Nevada Gold

Summary: Phoenix matachewan Mines Inc. announced that it has entered into an option agreement with Golden Gryphon Explorations Inc., of the Bottle Creek epithermal gold-silver property in Humboldt County, Nevada.

Phoenix Matachewan Mines Inc. (“Phoenix”) announces today it has entered into an option agreement with Golden Gryphon Explorations Inc. (“GGE”) a private company incorporated in British Columbia with head office in Roberts Creek, British Columbia whereby the Company has the option to earn 60% of the Bottle Creek epithermal gold-silver property in Humboldt County, Nevada.

The property is located in the Bottle Creek mercury district of northwestern Nevada, approximately 250km northeast of Reno. The core of the Bottle Creek system lies beneath past producing, high-grade mercury mines that are interpreted to be the surface manifestation of a mineralizing system capable of depositing gold and silver as well. Gold and silver exploration in the area dates from 1982 when the area was worked for both Carlin-type disseminated gold mineralization and low-sulphidation epithermal mineralization at shallow depths. Results of historical and current work indicate that the region displays widespread anomalous gold, silver, selenium, antimony, arsenic and mercury and low molybdenum, copper lead and zinc content – this coupled with altered rhyolite and basalt host rocks suggests that Bottle Creek fits into a distinct class of epithermal gold mineralization that includes the Ken Snyder (2.39 M oz gold), Mule Canyon (1.43 M oz gold) and Sleeper (1.68 M oz gold) deposits.

The Sleeper Deposit, located 21km east of the Bottle Creek district, exhibits the same host stratigraphy, displays similar geochemical anomalies, structural controls, vein, breccia and stockwork mineralization as encountered at Bottle Creek. Sleeper contained bonanza veins grading up to 160opt Au as well as stockwork ore generally grading less than 0.1opt Au.

Subject to PMM satisfactorily completing due diligence within 45 days the terms of the agreement stipulate that PMM can earn a 60% interest in the project by spending $US 2 million on exploration of GGE’s land position over three years and paying GGE $US 450,000 before the third anniversary. The current land position encompasses 15.95 km²and consists of 197 claims, 53 of which were vended to GGE. Prior to earn-in, PMM will be responsible for maintaining the claim group in good standing including meeting the terms and conditions of the underlying agreement between GGE and the vendors of the 53 claim block. Prior land costs incurred by GGE, specifically 50% of the fall 2004 Bureau of Land Management and county claim maintenance costs and the recording costs for a block of 60 claims recorded in December of 2004 will be reimbursed by PMM upon signing a definitive agreement. Exploration will begin immediately, under the option, GGE will be operator of the project until such time as PMM becomes vested with a 60% participating interest.

Paul Jones, P. Geo., President of Phoenix, is the Qualified Person responsible for the work programmes.

For further information, please contact:

Robin B. Dow, CEO

1-888-834-7708
email: robin@ppau.ca

Or BAY STREET CONNECT:

Gus Garisto or Jonathan Buick

1-416-907-0979

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Search our news archive

More news

All the latest headlines can be found on our OttawaStart Community News page.
Older headlines can be found in our
Community News Archive...

Subscribe to OttawaStart Community News

Subscribe to our Community News feed to get updates whenever a new headline is published.

Subscribe via RSS

Subscribe via Twitter

Subscribe via email

Add your community news

As a community service, OttawaStart is pleased to offer free Press Release and Community Event Listings. This free, self-serve tool is available to all local organizations, businesses, and individuals.
It's free to set up an account and start posting your news and event listings. Click here to sign up!

Add your news

As a community service, OttawaStart is pleased to offer community news and event listings. This free, self-serve tool is available to all local organizations, businesses, and individuals.

Click here to sign up and start posting your news & events...

The latest from our blog

News and notes from the editors of OttawaStart.

Related: 30 Best Ottawa Blogs...

Follow us: @ottawastart
More: Ottawa Twitter Guide...

Local topics

Quick Links

Partner Links