Thursday, March 29, 2010
TSX Venture Symbol: DAU
Option Agreement in Guinea
Vancouver, B.C. -- Further to its news release of October 14, 2009, Desert Gold Ventures Inc. (“Desert Gold” or the “Company”) is pleased to announce that it has finalized the Option Agreement with SM/HM Guinea SARL, a company registered in Guinea, Conakry whereby it can earn up to an undivided 70% interest in the Kan Kan gold concession (68 sq. km) ,the Kai Mining Concession (Northern Block, Block5 and Block 13)as well as the Macenta diamond concession (24 sq. km). The Company is required to spend a total of CAD$1,000,000 over four (4) years in expenditures commencing not later than May 1, 2010 as well as make cash payments of CAD$150,000 over the next two (2) years in four (4) equal payments of CAD$37,500 commencing 28 days after receiving board and regulatory approval.
Kai Mining Limited („Kai‟) holds three Exploration Permits covering a total area of approximately 565 square kilometers overlying Birimian greenstones in north east Guinea. Birimian rocks elsewhere in West Africa are host to many world-class gold deposits and are considered to be one of the world‟s most prospective exploration terrains. The Kai permits lie between 10 and 70 kilometers from major producing mines at Lefa (Crew Gold) and Siguiri (AngloGold) which have published measured and indicated resources of 4.2 and 5.0 million ounces respectively.
The region was covered by regional geology and geophysics by the German State (BGR). Preliminary reconnaissance of Block 5 in 2004 identified artisan gold production exploiting thin gravels along two creeks totaling about 5 kilometers. Historical assay results returned gold values of up to 1.99g/t Au in boulders that appear to be locally derived and up to 4.8 g/t Au in outcropping narrow quartz veins.
Deep overburden auger sampling by Crew Gold has identified two broad anomalous geochemical belts, the Kobedare and Dala Oulen trends. These belts are defined by numerous results in excess of 200ppb and are oriented ESE towards Kai‟s Bloc 5 which lies on the immediate strike continuation of the belts.
“The Company is developing its acquisition strategy to substantially increase its resource base, and will soon start making preparations to mobilize a geological and support team on the ground in Guinea. Many large International Mining companies are currently mining significant ore from their Guinean projects. Sonongol (Angolan state company) has also done a joint venture with the Guinean government to develop the hydro carbon economy so we feel that as a company with very attractive concessions we are definitely in the right position to benefit from these acquisitions of the Kan Kan and Kai properties which will substantially increase our potential resource base,” says Chairman Ayub Khan.
As the current data compiled on these properties is derived from state and engineering reports, none of the above properties have been the subject of a National Instrument 43-101 Technical Report.
On Behalf of the Board of Directors:
“Ayub Khan”
Ayub Khan, Chairman
For further information on Desert Gold Ventures Inc. please visit our website at:
www.desertgold.ca
This release includes certain statements that may be deemed to be "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. All statements in this release, other than statements of historical facts, that address future production, reserve potential, exploration and development activities and events or developments that the Company expects, are forward looking statements. Although management believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance, and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploration and development successes, continued availability of capital and financing, and general economic, market or business conditions. Please see our public filings at www.sedar.com for further information.
THE TSX VENTURE EXCHANGE DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE
|
|
