SOURCE: Tri-Valley Corporation

December 15, 2005 11:23 ET

Tri-Valley Transfers Richardson Gold Claims to Its Subsidiary, Select Resources

BAKERSFIELD, CA -- (MARKET WIRE) -- December 15, 2005 -- Tri-Valley Corporation (AMEX: TIV) will transfer its Richardson, Alaska gold exploration project claims into its wholly owned subsidiary, Select Resources Corporation. With the recent buyout of royalty burdens on the primary claims, the transfer will enable Select to arrange the financing to advance its portfolio of gold exploration projects in Alaska and the Klondike area of the Canadian Yukon territories.

"This aligns Select, as our operating subsidiary in the mineral sector, with ownership of our mining interests in the same way our petroleum operating subsidiary, Tri-Valley Oil & Gas Co., owns all of our petroleum interests. As a discreet gold play, the street is better able to relate to our mineral ventures and finance houses and major mining companies can more easily evaluate the projects for participation," said F. Lynn Blystone, president and chief executive officer.

Some 65 miles south of Fairbanks on the all year Richardson Highway, the entire 42 square mile claim block is on mining friendly State of Alaska lands. The database includes physical gold in samples at 60 locations along a 20-mile swath which the Company's technical staff believes suggests the possibility of a very large system. Recent interpretations also suggest the Richardson claim area may be an offset of the Pogo Gold deposit trend which has been relocated by movement along the Shaw Creek fault.

The claims are not in a wild or scenic area, do not drain into sensitive streams and have no acid rock characteristics according to numerous surveys and bulk sampling since 1987. A power line runs through the claim block and ample water and fuel are available and is within commuting distance of work force and equipment depot towns.

Numerous large drill targets have been identified by prospecting, soil auger and geochem surveys, stream sediment sampling and trenching suggesting a district size play. The Company has drilled the Democrat Dike area which contains coarse, free milling gold to begin to measure the resource. A drilling and sampling program conducted last summer suggests that the Democrat Dike may be a much larger structure than previously thought and will be further tested to confirm that as well as if it contains more gold.

"With the strong price appreciation of gold we believe the Richardson property is achieving special value because of its low cost accessibility and multiple large targets. Given the extensive database we have developed, we believe the timing is right to obtain financing to advance this and other gold exploration projects underway. The transfer of this property into our mining subsidiary is the last step before we go to the street for further development funding," Blystone said.

Over the last three years, the Company paid out 480,000 shares of its unregistered restricted stock and took a $3,715,500 charge to earnings to buy out various royalty burdens to clear the property. At today's gold prices this equates to less than 7,400 ounces of gold so Tri-Valley believes it has invested well for the shareholders to enable the property to be advanced.

Select has the Shorty Creek gold project some 70 miles north of Fairbanks off the all weather Elliot Highway which has favorable gold anomaly results from last summer's prospecting and the Typhoon Prospect in the eastern Klondike area of the Canadian Yukon territory. All properties are within the Tintina Gold Belt, a region bounded on the north by the massive Tintina fault along which numerous placer mines have yielded tens of millions of ounces and now hard rock mines are beginning to be found with modern technology to assist penetration of the musky covered ground.

This press release contains forward-looking statements that involve risks and uncertainties. Actual results, events and performance could vary materially from those contemplated by these forward-looking statements which includes such words and phrases as exploratory, wildcat, prospect, speculates, unproved, prospective, very large, expect, potential, etc. Among the factors that could cause actual results, events and performance to differ materially are risks and uncertainties discussed in the company's quarterly report on Form 10-Q for the quarter ended September 30, 2005, and the annual report on Form 10-K for the year ended December 31, 2004.

The Company is in its 43rd year of business as a successful operating company and for 32 years has been a full reporting 12 (g) publicly traded Delaware Corporation. Tri-Valley Corporation stock is publicly traded on the American Stock Exchange under the symbol "TIV" in the United States and is also traded in Europe on the Frankfurt Stock Exchange under the symbol "TVC WKN 911919." Our company websites, which include all SEC filings, are www.tri-valleycorp.com and www.tri-valley.de.

Contact Information

  • Contact:
    F. Lynn Blystone
    President & CEO
    Tri-Valley Corporation
    800-579-9314