interest in the Standard Gold Property by issuing 1.5M common shares and making a $20,000 cash payment, subject to regulatory approvals. The agreement provides for a potential adjustment to the purchase price and five (5) additional payments of 940,000 common shares will be made to Big Bang Resources on a yearly basis along with additional cash payments of $25,000, $30,000, $50,000, $60,000 and $100,000 at the respective anniversary dates, provided that certain conditions are met.

Letter of Intent with Agnico-Eagle Mines Ltd.

Big Bang Resources and Agnico-Eagle Mines Ltd. ("Agnico-Eagle") have signed a non-binding letter of intent on December 23, 2010, whereby the later could earn a 51% in the project by incurring a total of 4M$ in exploration and making payments of $285,000. 

Amendment to the Shinning Tree Agreement

Threegold announces that it has proceeded with an adjustment to the acquisition price of the Shinning Tree Property announced October 20, 2010 and accordingly, will issue an additional 166,667 shares to the seller. This amendment is subject to regulatory approval.

This press release was prepared by Antoine Fournier, P. Geo, vice-president exploration for Threegold Resources Inc. and a Qualified Person as defined by NI43-101.

[1]The potential quantity and grade of gold on the Standard Gold property is conceptual in nature. Exploration to date is insufficient to define a mineral resource and it is uncertain if further exploration will result in the discovery of a mineral resource.

ABOUT THREEGOLD

Threegold Resources is actively pursuing gold discoveries on three projects in prolific mining and exploration camps in Ontario and Québec. The 100% owned Adanac project is immediately adjacent to Gold Bullion's Granada discovery and west of Osisko's 12M ounce deposit on the Abitibi belt. The South Bay Project has yielded a significant surface discovery near Val-d'Or and the Company has recently acquired land in the Shining Tree Camp on the western extension of the Cadillac–Larder Lake Fault Zone. Management is evaluating opportunities to create shareholder value with its recent Rare Earth Element discovery and its Base Metal project in the Gaspé Peninsula.

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.

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.

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