FLAGSTAFF, AZ, May 5 /PRNewswire-FirstCall/ - Q-Gold Resources
Ltd. (TSXV: QGR) ("Q-Gold") (http://www.qgoldresources.com)
announced today that it has entered a Mining Option Agreement with
Cavan Ventures Inc. (TSXV: CVN) ("Cavan")
(http://www.cavanventures.com) whereby Cavan has obtained a 18-month option to earn a
65% participating interest in a prospective Arizona silver joint venture with
Q-Gold. The joint venture will contain Q-Gold's holdings of 3
patented historic silver mines and 22 adjoining U.S. Bureau of Land
Management ("BLM") mining claims in the Peck Mining District of
Yavapai County, Arizona, totalling
484 acres. The Peck District is famous for its historic
high-grade silver production, having produced an "official"
1,374,000 ounces from 1875 to 1910.
By meeting its obligations in U.S. Dollars
during the 18-month Option Period, including cash payments to
Q-Gold of $275,000, work expenditures
of $1,000,000 and issuance of
Cavan shares to Q-Gold worth
$300,000, Cavan will earn a 65% participating interest
in the Joint Venture. During the Option Period, Q-Gold will
be Operator for the undertaking.
As noted above, the joint venture area contains
3 high-grade historic silver mines and a number of BLM claims
highly prospective for silver, yet it has never experienced modern
mining exploration techniques. Therefore, the venture will
initially launch a helicopter-based VTEM / Magnetic airborne
geophysical survey which will attempt to delineate anomalies which
will indicate potential remaining ore bodies and possible drilling
sites within the complex.
Q-Gold CEO John
Campbell remarked "With silver prices at recent record
highs, I look forward to initiating modern joint exploration
activities this summer with Cavan
at Crown King, in the historic
silver-producing Peck Mining District of Arizona."
The historical references contained in this
release have been examined by a qualified person under NI 43-101
but have not been verified and therefore cannot be relied on for
any purpose. Brian A. Beck, PG
a qualified person under NI 43-101 has reviewed and approved the
technical content of this release.
The mining Option Agreement is subject to the
approval of the TSX-Venture Exchange.
About Q-Gold Resources Ltd.
Q-Gold is a Canadian-based mineral exploration company currently
exploring for precious and base metals on its Ontario holdings in the historic Gold Camp at
Mine Centre, including 5 historic
gold mines. In addition, the Corporation holds options on historic
gold and silver mines in the historic Arizona gold camp of Crown King, and copper prospects in eastern
and western Arizona.
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. 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
SOURCE Q-Gold Resources Ltd.