VANCOUVER, BRITISH COLUMBIA – July 26, 2011 – La Ronge Gold Corp. –
- More than one hundred gold showings, 12 deposits and four producing mines in the La Ronge Gold Belt
- Previous geological reconnaissance work has returned gold values up to 18.8 g/t
- Gold deposit settings resemble Hemlo (22M oz. gold) and Eleonore (9M oz. gold) styles
- Defined 33km long gold-bearing horizon
- Remains a relatively unexplored gold belt
- Gold occurs as fine native gold grains in the neighbouring Greywacke Deposit
- All-weather-road provides access to projects
La Ronge Gold Corp. (TSX VENTURE:LAR) (the “Company”) is pleased to announce optioning the Cuchon Bay and Stewart River properties (Greywacke Project) located in the La Ronge Gold Belt in northern Saskatchewan. Please refer to the location map which is available by clicking the follwing link: http://larongegold.ca/projects/greywacke/GreyWackeLocationMap.pdf.
Terms of the Agreement are as follows:
- $10,000 in cash upon signing and an additional $5,000 payment by August 31, 2011.
- Issuance of 150,000 shares in La Ronge Gold Corp. (LRGC) within 10 days of TSX approval of the Agreement and an additional 150,000 shares by August 31, 2011.
- Four years of contract work for a total of $100,000.
- The Optionor shall retain a 1.5% NSR Royalty with a buyout right to LRGC of $1,000,000.
- LRGC will incur total cumulative exploration/development expenditures of $700,000 on the project over five years.
The project contains 6,415 hectares that cover a defined 33km long, highly-prospective gold-bearing structural/stratigraphic horizon known as the “Wacke Gold Trend”. The Greywacke gold trend along with more than one hundred gold showings, 12 gold deposits, and 4 producing mines are located in the La Ronge Gold belt in northern Saskatchewan. Companies involved in exploration in this productive belt included Placer Dome, Cameco, Shore Gold, Cominco and neighbouring Golden Band Resource, which recently commenced commercial gold production. The project is contiguous along trend of the Golden Band Resources/Marsuparia Gold Greywacke project, which has returned the following values in various drill holes:
|Golden Band Resources/Marsuparia Greywacke Project Drilling Results|
|Grams per tonne Gold (g/t Au)||Length of Interception–Metres (m)|
|8.3 g/t Au||26.64 m|
|9.14 g/t Au||19.84 m|
|23.98 g/t Au||6.31 m|
|18.03 g/t Au||5.29 m|
|18.93 g/t Au||4.89 m|
Greywacke gold deposit along with than one hundred gold showings, 12 gold deposits, and 4 producing mines are situated at the contact between two regional lithological domains mapped by the Saskatchewan Geological Survey named the McLennan Arkose and the McLean Gneiss complexes. The Cuchon Bay and Stewart River projects are located to the north and south of and along trend from the Greywacke Project. Cameco discovered the Greywacke deposit in 1988 during regional prospecting and litho-geochem sampling. The discovery outcrop returned a channel sample grading 31 grams/tonne gold (0.9 ounces per ton) over 7.5m.
At the Greywacke deposit, gold occurs as fine native gold grains within a complex and variable sequence of sediments (arenites) and volcanic tuffs in association with minor sulphides and spalerite/gaunite minerals.
The Greywacke trend lithologies average between 100m and 200m in width and have a regional strike extent of greater than 50kms. Previous geological reconnaissance work on the current claims area defined anomalous gold values up to 18.8 grams/ton Au with anomalous zinc values within a greywacke host-rock setting. The Geological Survey of Canada studied the deposit in detail (1994) and placed it in the 22M oz. Hemlo style of gold deposit settings. The Greywacke gold setting is also very strongly comparable in its geological and structural characteristics with Goldcorp’s 9M oz. Eleonore deposit in Quebec. LRGC’s Greywacke gold trend in northern Saskatchewan was left unexplored due to the lack of recognition of this unique and high potential type of gold prospect and the significant geological model which generated the greywacke high-grade gold occurrences.
LRGC’s President and CEO, Rasool Mahammad, states, “We are positioning ourselves in a mining-friendly jurisdiction of the country where a trained workforce is available. The La Ronge gold belt offers a unique opportunity where we can acquire large-scale projects at reasonable prices and explore for world-class deposits.”
Keith Metcalfe P.Geo., P.Eng., has reviewed the technical information in this news release.
La Ronge Gold Corp. is a gold exploration company focusing on the exploration of gold projects in Canada. The Company also holds other gold projects located in Ontario, Canada.
The statements made in this Press Release may contain forward-looking statements that may involve a number of risks and uncertainties. Actual events or results could differ materially from the Company’s expectations and projections.
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this news release.
President & CEO
La Ronge Gold Corp.
(604) 685-3764 (FAX)