LAS VEGAS, March 30, 2011 /PRNewswire/ -- Patriot Gold
Corporation (OTC: PGOL) (Patriot) is pleased to announce that the
Company has entered into an agreement to advance the Moss Mine
project through an aggressive exploration and development program,
leading to commercial production if certain milestones and
requirements are achieved.
Northern Vertex (NEE - TSX Venture) has the right to earn an
undivided 70% interest in the Moss Mine gold/silver property,
subject to the terms of the Exploration and Option Agreement which
are summarized as follows:
Patriot was paid US$500,000 upon
execution of the agreement. Northern Vertex must spend an aggregate
total of US$8 million on exploration
and related expenditures over the next five years. Subsequent
to exercise of the earn-in, Northern Vertex and Patriot will form a
70/30 joint venture. Financing of future work on the property
will be on a proportional basis under the direction of a management
committee with voting rights proportional to ownership percentage.
Either party may be diluted on the basis of a standard formula if
they do not contribute to the planned programs. If either party is
diluted below 10 percent, their interest will convert to a three
percent NSR (net smelter return) royalty. An existing 3-3.5 percent
NSR exists on the Moss Mine property.
"On behalf of Patriot shareholders, I am very pleased to have
been able to bring this agreement together," said Robert Coale, President of Patriot. "Our
committed shareholders have looked forward to the day when the Moss
Mine project might be brought into commercial production, and this
agreement is a giant leap forward in realizing that objective.
Northern Vertex can apply the technical resources to this project
which are needed to rapidly advance a production decision. Their
technical team is experienced and very capable, and I think that
speaks volumes as to the merits of Moss."
Patriot has been advancing its 100% owned Moss Mine project for
the past 7 years. Patriot acquired the surface and mineral rights
to the property, comprising of 104 unpatented claims and 15
patented claims for over 2200 acres, in a series of transactions
from 2004 through 2009. 305 drill holes have been drilled in the
property for a total of 54,390 feet. The results of this and
previous work show typical grades of 0.015 oz/ton to 0.088 oz/ton
gold equivalent. Gold equivalents use a 1:60 gold:silver ratio.
Mineralization is contained within a steep to moderate dipping
vein and vein stockwork system in true widths up to 45 feet.
Drilling has defined mineralization along a strike of 5,000 feet
and an average depth of near 200 feet (limited drilling has traced
mineralization to 800 feet). Mineralization is open to depth and
along strike.
Based on the results to date, Patriot believes the Moss Mine
project has the potential for an economic resource of leachable
gold and silver in the order of one million ounces of gold
equivalent. There is no assurance that further exploration will
result in the discovery of an economic mineral resource. A
non-compliant NI 43-101 resource has been calculated and work has
been initiated to confirm the resource and bring it into NI 43-101
compliance.
A drilling campaign consisting of approximately 55 drill holes
has been tentatively scheduled to occur over the next several
months. Simultaneously, Northern Vertex will conduct hydrology,
geophysical, and environmental studies and initiate permitting
work, all aimed to advance a production decision.
Disclaimer: This announcement may contain forward-looking
statements which involve risks and uncertainties that include,
among others, limited operating history, limited access to
operating capital, factors detailed in the accuracy of geological
and geophysical results including drilling and assay reports; the
ability to close the acquisition of mineral exploration properties,
and other factors which may cause the actual results, performance
or achievements of the company to be materially different from any
future results, performance or achievements expressed or implied by
such forward-looking statements. More information is included in
the company's filings with the Securities and Exchange Commission,
and may be accessed through the SEC's website at
http://www.sec.gov.
Contact:
Investor Relations
1-866-998-4223
1-702-456-9565
www.patriotgoldcorp.com
SOURCE Patriot Gold Corporation